After an initial slide, key benchmark trimmed losses in morning trade. The barometer index, the S&P BSE Sensex, was currently off 21.64 points or 0.08% at 28,053.91. The Sensex regained the psychological 28,000 mark after falling below that mark in early trade. The market breadth indicating the overall health of the market was positive. Asian stocks fell after the Swiss National Bank in its stunning move yesterday, 15 January 2015, dumped its long-standing minimum exchange rate of 1.20 Swiss francs to the euro, as the cap on the franc appeared increasingly indefensible in the face of the weakening euro. Trading in US equity index futures indicated weak opening of US stocks later in the global day today, 16 January 2015.
IT stocks were mixed. TCS dropped after reporting disappointing growth in services revenue in Q3 December 2014. Bajaj Holdings & Investment declined on weak Q3 results. Union Bank of India fell after the bank announced a reduction in its base rate by 25 basis points.
Union Bank of India joined United Bank of India in cutting base rate after a surprise reduction in repo rate announced by the Reserve Bank of India yesterday, 15 January 2015, morning. The RBI surprised financial markets by announcing a cut in its main lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review yesterday, 15 January 2015.
Foreign portfolio investors bought shares worth a net Rs 1738.24 crore yesterday, 15 January 2015, as per provisional data.
In overseas markets, Asian stocks fell today, 16 January 2015, after the Swiss National Bank in its stunning move yesterday, 15 January 2015, dumped its long-standing minimum exchange rate of 1.20 Swiss francs to the euro, as the cap on the franc appeared increasingly indefensible in the face of the weakening euro. US stocks edged lower in a volatile trading session yesterday, 15 January 2015, after the Swiss National Bank stunned global markets by cutting its currency cap with the euro.
In the foreign exchange market, the rupee edged lower against the dollar on global risk off sentiment.
Brent crude futures edged higher after yesterday's decline.
At 10:18 IST, the S&P BSE Sensex was down 21.64 points or 0.08% at 28,053.91. The index rose 30.67 points at the day's high of 28,106.22 in early trade. The index fell 130.24 points at the day's low of 27,945.31 in early trade.
The CNX Nifty was down 3.75 points or 0.04% at 8,490.40. The index hit a low of 8,452.25 in intraday trade. The index hit a high of 8,530.75 in intraday trade, its highest level since 8 December 2014.
The BSE Mid-Cap index was up 66.90 points or 0.63% at 10,665.59. The BSE Small-Cap index was up 34.03 points or 0.3% at 11,348.13. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,130 shares advanced and 830 shares declined. A total of 58 shares were unchanged.
IT stocks were mixed. Tech Mahindra (up 0.42%), and HCL Technologies (up 0.28%) gained. Infosys fell 0.28%.
Wipro rose 0.18% ahead of its Q3 results today, 16 January 2015.
TCS dropped after reporting disappointing growth in services revenue in Q3 December 2014. The stock was off 1.95% at Rs 2,495. The stock hit high of Rs 2,545 and low of Rs 2,484 so far during the day. The company's consolidated net profit rose 1.6% to Rs 5328 crore on 2.9% growth in revenue to Rs 24501 crore in Q3 December 2014 over Q2 September 2014. The result hit the market after market hours yesterday, 15 January 2015. TCS' consolidated operating profit rose 3.7% to Rs 6586 crore in Q3 December 2014 over Q2 September 2014.
TCS said that growth in Q3 December 2014 was driven by industries like Telecom, Hi Tech and Life Sciences. Europe led growth, driven by the investments made in that market, while North America also grew during the quarter, TCS said. Among emerging markets, Latin America and MEA registered strong growth, it added. Among service lines, Global Consulting, Asset Leveraged Solutions, Infrastructure Services and Assurance Services were the leaders, TCS said in a statement.
Commenting on the company's Q3 performance, CEO and MD of TCS, N Chandrasekaran said, We have maintained our momentum in a traditionally weak quarter for the IT industry. In constant currency terms, we have seen significant growth in USA, Europe as well as emerging markets like Latin America and Middle-East Africa. Our diversified industry portfolio and presence across key markets have helped us overcome soft seasonal demand in some sectors.
