A bout of volatility was witnessed as key benchmark indices extended initial gains in morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in more than a week. The Sensex was currently up 122.78 points or 0.43% at 28,927.88. The market breadth indicating the overall health of the market was strong. Asian stocks edged higher after a breakthrough in talks with Ukraine yesterday, 12 February 2015, and on a friendlier tone between negotiators in Europe over Greece's debt troubles. Brent crude oil futures extended previous session's rally.
Realty stocks gained. Tata Steel gained after Tata Steel Europe, yesterday, 12 February 2015, announced the acquisition of three service centres in Sweden, Finland and Norway to strengthen its offering to manufacturers in the Nordic region.
The rate of inflation based on the consumer price index (CPI) accelerated to 5.11% in January 2015 from 4.28% in December 2014 after the statistics ministry revised the base year for the calculation of the index to 2012 from 2010. Meanwhile, growth in industrial production decelerated to 1.7% in December 2014 from 3.9% in November 2014. Both CPI and industrial production data was announced after market hours yesterday, 12 February 2015.
Finance Minister Arun Jaitley yesterday, 12 February 2015, said that the government is determined to pursue economic reforms despite a defeat for the Bharatiya Janata Party (BJP) in assembly election in Delhi early this week.
Foreign portfolio investors sold shares worth a net Rs 406.28 crore yesterday, 12 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 705.53 crore yesterday, 12 February 2015, as per provisional data.
In overseas markets, Asian stocks edged higher on news of a ceasefire accord in Ukraine, while Sweden's surprise move to cut its main rate into negative territory and hopes of a resolution between debt-strapped Greece and its creditors burnished risk appetite. US stocks climbed yesterday, 12 February 2015, with major benchmarks nearing record highs, buoyed by a truce deal in Ukraine and strong quarterly earnings reports.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged higher as news of deeper industry spending cuts and a sinking US dollar revived buying.
At 10:17 IST, the S&P BSE Sensex was up 122.78 points or 0.43% at 28,927.88. The index jumped 149.93 points at the day's high of 28,955.03 in morning trade, its highest level since 5 February 2015. The index gained 30.60 points at the day's low of 28,835.70 in early trade.
The CNX Nifty was up 46.50 points or 0.53% at 8,758.05. The index hit a high of 8,766.80 in intraday trade, its highest level since 5 February 2015. The index hit a low of 8,729.65 in intraday trade.
The BSE Mid-Cap index was up 68.53 points or 0.64% at 10,730.64. The BSE Small-Cap index was up 73.11 points or 0.65% at 11,273.26. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,285 shares rose and 745 shares fell. A total of 70 shares were unchanged.
Realty stocks gained. DLF (up 3.21%), D B Realty (up 0.46%), Unitech (up 2.1%), Housing Development & Infrastructure (HDIL) (up 1.99%), Phoenix Mills (up 0.53%), Anant Raj (up 1.48%), Oberoi Realty (up 0.48%) and Prestige Estates (up 1.8%), edged higher. Sobha (down 1.14%) and Godrej Properties (down 0.67%) declined.
Tata Steel gained 1.04% after Tata Steel Europe, yesterday, 12 February 2015 announced the acquisition of three service centres in Sweden, Finland and Norway to strengthen its offering to manufacturers in the Nordic region. The announcement was made after market hours yesterday, 12 February 2015.
Tata Steel Europe has reached an agreement with steel producer SSAB to buy its strip products service centres at Halmstad in Sweden and Naantali in Finland. Tata Steel Europe will also acquire from SSAB the remaining 50% stake it does not already own in Norsk St Tynnplater AS, another strip products service centre based in Fredrikstad, Norway. The three centres supply steel to manufacturers in the automotive, construction and electrical supplies industries, as well as to heavy and light engineering companies, Tata Steel said.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.11, compared with its close of 62.305 during the previous trading session.
Brent crude oil futures edged higher as news of deeper industry spending cuts and a sinking US dollar revived buying. Brent for April settlement was up 49 cents at $59.77 a barrel. The contract had surged $3.36 a barrel to settle at $59.28 a barrel during the previous trading session.
On macro front, the rate of inflation based on the consumer price index (CPI) rose 5.11% in January 2015 compared with a 4.28% gain in December 2014. The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has revised the base year of the CPI from 2010 to 2012. Meanwhile, growth in industrial production decelerated to 1.7% in December 2014 from 3.9% in November 2014. Both CPI and industrial production data was announced after market hours yesterday, 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.
Finance Minister Arun Jaitley yesterday, 12 February 2015, said that the government is determined to pursue economic reforms despite a defeat for the Bharatiya Janata Party (BJP) in assembly election in Delhi early this week. Jaitley also reportedly said at a news conference after talks with his US counterpart, Treasury Secretary Jack Lew that India's economy is poised to take off at a much faster pace. The BJP was trounced in assembly election held in Delhi last week. The Aam Aadmi Party won 67 of 70 seats. The BJP won a mere 3 seats.
The next major event for the financial markets is Union Budget for 2015-16. Finance Minister Arun Jaitley will present Union Budget 2015-16 in Parliament on 28 February 2015. Analysts will scrutinize measures in the Budget for financing infrastructure projects as well as the government's own capital expenditure on infrastructure for the year ahead. This is the first full fledged Budget of the Narendra Modi government and analysts will look for a roadmap for economic growth for the next few years.
Changes in rates of dividend distribution tax, capital gains tax on sale of shares, Securities Transaction Tax (STT) and Minimum Alternate Tax (MAT), if any, will be closely watched. The dividend distribution tax is currently at 15%. The minimum alternate tax is currently at 18.5% of book profits. Short term capital gains tax on sale of shares is currently at 15% while there is zero long capital gains tax on sale of shares held for a period of more than one year.
The upcoming Budget session of the parliament assumes utmost importance as the government intends to replace the ordinances it had promulgated after the conclusion of the winter session of the parliament with Bills and get them cleared by both Houses of Parliament during the budget session. The Narendra Modi government promulgated a slew of ordinances after the last session of Parliament. Some of the key ordinances include raising the FDI in the insurance sector from 26% to 49%, e-auctioning of coal mines and amendment to the Land Acquisition Act.
Asian stocks edged higher today, 13 February 2015, on news of a ceasefire accord in Ukraine, while Sweden's surprise move to cut its main rate into negative territory and hopes of a resolution between debt-strapped Greece and its creditors burnished risk appetite. Key indices in China, Hong Kong, Singapore, Taiwan, Indonesia, and South Korea were up 0.1% to 1.57%. Japan's Nikkei Average fell 0.27%.
Trading in US index futures indicated that the Dow could fall 3 points at the opening bell today, 13 February 2015. US stocks climbed on Thursday, 12 February 2015, with major benchmarks nearing record highs, buoyed by a truce deal in Ukraine and strong quarterly earnings reports.
In economic news, jobless claims in the week ended Feb. 7 rose 25,000 to 304,000, the Labor Department said. Retail sales fell in January for the second month in a row, fueling worries that the drop in gasoline prices isn't translating into more consumer spending. Sales fell 0.8% last month to $439.77 billion, the Commerce Department said.
Meanwhile in Europe, a standoff between Greece and its European creditors on Greece's bailout program eased somewhat after Greece made an about-face yesterday, 12 February 2015, agreeing to talk to the "troika" of international lenders.
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