After a range bound movement in early afternoon trade, key benchmark indices extended intraday gains in afternoon trade. While the benchmark indices extended gains, the broad market depicted weakness. The market breadth indicating the overall health of the market was weak. The BSE Small-Cap and Mid-Cap indices, both, languished in red. The barometer index, the S&P BSE Sensex, was currently up 239.46 points or 0.83% at 29,245.48.
There are expectations that inflows from foreign funds into India will rise after European Central Bank (ECB) yesterday, 22 January 2015, announced a massive new bond-buying program to boost sluggish eurozone economy.
Ipca Laboratories slumped after the company said that the United States Food and Drug Administration (USFDA) issued an import alert to the company's active pharmaceutical ingredients (APIs) manufacturing facility located at Ratlam in Madhya Pradesh yesterday, 22 January 2015. Capital goods and realty stocks eged higher.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 592.79 crore yesterday, 22 January 2015, as per provisional data.
Earlier, the Sensex and the 50-unit CNX Nifty, had, both trimmed gains after hitting record high in early trade. The two benchmark indices had surged in early trade after European Central Bank (ECB) announced a massive new bond-buying program yesterday, 22 January 2015, aimed at boosting the sluggish eurozone economy.
In the foreign exchange market, the rupee edged higher against the dollar on optimism the European Central Bank's stimulus will boost demand for emerging- market assets.
Brent crude oil futures edged higher as news of the death of Saudi Arabia's King Abdullah added to uncertainty in energy markets.
In overseas markets, Asian stocks edged higher after European Central Bank announced a massive new bond-buying program after a monetary policy review yesterday, 22 January 2015. US stocks surged yesterday, 22 January 2015, after the European Central Bank laid out its plan to expand its asset-purchase program.
ECB left interest rates unchanged and announced larger-than-expected measures to stimulate the region's sagging economy after a monetary policy review yesterday, 22 January 2015. ECB will buy 60 billion euros worth of assets per month, more than markets had been hoping for. The ECB said it would purchase sovereign debt from this March until the end of September 2016.
At 13:16 IST, the S&P BSE Sensex was up 239.46 points or 0.83% at 29,245.48. The index jumped 402.71 points at the day's high of 29,408.73 in early trade, a lifetime high for the index. The index rose 159.54 points at the day's low of 29,165.56 in mid-morning trade.
The CNX Nifty was up 61.70 points or 0.7% at 8,823.10. The index hit a high of 8,866.40 in intraday trade, a lifetime high for the index. The index hit a low of 8,795.40 in intraday trade.
The BSE Mid-Cap index was off 2.21 points or 0.02% at 10,708.03. The BSE Small-Cap index was off 49.65 points or 0.43% at 11,399.85. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,702 shares dropped and 1,047 shares advanced. A total of 99 shares were unchanged.
NMDC gained 1.57%. The company said during market hours that it has incorporated a wholly owned subsidiary by the name NMDC Steel. NMDC Steel has been incorporated for the purpose of transferring NMDC Iron & Steel Plant (NISP) into NMDC Steel. The process is aimed at speeding up the progress of the construction of the project for smooth operations later. This will also facilitate focused attention on setting up the steel plant considering the magnitude of the project and investment, NMDC said. All the works of NMDC's 3 million tonnes per annum integrated steel plant at Nagarnar in Chhattisgarh are being taken up on war footing so that timelines for commencing of plan can be met, NMDC said in a statement.
Power Finance Corporation (PFC) declined 0.02%. The government is reportedly likely to sell a 5% stake in state-run Power Finance Corporation next week. The government currently holds 72.8% stake in PFC) (as per the shareholding patter as on 31 December 2014).
Ipca Laboratories slumped after the company said that the United States Food and Drug Administration (USFDA) issued an import alert to the company's active pharmaceutical ingredients (APIs) manufacturing facility located at Ratlam in Madhya Pradesh yesterday, 22 January 2015. The stock was off 7.81%. Ipca clarified that four API manufactured at this manufacturing facility viz. Hydroxychloroquine Sulfate, Propanolol Hydrochloride, Trimethoprim and Ondansetron are excluded from the import alert.
