Key benchmark indices strengthened in afternoon trade, with the 50-unit CNX Nifty hitting fresh intraday high. Domestic bourses were boosted by strong global cues and as trading in US index futures indicated a firm opening of US stocks later in the global day. The barometer index, the S&P BSE Sensex hovered above the psychological 27,000 level which it had attained in early trade. The Sensex was currently up 286.14 points or 1.06% at 27,194.96. The market breadth indicating the overall health of the market was strong with almost three gainers for every loser on BSE.
Index heavyweight and cigarette major ITC extended intraday gains. FMCG shares were in demand on renewed buying. Shares of biscuits major Britannia Industries reversed direction after scaling record high. Among side counters Bajaj Corp and Credit Analysis and Research scaled record high. Shares of public sector oil marketing companies edged higher following a recent slump in crude oil prices. Shares of paint makers gained following a recent slump in crude oil prices with shares of Kansai Nerolac Paints and Berger Paints (India) scaling record high.
Foreign portfolio investors sold shares worth a net Rs 1073.18 crore yesterday, 7 January 2015, as per provisional data.
In overseas markets, Asian equity markets were higher today, 8 January 2015 as concerns over Greece's potential departure from the euro zone abated, while a positive finish on Wall Street overnight lifted trading sentiment.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude futures edged lower in choppy trade today, 8 January 2015.
At 13:15 IST, the S&P BSE Sensex was up 286.14 points or 1.06% at 27,194.96. The index surged 341.06 points at the day's high of 27,249.88 in early trade, its highest level since 6 January 2015. The index rose 193.12 points at the day's low of 27,101.94 in morning trade.
The CNX Nifty was up 97.20 points or 1.2% at 8,199.30. The index hit a high of 8,210.50 in intraday trade, its highest level since 6 January 2015. The index hit a low of 8,167.30 in intraday trade.
The BSE Mid-Cap index was up 169.46 points or 1.66% at 10,404.01. The BSE Small-Cap index was up 200.53 points or 1.82% at 11,189.52. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong with almost three gainers for every loser. On BSE, 1,922 shares advanced and 671 shares declined. A total of 88 shares were unchanged.
The total turnover on BSE amounted to Rs 1936 crore by 13:15 IST.
Index heavyweight and cigarette major ITC rose 1.99% to Rs 360.55. The stock extended intraday gains. The stock hit a high of Rs 360.80 and low of Rs 355.25 so far during the day.
FMCG shares were in demand on renewed buying. Colgate-Palmolive (India) (up 2.87%), Dabur India (up 0.2%), Godrej Consumer Products (up 3.58%), Hindustan Unilever (up 2.36%), Nestle India (up 0.6%) and Tata Global Beverages (up 3.04%) gained. Marico shed 0.32%.
Shares of biscuits major Britannia Industries fell 1.3% to Rs 1,974.80. The stock reversed direction after scaling record high of Rs 2,018.95 in intraday trade.
Bajaj Corp advanced 2.5% to Rs 416 after scaling record high of Rs 420.70 in intraday trade.
Shares of public sector oil marketing companies edged higher following a recent slump in crude oil prices.
BPCL (up 4.42%), HPCL (up 3.99%) and Indian Oil Corporation (up 2.48%) edged higher.
Brent crude futures declined sharply in the past few trading sessions to settle at $51.10 a barrel on Tuesday, 6 January 2015, its lowest settlement since April 2009.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports of crude oil for PSU OMCs.
PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.
Shares of paint makers gained following a recent slump in crude oil prices. Berger Paints (India) (up 7.27%), Shalimar Paints (up 2.43%), Asian Paints (up 3.03%) and Akzo Nobel India (up 1.86%) edged higher.
Kansai Nerolac Paints advanced 4.35% to Rs 2,096.10 after scaling record high of Rs 2,129.80 in intraday trade.
Berger Paints (India) jumped 7.29% to Rs 233.50 after scaling record high of Rs 239.80 in intraday trade. Shares of the company have turned 2-for-1 ex-split today, 8 January 2015.
Falling crude oil prices augur well for paints makers. Titanium dioxide, a key raw material for paint companies, is derived from crude oil.
Ashok Leyland gained 2.93% to Rs 61.40 after scaling a record high of Rs 62 in intraday trade.
Credit Analysis and Research advanced 4.26% to Rs 1,679.95 after scaling a record high of Rs 1,705.35 in intraday trade.
On the macro front, data to be released in near future is expected to show industrial production growth remaining muted in November 2014 and consumer price inflation accelerating in December 2014. Industrial production is seen rising 1.6% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for November 2014 after trading hours on Monday, 12 January 2015. Industrial production had witnessed a surprise contraction of 4.2% in October 2014.
The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.4% in December 2014 from 4.4% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the data on CPI inflation for December 2014 after trading hours on Monday, 12 January 2015.
The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band.
The rate of inflation based the wholesale price index (WPI) is projected at 0.5% for December 2014, as per the median estimate of a poll of economist carried out by Capital Market. WPI inflation stood at zero in November 2014. The government will release data on WPI for December 2014 at 12 noon on 14 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.9, compared with its close of 63.18 during the previous trading session.
Brent crude futures edged lower in choppy trade today, 8 January 2015. Brent for February settlement was off 22 cents at $50.93 a barrel. The contract had advanced 5 cents to settle at $51.15 a barrel during the previous trading session.
Asian equity markets were higher today, 8 January 2015 as concerns over Greece's potential departure the euro zone abated, while a positive finish on Wall Street overnight lifted trading sentiment. Key indices in Hong Kong, Japan, Singapore, Taiwan, South Korea, and Indonesia were up 0.23% to 1.74%. In China, the Shanghai Composite was off 2.39%.
Trading in US index futures indicated that the Dow could gain 126 points at the opening bell today, 8 January 2015. US stocks surged yesterday, 7 January 2015, with the S&P 500 rebounding from a five-session dive, as US crude stopped a four-day skid and Germany left the door open to discussing options with Greece's next government on its debt. Federal Reserve policymakers said they could begin raising interest rates before inflation starts to pick up, according to minutes of their meeting on 17 and 18 December 2014. However, the Fed officials added that "they would want to be reasonably confident that inflation will move back" toward the Fed's annual 2% target "over time".
US private sector employment gains accelerated in December as employers added 241,000 jobs, Automatic Data Processing Inc. reported yesterday, 7 January 2015. ADP revised November's gain to 227,000 from a prior estimate of 208,000.
The US Labor Department reports monthly payroll data for December 2014 tomorrow, 9 January 2015.
In Europe, German manufacturing orders fell sharply in monthly terms in November, data from the country's economy ministry showed today, 8 January 2015 reversing a strong growth pace in the previous month. New orders in November were down 2.4% in adjusted terms. The October growth figure was revised upwards to 2.9% versus the 2.5% growth originally reported.
Meanwhile, the uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country later this month. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.
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