Key benchmark indices trimmed gains after an initial upmove.
The barometer index, the S&P BSE Sensex, and the 50-unit, CNX Nifty, both scaled record
high at onset of the day's trading session. The S&P BSE Sensex was currently up 68.23 points or 0.23% at 29,347.07.
The market breadth indicating the overall health of the market was strong. Most
Asian stocks edged higher today, 27 January 2015 amid optimism the actions of
Greece's new government won't force the nation to leave the euro currency bloc.
The market may remain volatile in the near future as traders
roll over positions in the futures & options (F&O) segment from the
near month January 2015 series to February 2015 series. The near month January
2015 derivatives contract expire on Thursday, 29 January 2015.
Meanwhile, foreign portfolio investors (FPIs) bought shares
worth a net Rs 2019.98 crore on Friday, 23 January 2015, as per provisional
data. The stock markets had remained closed yesterday, 26 January 2015, on
account of Republic Day.
At 9:25 IST, the S&P BSE Sensex was up 68.23 points or
0.23% at 29,347.07. The index gained 177.79 points at the day's high of
29,456.63 at onset of the day's trading session, a record high for the index.
The index rose 19.75 points at the day's low of 29,298.59 in early trade.
The CNX Nifty was up 9.50 points or 0.11% at 8,845.10. The index
hit a high of 8,878.20 in intraday trade, a record high for the index. The
index hit a low of 8,825.85 in intraday trade.
The market breadth indicating the overall health of the market
was strong. On BSE, 906 shares gained and 496 shares fell. A total of 41 shares
were unchanged.
The BSE Mid-Cap index was up 38.22 points or 0.36% at
10,733.89. The BSE Small-Cap index was up 34.32 points or 0.3% at 11,400.41.
Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 303 crore by 09:30
IST.
State Bank of India fell 0.11%. The state-run bank before
market hours today, 27 January 2015 said that the Committee of Directors for
Capital Raising (the Committee) has decided to take enabling approval from the
shareholders for raising additional equity share capital up to Rs 15000 crore
by way of public issue (i.e. follow-on-public issue) or rights issue or private
placement, including qualified institutions placement (QIP) /global depository
receipt (GDRs) / American depository receipt (ADRs) and/or any other mode(s) or
a combination(s) thereof. The Committee also decided to seek GoI/RBI approval
for raising capital under Section 5(2) of the State Bank of India Act, 1955 and
take all necessary steps in this regard.
Car major Maruti Suzuki India rose 1.01%. The company
announces its Q3 December 2014 results today, 27 January 2015.
Wipro shed 0.28%. Wipro announced before market hours today,
27 January 2015 that it has been awarded a multi-year strategic infrastructure
management contract by Allied Irish Banks, p.l.c. (AIB)., a leading bank in
Ireland offering a full range of personal and corporate banking services.
UltraTech Cement slipped 0.18%. UltraTech Cement's
consolidated net profit rose 1% to Rs 400 crore on 14% growth in revenue to Rs
5835 crore in Q3 December 2014 over Q3 December 2013. The result was announced
after market hours on Friday, 23 January 2015. The consolidated figures include
the financial results of the acquired units in Gujarat of Jaypee Cement
Corporation (JCCL) with effect from 12 June 2014. As a result, figures for Q3
December 2014 are strictly not comparable with the corresponding previous year
period.
UltraTech Cement's earnings before interest, taxation,
depreciation, and amortization (EBITDA) rose 14% to Rs 1058 crore in Q3
December 2014 over Q3 December 2013. EBITDA margin was at 18.1% in Q3 December
2014, unchanged from Q3 December 2013.
The company's finance costs jumped 64% to Rs 164 crore in Q3
December 2014 over Q3 December 2013. Depreciation and amortization rose 3% to
Rs 296 crore in Q3 December 2014 over Q3 December 2013. The increase in finance
costs and depreciation and amortization was attributed to the acquisition of
Gujarat units and commissioning of new capacities.
On a sequential basis, prices witnessed a downward trend in
Q3 December 2014, UltraTech Cement said. However, the on-going cost
optimisation measures helped in containing costs despite the continuing
increase in price of input material and logistics cost, the company said in a
statement.
UltraTech Cement said that the business outlook continues to
remain challenging. Growth in cement demand in India is likely to be around 8% over
the long term, the company said. The key demand drivers will continue to be
housing and infrastructure spends, it added.
At the time of announcement of the third quarter results,
UltraTech Cement said that its board of directors has approved signing of the
definitive agreement with Jaiprakash Associates (JAL) for the acquisition of
JAL's cement units located at Bela and Sidhi in Madhya Pradesh, having a
capacity of 4.9 million tonnes per annum together with 180 megawatts (MW)
captive thermal power plants. Earlier on 23 December 2014, the company's board
had approved the proposal for the acquisition of the cement units of JAL
located at Bela and Sidhi in Madhya Pradesh. UltraTech Cement will issue
non-convertible debentures worth Rs 4538 crore and non-convertible cumulative
redeemable preference shares worth Rs 10 lakh to JAL for the acquisition.
