Market rises in early trade

Key benchmark indices rose in early trade tracking positive Asian stocks. The barometer index, the S&P BSE Sensex was currently up 42.64 points or 0.15% at 27,744.43. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index and the BSE Small-Cap index, both, outperformed the Sensex.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 335.24 crore yesterday, 22 December 2014, as per provisional data.

In the global market, Asian shares were mostly higher today, 23 December 2014.

Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from December 2014 series to January 2015 series. The near month December 2014 derivatives contracts expire tomorrow, 24 December 2014. The stock market remains closed on Thursday, 25 December 2014, on account of Christmas.

At 9:18 IST, the S&P BSE Sensex was up 42.64 points or 0.15% at 27,744.43. The index jumped 56.80 points at the day's high of 27,758.59 at the onset of trading session, its highest level since 11 December 2014. The index gained 4.96 points at the day's low of 27,706.75 at the onset of trading session.

The CNX Nifty was up 6.95 points or 0.08% at 8,330.95. The index hit a high of 8,331.80 in intraday trade. The index hit a low of 8,320.70 in intraday trade.

The BSE Mid-Cap index was up 33.48 points or 0.33% at 10,125.64. The BSE Small-Cap index was up 43.62 points or 0.40% at 11,003.86. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong. On BSE, 690 shares rose and 375 shares fell. A total of 43 shares were unchanged.

HCL Technologies fell 0.72%. The company, through a pre-earnings brief, highlighted before trading hours today, 23 December 2014, how currency movements are likely to influence its quarterly results. During the October-December 2014 quarter, US dollar continued to strengthen against almost all global currencies like British Pound, Euro, AUD and so on. Since the company's revenues are derived in multiple currencies, the revenues for the quarter to be reported in dollar would have adverse impact of approximately 210 basis points on account of strengthening of dollar against various global currencies. This impact has been computed using the exchange rate as on 18 December 2014.

At the beginning of the quarter, the company had estimated foreign exchange loss of $2.5 million on account of cash flow hedges on exchange rates prevailing as on September 2014 end. However, taking into account the exchange rate as on 18 December 2014m the company now expects to post foreign exchange gain of approximately $2 million covering. This foreign exchange gain or would continue to be reported after earning before interest and tax (EBIT). The company sad it expects effective tax rate to be in the guided range of 21% to 22%.

Bharti Airtel rose 0.74%. With respect to news titled "Huawei Bags 4G Network Deal from Bharti Airtel", Bharti Airtel clarified after market hours on Monday, 22 December 2014, that this is a routine ordinary course of business transaction that does not have a material or a significant impact on the operations of the company. Bharti Airtel has a long term strategic partnership with Huawei for network equipment for more than a decade. Huawei serves multiple technologies to Airtel including 2G, 3G and TD-LTE across various circles in India. As part of ongoing business requirements, Airtel has engaged with Huawei for supply of base stations and other equipment for its FD-LTE network in Karnataka and Tamil Nadu Telecom circles, Bharti Airtel said.

Bank of Baroda (BoB) rose 0.70%. The bank announced after market hours yesterday, 22 December 2014, that 23 January 2015, has been fixed as the record date for 5 for 1 stock split.

Videocon Industries 1.12%. The company announced before trading hours today, 23 December 2014, it has closed the global depository receipt (GDR) issue and allotted 1.57 crore underlying equity shares of face value of Rs 10 each, represented by 1.57 crore GDR at a price of $2.88 per GDR, equivalent to Rs 181.61 per equity share aggregating to $45.21 million. The exchange rate considered is as per the RBI dollar to rupee reference rate as on 19 December 2014 which is Rs. 63.07. The GDRs are proposed to be listed on Luxembourg Stock Exchange.

Suzlon Energy fell 0.80% as shares allotted by the company on conversion of foreign currency convertible bonds at a conversion price of Rs 15.46 per share are admitted for trading on the bourses today, 23 December 2014. A total of 4.34 crore shares will be admitted for trading. Shares of Suzlon Energy had jumped 7.83% to settle at Rs 13.77 on BSE yesterday, 22 December 2014.

Allahabad Bank rose 1.35%. The board of Allahabad Bank approved in principle the raising of capital of the bank through preferential/qualified institutional placement (QIP) issue in compliance with the applicable laws, rules and regulations, Government of India Guidelines and in such a manner that the equity shareholding of the Government of India shall not go below 52%.

On the political front, counting of votes began early today for assembly elections held in Jammu and Kashmir and Jharkhand over five phases. The BJP hopes to bag both states. While exit polls have predicted a majority for the BJP in Jharkhand, they forecast a hung assembly in Jammu and Kashmir.

Asian shares were mostly higher today, 23 December 2014. Key benchmark indices in Taiwan, Hong Kong and Indonesia were up by 0.08% to 0.23%. South Korea's Seoul Composite was off 0.15%.

China's Shanghai Composite was down 0.59%. China recorded a deficit of $20.8 billion in its services trade with the rest of the world in November, official data showed Tuesday. That was wider than a $17.2 billion deficit in the services trade for October. China previously reported a record $54.47 billion surplus on its merchandise trade in November.

In November, the tourism sector recorded a deficit of $7.5 billion, while "other business services" had a deficit of $9.5 billion, the State Administration of Foreign Exchange said in a statement on its website Tuesday. Over the first 11 months of the year, the country's services trade posted a deficit of $154.9 billion, the regulator said. The nation had a surplus of $332.5 billion in its merchandise trade over the same 11-month period.

US stocks ended higher on Monday, 22 December 2014, with both the Dow and S&P 500 ending at records as large-cap technology shares gained and offset continued weakness in energy names.

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