In July last year, the company had already voluntarily suspended API shipments from the unit temporarily after the company received certain inspection observations in Form FDA 483 from the USFDA. Ipca today, 23 January 2015, said that the company is fully committed in resolving this issue at the earliest. Ipca further said that the company is also committed to its philosophy of highest quality in manufacturing, operations, systems, integrity and cGMP culture.
Capital goods stocks gained. Alstom India (up 0.85%), ABB (India) (up 1.46%), L&T (up 2.28%), BEML (up 0.34%), Crompton Greaves (up 0.96%) and Siemens (up 1.37%) gained. Bharat Heavy Electricals (Bhel) declined 0.95%.
Realty stocks gained. Sobha (up 0.91%), DLF (up 4.01%), D B Realty (up 6.1%), Unitech (up 1.19%), and Housing Development & Infrastructure (HDIL) (up 3.52%) edged higher.
In the foreign exchange market, the rupee edged higher against the dollar on optimism the European Central Bank's stimulus will boost demand for emerging- market assets. The partially convertible rupee was hovering at 61.515, compared with its close of 61.705 during the previous trading session.
Brent crude oil futures edged higher as news of the death of Saudi Arabia's King Abdullah added to uncertainty in energy markets. Brent for March settlement was up 77 cents at $49.29 a barrel. The contract had fallen 51 cents or 1.06% to settle at $48.52 a barrel during the previous trading session. Abdullah died early today, 23 January 2015, and his brother Salman became king, the royal court in the world's top oil exporter and birthplace of Islam said in a statement carried by state television.
US President Barack Obama arrives on a visit to India this weekend. The US President is the chief guest for India's Republic Day celebrations in New Delhi on 26 January 2015.
Stock market regulator Securities and Exchange Board of India (Sebi) yesterday, 22 January 2015, announced that 25% of the issue price must be received upfront where partly paid shares are issued through public issue and rights issue. The balance consideration shall continue to be received within 12 months if the issue size is less than Rs 500 crore. Where the issue size exceeds Rs 500 crore and the issuer has appointed a monitoring agency, the period can be decided by the issuer as per the existing regulatory framework, Sebi said. In respect of warrants issued along with public or rights issue of specified securities, 25% of the consideration shall be received upfront by the issuer and tenure of such warrants shall be 18 months as against 12 months presently, Sebi said.
The Sebi board also approved amendments to Issue and Listing of Debt Securities (ILDS) Regulations to incorporate express provisions for enabling "Consolidation and Re-issuance of Debt Securities" and "Call and Put options". By enabling consolidation and re-issuance of debt-securities, the illiquid and infrequently traded corporate bonds can be re-issued thereby leading to creation of a larger floating stock that can increase liquidity in the market, Sebi said in a press release. By enabling Call and Put options, the issuer and investors would have flexibility in redemption of debt securities.
In order to further develop the securitisation market, the Sebi board has approved amendments to Securitised Debt Instruments (SDI) regulations to rationalize and clarify the role and responsibilities of trustee, allowing banks and public financial institutions to act as trustee without obtaining registration, terms of appointment and capital requirement for trustee, and providing for a summary term sheet. This is expected to enhance the confidence of investors in securitisation transactions, Sebi said.
Asian stocks rallied after ECB launched a landmark bond-buying stimulus programme that buoyed investors' risk appetite. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.79% to 1.24%.
China's Shanghai Composite was up 0.25%. China's manufacturing sector strengthened slightly at the start of the year, according to a measure released Friday, but remains in a weak spot. A preliminary reading of the HSBC China Manufacturing Purchasing Managers Index rose to 49.80 in January from a final reading of 49.60 in December. A reading above 50 indicates expansion from the previous month, while a reading below 50 indicates contraction. The overall growth of China's economy slowed to 7.4% in 2014, its slowest pace in more than 20 years, in part because of problems in manufacturing.
Trading in US index futures indicated that the Dow could gain 7 points at the opening bell today, 23 January 2015. US stocks ended higher yesterday following ECB's stimulus announcement. Separately, the number of Americans filing new claims for unemployment benefits fell last week from a seven-month high, pointing to continued improvement in labour market conditions. Initial claims for state unemployment benefits slipped 10,000 to a seasonally adjusted 307,000 for the week ended 17 January 2015, the Labour Department said yesterday.
In Europe, 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 Sunday, 25 January 2015. Greece is set to hold snap elections 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.
Powered by Capital Market - Live News
