Pharma, cement and telecom stocks led the upmove as key benchmark indices edged higher on the first trading session of the week. The barometer index, the S&P BSE Sensex, attained its highest closing level in more than six weeks. The 50-unit CNX Nifty attained 6-1/2-week closing high. Shares of FMCG major Hindustan Unilever (HUL) dropped on profit taking after the company reported a modest growth in bottom line in Q3 December 2014, driven by a sharp rise in profit on sale of surplus properties. The Sensex garnered 140.12 points or 0.5% to settle at 28,262.01. The market breadth indicating the overall health of the market was positive. In overseas markets, Chinese stocks tumbled, with a wide sell-off sweeping across the financial sector as investors turned jittery over the latest move by securities regulators to clean up the margin-trading business.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1216.16 crore from the secondary equity markets during the previous trading session on Friday, 16 January 2015, as per data from Central Depository Services (CDSL).
Prime Minister Narendra Modi on Friday, 16 January 2015, called for making India a $20 trillion economy from a $2 trillion economy today. Speaking at an event, Modi also said that the government is committed to achieving the 4.1% fiscal deficit target announced in the Union Budget 2014-15.
Finance Minister Arun Jaitley reportedly said today, 19 January 2015, that the government will increase spending on infrastructure.
Bank stocks were mixed. Shares of fertiliser companies rose on reports that the government is considering removing price controls on urea and scrapping an import duty of 5%.
In the foreign exchange market, the rupee edged higher against the dollar as foreign investors stepped up purchases of the nation's bonds.
Brent crude futures edged lower in volatile trade.
In overseas markets, European stocks edged higher as traders bet on more stimulus this week from the European Central Bank (ECB). Asian stocks edged higher after a rebound in the US stocks at the end of last week. US stocks ended higher on Friday, 16 January 2015, on signs the US economy was on track for solid growth with consumer sentiment hitting an 11-year high.
The S&P BSE Sensex rose 140.12 points or 0.5% to settle at 28,262.01, its highest closing level since 5 December 2014. The index rose 212.17 points at the day's high of 28,334.06 in mid-morning trade. The index rose 75.47 points at the day's low of 28,197.36 in early afternoon trade.
The CNX Nifty gained 36.90 points or 0.43% to settle at 8,550.70, its highest closing level since 4 December 2014. The index hit a high of 8,570.95 and a low of 8,531.50 in intraday trade.
The BSE Mid-Cap index rose 47.91 points or 0.45% to settle at 10,681.02, underperforming the Sensex. The BSE Small-Cap index gained 89.93 points or 0.8% to settle at 11,399.86, outperforming the Sensex.
Among sectoral indices on BSE, the BSE Auto index (up 0.98%), BSE Healthcare index (up 1.17%), BSE Oil & Gas index (up 0.81%), BSE Consumer Durables index (up 3.35%), BSE Capital Goods index (up 1.17%), BSE Power index (up 1.08%), and the S&P Bankex index (up 0.92%) outperformed the Sensex. BSE IT index (down 0.01%), BSE FMCG index (down 0.71%), BSE Teck index (up 0.25%) and BSE Realty index (up 0.25%) underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,657 shares advanced and 1,318 shares declined. A total of 110 shares were unchanged.
The total turnover on BSE amounted to Rs 3474 crore, lower than turnover of Rs 4135.56 crore during the previous trading session on Friday, 16 January 2015.
Reliance Industries' (RIL) rose 1.25% to Rs 879.85. The stock hit high of Rs 885.75 and low of Rs 859.05. The company's consolidated net profit fell 4.5% to Rs 5256 crore on 20.4% decline in revenue to Rs 96330 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours on Friday, 16 January 2015.
RIL attributed the decline in revenue in Q3 December 2014 to a sharp fall in benchmark oil price. Exports from India declined 21.5% to Rs 58507 crore in Q3 December 2014 over Q3 December 2013. Operating profit before other income and depreciation rose 0.4% to Rs 8689 crore in Q3 December 2014 over Q3 December 2013. The company's gross refining margin (GRM) dropped to $7.3 a barrel in Q3 December 2014 from $8.3 a barrel in Q2 September 2014 and $7.6 a barrel in Q3 December 2013.
RIL said that Q3 December 2014 witnessed heightened volatility across the hydrocarbon business. Benchmark crude oil prices declined by around 40% through the quarter, with consequent impact on petrochemical feedstock and product prices, the company said. While headline deltas were strong, declining feedstock prices impacted buying sentiment across product categories, RIL said. Downstream converters ran down inventories, operating at minimal stock levels, the company added. RIL, in line with its operating strategy, aggressively sold down stocks to maintain optimal levels of inventory, which impacted realized deltas and margins for products, the company said in a statement. This coupled with lower holding value of closing-stock impacted performance of refining and petrochemicals businesses, RIL said.
