Mirroring gains in global stocks, key equity benchmark indices edged higher on the last trading session of the week. But, the benchmark indices trimmed intraday gains during the last 30 minutes of the trading session. The barometer index, the S&P BSE Sensex, was provisionally up 215.16 points or 0.79% at 27,341.73. The market breadth indicating the overall health of the market was positive. Global crude oil prices tumbled yesterday, 18 December 2014. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
IT stocks gained after US based global management consulting, technology services and outsourcing company Accenture yesterday, 18 December 2014, raised its outlook for net revenue growth for the year ending 31 August 2015 (FY 2015) after reporting strong Q1 results.
Earlier, the Sensex, and the 50-unit CNX Nifty, had, both hit one-week high in morning trade, tracking gains in world stocks.
Key indices gained for the second day in a row today, 19 December 2014.
Meanwhile, the fate of several crucial bills hangs in a limbo due to several disruptions by the Opposition over the alleged forced conversion row in the Rajya Sabha. With just three days left for the winter session of Parliament to end, the chance of the passage of the key reform bills in Parliament looks bleak.
Meanwhile, a mid-term economic review tabled by the finance ministry in parliament today, 19 December 2014, stated that the backlog of stalled projects needs to be cleared more expeditiously, a process that has already begun. Adhering to the fiscal deficit target of 4.1% of GDP in 2014-15 is a major challenge. The report stated that the government is committed to meeting the fiscal targets for 2014-15, despite the difficult odds engendered by a combination of factors. A pick-up in economic activity in the second half of the year is critical to prevent a slippage and to meet the overall fiscal deficit target during 2014-15.
Meanwhile, according to a study published today, 19 December 2014, US-based consulting firm IHS, India is set to emerge as the third largest spender worldwide by 2020.
Foreign portfolio investors sold shares worth a net Rs 874.89 crore yesterday, 18 December 2014, as per provisional data.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade.
Global crude oil prices slumped yesterday, 18 December 2014. Deregulation of diesel price announced by the Indian government in October 2014 and a sharp decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. 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.
In overseas markets, European and Asian stocks edged higher as investor confidence continued to be bolstered by expectations the US central bank is in no rush to raise interest rates in the world's biggest economy. US stocks surged yesterday, 18 December 2014, a day after Federal Reserve Chairwoman Janet Yellen assured the markets after the conclusion of Fed's two-day monetary policy review that the US central bank would be patient about lifting interest rate in the world's biggest economy.
In Russia, Russian President Vladimir Putin said during his annual public news conference yesterday, 18 December 2014, that the ruble will stabilize amid current economic headwinds. Putin also stressed that external conditions referring to sanctions imposed by the West were pushing Russia into reforms that would make the economy more efficient.
Brent crude futures recovered after a steep slide during the previous trading session.
As per provisional figures, the S&P BSE Sensex was up 215.16 points or 0.79% at 27,341.73. The index jumped 370.55 points at the day's high of 27,497.12 in mid-afternoon trade, its highest level since 12 December 2014. The index gained 165.57 points at the day's low of 27,292.14 in early trade.
The CNX Nifty was up 61.05 points or 0.75% at 8,220.35, as per provisional figures. The index hit a high of 8,263.45 in intraday trade, its highest level since 12 December 2014. The index hit a low of 8,208.60 in intraday trade.
The BSE Mid-Cap index was up 24.77 points or 0.25% at 9,989.44. The BSE Small-Cap index was up 50.63 points or 0.47% at 10,911.39. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3553 crore, higher than Rs 3015.21 crore yesterday, 18 December 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1,456 shares rose and 1,414 shares fell. A total of 119 shares were unchanged.
IT stocks gained after US based global management consulting, technology services and outsourcing company Accenture yesterday, 18 December 2014, raised its outlook for net revenue growth for the year ending 31 August 2015 (FY 2015) after reporting strong Q1 results. Strong economic data in US also supported IT stocks. US is the biggest outsourcing market for the Indian IT firms. Infosys (up 1.39%), HCL Technologies (up 2.46%) and Wipro (up 2.25%) gained.
