Key benchmark indices surged on positive cues from European and Asian markets and as trading in US index futures indicated a firm opening of US stocks later in the global day. The barometer index, the S&P BSE Sensex settled well above the psychological 27,000 level which it had attained in early trade. The Sensex gained 365.89 points or 1.36% to settle at 27,274.71. All the 12 sectoral indices edged higher today, 8 January 2015. Today's rally on the bourses was broad based. Quite a few side counters rose 5% to 20% on BSE. The market breadth indicating the overall health of the market was strong with more than two gainers for every loser on BSE. European and Asian markets were higher.
Index heavyweight and cigarette major ITC edged higher. FMCG shares were in demand on renewed buying. Shares of biscuits major Britannia Industries reversed direction after scaling record high. Among side counters Bajaj Corp and Credit Analysis and Research scaled record high. Shares of public sector oil marketing companies edged higher following a recent slump in crude oil prices. Shares of paint makers gained following a recent slump in crude oil prices with shares of Kansai Nerolac Paints and Berger Paints (India) scaling record high. Bank shares advanced. Cement stocks edge higher.
IT stocks advanced after positive jobs data in United States. Infosys advanced ahead of its Q3 December 2014 results tomorrow, 9 January 2015. Telecom stocks advanced. Coal India rose on media reports that five worker unions called off their strike, after reaching a consensus with the government. HDFC Bank advanced on reports that it has appointed a foreign investment bank as the lead banker for its sale of shares to raise as much as Rs 10000 crore from domestic and foreign investors.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 1011.36 crore from the secondary equity markets yesterday, 7 January 2015, as per data from Securities & Exchange Board of India.
In overseas markets, European shares edged higher today, 8 January 2015 on expectations that pessimistic euro zone data could prompt the European Central Bank (ECB) to implement more aggressive stimulus measures. Asian equity markets were higher today, 8 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude futures recovered from the lowest level since April 2009 in choppy trade today, 8 January 2015 as investors weighed whether crude's selloff was excessive amid signs of improving demand in the US.
The S&P BSE Sensex gained 365.89 points or 1.36% to settle at 27,274.71, its highest closing level since 5 January 2015. The index surged 407.59 points at the day's high of 27,316.41 in mid-afternoon trade. The index rose 193.12 points at the day's low of 27,101.94 in morning trade.
The CNX Nifty gained 132.50 points or 1.64% at 8,234.60, its highest closing level since 5 January 2015. The index hit a high of 8,243.50 in intraday trade. The index hit a low of 8,167.30 in intraday trade.
The BSE Mid-Cap index rose 186.08 points or 1.82% to settle at 10,420.63. The BSE Small-Cap index rose 196.89 points or 1.79% to settle at 11,185.88. Both these indices outperformed the Sensex.
Pipavav Defence and Offshore Engineering Company (up 18.18%), HMT (up 16.37%), Triveni Turbine (up 8.92%), Delta Corp (up 6.99%), Kalpataru Power Transmission (up 6.5%), Century Plyboards (India) (up 6.4%), Relaxo Footwears (up 6.21%), TVS Motor Company (up 6.19%), Voltas (up 5.68%), Indraprastha Gas (up 5.43%) were the key gainers from the BSE Mid-Cap index.
Borosil Glass Works (up 20%), Marico Kaya Enterprises (up 20%), Empire Industries (up 16.96%), Shilpi Cable Technologies (up 16.12%), Adhunik Industries (up 15.65%), Gravita India (up 13.57%), Garware Wall Ropes (up 12.69%), Walchandnagar Industries (up 12.58%), Parsvnath Developers (up 11.73%) and Aarti Drugs (up 11.32%) were the key gainers from the BSE Small-Cap index.
The market breadth indicating the overall health of the market was strong with more than two gainers for every loser. On BSE, 2,050 shares advanced and 823 shares declined. A total of 101 shares were unchanged.
The total turnover on BSE amounted to Rs 3215 crore, higher than Rs 3210.35 crore on yesterday, 7 January 2015.
All the 12 sectoral indices edged higher today, 8 January 2015. The S&P BSE Realty index (up 2.63%), the S&P BSE Bankex (up 2.07%) the S&P BSE FMCG index (up 1.95%), the S&P BSE Power index (up 1.62%), and the S&P BSE Auto index (up 1.59%) outperformed the Sensex.
