Indian stocks edged higher as investors bet Prime Minister Narendra Modi will accelerate policy measures to boost economic growth after the Bharatiya Janata Party (BJP) was trounced in assembly election in Delhi yesterday, 10 February 2015. Key indices remained in positive terrain throughout the trading session. The barometer index, the S&P BSE Sensex, was provisionally up 209.67 points or 0.74% at 28,565.29. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index was up 1.55%. The BSE Small-Cap index was up 1.47%. Both theses indices outperformed the Sensex.
The BJP was trounced in assembly election in Delhi yesterday, 10 February 2015. The Aam Aadmi Party won 67 of 70 seats. The BJP won a mere 3 seats. The counting of votes for assembly election in Delhi was completed in a single day yesterday, 10 February 2015, after single-day polling on 7 February 2015.
Capital goods stocks rose. Index heavyweights Reliance Industries (RIL), ICICI Bank and L&T gained.
Foreign portfolio investors sold shares worth a net Rs 1261.19 crore yesterday, 10 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 851.32 crore yesterday, 10 February 2015, as per provisional data.
In overseas markets, European stocks edged lower, with investors awaiting a crunch meeting on the future of financial aid to Greece. Asian stocks edged higher, taking cues from overnight rally in US stocks. US stocks rose yesterday, 10 February 2015, buoyed by hopes for a deal between Greece and its international creditors.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged higher in volatile trade ahead of the release of the US weekly oil inventory data from the US Energy Information Administration later in the global day.
Key indices edged higher for the second day in a row today, 11 February 2015.
As per provisional figures, the S&P BSE Sensex was up 209.67 points or 0.74% at 28,565.29. The index jumped 263.29 points at the day's high of 28,618.91 in afternoon trade. The index gained 68.77 points at the day's low of 28,424.39 in mid-morning trade.
The CNX Nifty was up 61.85 points or 0.72% at 8,627.40, per provisional figures. The index hit a high of 8,651.95 in intraday trade, its highest level since 6 February 2015. The index hit a low of 8,593.65 in intraday trade.
The BSE Mid-Cap index was up 161.35 points or 1.55% at 10,543.11. The BSE Small-Cap index was up 160.38 points or 1.47% at 11,059.39. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3249 crore, lower than turnover of Rs 3883.69 crore during the previous trading session.
The market breadth indicating the overall health of the market was strong. On BSE, 1,726 shares rose and 1,074 shares fell. A total of 108 shares were unchanged.
ICICI Bank rose 1.18% to Rs 334.95. The stock hit high of Rs 339.90 and low of Rs 333.50.
Index heavyweight Reliance Industries (RIL) gained 1.98% to Rs 900.20. The stock hit high of Rs 904.20 and low of Rs 883.65.
Capital goods stocks rose. Alstom India (up 2.79%), BEML (up 11.48%), Crompton Greaves (up 4.62%) and Siemens (up 2.87%) gained. Bharat Heavy Electricals (Bhel) fell 2.49%.
L&T (up 2.22%), Tata Power Company (up 0.8%), Bharat Electronics (up 4.75%) and Rolta India (up 6.31%) gained. The government is reportedly poised to award its first 'make' contract, in which the Ministry of Defence (MoD) will fund two Indian consortia in developing a Rs 40000-50000 crore 'battlefield management system' (BMS). This digital wireless network will interlink soldiers and battlefield sensors through voice and data channels, providing a common battle picture to each jawan.
The MoD has selected two consortia from the dozen companies invited to bid in November 2013. One is a consortium between L&T and Tata Power, and the other between Rolta India and Bharat Electronics. These winners - termed development agencies - could be announced any day, report said. Under the 'make' category of the Defence Procurement Policy of 2013 (DPP-2013), both consortia will develop separate prototype BMS systems, with the MoD reimbursing 80% of the expenditure. A special MoD 'integrated project management team' (IPMT) will select the better prototype, and both consortia will then bid for the contract to mass-produce the BMS for the military.
JK Paper jumped 6.51% after the company reported net profit of Rs 11.40 crore in Q3 December 2014, as compared to net loss of Rs 39.38 crore in Q3 December 2013. The result was announced after market hours yesterday, 10 February 2015. JK Paper's total income rose 18% to Rs 554.97 crore in Q3 December 2014 over Q3 December 2013.
