A range bound movement was witnessed as key benchmark indices retained positive zone in morning trade. The barometer index, the S&P BSE Sensex, was currently up 128.34 points or 0.45% at 28,483.96. The market breadth indicating the overall health of the market was quiet strong, with more than two gainers for every loser on BSE. Asian stocks edged higher on speculation that a compromise will be reached over Greece's debt obligations.
Shares of public sector oil marketing companies rose as global crude oil prices fell. National Buildings Construction Corporation rose after the company secured Project Management and Consultancy business of Rs 231.40 crore from Indian Institute of Technology, Roorkee.
Foreign portfolio investors sold shares worth a net Rs 1261.19 crore yesterday, 10 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 851.32 crore yesterday, 10 February 2015, as per provisional data.
In overseas markets, Asian stocks edged higher on speculation that a compromise will be reached over Greece's debt obligations. US stocks rose yesterday, 10 February 2015, buoyed by hopes for a deal between Greece and its international creditors.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures extended losses registered during the previous trading session. Deregulation of diesel price announced by the Indian government in October 2014 and a steep decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The fall in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
At 10:16 IST, the S&P BSE Sensex was up 128.34 points or 0.45% at 28,483.96. The index jumped 176.84 points at the day's high of 28,532.46 in early trade. The index gained 83.42 points at the day's low of 28,439.04 in early trade.
The CNX Nifty was up 46.55 points or 0.54% at 8,612.10. The index hit a high of 8,620.35 in intraday trade. The index hit a low of 8,594.95 in intraday trade.
The BSE Mid-Cap index was up 70.72 points or 0.68% at 10,452.48. The BSE Small-Cap index was up 101.02 points or 0.93% at 11,000.03. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quiet strong, with more than two gainers for every loser on BSE. On BSE, 1,207 shares rose and 515 shares fell. A total of 47 shares were unchanged.
Shares of public sector oil marketing companies rose as global crude oil prices fell. BPCL (up 0.74%), Indian Oil Corporation (up 0.68%) and HPCL (up 1.05%) edged higher. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already freed pricing of petrol and diesel.
The Ministry of Petroleum & Natural Gas after trading hours yesterday, 10 February 2015, said that the Central Government has amended the Kerosene (Restriction on Use and Fixation of Ceiling Price) Order, 1993 with a view to ease the availability of white kerosene (market priced kerosene) for sale in the open market. By virtue of this amendment, all the activities of storage, transportation and sale of non-PDS kerosene have been freed of regulatory control. It is expected that this will reduce demand for diverted PDS kerosene by improving availability of non-PDS kerosene in the open market and will thus meet the demand of kerosene for various legitimate end uses for the industry and for individual consumption by those who can afford it at market price, the Ministry of Petroleum & Natural Gas said in a statement.
National Buildings Construction Corporation rose 3.52% after the company secured Project Management and Consultancy business of Rs 231.40 crore from Indian Institute of Technology, Roorkee. The announcement was made after market hours yesterday, 10 February 2015.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.2125, compared with its close of 62.20 during the previous trading session.
Brent crude oil futures extended losses registered during the previous trading session. Brent for March settlement which expires tomorrow, 12 February 2015, was off 24 cents at $56.19 a barrel. The contract had lost $1.91 a barrel or 3.27% to settle at $56.43 a barrel during the previous trading session. Brent for March settlement was off 56 cents at $57.56 a barrel.
Meanwhile, macroeconomic data to be released by the government in the coming days is likely to show deceleration in industrial production growth in December 2014 and acceleration in inflation in January 2015. The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.5% in January 2015 from 5% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil CPI data for January 2015 at 17:30 IST tomorrow, 12 February 2015.
The rate of inflation based on the wholesale price index (WPI) is seen accelerating to 0.4% in January 2015 from 0.1% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI data for January 2015 at 12.10 noon on 16 February 2015.
Growth in industrial production is seen decelerating to 1.5% in December 2014 from 3.8% expansion in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will industrial production data for December 2014 at 17:30 IST tomorrow, 12 February 2015. All these projections related to CPI, WPI and industrial production growth are based on the old series data with 2004-05 as base year. It may be recalled that the Ministry of Statistics & Programme Implementation revised the way it measures GDP on 30 January 2015. It brought forward the base year used in national economy calculations by seven years to 2011-12 from 2004-05. It also switched from using production costs to market prices. Changes in the base year are made every five years.
Asian stocks edged higher today, 11 February 2015, after a firmer finish of US stocks yesterday, 10 February 2015. Key indices in China, Singapore, Taiwan, Indonesia, and South Korea were up 0.21% to 0.88%. Hong Kong's Hang Seng fell 0.78%. Japanese market is closed today for a holiday.
Trading in US index futures indicated that the Dow could fall 10 points at the opening bell today, 11 February 2015. US stocks rose yesterday, 10 February 2015, buoyed by hopes for a deal between Greece and its international creditors.
In Europe, Euro zone finance ministers meet later today, 11 February 2015, and European Union (EU) leaders meet tomorrow, 12 February 2015, to discuss the Greek debt crisis, but officials are already downplaying the chance of a breakthrough.
Powered by Capital Market - Live News
