Market trims gains after firm opening

A bout of volatility was witnessed in early trade as key benchmark indices trimmed gains after a firm opening. The barometer index, the S&P BSE Sensex was currently up 56.14 points or 0.2% at 28,590.11. The market breadth indicating the overall health of the market was strong.

Power Grid Corporation of India (PGCIL) rose on good Q3 results. Bharat Heavy Electricals (Bhel) fell ahead of its Q3 December 2014 result today, 12 February 2015.

Foreign portfolio investors sold shares worth a net Rs 371.27 crore yesterday, 11 February 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 147.49 crore yesterday, 11 February 2015, as per provisional data released by the stock exchanges.

Among overseas markets, Asian stocks edged lower as markets erred on the side of caution over the ongoing Greek debt negotiations amid conflicting headlines on progress in the talks. US stocks ended with small losses yesterday, 11 February 2015, as investors eyed negotiations between Greece and its international creditors.

At 9:27 IST, the S&P BSE Sensex was up 56.14 points or 0.2% at 28,590.11. The index rose 151.91 points at the day's high of 28,685.88 in early trade. The index gained 54.97 points at the day's low of 28,588.94 in early trade.

The CNX Nifty was up 22.15 points or 0.26% at 8,649.55. The index hit a high of 8,681.40 in intraday trade. The index hit a low of 8,648.20 in intraday trade.

The BSE Mid-Cap index was up 63.52 points or 0.6% at 10,606.63. The BSE Small-Cap index was up 77.77 points or 0.7% at 11,137.16. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong. On BSE, 961 shares rose and 403 shares fell. A total of 42 shares were unchanged.

Power Grid Corporation of India (PGCIL) rose 2.91% on good Q3 results. The company's net profit rose 17.93% to Rs 1228.91 crore on 18.07% growth in total income to Rs 4486.11 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 11 February 2015.

Bharat Heavy Electricals (Bhel), fell 1.29% ahead of its Q3 December 2014 result today, 12 February 2015.

HDFC Bank gained 0.37% to Rs 1,062.45. Shares allotted by the private sector bank to institutional investors under Qualified Institutional Placement (QIP) are admitted for trading on the bourses today, 12 February 2015. A total of 1.87 crore shares will be admitted for trading. HDFC Bank had priced the issue of shares to institutional investors at Rs 1,067 per share. Shares of HDFC Bank had risen 0.27% to settle at Rs 1,058.50 on BSE yesterday, 11 February 2015.

It may be recalled that HDFC Bank had early this month raised Rs 2000 crore from the QIP issue. The private sector bank had also raised about $1.27 billion from issue of American Depository Receipts (ADR) early this month.

L&T gained 0.67%. The company after market hours yesterday, 11 February 2015 in a clarification with regard to news item titled "L&T, BEL consortia set to get Rs. 40,000-crore project" said that the company has neither issued any media release on this subject nor interacted with the media. L&T further added that it does not have any official communication from Government in the said matter.

Reliance Industries (RIL) rose 0.34%. The company after market hours yesterday, 11 February 2015 in a clarification with regard to news item titled "Reliance Industries seeks damages for contract area being taken away" said that the company has issued an arbitration notice on 15 January 2015, against a Government of India decision on relinquishment of part of KG-D6 area. The company is assessing the implications of such relinquishment and will take necessary actions on the arbitration at the appropriate time, RIL said.

Meanwhile, macroeconomic data to be released by the government is likely to show deceleration in industrial production growth in December 2014 and acceleration in inflation in January 2015. The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.5% in January 2015 from 5% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil CPI data for January 2015 at 17:30 IST today, 12 February 2015.

The rate of inflation based on the wholesale price index (WPI) is seen accelerating to 0.4% in January 2015 from 0.1% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI data for January 2015 at 12.10 noon on 16 February 2015.

Growth in industrial production is seen decelerating to 1.5% in December 2014 from 3.8% expansion in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will industrial production data for December 2014 at 17:30 IST today, 12 February 2015. All these projections for CPI, WPI and industrial production are based on the old series data with 2004-05 as base year. It may be recalled that the Ministry of Statistics & Programme Implementation revised the way it measures GDP on 30 January 2015. It brought forward the base year used in national economy calculations by seven years to 2011-12 from 2004-05. It also switched from using production costs to market prices. Changes in the base year are made every five years.

Asian stocks edged lower today, 12 February 2015, as markets erred on the side of caution over the ongoing Greek debt negotiations amid conflicting headlines on progress in the talks. Key indices in China, Singapore, Taiwan, Indonesia, and South Korea were down 0.04% to 0.75%. Key indices in Hong Kong and Japan rose 0.55% to 1.78%.

US stocks ended with small losses yesterday, 11 February 2015, as investors eyed negotiations between Greece and its international creditors.

In Europe, as per reports an agreement in principle was in place between Greece and other euro zone governments. Market participants awaited a European Council meeting later today, 12 February 2015, to gauge whether in fact the debt negotiations were moving forward.

As per another report, Greece's new leftist government and its international creditors failed to agree on a way forward on the country's unpopular bailout and will try again next week, with time running out for a financing deal. In seven hours of crisis talks in Brussels that ended after midnight, euro zone finance ministers were unable to agree even a joint statement on the next procedural steps.

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