The capital expenditure for the nine months ended 31 December 2014 was Rs 70 272 crore ($ 11.1 billion) including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej and Hazira, Broad band Access and US Shale gas projects.
Hindustan Unilever (HUL) fell 4.82% to Rs 897. The stock hit a high of Rs 948.50 and a low of Rs 885.25 in intraday trade. HUL's net profit rose 17.87% to Rs 1252.17 crore on 7.17% growth in total income to Rs 7894.39 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced during market hours today, 19 January 2015.
HUL's bottom line was boosted by profit of Rs 407.29 crore on sale of surplus properties. The profit on sale of surplus properties was much higher than Rs 28.10 crore in Q3 December 2013.
Net sales rose 7.7% to Rs 7579.18 crore in Q3 December 2014 over Q3 December 2013. HUL's domestic consumer business (FMCG plus water) rose 7.6% in value terms in Q3 December 2014, with 3% underlying volume growth.
Cement stocks gained. ACC (up 1.02%), Ambuja Cements (up 2.95%), Shree Cement (up 3.54%) and UltraTech Cement (up 0.62%) gained.
Grasim Industries rose 0.56%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Pharma stocks edged higher. Ranbaxy Laboratories (up 1.25%), Aurobindo Pharma (up 1.92%), Cipla (up 1.61%), Lupin (up 2.36%), Wockhardt (up 3.35%), Dr Reddy's Laboratories (up 0.9%), Strides Arcolab (up 0.02%), Shasun Pharmaceuticals (up 0.37%), Elder Pharmaceuticals (up 1.57%), Divi's Laboratories (up 0.19%), and Glenmark Pharmaceuticals (up 2.03%) gained.
Sun Pharmaceutical Industries rose 1.33% after 0.07% equity changed hands in a bulk deal on BSE today, 19 January 2015.
Hindustan Zinc gained 2.17%. Hindustan Zinc's net profit rose 38.11% to Rs 2379.37 crore on 20.42% rise in total income to Rs 4665.29 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours.
Telecom stocks rose. Bharti Airtel (up 2.25%), Idea Cellular (up 2.27%), MTNL (up 1.99%) Tata Teleservices (Maharashtra) (up 1.42%) and Reliance Communications (up 1.79%) gained.
Bank stocks were mixed. Among private sector banks, Axis Bank (up 2.72%), Yes Bank (up 2.16%), ICICI Bank (up 1.50%), Federal Bank (up 1%) and HDFC Bank (up 0.30%), edged higher. IndusInd Bank (down 0.19%), ING Vysya Bank (down 0.53%), Kotak Mahindra Bank (down 0.57%) and City Union Bank (down 0.74%) edged lower.
Among public sector banks, Punjab and Sind Bank (up 4.15%), Canara Bank (up 2.21%), Punjab National Bank (up 1.12%), Bank of Baroda (up 0.71%), Corporation Bank (up 0.60%), Andhra Bank (up 0.59%), Allahabad Bank (up 0.55%), Union Bank of India (up 0.51%), Syndicate Bank (up 0.35%), Bank of Maharashtra (up 0.34%), Dena Bank (up 0.25%), Vijaya Bank (up 0.20%), IDBI Bank (up 0.07%) and UCO Bank (up 0.06%), edged higher. United Bank of India (down 0.12%), Bank of India (down 0.43%), Central Bank (down 0.66%), State Bank of India (down 0.71%) and Indian Bank (down 0.92%) edged lower.
IT stocks were mixed. Infosys (down 0.56%), Tech Mahindra (down 0.26%) and TCS (down 0.87%) declined.
Wipro was up 5.32%. The stock hit high of Rs 598.45 and low of Rs 583.05. The company's consolidated net profit rose 9% to Rs 2190 crore on 6% growth in total revenue to Rs 11990 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours on Friday, 16 January 2015. The results are as per International Financial Reporting Standards (IFRS).
Wipro's IT services segment revenue in rupee terms rose 10% to Rs 11340 crore in Q3 December 2014 over Q3 December 2013.
IT services revenue rose 7% to $1.795 billion in Q3 December 2014 over Q3 December 2013. Non-GAAP constant currency IT services revenue in dollar terms rose 3.7% to $1.836 billion, within the company's earlier guidance range of $1.808 billion to $1.842 billion.
Wipro expects its revenue from IT services business at between $1.814 billion to $1.85 billion in Q4 March 2015.
HCL Technologies rose 0.74% after the company scheduled a board meeting to consider bonus issue. The announcement was made before market hours today, 19 January 2015.
