More than two gainers for every loser on BSE

After seeing a bout of volatility in early trade, key benchmark indices extended gains in morning trade. The barometer index, the S&P BSE Sensex, hit its highest level in more than six weeks. The 50-unit CNX Nifty hit its highest level in almost 7 weeks. The Sensex was currently up 153.88 points or 0.54% at 28,415.89. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE.

Metal and mining shares rose after the latest data showed China's GDP grew 7.3% in Q4 December 2014, a tad higher than market expectaions. Sasken Communication Technologies fell after weak Q3 results.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 433.72 crore yesterday, 19 January 2015, as per provisional data.

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

Brent crude futures edged lower as China's economic growth failed to spur confidence demand will be enough to eliminate a global supply glut.

In overseas markets, Asian stocks rose after the latest data showed China's GDP grew 7.3% in Q4 December 2014, a tad higher than market expectaions.

At 10:16 IST, the S&P BSE Sensex was up 153.88 points or 0.54% at 28,415.89. The index jumped 157.86 points at the day's high of 28,419.87 in morning trade, its highest level since 8 December 2014. The index rose 62.84 points at the day's low of 28,324.85 in early trade.

The CNX Nifty was up 47.45 points or 0.55% at 8,598.15. The index hit a high of 8,599.30 in intraday trade, its highest level since 4 December 2014. The index hit a low of 8,574.50 in intraday trade.

The BSE Mid-Cap index was up 83.90 points or 0.79% at 10,764.92. The BSE Small-Cap index was up 101.77 points or 0.89% at 11,501.63. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser. On BSE, 1,451 shares advanced and 657 shares declined. A total of 97 shares were unchanged.

Metal and mining shares rose after the latest data showed China's GDP grew 7.3% in Q4 December 2014, a tad higher than market expectaions. China is the world's largest consumer of copper, steel, and aluminium.

Among mining stocks, Hindustan Copper (up 3.65%), Neyveli Lignite Corporation (up 1.69%), Sesa Sterlite (up 1.55%), Ashapura Minechem (up 1.23%), MOIL (up 1.04%), NMDC (up 0.77%), GMDC (up 0.7%) and Coal India (up 0.46%) edged higher.

Among metal stocks, Jindal Steel & Power (up 3.07%), JSW Steel (up 2.54%), Tata Steel (up 2.44%), Hindalco Industries (up 2.35%), Steel Authority of India (up 2.02%) and Bhushan Steel (up 0.40%) edged higher.

China's production of crude steel, an indicator of its industrial demand, fell to its slowest pace of growth on record last year, according to data released by the National Statistics Bureau today, 20 January 2015. Output of the metal rose just 0.9% from 2013 to 822.7 million metric tons, underscoring how China's vast steel complex, which produces half the world's steel, has fallen to Beijing's push for a cleaner, consumption-led economy.

Meanwhile, India's Minister of Steel and Mines Narendra Singh Tomar yesterday, 19 January 2015, said that simplification and transferability brought in the MMDR Act, 1957 through the Mines and Minerals (Development and Regulation) (Amendment) Ordinance, 2015 will attract private investment in the mining sector. Addressing a meeting of mines ministers and secretaries from across the country, Tomar said that the ordinance is a revolutionary step in revival of mining sector in the country, hitherto stagnated due to various reasons. He added that the classification of minerals will lead to their better scientific exploration and with more power to the states mining process will be expedite. Citing the example of falling levels of iron ore production in the country, Tomar urged state governments to revive mining in all earnestness. Mining ministers and secretaries from different states expressed optimism over the amendments, and offered constructive suggestions for its implementation on the ground level, the Ministry of Mines said in a statement. It was agreed that delays in environment and forest clearances had to be resolved by MoEF for providing unhindered support in growth of mining.

Hindustan Zinc rose 2.56%. The company's net profit rose 38.11% to Rs 2379.37 crore on 20.42% rise in total income to Rs 4665.29 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours on Monday, 19 January 2015.

The increase in revenue in Q3 December 2014, was driven by higher zinc LME and lead & silver metal volumes, partly offset by lower silver price and refined zinc volume. EBITDA rose 14% to Rs 2089 crore in Q3 December 2014 over Q3 December 2013 as a result of better revenues and lower cost of production.

Sindesar Khurd mine expansion is proceeding better than planned, although Rampura Agucha underground shaft project is behind schedule. The board has approved deepening of the open cast mine by 50 metres which will extend mine life to FY 2019-20 and ensure a stable transition from open pit to underground at Rampura Agucha. The pre-stripping work will start in the current quarter, Hindustan Zinc said.

Bharti Airtel was down 0.23%. With respect to news titled, "Bharti Arm Eyes Big Slice of video Collaboration Mkt," Bharti Airtel clarified during trading hours today, 20 January 2015, that at the outset, the company does not regard the item that appears in the media as a material item for a business of the size and scale of Bharti Airtel and the proposed service of 'video conferencing' is part of Airtel's existing telecom offerings and accordingly, does not require disclosure under Clause 36 of the Listing Agreement.

Sasken Communication Technologies fell 4.14% after consolidated net profit fell 82.5% to Rs 16.14 crore on 0.8% decline in revenues to Rs 107.28 crore in Q3 December 2014 over Q2 September 2014. The Q3 result was announced after market hours yesterday, 19 January 2015.

Sasken Communication Technologies' consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) fell 35.5% to Rs 6.32 crore in Q3 December 2014 over Q2 September 2014. Software services revenues fell 0.1% to Rs 104.03 crore in Q3 December 2014 over Q2 September 2014.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.7675, compared with its close of 61.705 during the previous trading session.

Brent crude futures edged lower as China's economic growth failed to spur confidence demand will be enough to eliminate a global supply glut. Brent for March settlement was off 6 cents cent at $48.78 a barrel. The contract had declined $1.33 a barrel or 2.65% to settle at $48.84 a barrel during the previous trading session.

Meanwhile, the the International Monetary Fund (IMF) has downgraded global growth outlook for this year and the next as downgraded its outlook for more than a dozen of the world's largest economies. The IMF said global growth would be 0.3 percentage point lower this year and next than it had previously expected. It now expects the world economy to expand 3.5% this year and 3.7% in 2016. Sliding oil prices will give global growth a brief jolt, but the benefits won't be strong enough to keep the world economy out of a deepening long-term rut, the IMF said.

Asian markets rose today, 20 January 2015, after China reported its economy had not slowed as far as many had feared, a rare glint of brightness amid gloom over the global outlook. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan were up by 0.65% to 1.81%. Indonesia's Jakarta Composite was off 0.46%.

China's National Bureau of Statistics said the economy grew 7.4% last year and 7.3% in the October-December 2014 quarter. Beijing had targeted 7.5% growth for last year.

Trading in US index futures indicated that the Dow could advance 18 points at the opening bell today, 20 January 2015. The US stock market was closed yesterday, 19 January 2015, for Martin Luther King, Jr. Day holiday.

In Europe, the governing council of the European Central Bank (ECB) is scheduled to undertake monetary policy review on Thursday, 22 January 2015. The ECB may introduce a large-scale bond-buying program on 22 January 2015.

Meanwhile, uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country on 25 January 2015. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.

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