Amid divergent trend among various index constituents, key equity benchmark indices registered small losses. The barometer index, the S&P BSE Sensex, failed to retain the psychological 28,000 level. Earlier, initial gains had helped the Sensex move past the psychological 28,000 mark in intraday trade. The Sensex was provisionally off 58.84 points or 0.21% at 27,829.06. The market breadth indicating the overall health of the market was positive. Asian and European stocks fell amid concern Greece will exit the currency union.
Global crude oil prices hit 5-1/2-year low. Deregulation of diesel price announced by the Indian government in October 2014 and a sharp decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. 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.
Shares of public sector oil marketing companies (PSU OMCs) advanced on decline in global crude oil prices. Maruti Suzuki scaled record high on media reports that a foreign brokerage has retained Maruti Suzuki India as one its top picks from the auto sector in 2015. Ashok Leyland hit record high after strong sales in December 2014. L&T rose after the company said its construction division secured orders worth Rs 4006 crore in December 2014.
Earlier, the 50-unit CNX Nifty had hit 4-week high and the Sensex had hit its highest level in almost four weeks in morning trade.
Foreign portfolio investors bought shares worth a net Rs 259.82 crore during the previous trading session on Friday, 2 January 2015, as per provisional data.
In overseas markets, European shares edged lower in choppy trade amid concern Greece will exit the currency union. Asian stocks edged lower amid concern Greece will exit the European currency union. Key equity benchmark indices in the US closed flat for the day on Friday, 2 January 2015, after giving back intraday gains following disappointing reports on US manufacturing and construction.
In the foreign exchange market, the rupee was currently almost unchanged against the dollar.
Brent crude futures hit 5-1/2-year low as worries about a surplus of global supplies amid weak demand continued to drag on oil markets.
As per provisional closing, the S&P BSE Sensex was down 58.84 points or 0.21% to 27,829.06. The index fell 101.05 points at the day's low of 27,786.85 in late trade. The index jumped 176.59 points at the day's high of 28,064.49 in morning trade, its highest level since 9 December 2014.
The CNX Nifty was down 17.05 points or 0.2% at 8,378.40, as per provisional closing. The index hit a low of 8,363.90 in intraday trade. The index hit a high of 8,445.60 in intraday trade, its highest level since 8 December 2014.
The BSE Mid-Cap index was up 16.97 points or 0.16% at 10,547.17. The BSE Small-Cap index was up 12.06 points or 0.11% at 11,320.21. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,571 shares gained and 1,393 shares fell. A total of 125 shares were unchanged.
The total turnover on BSE amounted to Rs 2718 crore, lower than Rs 2992.80 crore on Friday, 2 January 2015.
Shares of public sector oil marketing companies (PSU OMCs) rose on decline in international crude oil prices. BPCL (up 0.36%), HPCL (up 3.22%) and Indian Oil Corporation (up 1.49%) edged higher. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at 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 freed pricing of petrol and diesel.
Coal India fell 1.43% at Rs 376.20. The stock hit a high of Rs 385.60 and a low of Rs 375.40. The company during market hours today, 5 January 2015, said that Sutirtha Bhattacharya has assumed the charge of Chairman-cum-Managing Director of the company with effect from 5 January 2015.
Meanwhile, according to reports, the government is likely to allow private firms to build and operate critical railway lines connecting Coal India mines to power, steel and cement projects. The proposal, agreed 'in-principal' by the railway and coal ministries, will allow private companies to charge fee from the users of the rail links, similar to the toll charged by highway developers, reports suggested.
Maruti Suzuki India rose 2.68% at Rs 3,449.70. The stock hit a record high of Rs 3,467.25 in intraday trade. A foreign brokerage has reportedly retained Maruti Suzuki India as one its top picks from the auto sector in 2015. The foreign brokerage is of the view that new products and exports will boost volume growth of the car major. Large margin expansion on yen, improving pricing and demand are the key catalysts to drive the stock price, the brokerage has reportedly said.