Mr Chandrasekaran added, Based on our progress this quarter, we are well on our way to post industry-leading growth for FY 2015. In areas like Digital, Simplification and Governance, we continue to partner closely with customers to help them prepare their businesses to succeed in an economy where the default is digital.
Rajesh Gopinathan, CFO, TCS said, Sharp cross currency movements have impacted dollar revenues, but we continue to manage operations with discipline and rigour while investing in people, capabilities and infrastructure on an ongoing basis.
As of 31 December 2014, the company has applied for 2,081 patents including 121 applied during the quarter. Till date, the company has been granted 175 patents, TCS said in a statement.
Bajaj Holdings & Investment declined 2.32% after consolidated net profit fell 4.45% to Rs 472 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 15 January 2015. BHIL, with a sizeable pool of cash and cash equivalents, is essentially an investment company, holding as on 31 December 2014, strategic stakes of 31.49% in Bajaj Auto and 39.29% in Bajaj Finserv, the results of which are consolidated with BHIL.
On standalone basis, BHIL's profit on sale of investments (net) dropped 51.85% to Rs 13 crore in Q3 December 2014 over Q3 December 2013. BHIL said that the company chose to hold on to most of its equity portfolio and therefore profit on sale of investments was lower in Q3 December 2014 when compared to the corresponding previous year period. Improving economic environment signals accelerated growth potential in the equity market and hence the company chose to hold on to most of its equity portfolio in Q3 December 2014, BHIL said.
Union Bank of India fell 0.06% after the bank after trading hours yesterday, 15 January 2015, said that it would reduce its base rate to 10% from 10.25% with effect from 27 January 2015. Interest rate on deposits in various buckets under retail and bulk deposits would also be reduced from 10 basis points (bps) to 50 bps, Union Bank of India said.
In the foreign exchange market, the rupee edged lower against the dollar on global risk off sentiment. The partially convertible rupee was hovering at 62.145, compared with its close of 62.065 during the previous trading session.
Brent crude futures edged higher after yesterday's decline. Brent for March settlement was up 25 cents at $48.51 a barrel. The contract had fallen $1.59 a barrel or 3.18% to settle at $48.27 a barrel during the previous trading session.
On macro front, India's merchandise export declined 3.8% to $25.4 billion in December 2014 over December 2013. Meanwhile, merchandise imports also declined 4.8% to $34.83 billion in December 2014. Thus, the trade deficit narrowed to 10-month low of $9.4 billion in December 2014, while nearly halving from $16.86 billion in November 2014. Trade data was announced after market hours yesterday, 15 January 2015.
Asian stocks fell today, 16 January 2015 as the market turmoil sparked by Switzerland abandoning the franc's cap extended into a second day. Key benchmark indices in Singapore, Hong Kong, Taiwan, South Korea, and Japan were down 0.07% to 2.55%. Key benchmark indices in China and Indonesia rose 0.04% to 1.04%.
China's foreign direct investment (FDI) rose an annual 1.7% last year, although the pace slowed from 2013 as a cooling economy and shifting drivers of growth weighed on offshore investment flows. China attracted a record $119.56 billion from foreign investors last year compared to $117.6 billion in 2013, the Ministry of Commerce said in a statement.
Trading in US index futures indicated that the Dow could slide 123 points at the opening bell today, 16 January 2015. US stocks suffered their fifth-straight session of declines yesterday, 15 January 2015, under pressure from disappointing earnings and worries about global economic growth.
On economic data front, more Americans unexpectedly filed applications for unemployment benefits last week, indicating companies let go of seasonal workers following the holidays. Jobless claims climbed by 19,000 to 316,000 in the week ended 10 January 2015, the most since early September, from a revised 297,000 in the prior period, a Labor Department report showed.
In Europe, in its stunning move yesterday, 15 January 2015, the Swiss National Bank dumped its long-standing minimum exchange rate of 1.20 Swiss francs to the euro, as the cap on the franc appeared increasingly indefensible in the face of the weakening euro.
Meanwhile 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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