A divergent trend was witnessed on the bourses as the barometer index, the S&P BSE Sensex swung alternately between positive and negative terrain in narrow range near the flat line in morning trade. While, the 50-unit CNX Nifty held on to positive terrain, so far during the day. The Sensex was currently down 12.49 points or 0.05% at 27,572.78. The market breadth indicating the overall health of the market was strong.
Data after market hours yesterday, 12 January 2015, showed rebound of industrial output in November 2014 and the annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose in December 2014.
Capital goods stocks gained after industrial output data for November showed improved growth in capital goods output of 6.5% in November 2014. Crompton Greaves rose after the company said it has entered into a memorandum of understanding (MoU) with French enterprise Arelis that specialises in design and manufacturing of high-tech electronics solutions.
In overseas markets, most Asian markets rose after data showed China's exports climbed more than estimated in December 2014. US stocks ended lower yesterday, 12 January 2015, led by another sharp decline in energy shares as oil prices tumbled about 5% and concern grew ahead of corporate earnings season.
Foreign portfolio investors bought shares worth a net Rs 244.95 crore on Monday, 12 January 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar.
Oil extended losses amid speculation that US crude stockpiles will increase, exacerbating a global supply glut that's driven prices to the lowest in more than 5-1/2 years. 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.
At 10:20 IST, the S&P BSE Sensex was down 12.49 points or 0.05% at 27,572.78. The index declined 30.50 points at the day's low of 27,554.77 in early trade. The index rose 84.92 points at the day's high of 27,670.19 in early trade.
The CNX Nifty was up 12 points or 0.14% at 8,335. The index hit a high of 8,356.30 in intraday trade. The index hit a low of 8,321.85 in intraday trade.
The BSE Mid-Cap index was up 54.78 points or 0.52% at 10,540.96. The BSE Small-Cap index was up 67.17 points or 0.59% at 11,358.67. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,308 shares advanced and 800 shares declined. A total of 93 shares were unchanged.
Capital goods stocks gained after industrial output data for November showed improved growth in capital goods output of 6.5% in November 2014. ABB India (up 1.28%), Bharat Heavy Electricals (Bhel) (up 0.47%), BEML (up 1.49%), and Punj Lloyd (up 0.4%) gained. But, L&T fell 0.29%.
Crompton Greaves rose 1.55% after the company said it has entered into a memorandum of understanding (MoU) with French enterprise Arelis that specialises in design and manufacturing of high-tech electronics solutions.
Era Infra Engineering hit an upper circuit limit of 5% at Rs 6.97 after the company said it has been awarded the rehabilitation and upgradation of national highway (NH)-216 (Raigarh to Sarapalli Section) in Chattisgarh to two-lanes with paved shoulders under National Highway Development Project (NHDP) Phase-IV on EPC (engineering, procurement and construction) basis at an estimated cost of Rs 328.71 crore..
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.0875, compared with its close of 62.165 during the previous trading session.
Oil extended losses amid speculation that US crude stockpiles will increase, exacerbating a global supply glut that's driven prices to the lowest in more than 5 1/2 years. Brent for February settlement was off $1.01 a barrel to $46.42 a barrel. The contract had lost $2.68 a barrel to settle at $47.43 a barrel during the previous trading session. Brent for March settlement was off 64 cemts a barrel at $47.86 a barrel.
On macro front, India's Index of industrial production (IIP) increased at five-months high pace of 3.8% in November 2014, recovering from the sharpest pace in three-years at 4.2% recorded in October 2014. The manufacturing sector's output growth rebounded to 3.8% in November 2014, snapping the largest decline in the last five-and-a-half years at 7.4% recorded in October 2014.
The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose to 5% in December 2014 from nine-year low of 4.4% in November 2014, while snapping consistent decline for last four sequential months. An increase in inflation food items contributed entirely to the inflation rise in November 2014. The IIP and CPI data was announced after market hours yesterday, 12 January 2015.
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 tomorrow, 14 January 2015.
Most Asian markets rose after data showed China's exports climbed more than estimated in December 2014. Key benchmark indices in China, Hong Kong, Indonesia and Taiwan were up by 0.26% to 0.73%. Key benchmark indices in Japan, Singapore and South Korea were off 0.21% to 1.89%.
China's exports climbed more than estimated last month as stronger demand from abroad helps bolster growth. Overseas shipments rose 9.7% in December from a year earlier. Imports fell 2.4%, leaving a trade surplus of $49.61 billion, the customs administration said in Beijing.
Trading in US index futures indicated that the Dow could gain 23 points at the opening bell today, 13 January 2015. US stocks ended lower yesterday, 12 January 2015, led by another sharp decline in energy shares as oil prices tumbled about 5% and concern grew ahead of corporate earnings season.
Meanwhile in Europe, 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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