Volatility ruled the roost as key benchmark gave away a lion's portion of their intraday gains soon after extending gains in early afternoon trade. The broad market depicted weakness. The market breadth indicating the overall health of the market was weak. The barometer index, the S&P BSE Sensex, was currently up 41.58 points or 0.14% at 29,612.62. Asian stocks were mixed.
Meanwhile, weak US economic data overnight triggered speculation that interest rate hike from the US Federal Reserve could be delayed.
Index heavyweights Reliance Industries and HDFC edged higher. Bank stocks were in demand, with ICICI Bank and HDFC Bank hitting record high and State Bank of India hit 52-week high. IDFC rose after the Reserve Bank of India (RBI) granted no objection to the proposed scheme of arrangement between IDFC and IDFC Bank and their respective shareholders and creditors under Section 391 to 394 of Companies Act, 1956. Adani Ports and Special Economic Zone slipped after Q3 results. Aban Offshore jumped after Q3 results.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 953.50 crore yesterday, 27 January 2015, as per provisional data.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, surged to record high in early afternoon trade.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade.
Brent crude oil futures dropped after an industry report showing a larger-than-expected rise in weekly US crude inventories bolstered speculation that a global glut will persist.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month January 2015 series to February 2015 series. The near month January 2015 derivatives contracts expire tomorrow, 29 January 2015.
In overseas markets, Asian stocks were mixed. US stocks edged lower yesterday, 27 January 2015, following a surprise drop in durable-goods orders and disappointing earnings from Microsoft Corp. and Caterpillar Inc.
At 13:23 IST, the S&P BSE Sensex was up 41.58 points or 0.14% at 29,612.62. The index jumped 215.28 points at the day's high of 29,786.32 in afternoon trade, a lifetime high for the index. The index fell 95.81 points at the day's low of 29,475.23 in morning trade.
The CNX Nifty was up 25.15 points or 0.28% at 8,935.65. The index hit a high of 8,985.05 in intraday trade, a ifetime high for the index. The index hit a low of 8,889.10 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,608 shares declined and 1,068 shares rose. A total of 124 shares were unchanged.
The BSE Mid-Cap index was up 24.42 points or 0.23% at 10,804.89, outperforming the Sensex. The BSE Small-Cap index was off 40.47 points or 0.35% at 11,384.01, underperforming the Sensex.
ONGC rose 0.33% to Rs 350.80. The Minister of Petroleum & Natural Gas Dharmendra Pradhan reportedly said today, 28 January 2015, that divestment of government's 5% stake in ONGC is scheduled during the current fiscal year even though falling global oil prices pose a challenge for the company. The government will factor in market conditions before disinvestment, Pradhan was quoted as saying.
Housing finance major HDFC rose 1.51% to Rs 1,335.50. The stock hit a high of Rs 1,339.70 and a low of Rs 1,301.25 so far during the trading session.
Reliance Industries (RIL) rose 0.65% to Rs 894.50. The stock hit a high of Rs 900 and a low of Rs 885 so far during the trading session.
TCS rose 1.01% to Rs 2,528. The stock hit a high of Rs 2,543.05 and a low of Rs 2,501.35 so far during the trading session.
Shares of private sector banks were mixed. IndusInd Bank (up 0.85%) and Federal Bank (up 0.55%) edged higher. Axis Bank (down 0.12%), City Union Bank (down 0.42%), Kotak Mahindra Bank (down 0.81%) and ING Vysya Bank (down 1.09%), edged lower.
ICICI Bank rose 0.93% to Rs 387.25. The stock hit a high of Rs 393.30 so far in intraday trade, which is a record high for the counter. The stock hit a low of Rs 381.15 so far during the trading session
HDFC Bank rose 0.27% to Rs 1,076.90. The stock hit a high of Rs 1,093 so far in intraday trade, which is a record high for the counter. The stock hit a low of Rs 1,062 so far during the trading session.
Yes Bank was down 0.39% to Rs 879. The private sector bank after trading hours yesterday, 27 January 2015, announced that the bank has teamed up with the Overseas Private Investment Corporation (OPIC), the US government's development finance institution, by signing a memorandum of understanding to explore OPIC financing of up to $220 million to increase lending to micro, small and medium enterprises (MSMEs) in India. Specifically, $100 million of the financing would be used to support either Micro-SMEs or SMEs in underserved rural and urban markets, Yes Bank and OPIC said in a joint statement. US-based lender Wells Fargo Bank, N.A., will act as sponsor and co-lender to the project.
