Cement and power generation stocks led gains as key benchmark indices edged higher on positive cues from global markets. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained their highest closing level in almost 3 weeks. The market breadth indicating the overall health of the market was positive. The Sensex garnered 184.38 points or 0.63% to settle at 29,320.26. The BSE Small-Cap index rose 1.04%, outperforming the Sensex. Asian and European stocks edged higher amid speculation Greece will resolve its standoff with creditors.
Meanwhile, the yearly SBI Composite Index, a leading indicator for tracking primarily manufacturing activity in Indian economy, inched up to a 2-month high of 52.9 (moderate growth) in February 2015, from 52.1 (moderate growth) in January 2015. Meanwhile, Finance Minister Arun Jaitley yesterday, 17 February 2015, said that there is a great opportunity for India to grow in terms of manufacturing and that India has to concentrate on infrastructure development.
Hero MotoCorp slipped on high volumes on reports that the company's promoters are planning to sell part of their holding by offloading shares in the open market. The promoter Hero Group after trading hours announced that it has offloaded 70 lakh of Hero MotoCorp.
Cement stocks edged higher on renewed buying. Shares of power generation companies were also in demand. Bank stocks were mixed. Sugar and FMCG stocks were in demand. Index heavyweight and India's largest cigarette maker by sales ITC eked out small gains after seeing intraday volatility. Index heavyweight HDFC edged higher.
Foreign portfolio investors bought shares worth a net Rs 1.40 crore from the secondary equity market during the previous trading session on Monday, 16 February 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) bought shares worth a net Rs 280.77 crore during the previous trading session on Monday, 16 February 2015, as per provisional data released by the stock exchanges. The stock market was closed yesterday, 17 February 2015, on account of Mahashivratri.
In overseas markets, European stocks edged higher amid speculation Greece will hammer out a new financing deal with its international creditors and avoid exiting the eurozone. Asian stocks edged higher amid speculation Greece will resolve its standoff with creditors. In the US, the S&P 500 eked out a small gain yesterday, 17 February 2015, to close at a record level for the second time this year, after reports emerged that Greece may ask for a six-month extension on its debt obligations.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged lower amid oil supply glut. Nevertheless, global crude oil prices have bounced back over the past few days after a steep slide in prices over the past few months. The recent rebound in global crude oil prices will raise concerns pertaining to India's fiscal deficit, current account deficit and fuel price inflation. India imports about 80% of its crude oil requirements. On 15 February 2015, Indian Oil Corporation announced increase in petrol price by 82 paise per litre in Delhi (including state levies) and diesel price by 61 paise per litre.
The S&P BSE Sensex rose 184.38 points or 0.63% to settle at 29,320.26, its highest closing level since 29 January 2015. The index jumped 275.44 points at the day's high of 29,411.32 in late trade. The index fell 8.97 points at the day's low of 29,126.91 at the onset of trading session.
The CNX Nifty gained 59.75 points or 0.68% to settle at 8,869.10, its highest closing level since 29 January 2015. The index hit a high of 8,894.30 and a low of 8,808.90 in intraday trade.
The BSE Mid-Cap index rose 90.42 points or 0.84% to settle at 10,828.41. The BSE Small-Cap index gained 117.47 points or 1.04% to settle at 11,363.92. Both these indices outperformed the Sensex.
The S&P BSE Auto index (up 0.89%), BSE Consumer Durables index (up 1.81%), BSE Capital Goods index (up 1.34%), BSE FMCG index (up 0.72%), BSE IT index (up 1.09%), BSE Power index (up 1.45%), and BSE Teck index (up 0.66%), outperformed the Sensex. The S&P BSE Bankex (up 0.48%), BSE Healthcare index (up 0.57%), BSE Metal index (down 0.72%), BSE Oil & Gas index (down 0.38%), and BSE Realty index (down 0.39%), underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,625 shares advanced and 1,296 shares declined. A total of 107 shares were unchanged.
The total turnover on BSE amounted to Rs 4144 crore, higher than turnover of Rs 3550.43 crore during the previous trading session on Monday, 16 February 2015.
Cement stocks gained. ACC (up 2.53%), Ambuja Cements (up 1.54%), and UltraTech Cement (up 0.67%) gained. Shree Cement declined 1.64%.
Grasim Industries rose 0.3%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Shares of power generation companies were in demand. GMR Infrastructure (up 1.64%), Tata Power Company (up 2.5%), Reliance Power (up 2.25%), Adani Power (up 1.88%), JSW Energy (up 3.79%), Reliance Infrastructure (up 1.26%), NHPC (up 1.21%) and Torrent Power (up 0.79%) edged higher.
Jaiprakash Power Ventures rose 4.72%. The company won the Amelia North coal block in Madhya Pradesh for Rs 712 per tonne, according to the results of e-Auction for Schedule II coal mines announced by the Ministry of Coal yesterday, 17 February 2015.
