Friday, January 30, 2015

END SESSION ( 29 / 01 )

Sensex, Nifty attain record closing high
A rebound in late trade took key benchmark indices into positive zone from negative zone. The rebound in late trade materialized after key benchmark indices languished in negative zone almost throughout the trading session. The barometer index, the S&P BSE Sensex, and 50-unit CNX Nifty, both, attained record closing high. The Sensex rose 122.59 points or 0.41% to settle at 29,681.77. The market breadth indicating the overall health of the market was negative.
Meanwhile, the Union Cabinet yesterday, 28 January 2015, decided that the Government of India (GoI) will not file Special Leave Petition (SLP) before the Supreme Court of India against a Bombay High Court order dated 10 October 2014 which had quashed a transfer pricing-related tax demand on Vodafone Group Plc. This is a major correction of a tax matter which has adversely affected investor sentiment, according to a government statement issued yesterday, 28 January 2015.
Key benchmark indices witnessed intraday volatility as traders rolled 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 contracts expired today, 29 January 2015.
Index heavyweight and cigarette major ITC edged higher. Index heavyweight Reliance Industries (RIL) edged higher on reports that RIL and its partner BP plc of UK will invest about Rs 6000 crore by 2016 to help sustain and improve recovery from the two main gas fields in the eastern offshore KG-D6 block. Dr Reddy's Laboratories (DRL) rose in volatile trade after declaring Q3 result. Sesa Sterlite rose after declaring Q3 result.
HDFC Bank edged higher after the Cabinet Committee on Economic Affairs gave its approval to the proposal of the private sector bank for maintaining the permissible foreign holding in the bank up to 74% of the total paid up capital and issuance of equity shares of the bank aggregating to an amount of Rs 10000 crore to NRIs/FIIs/FPIs subject to aggregate foreign shareholding not exceeding 74% of the post issue paid up capital of the bank. HDFC dropped after announcing Q3 result.
PSU OMCs were in demand as global crude oil prices dropped overnight with shares of HPCL scaling record high. Coal India dropped in volatile trade after the government after market hours yesterday, 28 January 2015, announced that it will sell up to 10% stake in the state-run coal major through the stock exchanges mechanism on Friday, 30 January 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1693.61 crore from the secondary equity markets yesterday, 28 January 2015, as per data from Central Depository Services.
In the foreign exchange market, the rupee edged lower against the dollar as the US central bank reiterated its commitment to raising interest rates in the United States some time in the latter part of the year after the conclusion of a two-day meeting on monetary policy review yesterday, 28 January 2015.
Brent crude oil futures edged higher in volatile trade.
In overseas markets, European stocks fell as disappointing earnings from Royal Dutch Shell Plc dragged energy companies lower. Asian stocks declined after the US Federal Reserve unexpectedly lifted its view on the economy, signalling that the US central bank remains firmly on track with plans to raise interest rates this year. US stocks edged lower yesterday, 28 January 2015, after the US Federal Reserve unexpectedly lifted its view on the economy, signalling that the US central bank remains firmly on track with plans to raise interest rates this year.
The S&P BSE Sensex rose 122.59 points or 0.41% to settle at 29,681.77, a record closing high. The index jumped 181.45 points at the day's high of 29,740.63 in late trade. The index lost 180.88 points at the day's low of 29,378.30 in early trade, its lowest level since 27 January 2015.
The CNX Nifty rose 38.05 points or 0.43% to settle at 8,952.35, a record closing high. The index hit a high of 8,966.65 in intraday trade. The index hit a low of 8,861.25 in intraday trade, its lowest level since 27 January 2015.
The BSE Mid-Cap index fell 37.36 points or 0.35% to settle at 10,771.08. The BSE Small-Cap index rose 9.64 points or 0.08% to settle at 11,378.75. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,448 shares dropped and 1,427 shares rose. A total of 132 shares were unchanged.
The total turnover on BSE amounted to Rs 3732 crore, lower than Rs 3960.55 crore yesterday, 28 January 2015.
