Advance estimates from the statistics ministry showing strengthening economic recovery in the current year and the latest data showing a strong economic expansion in Q3 December 2014 helped key equity benchmark indices register decent gains in what was an extremely choppy trading session. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was provisionally up 170.85 points or 0.61% at 28,398.24. The index jumped 406.33 points at the day's high of 28,633.72 in mid-morning trade. The barometer index fell 182.90 points at the day's low of 28,044.49 in early trade.
The high volatility for Indian stocks materialized on a day when election trends showed a landslide victory for the Aam Aadmi Party (AAP) and setback for the Bharatiya Janata Party (BJP) in assembly elections in Delhi.
Bank stocks edged higher on renewed buying. HDFC Bank advanced after the bank said it has allotted 1.87 crore equity shares to eligible qualified institutional buyers aggregating to Rs 2000 crore through qualified institutional placement.
On the macro front, according to the advance estimates of National Income, 2014-15 released by Ministry of Statistics & Programme Implementation after trading hours yesterday, 9 February 2015, India's Gross Domestic Product (GDP) growth is likely to accelerate to 7.4% in 2014-15, from 6.9% growth in 2013-14 and 5.1% growth in 2012-13.
On the political front, election trends showed that the Aam Aadmi Party (AAP) was heading for a landslide victory in Delhi assembly elections and that the party will form the next government in the state. As per the status available so far, AAP won 59 seats and the party was leading in 8 seats. The Bharatiya Janata Party (BJP) won 3 seats. The counting of votes of Delhi assembly elections is underway. A party needs 36 seats to form government in the 70-member Delhi assembly. The vote share for the AAP was 54.3%, far ahead of BJP's 32.2%.
AAP leader Arvind Kejriwal, an anti-corruption activist turned politician, is set to become Delhi's chief minister for the second time.
Prime Minister Narendra Modi reportedly said on Twitter that he spoke to Kejriwal, congratulated him on the win and assured him of the central government's complete support in the development of Delhi.
Foreign portfolio investors sold shares worth a net Rs 660.30 crore yesterday, 9 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 469.55 crore yesterday, 9 February 2015, as per provisional data.
Key indices have witnessed high intraday volatility today, 10 February 2015. After extending gains in mid-morning trade, key benchmark indices pared gains later. Benchmark indices slipped into the red from green in mid-afternoon trade. Key indices soon staged a strong intraday rebound later. Earlier, the Sensex and the 50-unit CNX Nifty had, both, bounced after hitting 3-1/2-week low at the onset of the trading session.
In overseas markets, European stocks edged lower amid Greece's stand-off with its creditors. Asian stocks were mixed. US stocks fell yesterday, 9 February 2015, dragged down by a sell-off in European markets, as investors were unnerved by the deepening standoff between Greece and its creditors.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged lower after the International Energy Agency (IEA) said the United States will remain the world's top source of oil supply growth until to 2020.
Key indices snapped seven day losing streak today, 10 February 2015.
As per provisional figures, the S&P BSE Sensex was up 170.85 points or 0.61% at 28,398.24. The index jumped 406.33 points at the day's high of 28,633.72 in mid-morning trade, its highest level since 6 February 2015. The index fell 182.90 points at the day's low of 28,044.49 in early trade, its lowest level since 16 January 2015.
The CNX Nifty was up 39.20 points or 0.46% at 8,565.55, as per provisional figures. The index hit a high of 8,646.25 in intraday trade, its highest level since 6 February 2015. The index hit a low of 8,470.50 in intraday trade, its lowest level since 16 January 2015.
The BSE Mid-Cap index was up 52.01 points or 0.5% at 10,394.28, outperforming the Sensex. The BSE Small-Cap index was down 1.86 points or 0.02% at 10,911.54, underperforming the Sensex.
The total turnover on BSE amounted to Rs 3763 crore, higher than turnover of Rs 2957.04 crore during the previous trading session.
The market breadth indicating the overall health of the market was negative. On BSE, 1,397 shares fell and 1,331 shares rose. A total of 117 shares were unchanged.
