A range bound movement was witnessed as key benchmark indices retained positive zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently up 171.06 points or 0.63% at 27,445.77. The market breadth indicating the overall health of the market was strong. Asian stocks rose after overnight rally in US stocks.
FMCG stocks advanced. Videocon Industries surged after the company said that Petroleo Brasileiro SA, the operator of the BM-SEAL-11 Concession has announced discovery of new oil accumulation in Farfan area in the Sergipe Basin, offshore Brazil. SJVN advanced after the company said it has signed a joint venture (JV) agreement with six state power generating companies for formation of a JV company for mining coal from Deocha Pachami-Dewanganj Horisingha coal block located at Birbhum in West Bengal.
Meanwhile, Finance Minister Arun Jaitley yesterday, 8 January 2015, said that domestic policies to achieve macro-economic balance and the on-going process of economic reforms would lend further strength to the recovery of the Indian economy.
Foreign portfolio investors sold shares worth a net Rs 466.78 crore yesterday, 8 January 2015, as per provisional data.
In overseas markets, Asian stocks edged higher, taking cues from a surge on Wall Street overnight. US stocks surged yesterday, 8 January 2015, as two days of steady oil prices along with dovish comments by a Federal Reserve member helped further fuel a buying frenzy which begun on Wednesday 7 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude futures edged higher amid speculation a slowdown in the US shale boom will reduce a glut that's driven prices to the lowest in 5-1/2-years.
At 11:15 IST, the S&P BSE Sensex was up 171.06 points or 0.63% at 27,445.77. The index surged 232.96 points at the day's high of 27,507.67 in early trade, its highest level since 6 January 2015. The index rose 129.48 points at the day's low of 27,404.19 in opening trade.
The CNX Nifty was up 47.25 points or 0.57% at 8,281.85. The index hit a high of 8,303.30 in intraday trade, its highest level since 6 January 2015. The index hit a low of 8,272.95 in intraday trade.
The BSE Mid-Cap index was up 54.98 points or 0.53% at 10,475.61, underperforming the Sensex. The BSE Small-Cap index was up 83.34 points or 0.75% at 11,269.22, outperforming the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,478 shares advanced and 944 shares declined. A total of 87 shares were unchanged.
FMCG shares advanced. Hindustan Unilever (up 3.19%), Marico (up 1.86%), Emami (up 1.33%), Colgate-Palmolive (India) (up 0.78%), Dabur India (up 0.61%), Godrej Consumer Products (up 1.49%), and Nestle India (up 0.13%) edged higher. Britannia Industries (down 0.24%) edged lower.
Videocon Industries surged after the company said that Petroleo Brasileiro SA (Petrobras), the operator of the BM-SEAL-11 Concession has announced discovery of new oil accumulation in Farfan area in the Sergipe Basin, offshore Brazil. The stock was up 16.16% at Rs 185.05. The consortium will carry on operations in the area to further confirm the extent of the hydrocarbons in place and the characteristic of the reservoir conditions encountered. Petrobras holds 60% participating interest in the concession and IBV Brasil, a Brazilian joint venture company equally held by Videocon Energy Brazil which is a wholly-owned overseas subsidiary of Videocon Industries and BPRL Ventures N.V., a wholly owned subsidiary of Bharat Petroleum Corporation (BPCL), holds the remaining 40% participating interest in the concession.
Mr. Pradeep N. Dhoot, Dubai based Director of Global E&P Business of Videocon Hydrocarbon Holdings said: "The discovery of hydrocarbons in what was proposed as a data acquisition well and that too further away from reservoir of wells already drilled in the Sergipe Block is likely to add further to the hydrocarbon resources already indicated in the said blocks".
Shares of BPCL were up 1.14% at Rs 685.25.
SJVN rose 1.59% at Rs 25.55. The company said after market hours yesterday, 8 January 2015, that the company has signed a Joint Venture Agreement on 7 January 2015 with six state power generating companies belonging to West Bengal, Bihar, Uttar Pradesh, Punjab, Karnataka and Tamil Nadu for formation of a JV Company for mining coal from Deocha Pachami-Dewanganj Horisingha Coal Block located in Birbhum district of West Bengal State. The coal mined from the block would feed to the 1,320 megawatt (MW) supercritical thermal power project of SJVN Thermal at Buxar, Bihar.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.33, compared with its close of 62.68 during the previous trading session.
Brent crude futures edged higher amid speculation a slowdown in the US shale boom will reduce a glut that's driven prices to the lowest in 5-1/2-years. Brent for February settlement was up 28 cents at $51.24 a barrel. The contract had declined 19 cents to settle at $50.96 a barrel during the previous trading session.
Meanwhile, Finance Minister Arun Jaitley yesterday, 8 January 2015, said that domestic policies to achieve macro-economic balance and the on-going process of economic reforms would lend further strength to the recovery of the Indian economy. Jaitley made those comments during the Pre Budget Consultative Meeting with the representatives of Social Infrastructure, Human Capital and Development Groups. Jaitley said that emerging trends indicate the growth deceleration in India has bottomed-out. The Finance Minister said that significant downward trend in inflation has also been recorded in the second and third quarter of 2014-15. He said that external environment has also largely turned in India's favour.
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 stocks edged higher today, 9 January 2015, taking cues from a surge on Wall Street amid hopes for continued improvement in the US economy. Key indices in China, Japan, Hong Kong, Singapore, South Korea, and Indonesia were up 0.07% to 1.25%. In Taiwan, the Taiwan Weighted index was off 0.24%.
China's consumer inflation remained tepid in December, while prices at the factory gate continued to slide. The consumer price index rose 1.5% on year in December, up slightly from a 1.4% on-year rise in November, data from the National Bureau of Statistics showed today, 9 January 2015.
Trading in US index futures indicated that the Dow could fall 19 points at the opening bell today, 9 January 2015. US stocks surged yesterday, 8 January 2015, as two days of steady oil prices along with dovish comments by a Federal Reserve member helped further fuel a buying frenzy which begun on Wednesday 7 January 2015. Prospects for further central-bank easing in Europe are also whetting investors' appetite for riskier assets, namely equities.
The number of people who applied for US unemployment benefits at the end of the year fell slightly and remained below the key 300,000 mark for the 16th time in 17 weeks, offering more proof the labor market is still on an upswing.
Federal Reserve Bank of Chicago President Charles Evans on Wednesday, 7 January 2015, said that the Fed's target inflation rate might not be hit until 2018, and he doesn't advise a rate hike until 2016. Evans, who is a voting member of the Federal Open Market Committee this year, was speaking at an event sponsored by the University of Chicago.
The US Labor Department reports monthly payroll data for December 2014 later in global day today, 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.
Meanwhile, drop in euro-area consumer prices in December has fueled speculation the European Central Bank will bolster stimulus efforts.
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