After witnessing high volatility in mid-morning trade, key benchmark indices extended intraday gains in early 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 110.98 points or 0.39% at 28,895.65. In overseas markets, Chinese stocks led gains in Asian stocks.
Index heavyweight ITC fell ahead of Q3 earnings. Shares of housing finance major HDFC hit a record high. Among auto stocks, Maruti Suzuki India edged higher in volatile trade. IT shares were mixed. Shares of public sector banks were in demand. Shares of mining and metal companies dropped.
Earlier, the Sensex and the 50-unit CNX Nifty, had, both surged to record high in morning trade as these key benchmark indices extended initial gains.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1275.59 crore yesterday, 20 January 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar on optimism demand for local assets will increase as plunging oil prices improve India's economic outlook.
Finance Minister Arun Jaitley yesterday, 20 January 2015, said that the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY) is a game changer for the economy as it has provided the platform for direct benefits transfer (DBT) which, in turn, will help in plugging leakages in subsidies and thereby provide savings to the exchequer.
Brent crude futures edged higher amid signs that prices are receiving support around current levels.
In overseas markets, Asian stocks rose as investors counted on the European Central Bank (ECB) to unveil a government-bond-buying program after a monetary policy review tomorrow, 22 January 2015, aimed at spurring Europe's ailing economy. US stocks eked out small gains after high intraday volatility yesterday, 20 January 2015.
At 12:15 IST, the S&P BSE Sensex was up 110.98 points or 0.39% at 28,895.65. The index jumped 173.43 points at the day's high of 28,958.10 in morning trade, a lifetime high for the index. The index rose 7.90 points at the day's low of 28,792.57 in mid-morning trade.
The CNX Nifty was up 23.90 points or 0.27% at 8,719.50. The index hit a high of 8,741.85 in intraday trade, a lifetime high for the index. The index hit a low of 8,689.60 in intraday trade so far.
The BSE Mid-Cap index was off 27.95 points or 0.26% at 10,699.86. The BSE Small-Cap index was off 35.17 points or 0.31% at 11,411.10. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,578 shares declined and 1,110 shares advanced. A total of 103 shares were unchanged.
Shares of public sector banks were in demand. Bank of Baroda (up 4%), Corporation Bank (up 3.36%), State Bank of India (up 2.52%), Union Bank of India (up 2.43%), Punjab National Bank (up 1.96%), Bank of India (up 1.93%), IDBI Bank (up 1.78%), Indian Bank (up 1.25%), UCO Bank (up 0.92%), Allahabad Bank (up 0.77%), Syndicate Bank (up 0.70%), Andhra Bank (up 0.59%), Dena Bank (up 0.58%), Canara Bank (up 0.54%), Bank of Maharashtra (up 0.23%) and Central Bank (up 0.10%), edged higher. Vijaya Bank (down 0.1%), United Bank of India (down 0.12%) and Punjab & Sind Bank (down 0.77%) edged lower.
Car major Maruti Suzuki India was up 1.31% to Rs 3,650. The stock was volatile. The stock hit a high of Rs 3,688.60 and a low of Rs 3,603.25 so far during the trading session.
Housing finance major HDFC rose 2.52% to Rs 1,282. The stock hit a high of Rs 1,296 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1,252 so far during the day.
India's largest cigarette maker by sales ITC fell 1.97% to Rs 363.90. The stock hit a high of Rs 373.60 and a low of Rs 363.40 so far during the trading session. The company is scheduled to announce its Q3 December 2014 results today, 21 January 2015
Shares of mining and metal companies dropped. NMDC (down 2.03%), Jindal Steel & Power (down 1.48%), Hindalco Industries (down 1.59%), JSW Steel (down 1.33%), Steel Authority of India (down 1.35%), Tata Steel (down 1.07%), Hindustan Copper (down 0.91%) and Hindustan Zinc (down 0.31%) edged lower. Bhushan Steel was up 0.06%.
Sesa Sterlite was down 1.62%. With reference to the news captioned "Corp Affair Ministry, I-T Department oppose Sesa Sterlite Merger", Sesa Sterlite after trading hours yesterday, 20 January 2015, said that a Special Leave Petition (SLP) challenging the Scheme of Amalgamation & Arrangement ('Scheme') under Sections 391-394 of the Companies Act, 1956, was heard by the Supreme Court on 19 January 2015 and the court has fixed the matter for final disposal on 28 April 2015. The scheme was implemented in August 2013 and the company is defending the matter in the Supreme Court. The SLC filed separately by the Commissioner of Income Tax (CIT), Goa and Ministry of Corporate Affairs have been clubbed together. The Ministry of Corporate Affairs had filed the SLP on the ground that the scheme is against public policy.