CESC fell 0.76%. CESC yesterday, 17 February 2015, announced that following an e-auction conducted by the Ministry of Coal, Government of India on 15 February 2015 and the results thereof since posted on the coal ministry's website, CESC has submitted the closing bid of Rs 470 per metric tonne (MT) for Sarisatolli coal mine in the state of West Bengal. A formal letter to the company from the Ministry allocating the said mine is expected in due course, CESC said.
The coal ministry has started auctioning coal blocks after the Supreme Court in September last year cancelled the allocation of more than 200 coal mines allotted between 1993 and 2010 after ruling that they were arbitrary and illegal.
NTPC rose 1.32%. The company early this week said it has committed to add 10,000 megawatts (MW) through solar power projects at RE- Invest - 2015 -- the First Renewable Energy Global Investment Meet held in New Delhi. NTPC has already floated Notice Inviting Tender for four solar projects of 250 MW each in Andhra Pradesh, Madhya Pradesh, Telengana and Rajasthan and one solar project of 500 MW in Andhra Pradesh. The first 250 MW Solar project in Anantapur in Andhra Pradesh is expected to be awarded in this financial year. Availability of land and PPA arrangement are being explored in other states like Chhattisgarh, Uttar Pradesh, Puducherry, Gujarat etc. NTPC has already commissioned 8 MW scale solar projects in different parts of India totalling 110 MW, out of which Rajgarh solar project of 50 MW in Madhya Pradesh is the largest.
Shares of public sector banks fell. United Bank of India (down 0.65%), Punjab and Sind Bank (down 0.36%), Canara Bank (down 0.19%) Bank of India (down 0.45%), UCO Bank (down 0.42%), Allahabad Bank (down 0.31%), Andhra Bank (down 0.34%), Vijaya Bank (up 0.2%), Corporation Bank (down 0.78%), Bank of Maharashtra (down 0.61%), State Bank of India (down 0.41%), Syndicate Bank (down 0.38%), Indian Bank (down 1.3%) and Central Bank of India (down 1.81%) edged lower. Bank of Baroda (up 0.22%), Dena Bank (up 0.99%) and IDBI Bank (up 1.46%), edged higher.
Finance Minister Arun Jaitley will review various key financial sector issues like credit offtake in the economy, achievement under priority sector lending (PSL) and progress made under Pradhan Mantri Jan Dhan Yojana (PMJDY) etc. with the Chief Executive Officers (CEOs) of public sector banks (PSBs)/Financial Institutions (FIs) on 5 March 2015 during the quarterly review meeting, according to a finance ministry statement yesterday, 17 February 2015. The periodic review meeting will also focus on taking forward the intention of the Department of Financial Services (DFS) to improve the performance of PSBs and FIs through steps like the recent additional infusion of Rs 6990 crore in PSBs on the basis of performance measured by return on assets/equity, the finance ministry said.
Punjab National Bank (PNB) rose 0.87% to Rs 168.30. The bank announced after market hours on Monday, 16 February 2015, that consequent upon the decision of the Government of India (GoI) to infuse capital funds to the tune of Rs 870 crore in the bank during 2014-15, up to 4.42 crore shares at Rs 196.80 per share on preferential basis shall be issued to GoI subject to regulatory approvals including approval of shareholders in the EGM to be held on 19 March 2015. The issue price has been determined in accordance with Regulation 76(1) of SEBI ICDR Regulations.
Shares of private sector banks rose. ICICI Bank (up 1.23%), IndusInd Bank (up 0.64%), HDFC Bank (up 0.74%), Yes Bank (up 0.56%), and Kotak Mahindra Bank (up 1.36%) gained. Federal Bank (down 1.65%) and Axis Bank (down 0.27%) declined.
Index heavyweight HDFC edged higher. The stock was up 3.14% to Rs 1,328.60. The stock hit a high of Rs 1,333 and a low of Rs 1,289. High volumes accompanied the upmove in the stock price. On BSE, 10.85 lakh shares changed hands in the HDFC counter, compared with average daily volume of 1.29 lakh shares during the past one quarter.
Hero MotoCorp slipped on high volumes on reports that the company's promoters are planning to sell part of their holding by offloading shares in the open market. The stock lost 5.25% to Rs 2,659.05. The stock hit a high of Rs 2,748 and a low of Rs 2,645.05.
The stock fell amid high volumes. On BSE, 9.01 lakh shares were traded in the counter, compared with an average volume of 25,929 shares during the past one quarter. On NSE, 1.06 crore shares changed hands, compared with an average volume of 4.32 lakh shares in the past one quarter.
