A bout of volatiltiy was witnessed as key benchmark indices languished in red in morning trade. The market breadth indicating the overall health of the market turned positive from negative. The barometer index, the S&P BSE Sensex, was currently off 143.65 points or 0.49% at 29,415.53.
Meanwhile, the Union Cabinet yesterday, 28 January 2015, decided to accept the order of the High Court of Bombay which had quashed a transfer pricing-related tax demand on Vodafone Group Plc. This is a major correction of a tax matter which has adversely affected investor sentiment, according to a government statement issued yesterday, 28 January 2015.
Coal India dropped in volatile trade after the government after market hours yesterday, 28 January 2015, announced that it will sell up to 10% stake in the state-run coal major through the stock exchanges mechanism on Friday, 30 January 2015. Telecom stocks dropped after the Union Cabinet yesterday, 28 January 2015, approved the proposal of the Department of Telecommunication (DoT) to proceed with auction in 2100 MHz band alongwith 800, 900 and 1800 MHz bands. Lupin rose after the Cabinet Committee on Economic Affairs yesterday, 28 January 2015, gave its approval to the proposal of Lupin for increase in aggregate limit of investment by FIIs and their sub-accounts in the equity capital of the company, from 33% to 49%.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1723.17 crore yesterday, 28 January 2015, as per provisional data.
Indian stocks may remain volatile today, 29 January 2015, as traders roll over positions in the futures & options (F&O) segment from the near month January 2015 series to February 2015 series. The near month January 2015 derivatives contracts expire today, 29 January 2015.
In the foreign exchange market, the rupee edged lower against the dollar as the US central bank reiterated its commitment to raising interest rates some time in the latter part of the year after the conclusion of a two-day meeting on monetary policy review yesterday, 28 January 2015.
Brent crude oil futures edged higher.
In overseas markets, Asian stocks declined after the US Federal Reserve unexpectedly lifted its view on the economy, signalling that the US central bank remains firmly on track with plans to raise interest rates this year. US stocks edged lower yesterday, 28 January 2015, after the US Federal Reserve unexpectedly lifted its view on the economy, signalling that the US central bank remains firmly on track with plans to raise interest rates this year.
At 10:15 IST, the S&P BSE Sensex was down 143.65 points or 0.49% at 29,415.53. The index lost 180.88 points at the day's low of 29,378.30 in early trade, its lowest level since 27 January 2015. The index fell 32.85 points at the day's high of 29,526.33 in early trade.
The CNX Nifty was down 40.20 points or 0.45% at 8,874.10. The index hit a low of 8,861.25 in intraday trade, its lowest level since 27 January 2015. The index hit a high of 8,902.05 in intraday trade.
The market breadth indicating the overall health of the market turned positive from negative in morning trade. On BSE, 1,080 shares advanced and 902 shares declined. A total of 71 shares were unchanged.
The BSE Mid-Cap index was up 11.91 points or 0.11% at 10,820.35. The BSE Small-Cap index was up 18 points or 0.16% at 11,387.11. Both these indices outperformed the Sensex
The total turnover on BSE amounted to Rs 707 crore by 10:15 IST compared to Rs 208 crore by 09:20 IST.
Telecom stocks dropped after the Union Cabinet yesterday, 28 January 2015, approved the proposal of the Department of Telecommunication (DoT) to proceed with auction in 2100 MHz band alongwith 800, 900 and 1800 MHz bands. Bharti Airtel (down 2.05%), Idea Cellular (down 2.53%) and Tata Teleservices (Maharashtra) (down 1.08%) declined. MTNL (up 2.14%) and Reliance Communications (up 0.81%) rose.
The Reserve price approved for 2100 MHz Band is Rs 3705 crore pan-India per MHz. A 5 MHz Block will be offered in all service areas except Jammu & Kashmir, Bihar, Himachal Pradesh, West Bengal and Punjab. Thus a total of 85 MHz in 17 Licensed Service Areas (LSAs) is being put to auction. The estimated revenue for the government from the auction of 2100 MHz Band is Rs 17555 crore of which Rs 5793 crore is expected to be realized in the current financial year.