UltraTech Cement will also take over JAL's debt of Rs 626.50 crore and negative
working capital of Rs 160.50 crore. It is anticipated that the transaction will
close in 7 to 9 months, UltraTech Cement said.
Bharat Electronics jumped 7.19%. Bharat Electronics' net
profit rose 41.8% to Rs 271.81 crore on 34.9% growth in net sales to Rs 1581.66
crore in Q3 December 2014 over Q3 December 2013. The result was announced after
market hours on Friday, 23 January 2015. Bharat Electronics' board of directors
at its meeting held on Friday, 23 January 2015, declared interim dividend of Rs
6 per share for the year ending 31 March 2015.
Shriram Transport Finance Company rose 1.2%. The company's
consolidated net profit declined 1.1% to Rs 321.27 crore on 6.82% growth in
total income to Rs 2346.91 crore in Q3 December 2014 over Q3 December 2013. The
result was announced on Saturday, 24 January 2015. The company's net interest income
(NII) rose 9.55% to Rs 1106.27 crore in Q3 December 2014 over Q3 December 2013.
Total assets under management as on 31 December 2014 stood at Rs 60328.95 crore
compared with Rs 56883.12 crore as on 31 December 2013.
Prime Minister Narendra Modi yesterday, 26 January 2015 said
big projects involving large investment would be monitored by the Prime
Minister's Office. He was speaking at the interactive India US CEO Forum, in
the presence of US President Barack Obama, and top business leaders from both countries.
After listening to suggestions made by these business leaders, the Prime
Minister said the solutions to most of the issues mentioned would be found
through three things i.e Proactive, pro people good governance, a policy driven
state and consistency in policy
The civil nuclear agreement was the centrepiece of India-US
transformed relationship, which demonstrated new trust, Prime Minister Narendra
Modi's media statement during joint press interaction with US President Barack
Obama indicated on Saturday, 25 January 2015. It also created new economic
opportunities and expanded India's option for clean energy, the media statement
indicated. Narendra Modi said that he is pleased that six years after signing
bilateral agreement with US, both the countries are moving towards commercial
cooperation, consistent with the country's law, the country's international
legal obligations, and technical and commercial viability, the media statement
added.
The Reserve Bank of India (RBI) on Friday, 23 January 2015,
relaxed rules for companies and banks to restructure and reschedule existing
overseas borrowings by permitting an increase in the total cost of external
commercial borrowing (ECB). The RBI has also allowed changes in the drawdown
and repayment schedules of ECB. However, the easing of rules will not be
applicable for foreign currency convertible bonds, the RBI said.
Most Asian stocks edged higher today, 27 January 2015 amid
optimism the actions of Greece's new government won't force the nation to leave
the euro currency bloc. Key benchmark indices in Singapore, Taiwan, Japan and
South Korea rose 0.02% to 1.45%. Key benchmark indices in China, Hong Kong and
Indonesia fell 0.17% to 1.88%.
US stocks ended higher yesterday, 26 January 2015 as
investors brushed off fears that a leftist victory in Greece would bring fresh
crisis to the Eurozone and energy stocks advanced.
In US, the Federal Open Market Committee (FOMC) next
undertakes monetary policy review at a two-day meeting today, 27 January and
tomorrow, 28 January 2015. In its last meet in December 2014, FOMC had based on
its assessment, judged that it can be patient in beginning to normalize the
stance of monetary policy. The Committee at that time saw this guidance as
consistent with its previous statement that it likely will be appropriate to
maintain the 0% to 0.25% target range for the federal funds rate for a
considerable time following the end of its asset purchase program in October,
especially if projected inflation continues to run below the Committee's 2%
longer-run goal, and provided that longer-term inflation expectations remain
well anchored.
On Sunday, 25 January 2015, the leftist Syriza party, which
ran on an antiausterity platform, won elections in Greece. Syriza and its
outspoken leader, Alexis Tsipras, who had campaigned against the austerity
measures imposed on Greece by its international creditors, formed a coalition
government yesterday, 26 January 2015 with a right-wing fringe party,
Independent Greeks.
Standard & Poor's Ratings Services yesterday, 26 January
2015 lowered Russia's long-term foreign currency rating to a junk grade of BB+
from BBB-. "Russia's monetary policy flexibility has become more limited
and its economic growth prospects have weakened," said S&P in a statement.
Russia's ability to shield the economy from external shock and fiscal
instability have also been compromised, it added. The outlook on the rating is
negative. S&P also downgraded the country's short-term foreign currency
rating to B from A-3.
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