After a firm opening triggered by overnight rally in US stocks, key benchmark indices gave away almost entire intraday gains by morning trade. The barometer index, the S&P BSE Sensex, was currently up 2.09 points or 0.01% at 29,124.36. The market breadth indicating the overall health of the market was positive.
The Reserve Bank of India (RBI) is scheduled to announce the outcome of the sixth bi-monthly monetary review at 11:00 IST today, 3 February 2015.
Shares of oil exploration and production (E&P) companies advanced as global crude oil prices rose. Bank stocks were mixed ahead of the outcome of the Reserve Bank of India's monetary policy review. State Bank of India advanced after the company and Reliance Industries in a joint statement said that RIL has applied for a Payments Bank license and RIL will be the promoter while SBI will be the joint venture partner with equity investment of upto 30% in the Payments Bank. Canara Bank dropped amid volatility.
Foreign portfolio investors sold shares worth a net Rs 629.97 crore yesterday, 2 February 2015, as per provisional data.
In the overseas makets, Asian stocks were mixed. US stocks ended sharply higher yesterday, 2 February 2015, after a late rally driven by hopes for a Greek debt deal and as energy shares bounced with oil prices.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures extended gains registered during the previous trading session.
At 10:19 IST, the S&P BSE Sensex was up 2.09 points or 0.01% at 29,124.36. The index jumped 130.79 points at the day's high of 29,253.06 in early trade. The index fell 13.38 points at the day's low of 29,108.89 in morning trade.
The CNX Nifty was up 6.85 points or 0.08% at 8,804.25. The index hit a high of 8,837.30 in intraday trade. The index hit a low of 8,798.20 in intraday trade.
The BSE Mid-Cap index was up 35.79 points or 0.33% at 10,834.92. The BSE Small-Cap index was up 33.71 points or 0.29% at 11,490.55. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,258 shares gained and 867 shares fell. A total of 82 shares were unchanged.
Bank stocks were mixed ahead of the outcome of the Reserve Bank of India's monetary policy review. Bank of Baroda (up 0.65%), IndusInd Bank (up 0.91%), ICICI Bank (up 0.6%), Yes Bank (up 0.37%), Bank of India (up 0.02%) edged higher. Punjab National Bank (down 0.68%), Federal Bank (down 0.31%), Axis Bank (down 0.77%), HDFC Bank (down 0.91%), and Kotak Mahindra Bank (down 1.08%) edged lower.
State Bank of India (SBI) rose 0.23% at Rs 308.50. Reliance Industries rose 1.77% at Rs 924. SBI and Reliance Industries (RIL) said in a joint statement issued after market hours yesterday, 2 February 2015, that RIL has applied for a Payments Bank license. RIL will be the promoter and State Bank of India (SBI) will be the joint venture partner with equity investment of upto 30%. The payments bank will leverage SBI's nationwide distribution network and risk management capabilities alongwith the substantial investments made by RIL in its retail and telecom businesses, the two companies said in a press release. It will deploy state-of-the-art technology, build scalable infrastructure and create extensive branch and business correspondent network in order to provide last-mile access and intuitive user experience to all sections of society, the press release added.
Canara Bank fell 0.41% at Rs 452.90. The stock hit a high of Rs 456.25 and a low of Rs 451.25 so far during the day. The bank after market hours yesterday, 2 February 2015, said that as per the powers delegated by the Board of the bank, the Bond Committee, during the course of its meeting held on 2 February 2015, decided to raise additional Tier- I instruments amounting to Rs 1500 crore through issue of BASEL-III complaint additional Tier-I perpetual bonds by way of private placement.
Shares of oil exploration and production companies advanced on gains in crude oil prices. Cairn India (up 2.7%), ONGC (up 1.91%), and Oil India (up 0.43%) edged higher. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms.