Bank stocks advanced. Bank of Baroda (up 2.39%), Yes Bank (up 2.78%), Bank of India (up 1.59%), ICICI Bank (up 3.28%), State Bank of India (up 3.13%), ING Vysya Bank (up 1.24%), IndusInd Bank (up 2.33%), Kotak Mahindra Bank (up 1.8%) and Axis Bank (up 0.05%) edged higher. Canara Bank fell 0.69%.
HDFC Bank rose 1.61% at Rs 1,056.95. HDFC Bank during market hours today, 10 February 2015 said that the share allotment committee of the bank, at its meeting held today, 10 February 2015, approved allotment of 1.87 crore equity shares to eligible qualified institutional buyers (QIBs) at the issue price of Rs 1,067 per share aggregating to Rs 2000 crore pursuant to the QIP. The committee also approved allotment of 6.6 crore equity shares underlying the ADRs (1 ADR representing 3 underlying equity shares) to JP Morgan Chase Bank NA as depository pursuant to the ADR offering.
Punjab National Bank rose 0.03% after the company said during market hours that the bank has raised Rs 1000 crore Long term Bonds at an annual coupon of 8.23% on Private Placement basis on 9 February 2015 through five arrangers.
DLF rose 2.1% to Rs 160.60. The stock hit high of Rs 161 and low of Rs 148. DLF's consolidated net profit fell 9.29% to Rs 131.79 crore on 19.7% decline in total income to Rs 2079.82 crore in Q3 December 2014 over Q3 December 2013. The company announced Q3 results after market hours yesterday, 9 February 2015. DLF's earnings before interest, taxation, depreciation and amortization (EBITDA) fell 20% to Rs 918 crore in Q3 December 2014 over Q3 December 2013.
In a post-result statement, DLF said that the company witnessed continued interest from actual users in the super luxury & luxury segment during the quarter. The company expects sales volume of residential products to reach normal volumes in the next 12-18 months. Rental business which is a leading indicator of demand continues to grow at targeted pace, DLF said. The realty major said that the outlook in the office leasing business is much better given the current demand-supply situation. As rate of inflation abates, further reduction of interest rates will lead to better GDP growth rates leading to more demand in both the residential and commercial segments of real estate, DLF said. DFL further said that the company remains committed to its medium term goals as articulated in February 2013 although the timelines of its implementation have been adversely impacted due to slower GDP growth and uncertainties due to the Sebi (Securities & Exchange Board of India) restrictions.
Cadila Healthcare rose 2.33% after consolidated net profit rose 51.59% to Rs 281.91 crore on 16.72% increase in total income to Rs 2199.47 crore in Q3 December 2014 over Q3 December 2013. The announcement was made during trading hours today, 10 February 2015. During the quarter, the company's business in the US registered a growth of 42% and emerging markets business grew by 23%. During the quarter, the company filed 5 additional ANDAs (Abbreviated New Drug Application) with the US Food and Drug Administration (US FDA) taking the cumulative ANDA filings to 255, Cadila Healthcare said in a statement.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.0775, compared with its close of 62.175 during the previous trading session.
Brent crude oil futures edged lower after the International Energy Agency (IEA) said the United States will remain the world's top source of oil supply growth until to 2020, defying expectations of a more dramatic slowdown in shale output growth. Brent for March settlement was off 63 cents at $57.71 a barrel. The contract had advanced 54 cents or 0.93% to settle at $58.34 a barrel during the previous trading session.
On macro front, according to the advance estimates of National Income, 2014-15 released by Ministry of Statistics & Programme Implementation after trading hours yesterday, 9 February 2015, India's Gross Domestic Product (GDP) growth is likely to accelerate to 7.4% in 2014-15, from 6.9% growth in 2013-14 and 5.1% growth in 2012-13. The advance estimate for 2014-15 is based on a new method of calculating GDP, which the Ministry of Statistics & Programme Implementation unveiled on 30 January 2015. The Ministry of Statistics & Programme Implementation also released GDP growth for Q3 December 2014. It said the economy expanded 7.5% in Q3 December 2014, buoyed by accelerated growth in government spending and financial services. GDP growth for Q2 September 2014 was revised upwards to 8.2% and for Q1 June 2014 the growth figure was revised upwards to 6.5%.
