Amid divergent trend among various index constituents, key benchmark indices edged lower. The barometer index, the S&P BSE Sensex, failed to hold the psychological 27,000 level. Earlier, the Sensex had regained the psychological 27,000 level in early trade. The Sensex had fallen below the psychological 27,000 level yesterday, 6 January 2015, after a steep slide. The Sensex and the 50-unit CNX Nifty, both, hit 3-week low. The Sensex fell 78.64 points or 0.29% to settle at 26,908.82. The market breadth indicating the overall health of the market was negative.
Foreign portfolio investors sold shares worth a net Rs 1534.20 crore into the secondary equity market yesterday, 6 January 2015, as per data from Central Depository Services (CDSL).
Shares of public sector oil marketing companies advanced on fall in global crude oil prices. Castrol India and Gulf Oil Lubricants India gained as falling crude oil prices will result in lower raw material costs for the company. Tata Motors dropped after media reports stated that the company's British luxury car unit Jaguar Land Rover was awaiting word on the fate of 1,200 luxury vehicles aboard a 51,000-tonne car transporter ship that has run aground in the English Channel. Shares of Hindustan Unilever advanced.
Telecom stocks were mixed. Banks stocks were mixed. Cement stocks edged lower. Shares of paint makers advanced on decline in crude oil prices. Metal and mining stocks dropped. Among auto stocks, shares of commercial vehicles maker Ashok Leyland scaled record high. Biotech major Biocon hit 52-week low. Shares of biscuits major Britannia Industries scaled record high.
Meanwhile, Finance Minister Arun Jaitley yesterday, 6 January 2015, said that ease of doing business is high priority for the government.
In overseas markets, European shares edged higher amid investor optimism that a weaker-than-forecast inflation report bolsters the case for the European Central Bank to begin quantitative easing. Asian stocks also nudged higher. The US stock market endured another day of selling yesterday, 6 January 2015, due to slumping oil prices.
In the foreign exchange market, the rupee edged higher against the dollar.
Global crude oil prices reversed direction after hitting 5-1/2-year low.
The S&P BSE Sensex fell 78.64 points or 0.29% to settle at 26,908.82, its lowest closing level since 17 December 2014. The index dropped 211.34 points at the day's low of 26,776.12 in early afternoon trade. The index rose 64.14 points at the day's high of 27,051.60 in mid-morning trade.
The CNX Nifty fell 25.25 points or 0.31% to settle at 8,102.10, its lowest closing level since 17 December 2014. The index hit a low of 8,065.45 in intraday trade. The index hit a high of 8,151.20 in intraday trade.
The BSE Mid-Cap index shed 1.19 points or 0.01% to settle at 10,234.55. The decline in the index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index advanced 2.77 points or 0.03% to settle at 10,988.99, outperforming the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,506 shares declined and 1,339 shares advanced. A total of 107 shares were unchanged.
The total turnover on BSE amounted to Rs 3196 crore, higher than Rs 3139.15 crore on yesterday, 6 January 2015.
The S&P BSE Teck index (down 0.36%), the S&P BSE IT index (down 0.49%), the S&P BSE Bankex (down 0.65%) and the S&P BSE Metal index (down 1.42%) underperformed the Sensex. The S&P BSE Oil & Gas index (up 1.39%), the S&P BSE Consumer Durables index (up 0.27%), the S&P BSE Capital Goods index (up 0.05%), the S&P BSE Power index (up 0.03%), the S&P BSE Auto index (down 0.06%), the S&P BSE Healthcare index (down 0.19%), the S&P BSE FMCG index (down 0.23%) and the S&P BSE Realty index (down 0.27%) outperformed the Sensex.
FMCG major Hindustan Unilever (HUL) surged 3.4% at Rs 801.50. The stock hit a high of Rs 805.90 and low of Rs 777.
Shares of biscuits major Britannia Industries surged 6.26% to Rs 2,009.95 after scaling a record high of Rs 2,011 in intraday trade.
Reliance Industries (RIL) rose 2.57% at Rs 857.60. A foreign brokerage has reportedly said in a recent research note on RIL that RIL's $11 billion 4G telecom venture is likely to be launched this year which together with key downstream (oil) expansion projects in the second half of FY 2016 will help RIL near double pre-tax profit.
Shares of public sector oil marketing companies (PSU OMCs) advanced on fall in global crude oil prices. BPCL (up 1.07%), HPCL (up 2%), and Indian Oil Corporation (up 0.43%) edged higher. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Castrol India (up 1.82%) and Gulf Oil Lubricants India (up 1.52%) edged higher as falling crude oil prices will result in lower raw material costs for the company.
