Key benchmark indices trimmed gains in morning trade after a firm opening. The barometer index, the S&P BSE Sensex remained past the psychological 27,000 level. The Sensex was currently up 247.95 points or 0.92% at 27,156.77. The market breadth indicating the overall health of the market was quite strong with more than four gainers for every loser on BSE.
Shares of fertilizer manufacturers advanced after Minister of Chemicals and Fertilizers Ananth Kumar yesterday, 7 January 2015, said that the government has removed the cap/restrictions to production of Neem coated urea. Shares of tour operators gained after latest data showed Foreign Tourist Arrivals (FTAs) to India increased 6.8% to 8.77 lakh in December 2014 over December 2013.
Foreign portfolio investors sold shares worth a net Rs 1073.18 crore yesterday, 7 January 2015, as per provisional data.
In overseas markets, Asian equity markets were higher today, 8 January 2015 as the fall in oil prices and concerns over Greece's potential departure from the euro zone abated, while a positive finish on Wall Street overnight lifted trading sentiment.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude futures recovered from the lowest level since April 2009 as investors weighed whether crude's selloff was excessive amid signs of improving demand in the US.
At 10:15 IST, the S&P BSE Sensex was up 247.95 points or 0.92% at 27,156.77. The index surged 341.06 points at the day's high of 27,249.88 in early trade, its highest level since 6 January 2015. The index rose 193.12 points at the day's low of 27,101.94 in morning trade.
The CNX Nifty was up 74.25 points or 0.92% at 8,176.35. The index hit a high of 8,209.85 in intraday trade, its highest level since 6 January 2015. The index hit a low of 8,167.30 in intraday trade.
The BSE Mid-Cap index was up 152.02 points or 1.49% at 10,386.57. The BSE Small-Cap index was up 176.10 points or 1.6% at 11,165.09. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong with more than four gainers for every loser. On BSE, 1,597 shares advanced and 349 shares declined. A total of 39 shares were unchanged.
Shares of fertilizer manufacturers advanced after Minister of Chemicals and Fertilizers Ananth Kumar yesterday, 7 January 2015, said that the government has removed the cap/restrictions to production of Neem coated urea. Chambal Fertilisers & Chemicals (up 1.24%), Rashtriya Chemicals & Fertilizers (up 1.12%), Gujarat Narmada Valley Fertilizers & Chemicals (up 1.67%), and Gujarat State Fertilizers & Chemicals (up 0.39%) edged higher
Addressing a press conference, Kumar said that using Neem coated urea will not only increase crop yields but also lower input cost to farmers. He said it will also reduce imports of precious fertilizers as well as reduce ground and soil pollution. He said that Neem coated urea is costly by 5% compared to plain prilled urea but it reduces nitrogen loss by more than 10%, thereby incurring a net savings of Rs 13.5 per bag for farmers. Due to higher nitrogen use efficiency, the use of nitrogen coated urea can also eliminate import of urea resulting in huge foreign exchange savings for the country.
Kumar informed that there is adequate availability of fertilizers in the country and there is no shortage anywhere. He said that in December 2014, 1,706 rakes were used for supply of fertilizers as compared to 1,488 in December 2013. He said, in future also, there will be no dearth of urea. The minister clarified that there would neither be increase in urea price nor change in subsidy.
Shares of tour operators gained. Cox & Kings (up 1.8%) and Thomas Cook (India) (up 2.62%) edged higher. Foreign Tourist Arrivals (FTAs) to India increased 6.8% to 8.77 lakh in December 2014 over December 2013, data released yesterday, 7 January 2015 showed. FTAs during the period January- December 2014 exhibited an accelerated growth of 7.1% to 74.62 lakh, as compared to the FTAs of 69.68 lakh with a growth of 5.9% during January- December 2013 over the corresponding period of 2012.
Kotak Mahindra Bank rose 1.98% at Rs 1,295.85. The company before market hours today, 8 January 2015 said that at its shareholders approved the proposal for merger of ING Vysya Bank with itself at its extraordinary general meeting (EGM) held yesterday, 7 January 2015.
ING Vysya Bank rose 2.09% at Rs 896.60. The bank before market hours today, 8 January 2015 said that its shareholders at a EGM held yesterday, 7 January 2015 approved the proposed merger with Kotak Mahindra Bank.
On the macro front, data to be released in near future is expected to show industrial production growth remaining muted in November 2014 and consumer price inflation accelerating in December 2014. Industrial production is seen rising 1.6% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for November 2014 after trading hours on Monday, 12 January 2015. Industrial production had witnessed a surprise contraction of 4.2% in October 2014.
The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.4% in December 2014 from 4.4% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the data on CPI inflation for December 2014 after trading hours on Monday, 12 January 2015.
The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band.
The rate of inflation based the wholesale price index (WPI) is projected at 0.5% for December 2014, as per the median estimate of a poll of economist carried out by Capital Market. WPI inflation stood at zero in November 2014. The government will release data on WPI for December 2014 at 12 noon on 14 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 63.1050, compared with its close of 63.18 during the previous trading session.
Brent crude futures recovered from the lowest level since April 2009 as investors weighed whether crude's selloff was excessive amid signs of improving demand in the US. Brent for February settlement was up 33 cents at $51.48 a barrel. The contract had advanced 5 cents to settle at $51.15 a barrel during the previous trading session.
Asian equity markets were higher today, 8 January 2015 as the fall in oil prices and concerns over Greece's potential departure the euro zone abated, while a positive finish on Wall Street overnight lifted trading sentiment. Key indices in Hong Kong, Japan, Singapore, Taiwan, South Korea, and Indonesia were up 0.26% to 2.09%. In China, the Shanghai Composite was off 1.75%.
Trading in US index futures indicated that the Dow could gain 126 points at the opening bell today, 8 January 2015. US stocks surged yesterday, 7 January 2015, with the S&P 500 rebounding from a five-session dive, as US crude stopped a four-day skid and Germany left the door open to discussing options with Greece's next government on its debt. Federal Reserve policymakers said they could begin raising interest rates before inflation starts to pick up, according to minutes of their meeting on 17 and 18 December 2014. However, the Fed officials added that "they would want to be reasonably confident that inflation will move back" toward the Fed's annual 2% target "over time".
The US Labor Department reports monthly payroll data for December 2014 tomorrow, 9 January 2015.
In Europe, the 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.
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