Nifty has to stay above 5ema for the rally to continue
We had mentioned in Thursday’s closing report that the S&P CNX Nifty has to stay above 8,217 for the rally to continue. Today the benchmark opened in the green but started moving lower after hitting the day’s high. At the beginning of the noon session the index made a sudden plunge into the red and stayed there for less than an hour and came back into the green. This was followed by the index surging higher after Infosys declared its results and falling back into the red again. Ultimately, in the last hour of the session the Nifty regained strength and moved higher. The premium in futures went up from around 20 to 35.
Sensex opened at 27,404 while Nifty opened at 8,285. Sensex moved lower to the level of 27,120 after hitting the high of 27,508 which Nifty moved from the level of 8,303 to 8,191. Sensex closed at 27,458 (up 184 points or 0.67%) while Nifty closed at 8,285 (up 50 points or 0.61%). NSE recorded a volume of 82.75 crore shares. India VIX fell 3.14% to close at 15.9550.
Market today awaited for Infosys to post its December 2014 quarter result. With the rupee weakening, it had raised the revenue growth guidance for FY 2015 in rupee terms to 7% to 9% for FY 2015 from earlier 5.6%-7.6% in October 2014. It rose 5.02% after posting a better than expected result.
On Monday government will unveil industrial production data for November 2014 and on CPI inflation for December 2014.
As the excise duty concessions have been removed, Society of Indian Automobile Manufacturers (SIAM) foresees a marginal growth of around 1% in the current financial year against an earlier expectation of 4%.
The government is likely to exempt state-run firms ONGC and Oil India from payment of fuel subsidy during the remainder of the FY2014-15 due to a steep decline in global oil rates to around US $50 per barrel.
Videocon Industries (19.99%) was the top gainer in the ‘A’ group on the BSE. It announced that Petroleo Brasileiro SA (Petrobras), the operator of the BM-SEAL-11 concession (the concession) had discovered a new oil accumulation in Farfan area in the Sergipe Basin. Petrobras holds 60% participating interest in the concession and IBV Brasil (a Brazilian joint venture company equally held by Videocon Energy Brazil, a wholly-owned overseas subsidiary of Videocon and BPRL Ventures N.V., a wholly owned subsidiary of Bharat Petroleum Corporation (BPCL)) holds the remaining 40% participating interest in the concession. The consortium will carry on operations in the area to further confirm the extent of the hydrocarbons in place and the characteristic of the reservoir conditions encountered.
Ashok Leyland (3.85%) was among the top two losers in the ‘A’ group on the BSE. The stock hit its 52-week high yesterday.
Hindustan Unilever (5.94%) was the top gainer in the Sensex 30 pack. Its December 2014 shareholding showed an increase in retail shareholding from 13.80% to 13.89%.
NTPC (3.31%) was the top loser among Sensex 30 stocks on the media report that it has cancelled a Rs2,000-crore deal with Russia’s state-owned Technoprom Export (TPE) for supply of main equipment (boilers) to its 1,980 MW super thermal power project (STTP) at Barh in Bihar’s Patna district, due to inordinate delays and breach of contract terms by TPE. BSE has sought for clarification from NTPC.
On Thursday, US indices again went up sharply. Initial jobless claims declined by 4,000 to 294,000 in the seven days stretching from December 27 to January 3, the Labor Department said Thursday. A year earlier, claims were 13% higher at 333,000. It has remained below the key 300,000 mark for the 16th time in 17 weeks.
The US Labor Department reports monthly payroll data for December 2014 today.
Except for Shanghai Composite (0.24%), Straits Times (0.20%) and Taiwan Weighted (0.24%) all the other Asian indices closed in the green. Seoul Composite (1.05%) was the top gainer.
China's consumer inflation remained tepid in December, while prices at the factory gate continued to slide. The consumer price index rose 1.5% year-on-year in December, up slightly from a 1.4% year-on-year rise in November, data from the National Bureau of Statistics showed today.
European indices were trading in the red. US Futures too were trading lower. The German industrial production declined fractionally in November, pulled down by declining activity in the energy sector, data released today. 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.