A range bound movement was witnessed as key benchmark indices retained positive zone in mid-afternoon trade. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was currently up 81.50 points or 0.29% at 28,157.05. European and Asian stocks fell as the fallout from Switzerland scrapping its euro cap extended into a second day. Pharma stocks edged higher.
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 (RBI) 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, and stated that easing of inflationary pressures provided headroom for a shift in the monetary policy stance.
Meanwhile, the Ministry of Commerce & Industry today, 16 January 2015, said that some Japanese companies are seriously contemplating their future investment plans in India amounting to about Rs 75000 crore over the next 2-3 years.
Foreign portfolio investors bought shares worth a net Rs 1738.24 crore yesterday, 15 January 2015, as per provisional data.
In overseas markets, European and Asian stocks fell today, 16 January 2015, as the fallout from Switzerland scrapping its euro cap extended into a second day. 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 strengthened past 62 against the dollar.
Global crude oil prices took a breather from a selloff as investors sought for signs of tighter supply that could stem further declines in oil prices.
At 14:18 IST, the S&P BSE Sensex was up 81.50 points or 0.29% at 28,157.05. The index jumped 100.55 points at the day's high of 28,176.10 in mid-afternoon trade. The index fell 130.24 points at the day's low of 27,945.31 in early trade.
The 50-unit CNX Nifty was up 23.90 points or 0.28% at 8,518.05. The index hit a high of 8,530.75 in intraday trade, its highest level since 8 December 2014. The index hit a low of 8,452.25 in intraday trade.
The BSE Mid-Cap index was up 53.42 points or 0.5% at 10,652.11, outperforming the Sensex. The BSE Small-Cap index was up 21.95 points or 0.19% at 11,336.05, underperforming the Sensex.
The market breadth indicating the overall health of the market turned negative from positive in mid-afternoon trade. On BSE, 1,409 shares declined and 1,378 shares rose. A total of 110 shares were unchanged.
Pharma stocks gained. Sun Pharmaceutical Industries (up 1.96%), Ranbaxy Laboratories (up 2.56%), Aurobindo Pharma (up 1.93%), Cipla (up 1.37%), Lupin (up 0.01%), Wockhardt (up 0.49%), Dr Reddy's Laboratories (up 1.47%), Strides Arcolab (up 0.32%), Shasun Pharmaceuticals (up 0.36%), Elder Pharmaceuticals (up 0.27%), Divi's Laboratories (up 1.31%), and Amrutanjan Health Care (up 0.16%) gained.
HSIL gained 2.29% after net profit surged 156.9% to Rs 30.29 crore on 26.1% rise in total income to Rs 462.90 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 15 January 2015.
In the foreign exchange market, the rupee strengthened past 62 against the dollar. The partially convertible rupee was hovering at 61.90, compared with its close of 62.065 during the previous trading session.
Global crude oil prices took a breather from a selloff as investors sought for signs of tighter supply that could stem further declines in oil prices. Brent for March settlement was up 14 cents at $48.41 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.
Meanwhile, the Ministry of Commerce & Industry today, 16 January 2015, said that some Japanese companies are seriously contemplating their future investment plans in India amounting to about Rs 75000 crore over the next 2-3 years. Also, the issues related to the state government of Rajasthan concerning Japanese trading firm Sojitz Corp, working for Dedicated Freight Corridor (DFC), has been resolved, the Ministry of Commerce & Industry said. The government has set up Japan Plus, a special management team to facilitate Japanese investors.
European stocks declined today, 16 January 2015, as the fallout from Switzerland abandoning the franc's cap extended into a second day. Key indices in Germany and UK shed 0.06% to 0.44%. Frances's CAC 40s rose 0.12%.
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.
In Germany, the latest data showed that inflation in Germany weakened in December, confirming its preliminary estimates for the previous month. The steep fall in prices in Germany, Europe's largest economy, supports mounting expectations in financial markets that the European Central Bank will announce large purchases of government bonds at its next policy meeting on Jan. 22, to avert a debilitating slide into deflation. The annual rate of inflation in Germany, measured according to common European Union standards, was 0.1% in December, while prices also rose 0.1% on the month, the Federal Statistics Office said, confirming its preliminary figures published earlier this month. Consumer prices, measured according to national standards, were unchanged on the month and rose 0.2% on the year, also unchanged from the preliminary data, the statistics office Destatis said. Energy continued to keep prices under downward pressure. In annual comparison, energy prices were 6.6% lower in December 2014 than a year earlier, Destatis said.
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.
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, Indonesia and Japan were off 0.29% to 1.43%. China's Shanghai Composite rose 1.2%.
China's central bank the People's Bank of China today, 16 January 2015, said it would lend 50 billion yuan ($8.1 billion) to banks at discounted rates to allow them to re-lend the money to farmers and small businesses - areas of the economy that are usually short of cash.
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 37 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.
Powered by Capital Market - Live News
