After retaining positive zone in early trade, key benchmark indices extended gains in morning trade. The barometer index, the S&P BSE Sensex, moved past the psychological 29,000 level. The Sensex was currently up 131.41 points or 0.45% at 29,014.52. The market breadth indicating the overall health of the market was strong.
IT stocks advanced on weak rupee. Public sector oil marketing companies (PSU OMCs) gained as global crude oil prices tumbled yesterday, 4 February 2015.
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 10:15 IST, the S&P BSE Sensex was up 131.41 points or 0.45% at 29,014.52. The index jumped 144.83 points at the day's high of 29,027.94 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 37.65 points or 0.43% at 8,761.35. The index hit a high of 8,761.60 in intraday trade. The index hit a low of 8,705.05 in intraday trade.
The BSE Mid-Cap index was up 59.75 points or 0.56% at 10,801.13, outperforming the Sensex. The BSE Small-Cap index was up 43.78 points or 0.38% at 11,476.18, underperforming the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,194 shares gained and 741 shares fell. A total of 72 shares were unchanged.
IT stocks advanced on weak rupee. MindTree (up 2.53%), Wipro (up 1.52%), HCL Technologies (up 1.41%), TCS (up 1.11%), Tech Mahindra (up 0.8%), CMC (0.81%), Infosys (up 0.75%), MphasiS (up 0.81%), and Oracle Financial Services Software (up 0.04%) edged higher.
A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Meanwhile, the Nasdaq-listed Cognizant Technology beat street estimates with its 6.2% revenue growth QoQ at $2.74 billion in Q4 December 2014, riding on a push from acquisition of US-based healthcare provider TriZetto and higher tech spending. The result was announced after market hours in India yesterday, 4 February 2015. Buoyed by the performance, the company raised its guidance for fiscal year 2015 to a revenue of at least $12.2 billion a 19% growth rate, compared to 16% increase it achieved in 2014.
Shares of public sector oil marketing companies (PSU OMCs) gained as crude oil prices tumbled yesterday, 4 February 2015. BPCL (up 3.31%), HPCL (up 2.33%), and Indian Oil Corporation (up 0.94%) edged higher.
Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already decontrolled pricing of petrol and diesel.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.81, 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 52 cents at $54.68 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 Taiwan, Singapore, South Korea, and Indonesia were off 0.33% to 0.67%. In Hong Kong, the Hang Seng index was up 0.44%.
In China, the Shanghai Composite was up 0.99%. 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 37 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.
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