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.
Meanwhile, Prime Minister Narendra Modi yesterday, 9 February 2015, said that the NITI Aayog should focus on quick resolution of inter-departmental and Centre-State issues to speed up the pace of implementation of infrastructure projects in the country. He was chairing a high-level meeting on infrastructure. The Prime Minister has directed the concerned ministries to work in a mission mode towards achieving electrification of the remaining 20,000 unelectrified villages, in a clearly defined time-frame, the Prime Minister's Office (PMO) said in a statement. Modi has said that innovative solutions should be explored for ensuring total rural electrification, including solar energy, power connectivity through nearby railway infrastructure, and off-grid solutions. The Prime Minister was informed that issues regarding coal supply to existing power plants have been resolved and not even a single power plant today faces a shortage of coal. The Prime Minister called for a fundamental change in the approach towards redevelopment of Railway stations and development of areas contiguous to railway corridors that run through major cities in the country. He directed all concerned departments of the government to work towards creating a holistic framework and environment that will be conducive for investment.
Finance Minister Arun Jaitley yesterday, 9 February 2015, said that the overall economic situation in the country is looking better and basic parameters of Indian economy are moving in the right direction. Jaitley said that current account deficit will be under control and he will try to keep fiscal deficit also within the prescribed limit. The Finance Minister said that the growth rate would be better than the last year as per the old system. The Finance Minster was making the opening remarks at the First Meeting of the Parliamentary Consultative Committee attached to his Ministry to discuss 'Suggestions for the Budget'. Jaitley's comments came before the release of the latest economic data from the Ministry of Statistics & Programme Implementation.
Regarding bringing back the black money stashed abroad, the Finance Minister said that India will soon become part of international consortium where the focus would be on automatic transfer of information which would in turn help the government in getting easy access to such foreign accounts of Indian residents.
European stocks edged lower today, 10 February 2015, amid Greece's stand-off with its creditors. Key indices in France, Germany and UK were off 0.05% to 0.39%.
The probability of Greece leaving the euro zone has risen several notches as Greece has taken an increasingly hard line over its government debt. Prime Minister Alexis Tsipras on Sunday, 8 February 2015, ruled out extending Greece's bailout deal and said some of the reforms imposed by lenders would be reversed. European Commission President Jean-Claude Juncker raised tensions further yesterday, 9 February 2015, by saying Greeks should not expect the euro zone to accept their latest terms.
French Industrial output rebounded in December as production rose across the eurozone's second largest economy, the national statistics agency Insee said today, 10 February 2015. Industrial production in France rose 1.5% in December from November.
Asian stocks were mixed today, 10 February 2015. Key indices in Taiwan, Japan, Indonesia, and South Korea were off 0.3% to 0.57%. Key indices in China, Hong Kong and Singapore were up 0.03% to 1.5%.
China's consumer inflation slipped to a five-year low in January, which will likely give the central bank more scope for further policy easing. China's consumer-price index rose 0.8% in January from a year earlier, slower than a 1.5% year-over-year rise in December, data from the National Bureau of Statistics showed today, 10 February 2015.
China added funds to the financial system today, 10 February 2015, adding to seven straight weeks of injections as Beijing seeks to ease a seasonal cash squeeze and cope with a slowing economy and capital outflows. The central bank added a net 45 billion yuan ($7.2 billion) into the China's money market, on track for the longest streak of pump priming since last July.
Trading in US index futures indicated that the Dow could fall 8 points at the opening bell today, 10 February 2015. US stocks fell yesterday, 9 February 2015, dragged down by a sell-off in European markets, as investors were unnerved by the deepening standoff between Greece and its creditors.
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