Among sectoral indices on BSE, the S&P BSE Realty index (up 3.14%), the S&P BSE Oil & Gas index (up 1.55%), the S&P BSE Healthcare index (up 1.08%), the S&P BSE FMCG index (up 1.07%), the S&P BSE Capital Goods index (up 0.82%) and the S&P BSE Consumer Durables index (up 0.64%), outperformed the Sensex. The S&P BSE Power index (up 0.16%), the S&P BSE Auto index (up 0.11%), the S&P BSE Bankex (up 0.06%), the S&P BSE IT index (up 0.03%), the S&P BSE Teck index (down 0.11%) and the S&P BSE Metal index (down 0.21%), underperformed the Sensex.
IDFC fell 1.27% On a consolidated basis, IDFC's net profit fell 15.79% to Rs 421.60 crore on 15.98% increase in total income to Rs 2462.08 crore in Q3 December 2014 over Q3 December 2013. The result was announced after trading hours.
Sesa Sterlite fell 0.20% to Rs 200.40. The stock hit high of Rs 203.80 and low of Rs 196.55. The company's consolidated net profit fell 15.02% to Rs 1587.50 crore on 1.55% fall in total income to Rs 19218.90 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 29 January 2015.
On adjusted proforma basis, EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) fell 5% to Rs 6565 crore in Q3 December 2014 over Q3 December 2013. The EBITDA margin (excluding custom smelting) in Q3 was reported at 43% with EBITDA at Rs 6234 crore on the back of higher volumes and lower cost. The better operating performance and benefit of currency depreciation was more than offset by lower brent and commodity prices.
In Q3, rupee depreciated by 2.8% and closed at Rs 63.30 on 31 December 2014. This resulted in higher forex gain in Cairn India on dollar denominated investments and debtors.
Mr. Tom Albanese, Group CEO said, “We have delivered sustained performance in the third quarter despite the challenging markets. Strong operating performance of Aluminium and Zinc businesses led to the reduction in gross debt by Rs. 400 crore. We are focused on disciplined capital allocation, coupled with deferred and phased development spending in Zinc, Oil & Gas and other businesses which will help optimize our assets and drive strong cash flow in the near future.”
Index heavyweight and cigarette major ITC gained 2.01% to Rs 369.70. The stock hit high of Rs 372 and low of Rs 360.10.
L&T gained 1.28% to Rs 1,719.30. The stock hit high of Rs 1,727.50 and low of Rs 1,690.
Index heavyweight Reliance Industries (RIL) edged higher on reports that RIL and its partner BP plc of UK will invest about Rs 6000 crore by 2016 to help sustain and improve recovery from the two main gas fields in the eastern offshore KG-D6 block. The stock rose 2.43% to Rs 927.90.
PSU OMCs were in demand as global crude oil prices declined overnight. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already freed pricing of petrol and diesel.
Indian Oil Corporation gained 2.91%.
HPCL jumped 6.65% to Rs 635.85 after scaling a record high of Rs 640 in intraday trade.
BPCL rose 3.67%. BPCL after trading hours yesterday, 28 January 2015, announced that it has set-up a Medium Term Note (MTN) Programme to facilitate the raising of funds on a regular basis from the international debt capital markets. The aggregate nominal amount of notes outstanding under the program will not exceed $2 billion or its equivalent in other currencies, BPCL said. Fitch Ratings has assigned a 'BBB-' rating and Moody's Investors Service has assigned a provisional (P) Baa3 rating to the MTN Programme.
Dr Reddy's Laboratories (DRL) rose 3.74% to Rs 3,359.20. The stock hit high of Rs 3,374.40 and low of Rs 3,213.20. On a consolidated basis, DRL reported 7.09% fall in net profit to Rs 574.53 crore on 9.17% rise in total income to Rs 3877.20 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 29 January 2015.
Dr Reddy's Laboratories' EBITDA (earnings before interest, taxation, depreciation, and amortization) rose 4.63% to Rs 1051.50 crore in Q3 December 2014 over Q3 December 2013.
Dr Reddy's Laboratories consolidated revenues rose 9% to Rs 3840 crore in Q3 December 2014 over Q3 December 2013. Revenues from the Global Generics (GG) segment rose 8% to Rs 3170 crore in Q3 December 2014 over Q3 December 2013. Revenues from the Pharmaceutical Services and Active Ingredients (PSAI) segment rose 21% to Rs 610 crore in Q3 December 2014 over Q3 December 2013.
Gross Profit Margin fell to 58.2% in Q3 December 2014, from 60.5% in Q3 December 2013. During Q3 December 2014, the company launched 13 new generic products, filed 18 new product applications and 14 DMFs globally.
