Key indices churn out tiny gains

Key benchmark indices eked out tiny gains on first trading session of calendar year 2015 (CY 2015). After moving in a small range for most part of the day's trading session, key indices reversed intraday losses to hit intraday high in late trade. Trading activity was quiet with total traded volume and turnover being low. Small gains pushed the barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty to hit their highest closing levels in over one week. The Sensex rose 8.12 points or 0.03% to settle at 27,507.54. The market breadth indicating the overall health of the market was strong. Airline stocks jumped after PSU OMCs reduced aviation turbine fuel price for sixth succeeding month in January 2015.

Earlier during the day, trading for the calendar 2015 began on a subdued note as key benchmark indices drifted lower in early trade.

In the foreign exchange market, the rupee edged lower against the dollar due to buying of American currency by banks and importers.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 481.08 crore yesterday, 31 December 2014, as per provisional data.

In the overseas markets, European and Asian stocks remained closed today, 1 January 2015, for New Year holiday.

The S&P BSE Sensex rose 8.12 points or 0.03% to settle at 27,507.54, its highest closing level since 22 December 2014. The index lost 104.08 points at the day's low of 27,395.34 in morning trade. The index rose 46.19 points at the day's high of 27,545.61 in late trade.

The CNX Nifty was up 1.30 points or 0.02% at 8,284, its highest closing level since 22 December 2014. The index hit a high of 8,294.70 in intraday trade. The index hit a low of 8,248.75 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,831 shares gained and 975 shares fell. A total of 116 shares were unchanged.

The BSE Mid-Cap index rose 67.59 points or 0.65% to settle at 10,440.17. The BSE Small-Cap index rose 138.15 points or 1.25% to settle at 11,225.22. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 1920 crore, lower than Rs 2464.93 crore yesterday, 31 December 2014.

The S&P BSE Metal index (up 1.07%), the S&P BSE Teck index (up 0.48%), the S&P BSE Auto index (up 0.39%), the S&P BSE Capital Goods index (up 0.38%), the S&P BSE Consumer Durables index (up 0.21%), the S&P BSE Realty index (up 0.17%), the S&P BSE Oil & Gas index (up 0.10%), the S&P BSE IT index (up 0.09%) and the S&P BSE Bankex (up 0.07%), outperformed the Sensex.

The S&P BSE Power index (down 0.06%), the S&P BSE Healthcare index (down 0.13%) and the S&P BSE FMCG index (down 0.27%), underperformed the Sensex.

Among the 30 Sensex shares, 19 stocks gained and the remaining shares declined.

Airline stocks jumped after public sector oil marketing companies (PSU OMCs) reduced aviation turbine fuel price for sixth succeeding month in January 2015. Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost. Prices of jet fuel are directly linked to crude oil prices.

Jet Airways India (up 9.08%) and SpiceJet (up 4.94%) surged.

Aviation turbine fuel (ATF) price was reduced for sixth straight month by cumulative 34% till January 2015. A kilolitre of ATF will cost Rs 7520, or 12.5%, less at Rs 52423 in Delhi with effect from 1 January 2015. Rates at different airports vary because of differential in local sales tax or value-added tax (VAT).

PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.

Shares of PSU OMCs rose. Indian Oil Corporation (up 1.49%), BPCL (up 1.23%) and HPCL (up 0.54%), edged higher.

PSU OMCs reportedly cut petrol and diesel rates by Rs 2 a litre, excluding local taxes, today, 1 January 2015. Allowing for local levies, petrol per litre from today, 1 January 2015, costs Rs 61.33 in Delhi, Rs 68.86 in Mumbai, Rs 68.65 in Kolkata and Rs 63.94 in Chennai. The new per litre prices for diesel are Rs 50.51 in Delhi, Rs 57.91 in Mumbai, Rs 55 in Kolkata and Rs 53.78 in Chennai. The government has already freed pricing of petrol and diesel.

Telecom shares were in demand. Tata Teleservices (Maharashtra) (up 6.18%), Reliance Communications (up 3.93%), Idea Cellular (up 3.58%), Bharti Airtel (up 2.86%) and MTNL (up 1.28%), edged higher.

