A range bound movement was witnessed as key benchmark indices retained positive zone in afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 47.70 points or 0.17% at 28,123.25. The market breadth indicating the overall health of the market was positive. Asian stocks fell after the Swiss National Bank in its stunning move yesterday, 15 January 2015, dumped its long-standing minimum exchange rate of 1.20 Swiss francs to the euro, as the cap on the franc appeared increasingly indefensible in the face of the weakening euro.
Union Bank of India joined United Bank of India in cutting base rate after a surprise reduction in repo rate announced by the Reserve Bank of India (RBI) yesterday, 15 January 2015, morning. 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 yesterday, 15 January 2015, and stated that easing of inflationary pressures provided headroom for a shift in the monetary policy stance.
FMCG stocks advanced. Realty stocks extended strong gains registered during the previous trading session triggered by the Reserve Bank of India's (RBI) surprise announcement of a cut in its main lending rate. SpiceJet surged after Kalanithi Maran decided to transfer the ownership and management control of the airline to former promoter Ajay Singh.
Meanwhile, the Ministry of Commerce & Industry today, 16 January 2015, said that some Japanese companies are seriously contemplating their future investment plans in India amounting to about Rs 75000 crore over the next 2-3 years.
Foreign portfolio investors bought shares worth a net Rs 1738.24 crore yesterday, 15 January 2015, as per provisional data.
In overseas markets, Asian stocks fell today, 16 January 2015, after the Swiss National Bank in its stunning move yesterday, 15 January 2015, dumped its long-standing minimum exchange rate of 1.20 Swiss francs to the euro, as the cap on the franc appeared increasingly indefensible in the face of the weakening euro. US stocks edged lower in a volatile trading session yesterday, 15 January 2015, after the Swiss National Bank stunned global markets by cutting its currency cap with the euro.
In the foreign exchange market, the rupee strengthened past 62 against the dollar.
Brent crude futures edged higher after yesterday's decline.
At 13:15 IST, the S&P BSE Sensex was up 47.70 points or 0.17% at 28,123.25. The index rose 78.90 points at the day's high of 28,154.45 in afternoon trade. The index fell 130.24 points at the day's low of 27,945.31 in early trade.
The 50-unit CNX Nifty was up 11.60 points or 0.14% at 8,505.75. The index hit a high of 8,530.75 in intraday trade, its highest level since 8 December 2014. The index hit a low of 8,452.25 in intraday trade.
The BSE Mid-Cap index was up 56.97 points or 0.54% at 10,655.66. The BSE Small-Cap index was up 21.64 points or 0.19% at 11,335.74. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,362 shares advanced and 1,305 shares declined. A total of 104 shares were unchanged.
GAIL (India) fell 0.63% at Rs 425.10. The stock hit a high of Rs 426.80 and a low of Rs 419.75 so far during the day. The company during market hours today, 16 January 2015, said that the company, Andhra Pradesh Gas Distribution Corporation (APGDC), GDF SUEZ and Shell have signed two separate memorandum of understanding (MoU) for a floating LNG terminal in Kakinada Deep Water Seaport in Kakinada, Andhra Pradesh. The first MoU is between APGDC, GDF SUEZ and Shell and supports the development of the terminal. APGDC, GDF SUEZ and Shell will have 48%, 26% and 26% equity in the project respectively. The second MoU is between GAIL (India), GDF SUEZ and Shell and covers both the sourcing of LNG and the marketing of the regasified LNG from the terminal. GAIL (India), GDF SUEZ and Shell will have 48%, 26%, and 26% equity in the project respectively.
The Kakinada LNG terminal will use a state-of-the-art Floating Storage and Regasification Unit (FSRU) with a peak capacity of 5 million tonnes per annum (mtpa) with the provision to double the capacity. The proposed terminal will use high-end technology and will be one of the first of its kind in India.
APGDC has been established as a joint venture company by state government of Andhra Pradesh and GAIL Gas, with 50% equity each. The objective of the APGDC is to establish the regional gas pipeline distribution network and to develop city gas distribution in various major cities within Andhra Pradesh and to develop infrastructure for import of natural gas in the eastern coast, to make Andhra Pradesh a gas driven economy.
FMCG shares advanced. Godrej Consumer Products (up 3.25%), Nestle India (up 2.41%), Hindustan Unilever (up 1.48%), Emami (up 1.46%), Colgate-Palmolive (India) (up 1.17%), Marico (up 0.34%), Bajaj Corp (up 0.41%), and Britannia Industries (up 0.26%) edged higher. Dabur India (down 0.34%) edged lower.