Accenture has raised its outlook for net revenue growth for FY 2015 in local currency to be in the range of 5% to 8% percent, compared with 4% to 7% forecast previously. But, the company cuts its diluted earnings per share (EPS) forecast for FY 2015 as the positive impact of its increased revenue outlook was more than offset by the negative impact of the company's revised foreign-exchange assumption. Accenture now expects diluted earnings per share (EPS) to be in the range of $4.66 to $4.80 for FY 2014, compared with the company's previously guided range of $4.74 to $4.88. Accenture said its new bookings for the first quarter ended 30 November 2014 were $7.7 billion and reflect a negative 3% foreign-currency impact compared with new bookings in the first quarter last year.
TCS rose 2.31%. The company's advance tax reportedly rose 8% to Rs 1415 crore in Q3 December 2014 over Q3 December 2013.
Tech Mahindra rose 1.34%. The company's advance tax reportedly rose 12% to Rs 190 crore in Q3 December 2014 over Q3 December 2013.
UltraTech Cement rose 1.98%. Grasim Industries gained 1.35%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement. Jaiprakash Associates slumped 4.62% to Rs 23.75. The stock reversed gains after hitting intraday high of Rs 25.65.
With respect to media report titled "Ultratech cement in talks to buy JP Associates Cement plants", UltraTech Cement clarified during market hours today, 19 December 2014, that the company in its course of business evaluates various proposals on a regular basis. No proposal has reached the stage which would merit intimation to exchanges under the listing agreement. The company will inform of any decision that may have a bearing on the performance/operations of the company, it added.
Indian Oil Corporation (IOCL) gained 1.51%. With respect to news article titled "IOC to add 15 mmtpa capacity", IOCL clarified during trading hours today, 19 December 2014, that the 15 million metric tonne per annum (MMTPA) Grass Root Refinery Project at Paradip is nearing completion and the commissioning of the project is likely to begin on stage-wise basis from March to September 2015.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 63.15, compared with its close of 63.115 during the previous trading session.
Brent crude futures recovered after a steep slide during the previous trading session. Brent for February settlement was 1 cent at $59.28 a barrel. The contract had fallen $1.91 a barrel or 1.01% to settle at $59.27 a barrel during the previous session, the lowest closing level since May 2009.
Closer home, a mid-term economic review tabled by the finance ministry in parliament today, 19 December 2014, stated that the backlog of stalled projects needs to be cleared more expeditiously, a process that has already begun. Adhering to the fiscal deficit target of 4.1% of GDP in 2014-15 is a major challenge. The report stated that the government is committed to meeting the fiscal targets for 2014-15, despite the difficult odds engendered by a combination of factors. A pick-up in economic activity in the second half of the year is critical to prevent a slippage and to meet the overall fiscal deficit target during 2014-15.
India's economy is expected to grow at around 5.5% in the fiscal year ending 31 March 2015 (FY 2015), the finance ministry has said in a mid-term economic review tabled in parliament today, 19 December 2014. Emphasising that there is need for stalled projects to be cleared more expeditiously, the review says that pick-up in economy in October-March is critical to prevent fiscal slippage. Adhering to the fiscal year ending March 2015 (FY 2015) fiscal deficit target of 4.1% is a major challenge. The government is committed to meeting FY 2015 fiscal aim, despite difficult odds, the review said.
The finance ministry is of the view that falling inflation fall is not just due to base effect. Government role in inflation check is somewhat under-recognised, the review said. Modest rise in crop MSP will moderate inflationary pressures, it added. According to the review, current Reserve Bank of India (RBI) policy appears to be historically tight.
Meanwhile, the fate of several crucial bills hangs in a limbo due to several disruptions by the Opposition over the alleged forced conversion row in the Rajya Sabha. The government had planned to get key bills like Insurance Bill and the Coal Mines (Special Provisions) Bill, 2014 in parliament during the current winter session which ends on 23 December 2014. The Lok Sabha last week passed the Coal Mines (Special Provisions) Bill, 2014. The bill allows the government to enforce rules and guidelines for auction/allocation of 204 coal blocks cancelled by the Supreme Court in September this year.