Ricoh India hit an upper circuit limit of 20% at Rs 344.20 on BSE after the company reported net profit of Rs 10.55 crore in Q3 December 2014 as against net loss of Rs 0.21 crore in Q3 December 2013. The result was announced during trading hours today, 11 February 2015. Ricoh India's net sales rose 80.35% to Rs 409.02 crore in Q3 December 2014 over Q3 December 2013.
Capital First jumped 5.97% after consolidated net profit jumped 195.8% to Rs 29.91 crore on 37.5% spurt in total income to Rs 380.14 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 10 February 2015.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.235, compared with its close of 62.20 during the previous trading session.
Brent crude oil futures edged higher in volatile trade ahead of the release of the US weekly oil inventory data from the US Energy Information Administration later in the global day. Brent for March settlement which expires tomorrow, 12 February 2015, was up 35 cents at $56.78 a barrel. The contract had lost $1.91 a barrel or 3.27% to settle at $56.43 a barrel during the previous trading session. Brent for April settlement was up 10 cents at $57.59 a barrel.
Meanwhile, macroeconomic data to be released by the government in the coming days is likely to show deceleration in industrial production growth in December 2014 and acceleration in inflation in January 2015. The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.5% in January 2015 from 5% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil CPI data for January 2015 at 17:30 IST tomorrow, 12 February 2015.
The rate of inflation based on the wholesale price index (WPI) is seen accelerating to 0.4% in January 2015 from 0.1% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI data for January 2015 at 12.10 noon on 16 February 2015.
Growth in industrial production is seen decelerating to 1.5% in December 2014 from 3.8% expansion in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will industrial production data for December 2014 at 17:30 IST tomorrow, 12 February 2015. All these projections for CPI, WPI and industrial production are based on the old series data with 2004-05 as base year. It may be recalled that the Ministry of Statistics & Programme Implementation revised the way it measures GDP on 30 January 2015. It brought forward the base year used in national economy calculations by seven years to 2011-12 from 2004-05. It also switched from using production costs to market prices. Changes in the base year are made every five years.
European stocks edged lower today, 11 February 2015, with investors awaiting a crunch meeting on the future of financial aid to Greece. Key indices in France, Germany and UK were off 0.05% to 0.33%.
Greece's new Syriza-led coalition government today, 11 February 2015, won a parliamentary vote of confidence, following a three-day debate in which the government presented the outlines of its program after national elections two weeks ago. The vote is considered a procedural step to endorse the government, and the outcome was expected. Although the government holds a secure majority in parliament and has been buoyed by popular support at home, its biggest challenge comes from abroad, where its European creditors remain deeply skeptical of its plans to reverse Greece's reform and austerity program. Greece is scrambling to reach a deal with creditors before it runs out of cash, effectively daring Germany and its other European partners to let it fail and stumble out of the euro. Greece's current bailout plan expires on 28 February 2015.
German Finance Minister Wolfgang Schaeuble yesterday, 10 February 2015, said there were no plans to discuss a new accord with Greece at eurozone finance ministers' emergency meeting to be held in Brussels on Wednesday, 11 February 2015. The emergency meeting is for discussing Greece's debt situation.
Asian stocks edged higher today, 11 February 2015, after a firmer finish of US stocks yesterday, 10 February 2015. Key indices in China, Singapore, Taiwan, Indonesia, and South Korea were up 0.2% to 0.81%. Hong Kong's Hang Seng fell 0.87%. Japanese market is closed today for a holiday.
Trading in US index futures indicated that the Dow could fall 8 points at the opening bell today, 11 February 2015. US stocks rose yesterday, 10 February 2015, buoyed by hopes for a deal between Greece and its international creditors.
Meanwhile, after the conclusion of a two-day meeting in Turkey, finance officials from the Group of 20 leading economies yesterday, 10 February 2015, vowed to use monetary and fiscal policy if needed to stem any risk of stagnation to global growth. The final G20 communique also pledged to put debt as a share of output on a sustainable path. The communique noted slow growth in the euro area and Japan and said some emerging market economies were slowing down. It said the European Central Bank's quantitative easing, which has raised German concern, would further support recovery in the euro area. A sharp decline in oil prices would also give some boost to global growth, it said.
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