Shares of public sector bank were mixed. Punjab National Bank (up 1.27%), Andhra Bank (up 0.55%), Bank of Baroda (up 0.54%), Indian Bank (up 0.52%), Allahabad Bank (up 0.44%), Canara Bank (up 0.10%) and Punjab and Sind Bank (up 0.08%), edged higher. Union Bank of India (down 3.99%), Corporation Bank (down 1.98%), United Bank of India (down 1.09%), UCO Bank (down 0.88%), IDBI Bank (down 0.8%), Bank of Maharashtra (down 0.7%), Bank of India (down 0.39%), Syndicate Bank (down 0.28%), Central Bank of India (down 0.1%) and Vijaya Bank (down 0.1%) edged lower.
State Bank of India (SBI) rose 0.82% to Rs 332.50. The stock hit a 52-week high of Rs 335.90 in intraday trade. The state-run bank yesterday, 27 January 2015, announced that the Committee of Directors for Capital Raising (the Committee) has decided to take enabling approval from the shareholders for raising additional equity share capital up to Rs 15000 crore by way of public issue (i.e. follow-on-public issue) or rights issue or private placement, including qualified institutions placement (QIP)/global depository receipt (GDRs)/American depository receipt (ADRs) and/or any other mode(s) or a combination(s) thereof. The Committee also decided to seek the approval of the Government of India and the Reserve Bank of India for raising capital under Section 5(2) of the State Bank of India Act, 1955 and take all necessary steps in this regard.
IDFC rose 0.43% to Rs 173.70. The stock hit a high of Rs 177.80 and low of Rs 173.25 so far in intraday trade. IDFC during market hours today, 28 January 2015, said that the Reserve Bank of India (RBI) has granted no objection to the proposed scheme of arrangement between IDFC and IDFC Bank and their respective shareholders and creditors under Section 391 to 394 of Companies Act, 1956.
In 2014, IDFC along with Bandhan Financial Services Pvt. Ltd received a licence from RBI to start new banks. In October 2014, IDFC had said it will transfer its lending business including project finance, fixed income and treasury into a new step-down subsidiary called IDFC Bank.
Adani Ports and Special Economic Zone was down 0.32% to Rs 343.55 after reporting Q3 results. The stock hit a high of Rs 350.30 and a low of Rs 335.15 so far in intraday trade.
On a consolidated basis, Adani Ports and Special Economic Zone's net profit rose 13.67% to Rs 512.08 crore on 37.63% increase in total income to Rs 1701.13 crore in Q3 December 2014 over Q3 December 2013.
Aban Offshore rose 4.92% to Rs 504.65 after the company reported strong Q3 results during trading hours. The stock hit a high of Rs 514.40 and a low of Rs 481 so far in intraday trade.
On a consolidated basis, Aban Offshore's net profit rose 61.91% to Rs 129.98 crore on 0.95% increase in total income to Rs 1016.45 crore in Q3 December 2014 over Q3 December 2013.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 61.395, compared with its close of 61.41 during the previous trading session.
Brent crude oil futures dropped after an industry report showing a larger-than-expected rise in weekly US crude inventories bolstered speculation that a global glut will persist. Brent for March settlement was off 49 cents at $49.11 a barrel. The contract had gained $1.44 a barrel or 2.99% to settle at $49.60 a barrel during the previous trading session.
Finance Minister Arun Jaitley yesterday, 27 January 2015, said that there is huge curiosity and interest in India especially among domestic and foreign investors. The Finance Minister said that in order to make best use of this opportunity, India has to address two major concerns i.e. quick decision making & stability in policy matters and reforms in tax structure and administration. The Finance Minister made these comments in his speech at the Investiture Ceremony to honour the officers of Central Board of Excise and Customs (CBEC) for their excellent performance and International Customs Day function organised by CBEC. Jaitley said that that the government's revenue collection which was affected due to low manufacturing in the last 2-3 years is turning around and that the government hopes to meet its fiscal targets. Speaking on the occasion, Minister of State for Finance Jayant Sinha said that there is need for more transparency in tax administration and need to build data base for authentic and valid information.
Asian stocks were mixed today, 28 January 2015. Key benchmark indices in China, Singapore, Taiwan and Indonesia were off 0.06% to 1.41%. Key benchmark indices in Hong Kong, Japan, and South Korea were up 0.08% to 0.99%.
Trading in US index futures indicated that the Dow could rise 82 points at the opening bell today, 28 January 2015. US stock markets fell heavily yesterday, 27 January 2015 following a string of disappointing financial results from big bellwether companies, including Procter & Gamble, Caterpillar, Microsoft and Pfizer.
A two-day meeting of the Federal Open Market Committee (FOMC) concludes today, 28 January 2015. In its last meet in December 2014, FOMC had based on its assessment, judged that it can be patient in beginning to normalize the stance of monetary policy.
In economic data, US durable goods, which economists treat as a proxy for business investment, dropped 3.4% in December 2014 following a 2.1% fall in November 2014.
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