Realty stocks extended strong gains registered during the previous trading session triggered by the Reserve Bank of India's (RBI) surprise announcement of a cut in its main lending rate. Oberoi Realty (up 0.42%), Housing Development and Infrastructure (HDIL) (up 0.77%), Unitech (up 0.59%), Anant Raj (up 0.87%), Godrej Properties (up 0.73%), and Prestige Estates (up 11.85%) edged higher. DLF (down 0.88%) and Sobha (down 1.17%) edged lower.
Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance.
SpiceJet was locked at 10% upper circuit at Rs 20.50. The company after market hours yesterday, 15 January 2015, said that its board of directors at a meeting held on 15 January 2015, inter-alia, taken on record the proposal of the principal shareholder and promoter, Mr. Kalanithi Maran and KAL Airways to transfer the ownership, management and control of the company to Mr. Ajay Singh pursuant to a scheme of reconstruction and revival for the takeover of ownership, management and control of the company to be filed before the Ministry of Civil Aviation, Government of India. The board has further directed the company to take further steps to implement and undertake all necessary steps in this regard.
In the foreign exchange market, the rupee strengthened past 62 against the dollar. The partially convertible rupee was hovering at 61.8825, compared with its close of 62.065 during the previous trading session.
Brent crude futures edged higher after yesterday's decline. Brent for March settlement was up 28 cents at $48.55 a barrel. The contract had fallen $1.59 a barrel or 3.18% to settle at $48.27 a barrel during the previous trading session.
On macro front, India's merchandise export declined 3.8% to $25.4 billion in December 2014 over December 2013. Meanwhile, merchandise imports also declined 4.8% to $34.83 billion in December 2014. Thus, the trade deficit narrowed to 10-month low of $9.4 billion in December 2014, while nearly halving from $16.86 billion in November 2014. Trade data was announced after market hours yesterday, 15 January 2015.
Meanwhile, the Ministry of Commerce & Industry today, 16 January 2015, said that some Japanese companies are seriously contemplating their future investment plans in India amounting to about Rs 75000 crore over the next 2-3 years. Also, the issues related to the state government of Rajasthan concerning Japanese trading firm Sojitz Corp, working for Dedicated Freight Corridor (DFC), has been resolved, the Ministry of Commerce & Industry said. The government has set up Japan Plus, a special management team to facilitate Japanese investors.
Asian stocks fell today, 16 January 2015, as the market turmoil sparked by Switzerland abandoning the franc's cap extended into a second day. Key benchmark indices in Singapore, Hong Kong, Taiwan, South Korea, and Japan were off 0.29% to 1.43%. Key indices in China and Indonesia were up 0.28% to 1.23%.
China's central bank the People's Bank of China today, 16 January 2015, said it would lend 50 billion yuan ($8.1 billion) to banks at discounted rates to allow them to re-lend the money to farmers and small businesses - areas of the economy that are usually short of cash.
China's foreign direct investment (FDI) rose an annual 1.7% last year, although the pace slowed from 2013 as a cooling economy and shifting drivers of growth weighed on offshore investment flows. China attracted a record $119.56 billion from foreign investors last year compared to $117.6 billion in 2013, the Ministry of Commerce said in a statement.
Trading in US index futures indicated that the Dow could slide 71 points at the opening bell today, 16 January 2015. US stocks suffered their fifth-straight session of declines yesterday, 15 January 2015, under pressure from disappointing earnings and worries about global economic growth.
On economic data front, more Americans unexpectedly filed applications for unemployment benefits last week, indicating companies let go of seasonal workers following the holidays. Jobless claims climbed by 19,000 to 316,000 in the week ended 10 January 2015, the most since early September, from a revised 297,000 in the prior period, a Labor Department report showed.
In Europe, the latest data showed that inflation in Germany weakened in December, confirming its preliminary estimates for the previous month. The steep fall in prices in Germany, Europe's largest economy, supports mounting expectations in financial markets that the European Central Bank will announce large purchases of government bonds at its next policy meeting on Jan. 22, to avert a debilitating slide into deflation. The annual rate of inflation in Germany, measured according to common European Union standards, was 0.1% in December, while prices also rose 0.1% on the month, the Federal Statistics Office said, confirming its preliminary figures published earlier this month. Consumer prices, measured according to national standards, were unchanged on the month and rose 0.2% on the year, also unchanged from the preliminary data, the statistics office Destatis said. Energy continued to keep prices under downward pressure. In annual comparison, energy prices were 6.6% lower in December 2014 than a year earlier, Destatis said.
Meanwhile, in its stunning move yesterday, 15 January 2015, the Swiss National Bank dumped its long-standing minimum exchange rate of 1.20 Swiss francs to the euro, as the cap on the franc appeared increasingly indefensible in the face of the weakening euro.
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.
Powered by Capital Market - Live News