The S&P BSE Metal index (up 1.3%), the S&P BSE Healthcare index (up 1.19%), the S&P BSE Capital Goods index (up 1.02%), the S&P BSE Teck index (up 0.97%), the S&P BSE IT index (up 0.91%), the S&P BSE Oil & Gas index (up 0.57%) and the S&P BSE Consumer Durables index (up 0.43%) underperformed the Sensex.
Index heavyweight and cigarette major ITC rose 2.38% to Rs 361.95. The stock hit a high of Rs 363.30 and low of Rs 355.25.
FMCG shares were in demand on renewed buying. Colgate-Palmolive (India) (up 3.26%), Dabur India (up 0.68%), Godrej Consumer Products (up 3.06%), Hindustan Unilever (up 1.61%), Nestle India (up 0.62%) and Tata Global Beverages (up 3.81%) gained. Marico shed 0.5%.
Shares of biscuits major Britannia Industries fell 1.94% to Rs 1,962. The stock reversed direction after scaling record high of Rs 2,018.95 in intraday trade.
Bajaj Corp advanced 1.39% to Rs 411.50 after scaling record high of Rs 420.70 in intraday trade.
IT stocks advanced on positive jobs data in United States. Tech Mahindra (up 1.56%), Oracle Financial Services Software (up 0.51%), CMC (up 0.57%), TCS (up 1.37%), MindTree (up 1.46%), Wipro (up 0.56%), and HCL Technologies (up 2.13%) edged higher. MphasiS (down 0.45%) edged lower.
United States is the world's biggest outsourcing market for Indian IT firms.
Infosys rose 0.74% at Rs 1,979.25. Due to cross currency headwinds, analysts expects Infosys' management to prune the company's revenue growth guidance in dollar terms for the year ending 31 March 2015 (FY 2015) when the company announces its Q3 December 2014 results tomorrow, 9 January 2015. The IT major is widely expected to prune its FY 2015 dollar revenue growth to 7%-8%, from 7%-9%.
At the time of announcement of Q2 September 2014 results, Infosys had on 10 October 2014 retained its earlier guidance of 7% to 9% growth in revenue in dollar terms for FY 2015. At that time, the company had raised its revenue growth guidance in rupee terms due to rupee depreciation. The company had raised the revenue growth guidance for FY 2015 in rupee terms to 6.7%-8.7% from earlier 5.6%-7.6% at that time. The revised guidance was based on rupee dollar conversion rate of 61.
Bank shares advanced. Among PSU bank stocks, Canara Bank (up 3.94%), Bank of India (up 2.9%), Punjab National Bank (up 1.47%), Bank of Baroda (up 1.06%), State Bank of India (up 1.6%) gained.
Among private bank stocks, Federal Bank (up 1.95%), ICICI Bank (up 2.6%), Axis Bank (up 0.41%), Yes Bank (up 1.5%), and IndusInd Bank (up 0.11%) edged higher.
Kotak Mahindra Bank rose 5.77% at Rs 1,344. The company before market hours today, 8 January 2015 said that at its shareholders approved the proposal for merger of ING Vysya Bank with itself at its extraordinary general meeting (EGM) held yesterday, 7 January 2015.
ING Vysya Bank rose 5.55% at Rs 927. The bank before market hours today, 8 January 2015 said that its shareholders at a EGM held yesterday, 7 January 2015 approved the proposed merger with Kotak Mahindra Bank.
HDFC Bank rose 2.08% at Rs 965. According to reports, HDFC Bank has appointed a foreign investment bank as the lead banker for its sale of shares to raise as much as Rs 10000 crore from domestic and foreign investors.
Karur Vysya Bank (KVB) rose 0.31%. The bank after market hours yesterday, 7 January 2015 said it has signed a memorandum of understanding (MoU) with Daimler India Commercial Vehicles on 5 January 2015 for financing buyers of trucks manufactured by the company under the brand name "Bharath Benz". KVB will offer loans to the buyers of new Bharath Benz trucks at bank's sole discretion, as per bank's internal eligibility criteria, subject to the terms and conditions set out by the bank in this regard. The MoU shall be for a term of three years and may be extended to such further period as agreed by both the parties.