The promoter group Hero Group announced market hours that in a major initiative towards diversification into fast growth areas, the BML Munjal-led Hero Group has sold 70 lakh shares in its flagship firm Hero MotoCorp. Following the sale, Hero Group still holds a significant stake of over 36% in the company. The group will use the sale proceeds to fund new growth avenues available through the government's 'Make in India' initiative, the Hero Group said in press release.
The Hero Group said that it remains strongly committed to its core two-wheeler business, where it sees enormous potential, both in India and overseas. The Hero Group said that Hero MotoCorp has successfully consolidated its market leadership in the highly-competitive domestic market in India, even as it expands its global footprint across Asia, Africa and Central
Wipro gained 1.08%. With respect to news article titled "Wipro may hive off its unit investing in nextgen ideas", Wipro clarified after market hours that the company keeps exploring continuously various structuring options for its businesses and as and when any firm decision is taken by the board it will be communicated to the stock exchanges at the appropriate time.
Index heavyweight and India's largest cigarette maker by sales ITC eked out small gains after seeing intraday volatility. The stock was up 0.86% at Rs 392.90. The stock hit a high of Rs 401.90 and a low of Rs 385.50. ITC last week said it has entered into Asset Purchase Agreements (Agreements) with Johnson & Johnson, India and Johnson & Johnson Pte., Singapore for purchase of 'Savlon' and 'Shower To Shower' trademarks and other intellectual property primarily for use in India.
Sugar stocks were in demand. Bajaj Hindusthan (up 8.88%), Balrampur Chini Mills (up 7.09%), Rana Sugars (up 6.29%), Simbhaoli Sugars (up 6.02%), Shree Renuka Sugar (up 5.48%), Upper Ganges Sugar & Industries (up 5.05%), Dhampur Sugar Mills (up 5.02%), Sakthi Sugars (up 4.78%), EID Parry (India) (up 4.17%), Triveni Engineering & Industries (up 3.64%) and Oudh Sugar Mills (up 1.27%), edged higher. KCP Sugar & Industries Corporation (down 0.25%), Dwarikesh Sugar Industries (down 0.51%), Empee Sugars and Chemicals (down 1.51%) and DCM Shriram Industries (down 2.15%), edged lower.
FMCG stocks edged higher. Marico (up 1.92%), Procter & Gamble Hygiene & Health Care (up 1.69%), Bajaj Corp (up 1.50%), Tata Global Beverages (up 1.03%), Godrej Consumer Products (up 0.61%), Dabur India (up 0.49%), Colgate-Palmolive (India) (up 0.44%), Hindustan Unilever (up 0.37%), GlaxoSmithKline Consumer Healthcare (up 0.34%), Britannia Industries (up 0.21%) and Nestle India (up 0.03%), edged higher. Jyothy Laboratories was down 2.01%.
Key benchmark indices edged higher for the sixth day in a row today, 18 February 2015. The Sensex has risen 1,092.87 points or 3.87% in six trading sessions from a recent low of 28,227.39 on 9 February 2015. The Sensex has risen 137.31 points or 0.47% in this month so far (till 18 February 2015). The Sensex has risen 1,820.84 points or 6.62% in this calendar year so far (till 18 February 2015). From a 52-week low of 20,149.01 on 14 February 2014, the Sensex has risen 9,171.25 points or 45.51%. The Sensex is off 523.90 points or 1.75% from a record high of 29,844.16 hit on 30 January 2015.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.325, compared with its close of 62.1575 during the previous trading session on Monday, 16 February 2015. The foreign exchange market was closed yesterday 17 February 2015, on account of Mahashivratri.
Brent crude oil futures edged lower amid oil supply glut. Brent for April settlement was off $1.17 a barrel at $61.36 a barrel. The contract had risen $1.13 a barrel, or 1.84% to settle at $62.53 a barrel during the previous trading session.
Finance Minister Arun Jaitley yesterday, 17 February 2015, said that there is a great opportunity for India to grow in terms of manufacturing and that India has to concentrate on infrastructure development. Jaitley made these comments while addressing the valedictory session of the three day event RE-INVEST 2015.
Meanwhile, the yearly SBI Composite Index, a leading indicator for tracking primarily manufacturing activity in Indian economy, inched up to a 2-month high of 52.9 (moderate growth) in February 2015 from 52.1 (moderate growth) in January 2015. In contrast, the monthly index slipped to 48.3 (low decline) in February 2015 from 52.1 (moderate growth) in January 2015. The sharp contraction in the month on month index may be attributed to less number of working days in February compared to January, according to Ecowrap which is an economics research publication from State Bank of India (SBI). According to Ecowrap, a revival in automobile sales, capital goods and consumer non-durables productions and possible upturn in the credit offtake by the large corporates segment highlights possible recovery in the economic activity in coming months. Consumer durable sales have not yet bottomed out. Bank credit and deposits continues to remain sluggish. Interestingly, growth in credit card outstanding continues to push up credit growth. The contraction in the in the monthly index could probably drag down the yearly index after a while, according to Ecowrap.