Bank stocks were mixed. Among PSU bank stocks, Andhra Bank (up 0.06%), State Bank of India (up 0.47%), Bank of Baroda (up 1.12%), Canara Bank (up 0.38%) and Vijaya Bank (up 0.3%) edged higher. Allahabad Bank (down 0.48%), Syndicate Bank (down 0.68%), Bank of India (down 1.17%), Indian Overseas Bank (down 0.25%), Union Bank of India (down 2.51%) and Oriental Bank of Commerce (down 2.22%) edged lower.
The Department of Financial Services, Ministry of Finance, after trading hours yesterday, 6 January 2015, said it has issued a circular to the Chief Executive Officers (CEOs) of all public sector banks (PSBs), financial institutions (FIs) and insurance companies assuring them of freedom of non-interference in matters of commercial decisions, transfers, and postings etc. PSBs should take all commercial decisions in the best interest of the organization without any fear or favour, according to the circular. The Department of Financial Services has also stated in the circular that each bank/FI should have a robust grievance redressal mechanism for borrowers, depositors as well as staff. The aggrieved person should have an opportunity to represent his case at least at two levels.
Punjab National Bank (PNB) fell 1.15% at Rs 205.45. The stock hit a high of Rs 208.55 and a low of Rs 199.80. The bank after market hours yesterday, 6 January 2015, said it has decided to realign its interest rates in case of single domestic and NRE deposits for domestic term deposits of less than Rs 1 crore, in the maturity bucket of 7-14 days to 4.5% from 4%, in the maturity bucket of 30-45 days to 5% from 4.5%, in the maturity bucket of 180-270 days to 7.75% from 7.5%, in the maturity bucket of 271 days and less than one year to 7.75% from 8.25%, in the maturity bucket of 1-3 years to 8.75% from 9% and in the maturity bucket of 5-10 years to 8.5% from 8.75%.
For domestic term deposits of Rs 1 crore to Rs 10 crore, the bank has realigned its interest rates in the maturity bucket of 91-179 days to 7.5% from 8%, in the maturity bucket of 180-270 days to 7.75% from 8%, in the maturity bucket of 271 days to 1 year to 8.25% from 8.5% and in the maturity bucket of 1-3 years to 8.5% from 8.75%. The changes are applicable from 8 January 2015, PNB said.
Among private sector banks, IndusInd Bank (down 0.26%), Yes Bank (down 1.41%) and ICICI Bank (down 2.17%) declined. HDFC Bank (up 0.09%), ING Vysya Bank (up 2.35%) and Axis Bank (up 0.06%) rose.
Kotak Mahindra Bank rose 1.78%. Shares of Multi Commodity Exchange of India (MCX) rose 0.42%. Kotak Mahindra Bank during market hours today, 7 January 2015, in a clarification with regard to news item titled "Regulatory hurdle hits Kotak Group's plan to secure board seat on commodity bourse MCX, said that the said news item itself carries a comment by a Kotak Group spokesperson that the company has not received any communication from MCX or FMC.
Tata Motors dropped after media reports stated that the company's British luxury car unit Jaguar Land Rover is awaiting word on the fate of 1,200 luxury vehicles aboard a 51,000-tonne car transporter ship that has run aground in the English Channel. The stock was off 1.13% at Rs 495.45.
Maruti Suzuki India rose 1.9% at Rs 3,460. According to reports, the company will increase car prices by 4% following the government's decision to halt excise duty benefits to automakers beyond 31 December 2014. Meanwhile, Maruti during market hours today, 7 January 2015, said its total production rose 18.21% to 95,400 units in December 2014 over December 2013.
Ashok Leyland jumped 6.01% to Rs 59.95 after scaling a record high of Rs 60.15 in intraday trade.
Hero MotoCorp fell 1.32%. The company after market hours yesterday, 6 January 2015, said that the company has raised two-wheeler prices from 1 January 2015 to offset the increased duty impact. The benefit of lower excise duty on automobiles lapsed on 31 December 2014, with the government preferring not to extend the lower excise duties announced last year.
Hero MotoCorp also said that the transporters' strike has impacted the despatches from Hero MotoCorp's plants in Gurgaon and Dharuhera. The company could despatch only half of its average daily despatches from these two plants yesterday 6 January 2015, Hero MotoCorp said. Hero MotoCorp said it is trying to make alternative arrangements to minimize further impact. The company said that it expects the authorities and the Automobile Carrier Welfare Association (ACWA) will be able to resolve the issue amicably at the earliest.