Metal and mining stocks were in demand on renewed buying. Jindal Steel & Power (up 3.06%), Sesa Sterlite (up 2.34%), NMDC (up 2.28%), JSW Steel (up 1.69%), Tata Steel (up 1.3%), Hindalco Industries (up 0.57%) and Bhushan Steel (up 0.11%), edged higher. Steel Authority of India was flat at Rs 82.65. Hindustan Zinc fell 1.17%.

Hero MotoCorp rose 0.13%. Hero MotoCorp during market hours today, 1 January 2015 reported 0.21% rise in sales to 5.26 lakh units in December 2014 over December 2013. The company's sales rose 8% to 66.45 lakh units of two-wheelers in the calendar year ended 31 December 2014.

Eicher Motors rose 0.84%. Eicher Motors during market hours today, 1 January 2015 said that total sales volume of the company's subsidiary VE Commercial Vehicles, rose 20.66% to 3387 in December 2014 over December 2013.

Maruti Suzuki India rose 0.40% after the company said its total sales rose 20.8% to 1.09 lakh units in December 2014 over December 2013. The announcement was made during trading hours today, 1 January 2015. Domestic sales rose 13.3% to 98,109 units in December 2014 over December 2013. Exports jumped 171% to 11,682 units in December 2014 over December 2013.

Mahindra & Mahindra (M&M) rose 0.14%. The company's total tractor sales declined 27% to 12474 units in December 2014 over December 2013. M&M's total auto sales fell 8% to 36328 units in December 2014 over December 2013. The sales figures were announced at the fag end of the trading session today, 1 January 2015.

The Sensex rose for the fifth consecutive session today, 1 January 2015. The Sensex has risen 298.93 points, or 1.10% in five sessions from 27,208.61 on 24 December 2014. From a record high of 28,822.37 struck on 28 November 2014, the Sensex has fallen 1,314.83 points or 4.56%. From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 7,544.42 points or 37.79%.

In the foreign exchange market, the rupee edged lower against the dollar due to buying of American currency by banks and importers. The partially convertible rupee was hovering at 63.37, compared with its close of 63.04 yesterday, 31 December 2014.

Brent crude futures declined yesterday, 31 December 2014 as plentiful supplies and tepid demand continued to send prices plunging. The contract had declined 57 cents or 0.99% to settle at $57.33 a barrel yesterday, 31 December 2014.

India's fiscal deficit was Rs 5.25 trillion ($83.08 billion) during April-November, or 98.9% of the full-year target, data released after market hours yesterday, 31 December 2014, showed. The deficit was 93.9% during the same period a year ago. Fiscal deficit is the difference between earnings and expenditure of the Government. Net tax receipts were at Rs 4.13 trillion ($65.35 billion) in the first eight months of the current fiscal year that ends in March 2015.

The combined Index of Eight Core Industries stood at 166.2 in November 2014, which was 6.7 % higher compared to the index of November 2013, data released after market hours yesterday, 31 December 2014, showed. The Eight Core Industries comprise nearly 38 % of the weight of items included in the Index of Industrial Production (IIP). Its cumulative growth during April to November, 2014-15 was 4.6 %.

European and Asian stocks remained closed today, 1 January 2015, for New Year holiday.

A Chinese manufacturing gauge slipped to the lowest level in 18 months, data released by National Bureau of Statistics today, 1 January 2015 showed. The government's Purchasing Managers' Index fell to 50.1 in December, compared with November's 50.3. Numbers above 50 indicate expansion.

Meanwhile, growth in China's services sector picked up slightly in December, a government study showed today, 1 January 2015. The official non-manufacturing Purchasing Managers' Index, or PMI, rose to 54.1 in December from November's 53.9, well above the 50-point line that separates growth from contraction on a monthly basis.

US markets will remain shut today, 1 January 2015 for New Year's Day. US stocks ended lower yesterday, 31 December 2014 as crude oil prices continued their descent.

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