A bout volatility was witnessed as key benchmark indices extended gains in mid-afternoon trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently up 108.74 points or 0.37% at 29,387.58.
Index heavyweight and cigarette major ITC edged higher. Maruti Suzuki India rose in volatile trade after reporting good Q3 result. Private sector banking stocks were mixed. PSU bank stocks declined. Among the side counters, Alstom India and Alstom T&D India hit 52-week high. Bajaj Finance, Max India and WABCO India scaled record high. Shares of brokerage firms were in demand.
India and the US on Sunday, 25 January 2015, reached an understanding on resolving the logjam in implementing the historic 2006 India-US nuclear deal besides deciding to jointly produce military hardware including advanced unmanned aerial vehicles (UAVs) during talks between Indian Prime Minister Narendra Modi and US President Barack Obama.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 2019.98 crore during the previous trading session on Friday, 23 January 2015, as per provisional data. The stock market was closed yesterday, 26 January 2015, for Republic Day holiday.
Earlier, the Sensex and the 50-unit CNX Nifty, had, both scaled record high at onset of the trading session.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged higher in volatile trade.
In overseas markets, European stocks edged lower as Siemens AG led industrial companies lower after the Europe's largest engineering company reported a decline in first-quarter profit. Asian stocks edged higher amid optimism the actions of Greece's new government won't force the nation to leave the euro currency bloc. US stocks eked out small gains yesterday, 26 January 2016, as investors mostly shrugged off the Greek election results which brought the leftist Syriza party to power.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month January 2015 series to February 2015 series. The near month January 2015 derivatives contract expire on Thursday, 29 January 2015.
At 14:16 IST, the S&P BSE Sensex was up 108.74 points or 0.37% at 29,387.58. The index jumped 177.79 points at the day's high of 29,456.63 at onset of the day's trading session, a record high for the index. The index rose 7.25 points at the day's low of 29,286.09 in early afternoon trade.
The CNX Nifty was up 21.05 points or 0.24% at 8,856.65. The index hit a high of 8,878.20 in intraday trade, a lifetime high for the index. The index hit a low of 8,825.45 in intraday trade.
The BSE Mid-Cap index was up 87.61 points or 0.82% at 10,783.28. The BSE Small-Cap index was up 51.70 points or 0.45% at 11,417.79. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,474 shares fell and 1,317 shares rose. A total of 114 shares were unchanged.
Index heavyweight and cigarette major ITC advanced 2.44% to Rs 357.80. The stock hit high of Rs 358.50 and low of Rs 350 so far during the day.
Maruti Suzuki India rose 0.99% to Rs 3,644.25. The stock was volatile. The stock hit high of Rs 3,684.90 and low of Rs 3,587.05 so far during the day. Maruti Suzuki India's net profit rose 17.76% to Rs 802.16 crore n 15.38% rise in total income to Rs 12704.72 crore in Q3 December 2014 over Q3 December 2013. The company announced Q3 results during market hours today, 27 January 2015.
Maruti Suzuki India said that higher volumes, material cost reduction initiatives and favourable foreign exchange contributed to bottom line growth in Q3 December 2014.
Private sector banking stocks were mixed. HDFC Bank (up 0.66%), IndusInd Bank (up 0.52%), Axis Bank (up 2.57%), and ICICI Bank (up 2.48%) gained. ING Vysya Bank (down 0.78%), Kotak Mahindra Bank (down 0.91%) and Yes Bank (down 0.12%) declined
PSU bank stocks declined. Punjab National Bank (down 2.08%), Bank of Baroda (down 0.63%), Canara Bank (down 0.87%), Bank of India (down 2.24%) dropped.
State Bank of India (SBI) fell 0.95%. The state-run bank before market hours today, 27 January 2015, said that the Committee of Directors for Capital Raising (the Committee) has decided to take enabling approval from the shareholders for raising additional equity share capital up to Rs 15000 crore by way of public issue (i.e. follow-on-public issue) or rights issue or private placement, including qualified institutions placement (QIP)/global depository receipt (GDRs)/American depository receipt (ADRs) and/or any other mode(s) or a combination(s) thereof. The Committee also decided to seek the approval of the Government of India and the Reserve Bank of India for raising capital under Section 5(2) of the State Bank of India Act, 1955 and take all necessary steps in this regard.
Union Bank of India dropped 6.8% to Rs 234.30. The stock hit a high of Rs 253 and a low of Rs 232.20 so far during intraday trade. The bank's net profit fell 13.33% to Rs 302.42 crore on 8.39% growth in total income to Rs 8921 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 27 January 2015.
Union Bank of India's ratio of net non-performing assets (NPAs) to net advances stood at 2.95% as on 31 December 2014, compared with 2.71% as on 30 September 2014 and 2.26% as on 31 December 2013. The bank's ratio of gross NPAs to gross advances stood at 5.08% as on 31 December 2014, compared with 4.69% as on 30 September 2014 and 3.85% as on 31 December 2013.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.30% as on 31 December 2014, compared with 10.30% as on 30 September 2014 and 10.12% as on 31 December 2013.
Provisions (other than tax) and contingencies rose 39.56% to Rs 851.92 crore in Q3 December 2014 over Q3 December 2013. The bank's provision coverage ratio as on 31 December 2014 stood at 57.25%.
Net interest margin (NIM) stood at 2.57% for Q3 December 2014 as against 2.6% for Q2 September 2014 and 2.64% in Q3 December 2013.
