After a firm opening triggered by overnight rally in US stocks, key benchmark indices trimmed gains in morning trade. The barometer index, the S&P BSE Sensex, was currently up 150.12 points or 0.55% at 27,424.83. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. Asian stocks rose after overnight rally in US stocks.
IT stocks edged higher. Infosys dropped amid volatility ahead of its Q3 December 2014 results. Tata Steel advanced after the company said it has resumed mining operations at Noamundi in Jharkhand.
Meanwhile, Finance Minister Arun Jaitley yesterday, 8 January 2015, said that domestic policies to achieve macro-economic balance and the on-going process of economic reforms would lend further strength to the recovery of the Indian economy.
Foreign portfolio investors sold shares worth a net Rs 466.78 crore yesterday, 8 January 2015, as per provisional data.
In overseas markets, Asian stock markets were higher, taking cues from a surge on Wall Street overnight. US stocks surged yesterday, 8 January 2015, as two days of steady oil prices along with dovish comments by a Federal Reserve member helped further fuel a buying frenzy which begun on Wednesday 7 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude futures edged higher amid speculation a slowdown in the US shale boom will reduce a glut that's driven prices to the lowest in 5-1/2-years.
At 10:15 IST, the S&P BSE Sensex was up 150.12 points or 0.55% at 27,424.83. The index surged 232.96 points at the day's high of 27,507.67 in early trade, its highest level since 6 January 2015. The index rose 129.48 points at the day's low of 27,404.19 in opening trade.
The CNX Nifty was up 48.45 points or 0.59% at 8,283.05. The index hit a high of 8,303.30 in intraday trade, its highest level since 6 January 2015. The index hit a low of 8,272.95 in intraday trade.
The BSE Mid-Cap index was up 63.72 points or 0.61% at 10,484.35. The BSE Small-Cap index was up 77.44 points or 0.69% at 11,263.32, Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. 1,351 shares advanced and 608 shares declined. A total of 70 shares were unchanged.
IT stocks advanced. MindTree (up 2.32%), Tech Mahindra (up 1.95%), TCS (up 1.53%), MphasiS (up 1.2%), CMC (up 1.08%), and HCL Technologies (up 0.48%) edged higher. Oracle Financial Services Software (down 1.56%) edged lower.
Infosys fell 0.18% at Rs 1,971. The stock hit a high of Rs 1,996.55 and a low of Rs 1,962. The company announces its Q3 December 2014 results at 12:30 noon today, 9 January 2015. Due to cross currency headwinds, analysts expects Infosys' management to today, 9 January 2015, prune the company's revenue growth guidance in dollar terms for the year ending 31 March 2015 (FY 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.
Wipro rose 0.22% at Rs 546.25. With respect to news article titled "Wipro wins $400m IT Infra Deal from swiss Giant ABB", Wipro after market hours yesterday, 8 January 2015, clarified that the company does not comment on market rumours.
Tata Steel advanced after the company after said it has resumed mining operations at Noamundi in Jharkhand. The stock was up 2.18% at Rs 403.30. In its clarification with regard to news item titled "Tata Steel: Mining of Iron Ore from Noamundi in a few days", Tata Steel during trading hours today, 9 January 2015, said that based on the order from the High Court of Jharkhand, Tata Steel has received the order under section 8(3) of the MMDR Act 1957 from the state government of Jharkhand and has resumed mining operations in Noamundi. The mine renewal process is currently on-going, Tata Steel said.
NHPC rose 0.54% at Rs 18.70. With respect to media reports titled "Three NHPC power stations shut in a blow to disinvestment plans", NHPC after market hours yesterday, 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 the stock exchanges immediately on receipt of information, if any, the company said.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.33, compared with its close of 62.68 during the previous trading session.
Brent crude futures edged higher amid speculation a slowdown in the US shale boom will reduce a glut that's driven prices to the lowest in 5-1/2-years. Brent for February settlement was up 36 cents at $51.32 a barrel. The contract had declined 19 cents to settle at $50.96 a barrel during the previous trading session.
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.
Asian stocks edged higher today, 9 January 2015, taking cues from a surge on Wall Street amid hopes for continued improvement in the US economy. Key indices in China, Japan, Hong Kong, Singapore, South Korea, and Indonesia were up 0.1% to 1.18%. In Taiwan, the Taiwan Weighted index was off 0.08%.
China's consumer inflation remained tepid in December, while prices at the factory gate continued to slide. The consumer price index rose 1.5% on year in December, up slightly from a 1.4% on-year rise in November, data from the National Bureau of Statistics showed today, 9 January 2015.
Trading in US index futures indicated that the Dow could fall 21 points at the opening bell today, 9 January 2015. US stocks surged yesterday, 8 January 2015, as two days of steady oil prices along with dovish comments by a Federal Reserve member helped further fuel a buying frenzy which begun on Wednesday 7 January 2015. Prospects for further central-bank easing in Europe are also whetting investors' appetite for riskier assets, namely equities.
The number of people who applied for US unemployment benefits at the end of the year fell slightly and remained below the key 300,000 mark for the 16th time in 17 weeks, offering more proof the labor market is still on an upswing.
Federal Reserve Bank of Chicago President Charles Evans on Wednesday, 7 January 2015, said that the Fed's target inflation rate might not be hit until 2018, and he doesn't advise a rate hike until 2016. Evans, who is a voting member of the Federal Open Market Committee this year, was speaking at an event sponsored by the University of Chicago.
The US Labor Department reports monthly payroll data for December 2014 later in global day today, 9 January 2015.
In Europe, 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.
Meanwhile, drop in euro-area consumer prices in December has fueled speculation the European Central Bank will bolster stimulus efforts.
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