According to Ecowrap, benign wholesale as well as retail inflation accompanied by a lower cost of borrowing is expected to boost positive sentiment in the economy in coming months and possibly drive credit cycle and growth.
The next major event for the financial markets is Union Budget for 2015-16. Finance Minister Arun Jaitley will present Union Budget 2015-16 in Parliament on 28 February 2015. Analysts will scrutinize measures in the Budget for financing infrastructure projects as well as the government's own capital expenditure on infrastructure for the year ahead. This is the first full fledged Budget of the Narendra Modi government and analysts will look for a roadmap for economic growth for the next few years.
Changes in rates of dividend distribution tax, capital gains tax on sale of shares, Securities Transaction Tax (STT) and Minimum Alternate Tax (MAT), if any, will be closely watched. The dividend distribution tax is currently at 15%. The minimum alternate tax is currently at 18.5% of book profits. Short term capital gains tax on sale of shares is currently at 15% while there is zero long capital gains tax on sale of shares held for a period of more than one year.
The upcoming Budget session of the parliament assumes utmost importance as the government intends to replace the ordinances it had promulgated after the conclusion of the winter session of the parliament with Bills and get them cleared by both Houses of Parliament during the budget session. The Narendra Modi government promulgated a slew of ordinances after the last session of Parliament. Some of the key ordinances include raising the FDI in the insurance sector from 26% to 49%, e-auctioning of coal mines and amendment to the Land Acquisition Act.
The government has already started auctioning coal blocks for captive mining. The Coal Mines (Special Provisions) Bill that was moved to replace an ordinance issued earlier was passed by the Lok Sabha in the winter session but it could not be taken up in the Rajya Sabha. The government promulgated the Coal Mines (Special Provisions) Ordinance, 2014, in October to facilitate coal block auctions after the Supreme Court cancelled 204 coal blocks in September.
Through another ordinance, the government has raised the ceiling on foreign investment in the insurance sector to 49% from 26%. The government was unable to get the Insurance Laws (Amendment) Bill, 2008, passed in parliament during the winter session.
Amendments to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 were brought in via an ordinance after the winter session of the parliament.
Analysts are also awaiting further progress on the Goods and Services Tax (GST) in the Budget session after the Constitution Amendment Bill for the introduction of GST was tabled in the Lok Sabha during the winter session of parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
European stocks edged higher today, 18 February 2015, amid hopes Greece can secure a deal with its creditors. Key benchmark indices in UK, France and Germany were up 0.02% to 0.76%.
According to reports, Greece will seek an extension to its rescue deal from the rest of the eurozone to give it time to negotiate a new bailout. Greece is scrambling to reach a deal with creditors before it runs out of cash. Greece's current bailout plan expires on 28 February 2015.
In UK, Bank of England officials voted unanimously to leave the central bank's benchmark interest rate unchanged. The rate-setting Monetary Policy Committee voted unanimously this month to leave the central bank's benchmark interest rate at 0.5% and the stock of assets purchased under its bond-buying program unchanged at 375 billion pounds ($576 billion), according to minutes of the panel's deliberations earlier this month, published today, 18 February 2015.
The UK's unemployment rate fell to a six-year low in December, official data showed on today. The UK Office for National Statistics said that the rate of unemployment dipped to 5.7% in the three months to December from 5.8% in the preceding three month-period.
Asian stocks edged higher today, 18 February 2015, tracking gains in the US as fears eased over Greece leaving the eurozone. Key benchmark indices in Hong Kong, Indonesia, Japan and Singapore were up 0.19% to 1.18%.
Trading on the Hong Kong stock market was open only for half-day today, 18 February 2015, and the stock market remains shut for the rest of the week for the Lunar New Year holiday. The stock market in mainland China is closed for this entire week starting today, 18 February 2015, for the Lunar New Year holiday.
In Japan, the Bank of Japan (BoJ) today, 18 February 2015, stood pat on its policy and painted a rosier picture of economic conditions, despite recent poor growth data and an inflation rate that is moving away from its 2% target. After the latest policy meeting, the BOJ's policy board voted 8-1 to keep unchanged the size of the bank's annual asset purchases worth 80 trillion yen ($670 billion), its main tool to generate higher inflation.
The central bank signaled that it mostly believes that the Japanese economy has finally overcome a hit from the government's move to raise the sales tax. Specifically, the BOJ removed for the first time its reference to the tax increase from the main language in its monthly economic assessment.
Trading in US index futures indicated that the Dow could fall 2 points at the opening bell today, 18 February 2015. US stocks closed slightly higher Tuesday, 17 February 2015, as investors continued to monitor talks between Greece and its creditors in hopes that a deal will be reached to keep the country from falling out of the eurozone.
Powered by Capital Market - Live News