CASA (current and savings account) deposits grew by 9.5% to Rs 89910 crore as on 31 December 2014 from Rs 82112 crore in the previous year. As on 31 December 2014, CASA share in the bank's total deposits stood at 28.7%. Domestic CASA ratio stood at Rs 29.2% as on 31 December 2014.
Alstom India surged 5.73% to Rs 737.50 after hitting a 52-week high of Rs 749 in intraday trade.
Alstom T&D India jumped 8.88% to Rs 532.35 after hitting a 52-week high of Rs 563.90 in intraday trade.
Bajaj Finance advanced 7.18% to Rs 4,135 after scaling a record high of Rs 4,328.35 in intraday trade.
Max India surged 7.13% to Rs 486.95 after scaling a record high of Rs 505 in intraday trade.
WABCO India gained 5.45% to Rs 5,301 after scaling a record high of Rs 5,384.35 in intraday trade.
Shares of brokerage firms were in demand. India Infoline (up 10.26%), Edelweiss Capital (up 12.03%), Geojit BNP Paribas Financial Services (up 8.41%), Motilal Oswal Financial Services (up 3.47%), Religare Enterprises (up 1.34%), Emkay Shares & Stock Brokers (up 2.7%) and Indiabulls Securities (up 0.81%) edged higher.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.445, compared with its close of 61.44 during the previous trading session on Friday, 23 January 2015. The foreign exchange market was closed yesterday, 26 January 2015, for Republic Day holiday.
Brent crude oil futures edged higher in volatile trade. Brent for March settlement was up 7 cents at $48.23 a barrel. The contract had fallen 63 cents or 1.29% to settle at $48.16 a barrel during the previous trading session.
Prime Minister Narendra Modi yesterday, 26 January 2015, said big projects involving large investment would be monitored by the Prime Minister's Office. He was speaking at the interactive India US CEO Forum, in the presence of US President Barack Obama, and top business leaders from both countries. He mentioned the importance of investment in the infrastructure sector, especially in the Railways.
India and the US on Sunday, 25 January 2015, reached an understanding on resolving the logjam in implementing the historic 2006 India-US nuclear deal besides deciding to jointly produce military hardware including advanced unmanned aerial vehicles (UAVs) during talks between Indian Prime Minister Narendra Modi and US President Barack Obama. The two countries resolved key hurdles pertaining to the liability of suppliers of nuclear reactors in the event of an accident and the tracking of fuel supplied by the US. Both countries also agreed on a Working Group to explore aircraft carrier technology besides designing and development of jet engine technology, according to media reports.
In a media statement issued during a joint press interaction with Obama, Modi on Sunday, 25 January 2015, said that the Indo-US civil nuclear agreement was the centrepiece of a transformed relationship between India and the United States, which demonstrated new trust. "I am pleased that six years after we signed our bilateral agreement, we are moving towards commercial cooperation, consistent with our law, our international legal obligations, and technical and commercial viability. President Obama has also assured me of strong US efforts in support of India's full membership of the four international export control regimes at the earliest", Modi said. Separately, a joint statement issued by India and the US stated that Modi and Obama welcomed the understandings reached on the issues of civil nuclear liability and administrative arrangements for civil nuclear cooperation, and looked forward to US-built nuclear reactors contributing to India's energy security at the earliest.
Obama today, 27 January 2015, concludes his 3-day visit to India.
Meanwhile, the Reserve Bank of India (RBI) on Friday, 23 January 2015, relaxed rules for companies and banks to restructure and reschedule existing overseas borrowings by permitting an increase in the total cost of external commercial borrowing (ECB). The RBI has also allowed changes in the drawdown and repayment schedules of ECB. However, the easing of rules will not be applicable for foreign currency convertible bonds, the RBI said.
European stocks edged lower today, 27 January 2015, as Siemens AG led industrial companies lower after the Europe's largest engineering company reported a decline in first-quarter profit. Key benchmark indices in France and Germany were off 0.23% to 0.34%. In UK, the FTSE 100 index was up 0.04%.
In Greece, the leftist Syriza party which ran on an antiausterity platform, won elections held in the country on Sunday, 25 January 2015. Syriza and its outspoken leader, Alexis Tsipras, who had campaigned against the austerity measures imposed on Greece by its international creditors, formed a coalition government yesterday, 26 January 2015, with a right-wing fringe party, Independent Greeks.
Asian stocks edged higher today, 27 January 2015, amid optimism the actions of Greece's new government won't force the nation to leave the euro currency bloc. Key benchmark indices in Taiwan, Singapore, Japan, Indonesia and South Korea rose 0.04% to 1.72%. Key benchmark indices in China and Hong Kong fell 0.41% to 0.89%.
China reported a service trade deficit of $23.5 billion in December, compared with a deficit of $20.8 billion in November, official data showed today, 27 December 2015. For 2014, the country's service trade deficit stood at $198.0 billion, as per the State Administration of Foreign Exchange. China's service trade deficit was $118.4 billion in 2013.
Trading in US index futures indicated that the Dow could fall 19 points at opening bell today, 27 January 2015. US stocks ended higher yesterday, 26 January 2015, as investors brushed off fears that a leftist victory in Greece would bring fresh crisis to the Eurozone and energy stocks advanced.
A two-day meeting of the Federal Open Market Committee (FOMC) begins today, 27 January 2015. In its last meet in December 2014, FOMC had based on its assessment, judged that it can be patient in beginning to normalize the stance of monetary policy.
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