Ashok Leyland rose 7.96% at Rs 57.65. The stock hit a record high of Rs 58.30 in intraday trade. The company before market hours today, 5 January 2015, said its total sales jumped 48% to 9,290 units in December 2014 over December 2013. Sales of medium and heavy commercial vehicle (M&HCV) surged 85% to 7,210 units in December 2014 over December 2013. Sales of light commercial vehicles (LCV) declined 13% to 2,080 units in December 2014 over December 2013.
L&T rose 1.65% at Rs 1,560 after the the company said its construction division secured orders worth Rs 4006 crore across various business segments in December 2014 in both the domestic and international markets. The announcement was made during trading hours today, 5 January 2015. Commenting on the latest orders won by the company, S N Subrahmanyan, Member of the Board and Senior Executive Vice President (Infrastructure & Construction), L&T said that these orders reveal the increased activity at ground level in the infrastructure space which augurs well for the Indian economy and, more particularly, for EPC players like L&T.
In the foreign exchange market, the rupee was currently almost unchanged against the dollar. The partially convertible rupee was hovering at 63.295, compared with its close of 63.29 during the previous trading session on Friday, 2 January 2015.
Brent crude futures hit 5-1/2-year low as worries about a surplus of global supplies amid weak demand continued to drag on oil markets. Brent for February settlement was off 76 cents at $55.66 a barrel. The contract had declined 91 cents or 1.6% to settle at $56.42 a barrel during the previous trading session on Friday, 2 January 2015, its lowest settlement since 30 April 2009.
HSBC Holdings Plc and Markit Economics will release the HSBC India Services PMI for December 2014 tomorrow, 6 January 2015.
European shares edged lower in choppy trade today, 5 January 2015, amid concern Greece will exit the currency union. Key indices in Germany, France and UK were off 0.12% to 0.59%.
In Greece, political parties have embarked on a campaign for elections this month that may determine the fate of the country's membership in the euro currency area, with Der Spiegel magazine reporting German Chancellor Angela Merkel is ready to accept a Greek exit.
Asian stocks edged lower today, 5 January 2015, amid concern Greece will exit the European currency union. Key indices in Japan, Hong Kong, Taiwan, Singapore, South Korea, and Indonesia were off 0.24% to 1.29%.
Mainland Chinese stocks rallied to their highest close in more than five years, led by strength in the energy and real-estate sectors. The Shanghai Composite Index surged 3.6% to end at 3,350.52, marking its biggest daily percentage gain in a month. Coal-related shares soared after several provincial governments adjusted their resource-tax rates as part of nationwide reforms of coal tax, aimed at reducing the burden on coal enterprises. Property shares also saw strong gains, as the Beijing government increased the cap on housing loans.
In Japan, the final Markit/JMMA Japan Manufacturing Purchasing Managers Index (PMI) came at 52 in December, slightly less than a preliminary reading of 52.1 and unchanged from the final reading in November.
Trading in US index futures indicated that the Dow could fall 21 points at the opening bell today, 5 January 2015. US stocks ended near unchanged on Friday, 2 January 2015, with the S&P 500 down for a third session, after economic reports showed manufacturing slowing but still in expansion mode at the end of 2014. Factory activity in the United States grew at the slowest pace in six months in December 2014, weakened by declines in orders and production. The Institute for Supply Management, a trade group of purchasing managers, said on Friday, 2 January 2015, that its manufacturing index fell to 55.5 in December from 58.7 in November, which was just below a three-year high reached in October.
Minneapolis Fed President Narayana Kocherlakota yesterday, 4 January 2015, said that the Federal Reserve should not be forced to adopt any set rules to determine how it makes monetary policy. Discretion is better than any rule, Kocherlakota said in discussing tying policy moves to data or other indicators. The Fed has information about inflation pressures that would be hard to boil down into a rule, Kocherlakota said during a talk at the American Economic Association meeting.
On Wednesday, 7 January 2015, the Fed will release minutes of the Federal Open Market Committee (FOMC) meeting held on 16 and 17 December 2014. 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.
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