The Indian government had planned to get the Insurance Laws (Amendment) Bill, 2008 passed in both the Houses of Parliament in this week. The Union Cabinet, last week, approved the official amendments to the Insurance Laws (Amendment) Bill, 2008. The Parliamentary Select Committee in its report tabled in Rajya Sabha on 10 December 2014 agreed a composite cap of 49% on foreign investment in the insurance sector, which includes all types of foreign investment as opposed to the 26% foreign direct investment (FDI) allowed at present. Finance Minister Arun Jaitley had said in his maiden budget speech in July that the composite cap in the insurance sector should be increased to 49% from the current level of 26%, with full Indian management and control.
With just three days left for the winter session of Parliament to end, the chance of the passage of the reform bills in Parliament looks bleak.
The Union Cabinet recently approved a constitutional amendment bill to provide the legal framework for rolling out a nationwide goods and services tax (GST). The constitutional amendment Bill provides the legal framework for rolling out the levy, giving states power to tax both goods and services. As of now only the central government can impose service tax. The amendment Bill will also create a GST council, a body that will have representatives of the states and the Centre that will take decisions on the tax after it is rolled out.
The government's intension is to implement a nationwide GST from 1 April 2016. GST is a major indirect tax reform. GST will subsume central indirect taxes such as excise duty and service tax at the central level and value added tax at the state level besides other local levies such as octroi and entry tax.
European stocks rose today, 19 December 2014, spurred by the US Federal Reserve's pledge to adopt a patient approach when raising interest rates in 2015. Key indices in France, Germany and UK rose 0.66% to 0.8%.
Germany's producer prices surprised on the upside in November as energy prices remained unchanged from October, data from the Federal Statistics Office showed today. Producer prices in Europe's largest economy were stable on the month in November and fell 0.9% on the year, Destatis said.
The eurozone's current account surplus narrowed in October from an upwardly revised surplus in September, as the surplus on both goods and services shrank, data from the European Central Bank showed today, 19 December 2014. The current account balance, a broad measure of an economy's international financial position, showed a surplus of 20.5 billion euros ($25.24 billion) in October, down from Euro 32.0 billion in September, the ECB said.
French business confidence in manufacturing was stable in December, French statistics agency Insee said today, 19 December 2014. The confidence reading in December was 99, unchanged from November, Insee said. Business leaders said their foreign order books were stronger while their outlook for production stagnated.
Japanese stocks led Asian markets higher today, 19 December 2014, after US stocks boasted its biggest two-day advance since late 2011 yesterday, 18 December 2014, amid relief the Federal Reserve was in no rush to start hiking interest rates. Key indices in China, South Korea, Indonesia, Singapore, Japan, Hong Kong, and Taiwan were up 0.61% to 2.39%.
The Bank of Japan maintained unprecedented stimulus today, 19 December 2014, as Governor Haruhiko Kuroda's bid to stoke inflation faces increasing challenges from the tumble in oil price. The central bank will boost the monetary base at an annual pace of 80 trillion yen ($672 billion), it said in a statement.
China raised its estimate of its 2013 economic output by 3.4% based on its latest survey of the economy, the National Bureau of Statistics said on Friday. The statistics bureau said China's gross domestic product in 2013 was 58.80 trillion yuan ($9.46 trillion). It also said the revision "basically" wouldn't affect GDP growth for 2014, though it would change the total size of the economy for this year.
Trading in US index futures indicated that the Dow could gain 89 points at the opening bell today, 19 December 2014. US stocks rallied yesterday, 18 December 2014, to its best two-day gains in three years. The rally was kicked off Wednesday, 17 December 2014, after Federal Reserve Chairwoman Janet Yellen assured the markets that the central bank would be patient about lifting interest rate.
In economic news, a weekly jobless claims report came in stronger than expected, confirming the Fed's view that the economy is strengthening. Claims fell by 6,000 to 289,000, a low level typically associated with strong hiring.
Powered by Capital Market - Live News