L&T edged higher on renewed buying. The stock was up 2.08% at Rs 1,662.10. The stock hit a high of Rs 1,665 and a low of Rs 1,632 so far during the intraday trade.
IT shares were mixed. Wipro (down 1.43%), HCL Technologies (down 1.36%), CMC (down 0.66%), Oracle Financial Services Software (down 0.21%) and Tech Mahindra (down 0.09%), edged lower. MphasiS (up 0.36%), Infosys (up 0.57%) and Hexaware Technologies (up 1.42%) edged higher.
TCS was down 0.12%. TCS announced during trading hours today, 21 January 2015, announced extension of its partnership with the TCS Amsterdam Marathon. TCS has renewed its title sponsorship of the marathon until 2020, extending the original partnership by an additional five years.
In the foreign exchange market, the rupee edged higher against the dollar on optimism demand for local assets will increase as plunging oil prices improve India's economic outlook. The partially convertible rupee was hovering at 61.61, compared with its close of 61.70 during the previous trading session.
Brent crude futures edged higher amid signs that prices are receiving support around current levels. Brent for March settlement was up 38 cents at $48.37 a barrel. The contract declined 85 cents, or 1.74%, to settle at $47.99 a barrel during the previous trading session.
Finance Minister Arun Jaitley yesterday, 20 January 2015, said that the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY) is a game changer for the economy as it has provided the platform for direct benefits transfer (DBT) which, in turn, will help in plugging leakages in subsidies and thereby provide savings to the exchequer. As against the original target of opening bank accounts for 7.5 crore uncovered households in the country by 26 January 2015, banks have already opened 11.50 crore accounts as on date 17 January 2015 under PMJDY after conducting survey of 21.02 crore households in the country. Jaitley further said that so far 19 schemes out of 35 DBT schemes have been rolled-out across the country, including MGNREGS in 300 districts. The Finance Minister said that the state governments have also been requested to transfer cash/benefits directly in the bank accounts of beneficiaries thereby cutting layers in the delivery process.
Meanwhile, the Ministry of Commerce & Industry today, 21 January 2015, said that Vietnam's Deputy Prime Minister Hoang Trung Hai while meeting an Indian delegation to Vietnam led by Rajeev Kher, Secretary, Ministry of Commerce, Government of India, has expressed his pleasure at the blossoming of trade and economic relations and his confidence that both sides would be able to achieve the target of bilateral trade of $15 billion by 2020. He noted that there is great potential for trade and investment cooperation in textiles, agriculture, pharmaceuticals, leather, energy and oil and gas, and invited Indian companies to invest in Vietnam.
Asian stocks edged higher today, 21 January 2015, as investors counted on the European Central Bank (ECB) to unveil a government-bond-buying program after a monetary policy review tomorrow, 22 January 2015, aimed at spurring Europe's ailing economy. Key benchmark indices in China, Hong Kong, Indonesia, Singapore and Taiwan were up 0.20% to 3.46%. Key benchmark indices in South Korea and Japan were off 0.12% to 0.83%.
At the end of a two-day monetary policy review, the Bank of Japan (BoJ) today, 21 January 2015, cut its near-term inflation outlook and left its key easing policy unchanged, citing brighter economic growth that could eventually help put prices back on a firm upward path. The BoJ sharply raised its view on growth adjusted for inflation, expecting gross domestic product to rise 2.1% in fiscal 2015 and 1.6% the following year. But it cut its forecast for the year ending in March to a 0.5% contraction from the previous 0.5% expansion.
Trading in US index futures indicated that the Dow could fall 1 point at the opening bell today, 21 January 2015. US stocks eked out small gains after high intraday volatility yesterday, 20 January 2015. In economic news, a gauge of confidence among home builders ticked down this month by one point to 57, staying close to the highest level since late 2005, according to National Association of Home Builders/Wells Fargo data. Readings above 50 signal that builders, generally, are optimistic about sales trends.
In Europe, the governing council of the European Central Bank (ECB) is scheduled to undertake monetary policy review tomorrow, 22 January 2015. The ECB may announce a large-scale bond-buying program tomorrow, 22 January 2015, aimed at spurring Europe's ailing economy.
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.
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