HCL Technologies said that the company's board of directors will consider issue of bonus shares along with Q2 December 2014 results in its board meeting to be held between 28 January 2015 to 30 January 2015.
JSW Steel fell 0.06%. Sical Logistics rose 0.50%. With respect to news titled, "JSW Steel Looks to Buy Sical Logistics Ore Terminal," JSW Steel clarified that it is not engaged in any port operations and it is not involved in any discussion to buy iron ore terminal as reported in the media. The clarification was issued during trading hours today, 19 January 2015.
Separately, Sical Logistics clarified during trading hours today, 19 January 2015, that it is not involved in any discussion to sell the iron ore terminal to JSW Steel as reported in the media.
SpiceJet hit an upper circuit limit of 10% at Rs 22.55 on BSE. The stock had jumped 10% during the previous trading session on Friday, 16 January 2015. The rally in the stock has been triggered by the company's announcement on 15 January 2015 that its board of directors has taken on record the proposal of the principal shareholder and promoter, Mr. Kalanithi Maran and KAL Airways to transfer the ownership, management and control of the company to Mr. Ajay Singh pursuant to a scheme of reconstruction and revival for the takeover of ownership, management and control of the company to be filed before the Ministry of Civil Aviation, Government of India.
Shares of fertiliser companies rose on reports that the government is considering removing price controls on urea and scrapping an import duty of 5%, as Prime Minister Narendra Modi moves to check subsidy costs and cut wasteful use of the crop nutrient. Urea is the most widely used fertiliser in India.
Rashtriya Chemicals and Fertilisers (up 3.53%), Zuari Global (up 2.93%), National Fertilisers (up 2.38%), Fertilisers & Chemicals Travancore (up 1.85%), Chambal Fertilisers & Chemicals (up 1.60%), Gujarat State Fertilizers Company (up 0.68%), Coromandel Fertilizers (up 0.49%) and Tata Chemicals (up 0.38%) edged higher.
Reliance Capital gained 0.54%. With respect to a news item captioned "Reliance Cap eyes on Goldman India s MF unit", Reliance Capital clarified after market hours that the company is continuously engaged in evaluating opportunities and as and when any transaction is finalised resulting in a disclosable event, the Stock Exchanges will be promptly informed as required under Clause 36 of the Listing Agreement.
Key equity benchmark indices edged higher for the third day in a row today, 19 January 2015. From a recent low of 27,346.82 on 14 January 2015, the Sensex has gained 915.19 points or 3.34% in three trading sessions. The Sensex has gained 762.59 points or 2.77% in this month so far (till 19 January 2015). From a record high of 28,822.37 struck on 28 November 2014, the Sensex has fallen 560.36 points or 1.94%. From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 8,298.89 points or 41.57%.
In the foreign exchange market, the rupee edged higher against the dollar as foreign investors stepped up purchases of the nation's bonds. The partially convertible rupee was hovering at 61.795, compared with its close of 61.87 during the previous trading session.
Brent crude futures edged lower in choppy trade. Brent for March settlement was off 81 cent at $49.36 a barrel. The contract had risen $1.9 a barrel or 3.93%, to settle at $50.17 a barrel during the previous trading session on Friday, 16 January 2015.
European stocks edged higher today, 19 January 2015, as traders bet on more stimulus this week from the European Central Bank (ECB). Key benchmark indices in France, UK and Germany were up by 0.1% to 0.5%.
The governing council of the ECB is scheduled to undertake monetary policy review on Thursday, 22 January 2015. The ECB may introduce a large-scale bond-buying program on 22 January 2015, in its bid to avert deflation in the region.
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 on 25 January 2015. 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 edged higher today, 19 January 2015, after a rebound in the US stocks at the end of last week. Key benchmark indices in Singapore, Japan, South Korea, Indonesia and Taiwan were up by 0.07% to 0.89%.
Chinese stocks tumbled, with a wide sell-off sweeping across the financial sector as investors turned jittery over the latest move by securities regulators to clean up the margin-trading business. In mainland China, the Shanghai Composite index was off 7.7%. In Hong Kong, the Hang Seng was off 1.51% Also affecting sentiment was a fresh fall in home prices across China's major cities.
Brokerage shares slumped after China's securities regulator last week banned three brokerages from opening new margin trading accounts, putting a temporary halt on what has proved a major engine of the market's super-bull rally.
The US stock market remains closed today, 19 January 2015, for Martin Luther King, Jr. Day holiday.
On Friday, 16 January 2015, US stocks ended higher on signs the US economy was on track for solid growth with consumer sentiment hitting an 11-year high. US gasoline prices fell again in December, leading consumer prices to post their biggest decline in six years, while a gauge of underlying inflation was flat. The data could make the Federal Reserve cautious about raising interest rates.
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