Amid intense volatility during the second half of the trading session, key benchmark indices edged lower. After a sharp surge in mid-afternoon trade, the key benchmark indices slipped into the red from green later. The market breadth indicating the overall health of the market was weak. The barometer index, the S&P BSE Sensex, provisionally closed below the psychological 29,000 level after alternately moving above and below that mark in intraday trade. The Sensex had fallen below the psychological 29,000 level after yesterday's slide. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in more than two weeks in late trade. That was a complete contrast with a near one-week high for the Sensex reached in mid-afternoon trade. The Sensex was provisionally off 57.59 points or 0.2% at 28,825.52. The BSE Mid-Cap index was off 1.28%. The BSE Small-Cap index was off 1.31%.
IT stocks edged higher on renewed buying. Public sector oil marketing companies (PSU OMCs) gained on lower crude oil prices. Shares of companies engaged in oil exploration & production (E&P) declined as crude oil prices declined sharply yesterday, 4 February 2015. Telecom stocks declined. Shares of index heavyweights ITC and HDFC edged higher.
Reserve Bank of India (RBI) Governor Raghuram Rajan said in an interview to a newspaper published today, 5 February 2015, that the RBI still has a way to go in fighting inflation and it is important that the central bank has the credibility to bring down inflation if it picks up.
Foreign portfolio investors sold shares worth a net Rs 83.80 crore yesterday, 4 February 2015, as per provisional data.
Ukraine's central bank today, 5 February 2015, increased its key rate to 19.5% from 14% and scrapped foreign currency auctions, moving the battered local currency a step closer to a free float in an effort to steady the market.
In the overseas markets, European stocks edged lower after the European Central Bank fueled an increasingly tense standoff between the Greek government and its international creditors by declaring it would stop accepting Greek bonds as collateral for central bank loans. Asian stocks 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 in choppy trade.
As per provisional closing, the S&P BSE Sensex was off 57.59 points or 0.2% to 28,825.52. The index fell 129.82 points at the day's low of 28,753.29 in late trade, its lowest level since 20 January 2015. The index jumped 394.72 points at the day's high of 29.277.83 in mid-afternoon trade, its highest level since 30 January 2015.
The CNX Nifty was off 12 points or 0.14% at 8,711.70, as per provisional closing. The index hit a low of 8,683.65 in intraday trade, its lowest level since 20 January 2015. The index hit a high of 8,838.45 in intraday trade, its highest level since 2 February 2015.
The BSE Mid-Cap index was down 137.81 points or 1.28% at 10,603.57. The BSE Small-Cap index was down off 149.26 points or 1.31% at 11,283.14. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 1,880 shares declined and 1,023 shares advanced. A total of 113 shares were unchanged.
The total turnover on BSE amounted to Rs 3679 crore, lower than turnover of Rs 4216.09 crore during the previous trading session.
IT stocks edged higher on renewed buying. MindTree (up 1.09%), Wipro (up 3.34%), HCL Technologies (up 3.86%), TCS (up 1.83%), Tech Mahindra (up 0.49%), CMC (up 1.21%), Infosys (up 2.1%), and MphasiS (up 1.34%) edged higher.
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 3.52%) and HPCL (up 0.96%) edged higher. Indian Oil Corporation (down 0.97%) edged lower.
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.
Shares of companies engaged in oil exploration & production (E&P) declined as crude oil prices declined sharply yesterday, 4 February 2015. ONGC (down 3.3%), Oil India (down 1.41%), Cairn India (down 2.82%), and Reliance Industries (down 0.75%) edged lower. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.
Jindal Steel & Power (JSPL) (down 5.66%) and Hindalco Industries (down 2.33%) 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.
Telecom stocks declined. Mahanagar Telephone Nigam (down 5.11%), Reliance Communications (down 8.29%), Tata Teleservices (Maharashtra) (down 2.54%), and Idea Cellular (down 0.26%) edged lower.
Bharti Airtel fell 1.59% at Rs 362. The stock hit a high of Rs 372 and a low of Rs 360. Bharti Airtel's consolidated net profit surged 135.41% to Rs 1436.50 crore on 5.77% growth in total income to Rs 23228.10 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 4 February 2015.
Consolidated EBITDA rose 9.6% to Rs 7786 crore in Q3 December 2014 over Q3 December 2013. EBITDA margin expanded to 33.5% in Q3 December 2014, from 32.4% in Q3 December 2013.
Consolidated mobile data revenue rose 61.9% to Rs 2872 crore in Q3 December 2014 over Q3 December 2013, uplifted by higher data usage. Mobile data revenues now contribute more than 85% of the incremental revenues of the company, Bharti Airtel said.
Bharti Airtel's overall customer base rose 8.9% to 31.29 crore across 20 countries in Q3 December 2014 over Q3 December 2013.
Gopal Vittal, MD and CEO, India & South Asia, said that the company has remained focused on driving topline through stepped up customer acquisitions with continued focus on churn, ensuring pricing stability, and path-breaking innovations in mobile data.
Christian de Faria, MD and CEO, Africa, said that the company has maintained its focus on growing customer base and topline in a cost-efficient manner. Significant depreciation in most African currencies especially the Nigerian Naira has however depressed the reported results in dollar terms, Christian de Faria said.
