A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming intraday gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 155.33 points or 0.55% at 28,277.22. The market breadth indicating the overall health of the market was strong. Chinese stocks tumbled, with a wide sell-off sweeping across the financial sector as investors turned jittery over the latest move by securities regulators to clean up the margin-trading business.
India's Prime Minister Narendra Modi on Friday, 16 January 2015, called for making India a $20 trillion economy from a $2 trillion economy today. Speaking at an event, Modi also said that the government is committed to achieving the 4.1% fiscal deficit target announced in the Union Budget 2014-15.
Finance Minister Arun Jaitley reportedly said today, 19 January 2015, that the government will increase spending on infrastructure.
IT stocks were mixed. Wipro jumped after announcing Q3 results. HCL Technologies gained on bonus issue plan. Most realty stocks declined. Oberoi Realty rose after strong Q3 results. Rajesh Exports spurted after securing large export order.
Earlier, the Sensex hit 6-week high and the 50-unit CNX Nifty hit its highest level in more than six weeks as these two key benchmark indices extended initial gains in mid-morning trade.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1099.93 crore on Friday, 16 January 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar as foreign investors stepped up purchases of the nation's bonds.
Brent crude futures edged higher in choppy trade after sharp rally in previous session.
In overseas markets, Asian stocks were mixed. US stocks ended higher on Friday, 16 January 2015, on signs the US economy was on track for solid growth with consumer sentiment hitting an 11-year high.
At 13:16 IST, the S&P BSE Sensex was up 155.33 points or 0.55% at 28,277.22. The index rose 212.17 points at the day's high of 28,334.06 in mid-morning trade, its highest level since 8 December 2014. The index rose 75.47 points at the day's low of 28,197.36 in early afternoon trade.
The CNX Nifty was up 40.30 points or 0.47% at 8,554.10. The index hit a high of 8,570.95 in intraday trade, its highest level since 5 December 2014. The index hit a low of 8,531.50 in intraday trade.
The BSE Mid-Cap index was up 65.92 points or 0.62% at 10,699.03. The BSE Small-Cap index was up 95.03 points or 0.84% at 11,404.96. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,676 shares advanced and 1,107 shares declined. A total of 99 shares were unchanged.
IT stocks were mixed. Infosys (down 0.78%), Tech Mahindra (down 0.65%) and TCS (down 0.97%) declined.
Wipro was up 5.78% to Rs 587.35. The stock hit high of Rs 598.45 and low of Rs 583.05 so far during the day. The company's consolidated net profit rose 9% to Rs 2190 crore on 6% growth in total revenue to Rs 11990 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours on Friday, 16 January 2015. The results are as per International Financial Reporting Standards (IFRS).
Wipro's IT services segment revenue in rupee terms rose 10% to Rs 11340 crore in Q3 December 2014 over Q3 December 2013.
IT services revenue rose 7% to $1.795 billion in Q3 December 2014 over Q3 December 2013. Non-GAAP constant currency IT services revenue in dollar terms rose 3.7% to $1.836 billion, within the company's earlier guidance range of $1.808 billion to $1.842 billion.
Wipro expects its revenue from IT services business at between $1.814 billion to $1.85 billion in Q4 March 2015.
Commenting on the company's Q3 performance, Azim Premji, Chairman of Wipro said, "Developments in the Global currency and commodity markets are affecting major economies unevenly even as India anticipates growth led by next-generation of economic reforms".
T K Kurien, Executive Director & CEO of Wipro said, "We had a very satisfying quarter in terms of sequential revenue growth. We continue to see strong deal momentum as we are seen as the partner of choice for customers seeking to differentiate by using digital technologies as well as save costs in the traditional business".
Meanwhile, Wipro on Friday, 16 January 2015, announced that Suresh Senapaty, the current Chief Financial Officer (CFO) and Executive Director (ED) will retire on attaining the age of superannuation on 31 March 2015 after completing a distinguished career spanning over three decades with the company. Jatin Dalal, Senior Vice President - Finance will take over the role of CFO, effective 1 April 2015, Wipro said.
HCL Technologies rose 1.64% after the company scheduled a board meeting to consider bonus issue. The announcement was made before market hours today, 19 January 2015.
HCL Technologies said that the company's board of directors will consider issue of bonus shares along with Q2 December 2014 results in its board meeting to be held between 28 January 2015 to 30 January 2015.
Realty stocks were mixed. Sobha (down 0.87%), DLF (down 1.2%), Indiabulls Real Estate (down 1.38%), Unitech (down 0.59%), and Housing Development & Infrastructure (HDIL) (down 1.43%), edged lower. Godrej Properties (up 0.48%), Anant Raj (up 1.63%), and Prestige Estates (up 2.6%), gained.
Oberoi Realty rose 3.22% after consolidated net profit rose 16.4% to Rs 79.23 crore on 18.09% growth in revenue to Rs 219.60 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced after market hours on Friday, 16 January 2015.
Rajesh Exports surged 14.98% after the company bagged an export order worth Rs 1780 crore of designer range of gold and diamond studded jewellery and medallions from Jamcelat Jewellery, UAE. Rajesh Exports said that the export order is to be completed by 31 March 2015. The order will be executed at the company's manufacturing facility at Bangalore. The execution of this order will significantly add to the bottom line of the company, Rajesh Exports said. The announcement was made during market hours today, 19 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar as foreign investors stepped up purchases of the nation's bonds. The partially convertible rupee was hovering at 61.665, compared with its close of 61.87 during the previous trading session.
Brent crude futures edged higher in choppy trade. Brent for March settlement was up 1 cent at $50.18 a barrel. The contract had risen $1.90 a barrel, or 3.93%, to settle at $50.17 a barrel during the previous trading session on Friday, 16 January 2015.
Asian stocks were mixed. Key benchmark indices in Japan, South Korea and Taiwan were up by 0.39% to 0.89%. Key benchmark indices in Singapore, Indonesia and Hong Kong were off by 0.02% to 1.7%.
Chinese stocks tumbled, with a wide sell-off sweeping across the financial sector as investors turned jittery over the latest move by securities regulators to clean up the margin-trading business. The Shanghai Composite index was off 7.7%. Also affecting sentiment was a fresh fall in home prices across China's major cities.
Brokerage shares slumped after China's securities regulator last week banned three brokerages from opening new margin trading accounts, putting a temporary halt on what has proved a major engine of the market's super-bull rally.
The US stock market remains closed today, 19 January 2015, for Martin Luther King, Jr. Day holiday.
On Friday, 16 January 2015, US stocks ended higher on signs the US economy was on track for solid growth with consumer sentiment hitting an 11-year high. US gasoline prices fell again in December, leading consumer prices to post their biggest decline in six years, while a gauge of underlying inflation was flat. The data could make the Federal Reserve cautious about raising interest rates.
In Europe, the governing council of the European Central Bank (ECB) is scheduled to undertake monetary policy review on Thursday, 22 January 2015. The ECB may introduce a large-scale bond-buying program on 22 January 2015.
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 on 25 January 2015. 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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