Metal and mining stocks dropped. JSW Steel (down 1.2%), Tata Steel (down 1.63%), NMDC (down 2.72%), Hindustan Copper (down 1.5%), National Aluminium Company (down 0.78%), Hindustan Zinc (down 2.53%), Steel Authority of India (Sail) (down 0.7%), Jindal Steel & Power (down 1.28%) and Hindalco Industries (down 2.71%) edged lower. Sesa Sterlite rose 0.31%.
Coal India edged lower in volatile trade after the company said due to strike by workers, the coal production and despatch were partially affected yesterday, 6 January 2015. The stock was off 1.23% at Rs 374.15. The stock hit a high of Rs 384.20 and a low of Rs 372.20. The company during market hours today, 7 January 2015, said that four central trade unions of the company observed strike yesterday, 6 January 2015, in Coal lndia and its subsidiaries companies. Due to strike the production and despatch were partially affected.
Tech Mahindra fell 0.2% at Rs 2,532.55. The stock hit a high of Rs 2,574 and a low of Rs 2,513.70. Tech Mahindra after market hours yesterday, 6 January 2015, announced that it has teamed-up with global telecom technology firm Avion Systems, to provide Network Design and Engineering Services to major Communications Service Providers. Tech Mahindra has been chosen as a minority investor at Avion Systems and the new joint venture will be called Avion Networks Inc. The joint venture aims to play a significant role as a strategic supplier of choice to the carriers in the final deployment and management of current mobile networks and their planned transformation into the next-generation cloud enabled, virtual and software driven networks.
Lupin fell 1.52%. The company after market hours yesterday, 6 January 2015, announced that its US subsidiary Lupin Pharmaceuticals Inc. has launched its Valsartan Tablets USP, 40 mg, 80 mg, 160 mg and 320 mg strengths, the generic version for Novartis Pharmaceuticals Corporation's (Novartis) Diovan Tablets, 40 mg, 80 mg, 160 mg and 320 mg strengths, having received final approval from the United States Food and Drug Administration (FDA). Lupin's Valsartan Tablets 40 mg, 80 mg, 160 mg and 320 mg are the AB rated generic equivalent of Novartis's Diovan Tablets and is indicated for treatment of hypertension and heart failure. Diovan tablets had annual US sales of $2.08 billion (IMS MAT September, 2014), Lupin said.
Aurobindo Pharma rose 1.67%. Aurobindo Pharma after market hours yesterday, 6 January 2015, announced that the company has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Valsartan Tablets USP, 40mg, 80mg, 160mg and 320mg. The product is ready for launch, Aurobindo Pharma said. Aurobindo now has a total of 195 abbreviated new drug application (ANDA) approvals from USFDA, which includes 170 final approvals and 25 tentative approvals, the company said.
State-run Power Grid Corporation of India (PGCIL) rose 1.62%. Minister of Road Transport & Highways and Shipping Nitin Gadkari yesterday, 6 January 2015, laid the foundation of 400/220 kV sub-station with 2000 MVA capacity of PGCIL at Tughlakabad, Delhi. In order to facilitate handling of increasing quantum of power with reliability, four nos. of 400/220kV substations along with associated 400kV transmission network under Inter State Transmission System (ISTS) are being implemented within the periphery of Delhi to import power from various sources outside Delhi. These ISTS 400/220 kV substations are planned to be established at Rajghat, Tughlakabad, Karampura and Papankalan in Delhi by PGCIL, the Ministry of Power said after trading hours yesterday, 6 January 2015.
Cement stocks edged lower. Jaiprakash Associates (down 2.11%), ACC (down 1.33%), Shree Cement (down 0.74%), Ambuja Cements (down 0.92%) and UltraTech Cement (down 0.08%) edged lower.
Shares of Grasim Industries rose 0.78% at Rs 3,405.35. Grasim Industries has exposure to cement industry through its subsidiary UltraTech Cement.
Shares of paint makers advanced on decline in crude oil prices. Asian Paints (up 2.3%), Berger Paints India (up 3.2%), Shalimar Paints (up 0.06%) Akzo Nobel India (up 0.58%), and Kansai Nerolac Paints (up 1.07%) edged higher. Falling crude oil prices augur well for paints makers. Titanium dioxide is a key raw material for paint companies and is derived from crude oil.
Telecom stocks were mixed. Tata Teleservices (Maharashtra) (up 1.49%), Mahanagar Telephone Nigam (up 1.31%) and Bharti Airtel (up 0.31%) edged higher. Idea Cellular (down 0.2%) and Reliance Communications (down 1.57%) edged lower.