Index heavyweight L&T fell 0.83% at Rs 1,675.95. The stock hit a high of Rs 1,705 and a low of Rs 1,675. L&T during market hours today, 5 Feburary 2015, in a clarification with regard to news item titled "L&T in talks with Hyundai to collaborate on LNG carriers", said that it has no comments to make on market speculation. However, L&T said that it is keen to undertake construction of complex commercial ships such as LPG & LNG carriers, chemical tankers etc. in the shipyard at Kattupallli. L&T said that it has been interacting with concerned companies and customers.
Another index heavyweight ITC rose 0.26% at Rs 367.50.
Shares of index heavyweight and housing finance major HDFC were up 0.75% at Rs 1,242.40
Bharat Heavy Electricals (Bhel) fell 3.44% at Rs 275.30. Bhel during market hours today, 5 February 2015, said that the company has successfully commissioned a 270 megawatt (MW) coal based thermal power plant in Maharashtra. The unit was commissioned at RattanIndia Power's (formerly Indiabulls Power) upcoming thermal power project located at village Nandgaonpeth in Amravati district of Maharashtra. This is the third 270 MW unit commissioned by Bhel in Phase-1 of the project.
HDFC Bank advanced after the bank announced the opening of the issue of shares to qualified institutional investors and also the issue of shares through American Depository Receipts (ADRs). The stock rose 0.82% at Rs 1,075.95. The stock hit high of Rs 1,092 and low of Rs 1,070.25. HDFC Bank today, 5 February 2015, said that the bank is raising funds through a combination of share sales to qualified institutional investors and the issue of American Depository Receipts (ADRs). A special committee for the bank has approved raising upto Rs 2000 crore through issue of equity shares to qualified institutional investors. The bank will raise upto Rs 8500 crore through issue of American Depository Receipts (ADRs). The floor price for QIP issue and the ADR issue is fixed at Rs 1,061.84 per equity share.
Power Grid Corporation of India (PGCIL) fell 2.19% at Rs 142.90. The stock hit a high of Rs 146.70 and a low of Rs 142.90. PGCIL during market hours today, 5 February 2015, in a clarification with regard to news items titled "PowerGrid wins in ministry's U-turn" and "Powergrid to get 8 new projects" said that as per the present guidelines notified by Government of India (GoI), all the interstate transmission projects are to be implemented with tariff based competitive route with few exemptions like transmission projects involving complex technology of 1,200 kv HVDC, works required to cater to urgent situation or required in compressed time schedule etc. As such, when transmission projects are required on urgent basis and implementation involves technical challenges, the decisions are taken for the transmission projects on nomination basis to Power Grid, the Central Transmission Utility, which has been mandated by EA 2003, Section 38-(2)-(c) to ensure development of an efficient, coordinated and economical system of inter-state transmission lines for smooth flow of electricity from generating stations to the load centres so that it is completed in shortest possible time, PGCIL said.
Accordingly, the Ministry of Power, GoI has assigned eight transmission schemes to PGCIL, the CTU under compressed time schedule through regulated tariff mechanism, PGCIL said.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.85, compared with its close of 61.7525 during the previous trading session.
Brent crude oil futures edged higher in choppy trade. Brent for March settlement was up 69 cents at $54.85 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.
Reserve Bank of India (RBI) Governor Raghuram Rajan said in an interview to a newspaper published today, 5 February 2015, that the RBI still has a way to go in fighting inflation and it is important that the central bank has the credibility to bring down inflation if it picks up. India has to ensure that if there are supply shocks in future, they don't increase inflationary expectations, Rajan said. Rajan also stressed on the need for the country to accelerate growth, saying India should not settle for anything less than double-digit growth in the medium term. The RBI left its benchmark lending rate viz. the repo rate unchanged at 7.75% after a monetary policy review early this week, as the central bank awaits further evidence to gauge whether the disinflationary process is continuing. Earlier, the RBI had surprised financial markets by announcing a cut in the repo rate by 25 basis points in an unscheduled monetary policy review on 15 January 2015, citing easing of inflationary pressures in the economy.
European stocks edged lower today, 5 February 2015, after the European Central Bank fueled an increasingly tense standoff between the Greek government and its international creditors by declaring it would stop accepting Greek bonds as collateral for central bank loans. Key benchmark indices in Germany, UK and France were off 0.03% to 0.34%.
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.
Ukraine's central bank today, 5 February 2015, increased its key rate to 19.5% from 14% and scrapped foreign currency auctions, moving the battered local currency a step closer to a free float in an effort to steady the market. The bank said the moves were aimed at stabilizing Ukraine's currency hryvnia, which has lost half of its values against the dollar over the last year amid Ukraine's deepening economic crisis and the war with pro-Russian separatists in the country's east. The latest moves are part of a loan program being finalized with the International Monetary Fund and will reduce the plethora of different rates at which the currency has been trading.
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 0.98%. In Hong Kong, the Hang Seng index was up 0.35%.
In China, the Shanghai Composite was off 1.17%. 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 could gain 53 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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