Coal India lost 3.92% to Rs 369. The stock was volatile. The stock hit high of Rs 371 and low of Rs 364.60 so far during the day. The government after market hours yesterday, 28 January 2015, announced divestment of its stake in the company. The government has offered to sell 31.58 crore equity shares, or 5% equity, of face value of Rs 10 each with an option to sell an additional upto 31.58 crore equity shares, or 5% equity, of face value of Rs 10 each of Coal India, collectively aggregating to 10% of the total paid up equity share capital of Coal India through a sale on the separate window provided by the stock exchanges for this purpose. The sale shall commence on 30 January 2015 at 9:15 IST and shall close on the same day at 15:30 IST. The floor price for the OFS will be announced after market hours today, 29 January 2015.
The government has reserved 20% of the size of the sale for retail investors. Retail investors will be offered a discount of 5% to the bid price entered by them in accordance with the Sebi OFS circulars. A minimum of 25% of the sale shares will be reserved for mutual funds and insurance companies.
Lupin rose after the Cabinet Committee on Economic Affairs yesterday, 28 January 2015, gave its approval to the proposal of Lupin for increase in aggregate limit of investment by FIIs and their sub-accounts in the equity capital of the company, from 33% to 49%. The stock was up 0.77%.
Just Dial rose 0.49%. The company's net profit rose 8.03% to Rs 32.14 crore on 20.57% rise in total income to Rs 157.88 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 28 January 2015.
Pidilite Industries gained 0.83%. The company's consolidated net profit rose 27.88% to Rs 124.36 crore on 12.31% rise in total income to Rs 1208.33 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 28 January 2015.
In the foreign exchange market, the rupee edged lower against the dollar as the US central bank reiterated its commitment to raising interest rates some time in the latter part of the year after the conclusion of a two-day meeting on monetary policy review yesterday, 28 January 2015. The partially convertible rupee was hovering at 61.535, compared with its close of 61.41 during the previous trading session.
Brent crude oil futures edged higher. Brent for March settlement was up 22 cents at $48.69 a barrel. The contract had declined $1.13 a barrel or 2.27% to settle at $48.47 a barrel during the previous trading session.
Asian stocks declined today, 29 January 2015, after the US Federal Reserve unexpectedly lifted its view on the economy, signalling that the US central bank remains firmly on track with plans to raise interest rates this year. Key benchmark indices in China, Taiwan, Hong Kong, Japan, Indonesia and South Korea fell by 0.11% to 1.18%. In Singapore, the Straits Times index rose 0.11%.
Trading in US index futures indicated that the Dow could rise 56 points at the opening bell today, 29 January 2015. US stocks ended yesterday's choppy trading session sharply lower after the Federal Reserve's policy-making committee reiterated it plans to remain patient and watch the data as it decides when to raise interest rates.
The US Federal Reserve yesterday, 28 January 2015 said the US economy was expanding "at a solid pace" with strong job gains in a signal that the central bank remains on track with its plans to raise interest rates this year. The Fed repeated it would be "patient" in deciding when to raise benchmark borrowing costs from zero, though it also acknowledged a decline in certain inflation measures.
After a two-day meeting of the Federal Open Market Committee, policymakers struck an upbeat tone on the US economy's prospects and held to their view that energy-led weakness in inflation would dissipate. "Economic activity has been expanding at a solid pace," the Fed said in a statement that marked an upgrade to its prior assessment of a "moderate pace" of growth. "Labor market conditions have improved further, with strong job gains and a lower unemployment rate."
The Commerce Department releases its first estimate of fourth-quarter GDP tomorrow, 30 January 2015.
In Europe, Greece's Prime Minister Alexis Tsipras reportedly stressed yesterday, 28 January 2015, that he will push for debt relief from the country's international creditors.
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