Coal India rose 0.84% at Rs 378.05. According to reports, five Coal India worker unions called off their strike, after reaching a consensus with the government. Coal and power minister Piyush Goyal reportedly said issues faced by the mine workers were discussed and representatives were assured the company's management wouldn't go into private hands, reports suggested. Coal India during market hours yesterday, 7 January 2015, said that four central trade unions of the company observed strike on 6 January 2015, in Coal lndia and its subsidiaries companies. Due to strike the production and despatch were partially affected, Coal India said.
Ashok Leyland gained 2.26% to Rs 61 after scaling a record high of Rs 62 in intraday trade.
Bharat Electronics fell 2.39%. The company during market hours today, 8 January 2015 said it has inaugurated its modernised BEL Software Technology Centre (BSTC) of Navratna Defence PSU Bharat Electronics yesterday, 7 January 2015. BSTC is a part of the Central Development & Engineering Group of BEL-Bengaluru and is the software development centre of BEL, the company said in a statement.
Adani Power rose 2.95%. The company during market hours today, 8 January 2015 in a clarification with regard to news item titled "Adani-Lanco Power Deal Hits a Roadblock" said that both the parties are working to obtain some pending clearance/consent. Once these are availed the transaction would be completed, Adani Power said.
Shares of public sector oil marketing companies edged higher following a recent slump in crude oil prices.
BPCL (up 5.56%), HPCL (up 5.17%) and Indian Oil Corporation (up 2.62%) edged higher.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.
Shares of paint makers gained following a recent slump in crude oil prices. Shalimar Paints (up 4.55%), Asian Paints (up 6.16%) and Akzo Nobel India (up 2.49%) edged higher.
Kansai Nerolac Paints advanced 4.05% to Rs 2,090 after scaling record high of Rs 2,129.80 in intraday trade.
Berger Paints (India) jumped 10.3% to Rs 240.05 after scaling record high of Rs 242.50 in intraday trade. Shares of the company have turned 2-for-1 ex-split today, 8 January 2015.
Falling crude oil prices augur well for paints makers. Titanium dioxide, a key raw material for paint companies, is derived from crude oil.
Cement stocks edged higher. Ambuja Cements (up 3.46%), ACC (up 1.96%), UltraTech Cement (up 2.5%) and Shree Cement (up 0.19%) gained.
Grasim Industries rose 0.48% at Rs 3,429. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Telecom stocks advanced. Bharti Airtel (up 1.91%), Idea Cellular (up 1.1%), Mahanagar Telephone Nigam (up 2.77%), and Reliance Communications (up 0.45%) edged higher. Tata Teleservices (Maharashtra) (down 1.81%) edged lower.
Shares of tour operators gained. Cox & Kings (up 2.46%) and Thomas Cook (India) (up 10.51%) edged higher. Foreign Tourist Arrivals (FTAs) to India increased 6.8% to 8.77 lakh in December 2014 over December 2013, data released yesterday, 7 January 2015 showed. FTAs during the period January- December 2014 exhibited an accelerated growth of 7.1% to 74.62 lakh, as compared to the FTAs of 69.68 lakh with a growth of 5.9% during January- December 2013 over the corresponding period of 2012.
NHPC rose 1.92%. With respect to media reports titled Three NHPC power stations shut in a blow to disinvestment plans, NHPC after market hours today, 8 January 2015 replied that the status of preliminary report on fire in GSU Transformer at URI II power station was intimated on 20 November 2014. Further, as regard of Parbati-III & Teesta Low Dam-III, the matter is being taken up with concerned departments and shall be intimated to your office immediately on receipt of information, if any, the company said.
Credit Analysis and Research advanced 5.07% to Rs 1,693 after scaling a record high of Rs 1,712 in intraday trade.
Sobha rose 1.54% at Rs 465. The stock reversed intraday fall in volatile trade. The stock hit high of Rs 471.40 and low of Rs 422.55. The company after market hours yesterday, 7 January 2015 said that Q3 December 2014 was operationally a subdued quarter with the company achieving new sales of 661,451 square feet valued at Rs 427 crore with an average realisation of Rs 6,456 per square feet. The company pre-launched 2 projects admeasuring total saleable area of 0.67 million square feet.
