As on
today, IT stocks led the rally on the bourses in what was a highly
volatile trading session. Infosys led gains in IT stocks after the
company reported stronger-than-expected Q3 December 2014 results. The
latest rally for key benchmark indices materialized as Brent crude oil
futures extended losses from 5-1/2-year low. The market breadth
indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, garnered 183.67 points or 0.67% to settle at 27,458.38.
Meanwhile, Finance Minister Arun Jaitley yesterday, 8 January 2015, said that domestic policies to achieve macro-economic balance and the on-going process of economic reforms would lend further strength to the recovery of the Indian economy.
In overseas markets, European stocks dropped in volatile trade after the latest data showed Germany's economic recovery is slowing. Asian stocks ended on a mixed note. US stocks surged yesterday, 8 January 2015, as two days of steady oil prices along with dovish comments by a Federal Reserve member helped further fuel a buying frenzy which begun on Wednesday 7 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar on optimism demand for emerging-market assets will be sustained amid the prospect of further euro-area stimulus.
Brent crude oil futures extended losses from 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.
The Sensex garnered 183.67 points or 0.67% to settle at 27,458.38, its highest closing level since 5 January 2015. The index surged 232.96 points at the day's high of 27,507.67 in early trade. The index declined 155.08 points at the day's low of 27,119.63 in early afternoon trade.
The CNX Nifty garnered 49.90 points or 0.61% to settle at 8,284.50, its highest closing level since 5 January 2015. The index hit a high of 8,303.30 in intraday trade. The index hit a low of 8,190.80 in intraday trade.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.36, compared with its close of 62.68 during the previous trading session.
Brent crude oil futures extended losses from 5-1/2-year low. Brent for February settlement was off 41 cents at $50.55 a barrel. The contract had declined 19 cents to settle at $50.96 a barrel during the previous trading session, at its lowest close since 30 April 2009.
Meanwhile, Finance Minister Arun Jaitley yesterday, 8 January 2015, said that domestic policies to achieve macro-economic balance and the on-going process of economic reforms would lend further strength to the recovery of the Indian economy. Jaitley made those comments during the Pre Budget Consultative Meeting with the representatives of Social Infrastructure, Human Capital and Development Groups. Jaitley said that emerging trends indicate the growth deceleration in India has bottomed-out. The Finance Minister said that significant downward trend in inflation has also been recorded in the second and third quarter of 2014-15. He said that external environment has also largely turned in India's favour.
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.
European shares edged lower today, 9 January 2015, after data showed Germany's economic recovery is slowing. Key indices in Germany, UK, and France were off 0.47% to 0.6%.
Manufacturing output across the UK rose by 0.7% in November, and was 2.7% higher than a year ago, latest data released by the Office for National Statistics today, 9 January 2015 showed.
German industrial production declined fractionally in November, pulled down by declining activity in the energy sector, data released today, 9 January 2015 showed. According to regular data compiled by the economy ministry, industrial output eased by 0.1% in November, after increasing by a revised 0.6% in October. Manufacturing output increased by 0.3% while energy output was down by 2.4% and construction output declined by 0.6%, the ministry calculated.
Meanwhile, 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.
European Central Bank (ECB) President Mario Draghi yesterday, 8 January 2015, said the ECB's measures may include buying sovereign bonds. A drop in euro-area consumer prices in December has fueled speculation the ECB will bolster stimulus efforts.
Asian stocks were mixed today, 9 January 2015. Key indices in Japan, Hong Kong, South Korea, and Indonesia were up 0.09% to 1.05%. Key benchmark indices in Singapore, China and Taiwan were off 0.18% to 0.29%.
China's consumer inflation remained tepid in December, while prices at the factory gate continued to slide. The consumer price index rose 1.5% on year in December, up slightly from a 1.4% on-year rise in November, data from the National Bureau of Statistics showed today, 9 January 2015.
Meanwhile, Finance Minister Arun Jaitley yesterday, 8 January 2015, said that domestic policies to achieve macro-economic balance and the on-going process of economic reforms would lend further strength to the recovery of the Indian economy.
In overseas markets, European stocks dropped in volatile trade after the latest data showed Germany's economic recovery is slowing. Asian stocks ended on a mixed note. US stocks surged yesterday, 8 January 2015, as two days of steady oil prices along with dovish comments by a Federal Reserve member helped further fuel a buying frenzy which begun on Wednesday 7 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar on optimism demand for emerging-market assets will be sustained amid the prospect of further euro-area stimulus.
Brent crude oil futures extended losses from 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.
The Sensex garnered 183.67 points or 0.67% to settle at 27,458.38, its highest closing level since 5 January 2015. The index surged 232.96 points at the day's high of 27,507.67 in early trade. The index declined 155.08 points at the day's low of 27,119.63 in early afternoon trade.
The CNX Nifty garnered 49.90 points or 0.61% to settle at 8,284.50, its highest closing level since 5 January 2015. The index hit a high of 8,303.30 in intraday trade. The index hit a low of 8,190.80 in intraday trade.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.36, compared with its close of 62.68 during the previous trading session.
Brent crude oil futures extended losses from 5-1/2-year low. Brent for February settlement was off 41 cents at $50.55 a barrel. The contract had declined 19 cents to settle at $50.96 a barrel during the previous trading session, at its lowest close since 30 April 2009.
Meanwhile, Finance Minister Arun Jaitley yesterday, 8 January 2015, said that domestic policies to achieve macro-economic balance and the on-going process of economic reforms would lend further strength to the recovery of the Indian economy. Jaitley made those comments during the Pre Budget Consultative Meeting with the representatives of Social Infrastructure, Human Capital and Development Groups. Jaitley said that emerging trends indicate the growth deceleration in India has bottomed-out. The Finance Minister said that significant downward trend in inflation has also been recorded in the second and third quarter of 2014-15. He said that external environment has also largely turned in India's favour.
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.
European shares edged lower today, 9 January 2015, after data showed Germany's economic recovery is slowing. Key indices in Germany, UK, and France were off 0.47% to 0.6%.
Manufacturing output across the UK rose by 0.7% in November, and was 2.7% higher than a year ago, latest data released by the Office for National Statistics today, 9 January 2015 showed.
German industrial production declined fractionally in November, pulled down by declining activity in the energy sector, data released today, 9 January 2015 showed. According to regular data compiled by the economy ministry, industrial output eased by 0.1% in November, after increasing by a revised 0.6% in October. Manufacturing output increased by 0.3% while energy output was down by 2.4% and construction output declined by 0.6%, the ministry calculated.
Meanwhile, 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.
European Central Bank (ECB) President Mario Draghi yesterday, 8 January 2015, said the ECB's measures may include buying sovereign bonds. A drop in euro-area consumer prices in December has fueled speculation the ECB will bolster stimulus efforts.
Asian stocks were mixed today, 9 January 2015. Key indices in Japan, Hong Kong, South Korea, and Indonesia were up 0.09% to 1.05%. Key benchmark indices in Singapore, China and Taiwan were off 0.18% to 0.29%.
China's consumer inflation remained tepid in December, while prices at the factory gate continued to slide. The consumer price index rose 1.5% on year in December, up slightly from a 1.4% on-year rise in November, data from the National Bureau of Statistics showed today, 9 January 2015.