Videocon Industries jumped 11.69% at Rs 176.70. Videocon Industries during market hours today, 3 February 2015, said that Petroleo Brasileiro SA (Petrobras), the operator of the BM-SEAL-11 Concession announced yesterday, 2 February 2015, the drllling results of the third appraisal well 3-SES-186 (3-BRSA-1286-SES) located 103 KM from the city of Aracaju and about 10 KM from the discovery well Farfan, in the Concession Area BM-SEAL-11, Block SEAL-M-426 in deepwater Sergipe Alagoas Basin. The result obtained in this well confirms the extension of the ligh oil reservoirs previously discovered by the Farfan discovery well in turbidite sandstones of Upper Campanian age (Calumbi Formation), communicated to stock exchange on 12 August 2013, Videocon Industries said. In addition, the weel found presence of a new light oil accumulation with a total thickness of 68 meters in shallower reservoirs, the company said. This accumulation is part of the Sergipe-Alagoas Basin ultra-deep water exploratory project, as provided for in the 2014-2018 business and management plan, Videocon Industries said in a statement.
The consortium Partners will continue implementation of the discovery assessment plan (PAD) as approved by the Brazilian regulatory authority, Agencia Nacional Do Petroleo, Gas Natural e Biocombustiveis (ANP). Petrobras holds 60% Participating Interest in the concession and IBV Brazil (a Brazilian joint venture company equally held by Videocon Energy Brazil, a wholly owned overseas subsidiary of Videocon, and BPRL Ventures N.V., a wholly-owned subsidiary of Bharat Petroleum Corporation) holds the remaining 40% participating interest in the concession. The consortium will carry on operations in the area to further confirm the extent of the hydrocarbons inplace and the characteristics of the reservoirconditions encountered.
Shares of BPCL were off 0.03% at Rs 747.90. The stock hit a high of Rs 755.90 and a low of Rs 737.10 so far during the day.
Hero MotoCorp fell 0.16% at Rs 2,830. Hero MotoCorp reported 0.4% fall in sales to 5.58 lakh units in January 2015 over January 2014. The despatches were severely impacted during the two-day long transporters' strike during January 2015, Hero MotoCorp said. The announcement was made after market hours yesterday, 2 February 2015.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.635, compared with its close of 61.80 during the previous trading session.
Brent crude oil futures extended gains registered during the previous trading session. Brent for March settlement was up 33 cents at $55.08 a barrel. The contract had jumped $1.76 a barrel or 3.32% to settle at $54.75 a barrel during the previous trading session.
The Reserve Bank of India (RBI) is scheduled to announce the outcome of the sixth bi-monthly monetary review at 11:00 IST today, 3 February 2015. The RBI surprised financial markets by announcing a cut in its main lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review on 15 January 2015, citing easing of inflationary pressures in the economy. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose to 5% in December 2014 from 4.4% in November 2014. Over the long term, the RBI aims to restrict consumer price inflation to 4%, within a two-per-cent band.
The Eight Core Industries comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP). The combined Index of Eight Core Industries stands at 172.7 in December, 2014, which was 2.4% higher compared to the index of December, 2013. Its cumulative growth during April to December, 2014-15 was 4.4%.
Asian stocks were mixed today, 3 February 2015. Key indices in China, Taiwan, and Indonesia were up 0.38% to 0.52%. Key indices in Japan, Hong Kong, South Korea, and Singapore were off 0.25% to 1.35%.
The Reserve Bank of Australia (RBA) cut its key policy rate by a quarter percentage point after a monetary policy review today, 3 February 2015, citing weak inflation and a stronger-than-desired currency. The move put the cash rate at a historic low of 2.25%. In comments accompanying the move, RBA Governor Glenn Stevens said that the consumer price index recorded the lowest increase for several years in 2014 and it appears likely that inflation will remain consistent with the target over the next one to two years given weak growth in labor costs. Meanwhile, Stevens repeated the RBA view that the Australian dollar remained above most estimates of its fundamental value, particularly given the significant declines in key commodity prices.
Trading in US index futures indicated that the Dow could fall 65 points at the opening bell today, 3 February 2015. US stocks ended sharply higher yesterday, 2 February 2015 after a late rally driven by hopes for a Greek debt deal and as energy shares bounced with oil prices.
In Europe, Greece's new government has proposed ending a standoff with its international creditors by swapping its outstanding debt for new growth-linked bonds, Finance Minister Yanis Varoufakis was quoted as saying yesterday, 2 February 2015.
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