Sobha said that the demand in markets across the country have remained muted with sluggish place of project approvals in the southern markets of Kerala and Tamil Nadu affecting the saleability of projects for developers across the spectrum. Bangalore continued to hold ground, accounting for majority of the new sales, the company said.
On the macro front, data to be released in near future is expected to show industrial production growth remaining muted in November 2014 and consumer price inflation accelerating in December 2014. Industrial production is seen rising 1.6% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for November 2014 after trading hours on Monday, 12 January 2015. Industrial production had witnessed a surprise contraction of 4.2% in October 2014.
The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.4% in December 2014 from 4.4% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the data on CPI inflation for December 2014 after trading hours on Monday, 12 January 2015.
The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band.
The rate of inflation based the wholesale price index (WPI) is projected at 0.5% for December 2014, as per the median estimate of a poll of economist carried out by Capital Market. WPI inflation stood at zero in November 2014. The government will release data on WPI for December 2014 at 12 noon on 14 January 2015.
Key benchmark indices snapped their three-day falling trend today, 8 January 2015. The Sensex had declined 979.08 points, or 3.51% in three trading sessions to settle at 26,908.82 yesterday, 7 January 2015 from a recent high of 27,887.90 on 2 January 2015. The Sensex has declined 224.71 points or 0.81% in this month so far (till 8 January 2015). From a record high of 28,822.37 struck on 28 November 2014, the Sensex has fallen 1,547.66 points or 5.36%. From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 7,311.59 points or 36.62%.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.68, compared with its close of 63.18 during the previous trading session.
Brent crude futures recovered from the lowest level since April 2009 in choppy trade today, 8 January 2015 as investors weighed whether crude's selloff was excessive amid signs of improving demand in the US. Brent for February settlement was up 9 cents at $51.24 a barrel. The contract had advanced 5 cents to settle at $51.15 a barrel during the previous trading session.
European shares edged higher today, 8 January 2015 on expectations that pessimistic euro zone data could prompt the European Central Bank (ECB) to implement more aggressive stimulus measures. Key indices in Germany, UK, and France were up 1.03% to 1.51%.
German manufacturing orders fell sharply in monthly terms in November, data from the country's economy ministry showed today, 8 January 2015 reversing a strong growth pace in the previous month. New orders in November were down 2.4% in adjusted terms. The October growth figure was revised upwards to 2.9% versus the 2.5% growth originally reported.
Greek unemployment continued its downward trend in October, according to figures released by the national statistics agency today, 8 January 2015. Figures from the Hellenic Statistical Service, or Elstat, showed that Greece's seasonally-adjusted unemployment rate fell to 25.8%--compared with 27.8% in October 2013--and a revised 26% rate recorded in September. In absolute terms, some 1.2 million Greeks are without jobs.
Meanwhile, the 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 equity markets were higher today, 8 January 2015. Key indices in Hong Kong, Japan, Singapore, Taiwan, South Korea, and Indonesia were up 0.09% to 1.74%. In China, the Shanghai Composite was off 2.39%.
Trading in US index futures indicated that the Dow could gain 117 points at the opening bell today, 8 January 2015. US stocks surged yesterday, 7 January 2015, with the S&P 500 rebounding from a five-session dive, as US crude stopped a four-day skid and Germany left the door open to discussing options with Greece's next government on its debt. Federal Reserve policymakers said they could begin raising interest rates before inflation starts to pick up, according to minutes of their meeting on 17 and 18 December 2014. However, the Fed officials added that "they would want to be reasonably confident that inflation will move back" toward the Fed's annual 2% target "over time".
Federal Reserve Bank of Chicago President Charles Evans said yesterday, 7 January 2015 the U.S. might not hit the Fed's target inflation rate until 2018 and he doesn't advocate raising interest rates until 2016. The Chicago Fed President said he would advocate hewing to "explicit" numerical targets for Fed policy, specifically, ensuring that a target 2% inflation is hit before reining in accommodative policy.
US private sector employment gains accelerated in December as employers added 241,000 jobs, Automatic Data Processing Inc. reported yesterday, 7 January 2015. ADP revised November's gain to 227,000 from a prior estimate of 208,000.
The US Labor Department reports monthly payroll data for December 2014 tomorrow, 9 January 2015.
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