Sensex fails to hold 29,000 level

A range bound movement was witnessed as key benchmark indices retained positive zone in mid-morning trade. The barometer index, the S&P BSE Sensex, fell below the psychological 29,000 level after reclaiming that level in morning trade. The Sensex had fallen below the psychological 29,000 level after yesterday's slide. The Sensex was currently up 107.14 points or 0.37% at 28,990.25. The market breadth indicating the overall health of the market was positive.

FMCG stocks advanced. Shares of companies engaged in insurance business edged higher. NHPC advanced after the company said that a subsidiary of the company as a joint venture with Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has been incorporated in the name of Bundelkhand Saur Urja on 2 February 2015 for implementation of 50 megawatts (MW) grid connected solar power project in Uttar Pradesh.

Foreign portfolio investors sold shares worth a net Rs 83.80 crore yesterday, 4 February 2015, as per provisional data.

In the overseas markets, Asian stock markets edged lower after the European Central Bank (ECB) yesterday, 4 February 2015, abruptly pulled back its soft treatment of Greek debt and cancelled its acceptance of the country's bonds in return for funding. Most US stocks dropped yesterday, 4 February 2015, after the ECB pulled back its soft treatment of Greek debt and cancelled its acceptance of the country's bonds in return for funding.

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

Brent crude oil futures edged higher after a steep decline during the previous trading session.

At 11:17 IST, the S&P BSE Sensex was up 107.14 points or 0.37% at 28,990.25. The index jumped 171.15 points at the day's high of 29,054.26 in morning trade. The index fell 58.23 points at the day's low of 28,824.88 in early trade.

The CNX Nifty was up 28.80 points or 0.33% at 8,752.50. The index hit a high of 8,768.30 in intraday trade. The index hit a low of 8,705.05 in intraday trade.

The BSE Mid-Cap index was up 32.64 points or 0.3% at 10,774.02. The BSE Small-Cap index was up 22.66 points or 0.2% at 11,455.06. Both these indices underperformed the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1,215 shares gained and 1,079 shares fell. A total of 89 shares were unchanged.

FMCG stocks advanced. Godrej Consumer Products (up 2.39%), Hindustan Unilever (up 1.89%), Emami (up 1.05%), Colgate-Palmolive (India) (up 1.08%), Dabur India (up 0.69%), Nestle India (up 0.38%), Marico (up 0.25%) and Britannia Industries (up 0.02%) edged higher.

Shares of companies engaged in insurance business advanced. HDFC (up 1.83%), Bajaj Finserv (up 2.03%), Max India (up 1.58%), Exide Industries (up 1.09%), State Bank of India (up 0.51%) Aditya Birla Nuvo (up 0.03%), and Religare Enterprises (up 0.03%) edged higher. Reliance Capital (down 2.09%) and ICICI Bank (down 1.41%) edged lower.

Jindal Steel & Power (JSPL) (down 1.43%) and Hindalco Industries (down 1.12%) edged lower. According to reports, these two firms have bid aggressively for coal blocks. It may be recalled that the government promulgated a special ordinance for auction of coal blocks, which were cancelled by the Supreme Court in August last year, citing them illegal.

NHPC rose 0.5% at Rs 20.15. NHPC during market hours today, 5 February 2015 said that a subsidiary company of NHPC as a joint venture with Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has been incorporated in the name of Bundelkhand Saur Urja on 2 February 2015 for implementation of 50 megawatts (MW) grid connected solar power project in Uttar Pradesh.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.925, compared with its close of 61.7525 during the previous trading session.

Brent crude oil futures edged higher after steep decline during the previous trading session. Brent for March settlement was up 25 cents at $54.41 a barrel. The contract had slumped $3.75 a barrel or 6.47% to settle at $54.16 a barrel during the previous trading session.

Asian stock markets edged lower today, 5 February 2015, after the European Central Bank (ECB) yesterday, 4 February 2015, abruptly pulled back its soft treatment of Greek debt and cancelled its acceptance of the country's bonds in return for funding. Key indices in Japan, Taiwan, Singapore, South Korea, and Indonesia were off 0.02% to 0.93%. In Hong Kong, the Hang Seng index was up 0.48%.

In China, the Shanghai Composite was up 1.15%. The People's Bank of China (PBOC) yesterday, 4 February 2015, cut its reserve-requirement ratio for banks by 0.5 percentage points, in a bid to boost lending to businesses and bolster the economy. The central bank said the ratio for most banks will fall to 19.5% after the cut takes effect.

Trading in US index futures indicated that the Dow may slide 22 points at opening bell today, 5 February 2015. Most US stocks dropped yesterday, 4 February 2015, after the ECB pulled back its soft treatment of Greek debt and cancelled its acceptance of the country's bonds in return for funding.

In Europe, the the European Central Bank (ECB) yesterday, 4 February 2015, announced that it will no longer accept Greek government bonds from banks seeking funds, raising costs and volatility for Greece's lenders at a time of growing deposit outflows. It is currently not possible to assume a successful conclusion of Greece's current bailout, the ECB said, just hours after its president, Mario Draghi, met with Greece's new finance minister, Yanis Varoufakis. The announcement marked the first time since 2012when Athens was locked in another round of acrimonious negotiations with its creditorsthat the central bank has suspended its waiver for Greece's junk-rated bonds. Mr. Varoufakis and newly elected Greek Prime Minister Alexis Tsipras have been touring European capitals, promoting a plan to overhaul the country's sagging economy that relies less on budget cuts and seeks easier terms on repaying debts.

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