The Union Cabinet early this week approved the proposal of the Department of Telecom (DoT) to proceed with auction in 800, 900 & 1800 MHz bands. The Reserve price approved is Rs 3646 crore pan-India per MHZ in 800 MHz, Rs 3980 crore for 900 MHz band pan India excluding Delhi, Mumbai, Kolkatta, and J&K, and Rs 2191 crore pan India (excluding Maharashtra and West Bengal) in 1800 MHz band. The quantum of spectrum to be put to auction is 103.75 MHz in 800 MHz band in all service areas, 177.8 MHz in 17 LSAs in 900 MHz band and 99.2 MHz in 15 LSAs in 1800 MHz band. Thus a total of 380.75 MHz in 800,900 & 1800 MHz is being put to auction. Payment terms, eligibility criteria and auction objectives shall be as in the previous auction of February 2014, a government statement said on 5 January 2015.
The Union Cabinet also decided that intent to put 2100 MHz to simultaneous auction may be announced along with auction of other bands. Details of this will be announced later on.
Biocon declined 2.19% to Rs 405 after hitting a 52-week low of Rs 402.45 in intraday trade.
Key benchmark indices fell for the third day in a row today, 7 January 2015. The Sensex has declined 979.08 points, or 3.51% in three trading sessions from a recent high of 27,887.90 on 2 January 2015. The Sensex has declined 590.60 points or 2.14% in this month so far (till 7 January 2015). From a record high of 28,822.37 struck on 28 November 2014, the Sensex has fallen 1,913.55 points or 6.63%. From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 6,954.70 points or 34.79%.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 63.235, compared with its close of 63.58 during the previous trading session.
Brent crude futures reversed direction after hitting 5-1/2 -year low. Brent for February settlement was up 12 cents at $51.22 a barrel. The contract had lost $2.01 a barrel or 3.78% to settle at $51.10 a barrel during the previous trading session, its lowest settlement since April 2009.
Finance Minister Arun Jaitley yesterday, 6 January 2015, said that ease of doing business is high priority for the government. The Finance Minister made these comments during the Pre Budget Consultative Meeting with the representatives of Trade and Industry. Jaitley said that implementation of nationwide goods and services tax (GST) is expected to improve the tax administration regime and would help in bringing more transparency in the system and ensure smooth flow of goods. It will also help in better implementation and collection of taxes, he said. The Finance Minister said that reforms measures undertaken by the government in coal sector, insurance and amendments in Land Acquisition Act etc will make a major difference in improving the Indian economy's performance.
European shares edged higher today, 7 January 2015, amid investor optimism that a weaker-than-forecast inflation report bolsters the case for the European Central Bank to begin quantitative easing. Asian stocks also nudged higher. Key indices in Germany, UK and France were up 1.01% to 1.23%.
Consumer prices in the eurozone fell on an annual basis in December for the first time since the depths of the financial crisis more than five years ago, increasing pressure on the European Central Bank to step up its stimulus program as early as this month. The European Union's statistics agency today, 7 January 2015, said consumer prices last month were 0.2% below their December 2013 levels. That was the first year-over-year fall since October 2009, which marked the last in a sequence of five months during which prices were lower than a year earlier.
The latest data showed that German retail sales in November rose by 1% in calendar- and inflation-adjusted terms compared with October, while in annual terms they fell by 0.8%.
Meanwhile, uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country later this month. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.
Asian equity markets edged higher today, 7 January 2015. Key indices in China, Taiwan, Singapore, South Korea, Japan, Hong Kong and Indonesia were up 0.01% to 0.83%.
Trading in US index futures indicated that the Dow could gain 95 points at the opening bell today, 7 January 2015. The US stock market endured another day of selling yesterday, 6 January 2015, due to slumping oil prices. Investors appear to discount positive effect of lower oil prices on broader economy and continue to view the slide in crude as a symptom of slower global growth, which will threaten improving US economy. The US services sector expanded in December at its slowest rate since February as growth in new business and employment declined, an industry report showed yesterday, 6 January 2015.
The Fed will release minutes of the Federal Open Market Committee (FOMC) meeting held on 16 and 17 December 2014 later in the global day today, 7 January 2015. The Fed minutes may shed light on policy makers' views on the appropriate timing of the first interest-rate increase since 2006 and the conditions that would prompt them to tighten policy. At the two-day meeting in December, the FOMC had said it would be patient on the timing of an increase, replacing an earlier pledge to keep borrowing costs low for a "considerable time".
The US Labor Department reports monthly payroll data for December 2014 on Friday, 9 January 2015.
Meanwhile, Vietnam devalued its currency by weakening dong's reference rate for the second time since June, according to a statement on the central bank's website posted late yesterday, 6 January 2015. The currency is allowed to trade as much as 1 percent either side of the rate, which was reduced by 1 percent to 21,458 dong per dollar, effective today, 7 January 2015.
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