Key indices retain positive zone

After a range bound movement in moring trade, key benchmark indices trimmed gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently up 76.95 points or 0.26% at 29,355.79. The market breadth indicating the overall health of the market was positive. Most IT stocks edged lower.

Telecom stocks edged higher on renewed buying. Among FMCG stocks, shares of Nestle India scaled record high.

India and the US on Sunday, 25 January 2015, reached an understanding on resolving the logjam in implementing the historic 2006 India-US nuclear deal besides deciding to jointly produce military hardware including advanced unmanned aerial vehicles (UAVs) during talks between Prime Minister Narendra Modi and US President Barack Obama.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 2019.98 crore during the previous trading session on Friday, 23 January 2015, as per provisional data. The stock market was closed yesterday, 26 January 2015, for Republic Day holiday.

Earlier, the Sensex and the 50-unit CNX Nifty, had, both scaled record high at onset of the trading session.

In the foreign exchange market, the rupee edged lower against the dollar in volatile trade.

Brent crude oil futures edged higher.

In overseas markets, Asian stocks edged higher today, 27 January 2015 amid optimism the actions of Greece's new government won't force the nation to leave the euro currency bloc. US stocks eked out small gains yesterday, 26 January 2016, as investors mostly shrugged off the Greek election results which brought the leftist Syriza party to power.

Indian stocks may remain volatile this week 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 contract expire on Thursday, 29 January 2015.

At 11:15 IST, the S&P BSE Sensex was up 76.95 points or 0.26% at 29,355.79. The index jumped 177.79 points at the day's high of 29,456.63 at onset of the day's trading session, a record high for the index. The index rose 19.75 points at the day's low of 29,298.59 in early trade.

The CNX Nifty was up 9.60 points or 0.11% at 8,845.20. The index hit a high of 8,878.20 in intraday trade, a record high for the index. The index hit a low of 8,825.85 in intraday trade.

The market breadth indicating the overall health of the market was positive. On BSE, 1,265 shares gained and 1,068 shares fell. A total of 109 shares were unchanged.

The BSE Mid-Cap index was up 83.67 points or 0.78% at 10,779.34. The BSE Small-Cap index was up 74.19 points or 0.65% at 11,440.28. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 1469 crore by 11:15 IST, compared with turnover of Rs 982 crore by 10:15 IST.

Coal India (down 3.08%), Mahindra & Mahindra (down 2.6%) and Hindalco Industries (down 2.42%) edged lower from the Sensex pack. Axis Bank (up 2.42%), Cipla (up 2.19%) and L&T (up 2.12%) edged higher from the Sensex pack.

Pharma major Dr Reddy's Laboratories lost 4.27% to Rs 3,202. The stock hit high of Rs 3,330 and low of Rs 3,201 so far during the day.

Most IT stocks edged lower. Infosys (down 2.55%), HCL Technologies (down 1.52%), Oracle Financial Services Software (down 0.83%) declined.

Tata Consultancy Services (TCS) (up 0.08%) and Tech Mahindra (up 0.26%) rose.

Wipro shed 0.53% to Rs 598.30. The stock hit high of Rs 604.30 and low of Rs 597.50 so far during the day. Wipro announced before market hours today, 27 January 2015, that the company has been awarded a multi-year strategic infrastructure management contract by Allied Irish Banks, p.l.c. (AIB), a leading bank in Ireland offering a full range of personal and corporate banking services.

Telecom stocks were in demand on renewed buying. Bharti Airtel (up 1.19%), Tata Teleservices (Maharashtra) (up 0.73%) and Reliance Communications (up 1.22%) gained. MTNL shed 0.18%.

Idea Cellular rose 1.07% ahead of is Q3 December 2014 results today, 27 January 2015.

Nestle India advanced 2.26% to Rs 7,398.35 after scaling a record high of Rs 7,425 in intraday trade.

In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 61.445, compared with its close of 61.44 during the previous trading session on Friday, 23 January 2015. The foreign exchange market was closed yesterday, 26 January 2015, for Republic Day holiday.

Brent crude oil futures edged higher. Brent for March settlement was up 14 cents at $48.30 a barrel. The contract had fallen 63 cents or 1.29% to settle at $48.16 a barrel during the previous trading session.

Prime Minister Narendra Modi yesterday, 26 January 2015, said big projects involving large investment would be monitored by the Prime Minister's Office. He was speaking at the interactive India US CEO Forum, in the presence of US President Barack Obama, and top business leaders from both countries. He mentioned the importance of investment in the infrastructure sector, especially in the Railways.

India and the US on Sunday, 25 January 2015, reached an understanding on resolving the logjam in implementing the historic 2006 India-US nuclear deal besides deciding to jointly produce military hardware including advanced unmanned aerial vehicles (UAVs) during talks between Prime Minister Narendra Modi and US President Barack Obama. The two countries resolved key hurdles pertaining to the liability of suppliers of nuclear reactors in the event of an accident and the tracking of fuel supplied by the US. Both countries also agreed on a Working Group to explore aircraft carrier technology besides designing and development of jet engine technology.

In a media statement issued during a joint press interaction with Obama, Modi on Sunday, 25 January 2015, said that the civil nuclear agreement was the centrepiece of a transformed relationship between India and the United States, which demonstrated new trust. "I am pleased that six years after we signed our bilateral agreement, we are moving towards commercial cooperation, consistent with our law, our international legal obligations, and technical and commercial viability. President Obama has also assured me of strong US efforts in support of India's full membership of the four international export control regimes at the earliest", Modi said.

Separately, a joint statement issued by India and the US stated that Modi and Obama welcomed the understandings reached on the issues of civil nuclear liability and administrative arrangements for civil nuclear cooperation, and looked forward to US-built nuclear reactors contributing to India's energy security at the earliest.

Obama concludes hits 3-day visit to India today, 27 January 2015.

Meanwhile, the Reserve Bank of India (RBI) on Friday, 23 January 2015, relaxed rules for companies and banks to restructure and reschedule existing overseas borrowings by permitting an increase in the total cost of external commercial borrowing (ECB). The RBI has also allowed changes in the drawdown and repayment schedules of ECB. However, the easing of rules will not be applicable for foreign currency convertible bonds, the RBI said.

Most Asian stocks edged higher today, 27 January 2015 amid optimism the actions of Greece's new government won't force the nation to leave the euro currency bloc. Key benchmark indices in Taiwan, Singapore, Japan and South Korea rose 0.14% to 1.51%. Key benchmark indices in China, Hong Kong and Indonesia fell 0.12% to 2.1%.

Trading in US index futures indicated that the Dow could fall 9 points at the opening bell today, 27 January 2015. US stocks ended higher yesterday, 26 January 2015, as investors brushed off fears that a leftist victory in Greece would bring fresh crisis to the Eurozone and energy stocks advanced.

A two-day meeting of the Federal Open Market Committee (FOMC) begins today, 27 January 2015 and tomorrow, 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 Europe, the leftist Syriza party, which ran on an antiausterity platform, won elections in Greece held on Sunday, 25 January 2015. Syriza and its outspoken leader, Alexis Tsipras, who had campaigned against the austerity measures imposed on Greece by its international creditors, formed a coalition government yesterday, 26 January 2015 with a right-wing fringe party, Independent Greeks.

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