Key benchmark indices edged higher in early trade tracking firmness in Asian bourses and overnight gains on Wall Street. The barometer index, the S&P BSE Sensex surged past the psychological 27,000 level. The Sensex was currently up 333.55 points or 1.24% at 27,242.37. The market breadth indicating the overall health of the market was quite strong with more than 10 gainers for every loser on BSE.
Infosys advanced ahead of its Q3 December 2014 results tomorrow, 9 January 2015. Sobha declined after reporting subdued operational numbers for Q3 December 2014.
Asian equity markets were higher today, 8 January 2015 as the fall in oil prices and concerns over Greece's potential departure from the euro zone abated, while a positive finish on Wall Street overnight lifted trading sentiment.
Meanwhile, foreign portfolio investors sold shares worth a net Rs 1073.18 crore yesterday, 7 January 2015, as per provisional data.
At 9:18 IST, the S&P BSE Sensex was up 333.55 points or 1.24% at 27,242.37. The index surged 341.06 points at the day's high of 27,249.88 in early trade. The index rose 269.67 points at the day's low of 27,178.49 in early trade.
The CNX Nifty was up 100.20 points or 1.24% at 8,202.30. The index hit a high of 8,209.85 in intraday trade. The index hit a low of 8,191.40 in intraday trade.
The BSE Mid-Cap index was up 127.25 points or 1.24% at 10,361.80, matching the Sensex's gains in percentage terms. The BSE Small-Cap index was up 129.79 points or 1.18% at 11,118.78, underperforming the Sensex.
The market breadth indicating the overall health of the market was quite strong with more than ten gainers for every loser. On BSE, 689 shares advanced and 66 shares declined. A total of 15 shares were unchanged.
Infosys rose 1.12% at Rs 1,986.80. Due to cross currency headwinds, analysts expects Infosys' management to prune the company's revenue growth guidance in dollar terms for the year ending 31 March 2015 (FY 2015) when the company announces its Q3 December 2014 results tomorrow, 9 January 2015. The IT major is widely expected to prune its FY 2015 dollar revenue growth to 7%-8%, from 7%-9%.
At the time of announcement of Q2 September 2014 results, Infosys had on 10 October 2014 retained its earlier guidance of 7% to 9% growth in revenue in dollar terms for FY 2015. At that time, the company had raised its revenue growth guidance in rupee terms due to rupee depreciation. The company had raised the revenue growth guidance for FY 2015 in rupee terms to 6.7%-8.7% from earlier 5.6%-7.6% at that time. The revised guidance was based on rupee dollar conversion rate of 61.
Sobha fell 2.89% at Rs 444.70. The company after market hours yesterday, 7 January 2015 said that Q3 December 2014 was operationally a subdued quarter with the company achieving new sales of 661,451 square feet valued at Rs 427 crore with an average realisation of Rs 6,456 per square feet. The company pre-launched 2 projects admeasuring total saleable area of 0.67 million square feet.
Sobha said that the demand in markets across the country have remained muted with sluggish place of project approvals in the southern markets of Kerala and Tamil Nadu affecting the saleability of projects for developers across the spectrum. Bangalore continued to hold ground, accounting for majority of the new sales, the company said.
On the macro front, data to be released in near future is expected to show industrial production growth remaining muted in November 2014 and consumer price inflation accelerating in December 2014. Industrial production is seen rising 1.6% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for November 2014 after trading hours on Monday, 12 January 2015. Industrial production had witnessed a surprise contraction of 4.2% in October 2014.
The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.4% in December 2014 from 4.4% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the data on CPI inflation for December 2014 after trading hours on Monday, 12 January 2015.
The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band.
The rate of inflation based the wholesale price index (WPI) is projected at 0.5% for December 2014, as per the median estimate of a poll of economist carried out by Capital Market. WPI inflation stood at zero in November 2014. The government will release data on WPI for December 2014 at 12 noon on 14 January 2015.
Asian equity markets were higher today, 8 January 2015 as the fall in oil prices and concerns over Greece's potential departure the euro zone abated, while a positive finish on Wall Street overnight lifted trading sentiment. Key indices in Hong Kong, Japan, Singapore, Taiwan, South Korea, and Indonesia were up 0.21% to 1.78%. In China, the Shanghai Composite was off 1.77%.
US stocks surged yesterday, 7 January 2015, with the S&P 500 rebounding from a five-session dive, as US crude stopped a four-day skid and Germany left the door open to discussing options with Greece's next government on its debt.
Federal Reserve policymakers said they could begin raising interest rates before inflation starts to pick up, according to minutes of their meeting on 17 and 18 December 2014. However, the Fed officials added that "they would want to be reasonably confident that inflation will move back" toward the Fed's annual 2% target "over time".
The US Labor Department reports monthly payroll data for December 2014 tomorrow, 9 January 2015.
In Europe, the uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country later this month. 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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