HDFC fell 2.61% to Rs 1,309.55. The stock hit high of Rs 1,343 and low of Rs 1,296. The housing finance major reported 11.56% rise in net profit to Rs 1425.49 crore on 14.13% rise in total income to Rs 6870.95 crore in Q3 December 2014 over Q3 December 2013. HDFC's loan book stood at Rs 2.19 lakh crore as on 31 December 2014, as against Rs 1.92 lakh crore as on 31 December 2013.
Bharat Heavy Electricals (Bhel) gained 2.96% to Rs 287.15. The stock hit high of Rs 289.15 and low of Rs 276.10. Bhel during market hours said the company has achieved one more landmark by successfully commissioning another 600 megawatt (MW) thermal unit in Odisha. The unit was commissioned at Jindal India Thermal Power (JITPL)'s upcoming 2x600 MW thermal power project located at Derang in Angul District of Odisha.
In Odisha, Bhel is presently executing 3,970 MW of thermal power projects.
Private sector banks were mixed. ING Vysya Bank (down 1.88%), Kotak Mahindra Bank (down 1.74%), Yes Bank (down 1.06%), Federal Bank (down 0.48%) and City Union Bank (down 0.11%), edged lower.
ICICI Bank fell 1.02% to Rs 379.95. The stock hit a high of Rs 381.70 and a low of Rs 375.65 in intraday trade.
HDFC Bank edged higher after the Cabinet Committee on Economic Affairs gave its approval to the proposal of the private sector bank for maintaining the permissible foreign holding in the bank up to 74% of the total paid up capital and issuance of equity shares of the bank aggregating to an amount of Rs 10000 crore to NRIs/FIIs/FPIs subject to aggregate foreign shareholding not exceeding 74% of the post issue paid up capital of the bank. The stock rose 3.42% to Rs 1,094.30. The stock hit a high of Rs 1,099.70 in intraday trade, which is also a record high for the counter. The stock hit a low of Rs 1,061.50 in intraday trade.
It may be recalled that the Reserve Bank of India (RBI) had in December 2013 imposed a ban on further purchases of shares of HDFC Bank after foreign share holding in the bank crossed the overall limit of 49% of the bank's paid-up capital.
Axis Bank rose 1.46%.
IndusInd Bank rose 0.95%. The private sector bank during market hours today, 29 January 2015, said it has partnered with Chelsea Football Club to launch a co-branded credit card, the first of its kind in Indian market. With this partnership, the bank hopes to provide Indian Chelsea fans a strong sense of connect and affiliation with the globally popular football club, IndusInd Bank said.
Shares of most public sector banks declined. Indian Bank (down 5.36%), Union Bank of India (down 4.68%), Allahabad Bank (down 3.93%), Punjab National Bank (down 3.63%), Bank of India (down 3.47%), Bank of Baroda (down 2.84%), IDBI Bank (down 2.47%), State Bank of India (down 2.3%), Andhra Bank (down 1.9%), Syndicate Bank (down 1.53%), Canara Bank (down 1.37%), Vijaya Bank (down 1.21%), UCO Bank (down 1.15%), Punjab and Sind Bank (down 0.98%), United Bank of India (down 0.98%), Dena Bank (down 0.52%), Bank of Maharashtra (down 0.36%), edged lower. Corporation Bank (up 1.01%) and Central Bank of India (up 1.92%), edged higher.
Oriental Bank of Commerce (OBC) dropped 10.18% to Rs 281.15 after weak Q3 results. The stock hit a high of Rs 315 and low of Rs 279.10 in intraday trade. The state-run bank reported 91.27% fall in net profit to Rs 19.56 crore on 7.79% rise in total income to Rs 5458.79 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 29 January 2015.
OBC said that it had sold financial assets for a consideration of Rs 195.20 crore to asset reconstruction companies on cash and security receipts basis during the half year ended 30 September 2014 and booked a gain of Rs 146.08 crore the difference between aggregate consideration and aggregate value (net of provisions). During the course of discussions on draft preliminary risk assessment report 2013-14, the Reserve Bank of India (RBI) observed that only cash component of the sale consideration is eligible to be booked as profit. Based on observation of RBI, bank has reduced the book value of security receipts by Rs 137.38 crore during Q3 December 2014, OBC said.
OBC's ratio of gross non-performing assets (NPAs) to gross advances stood at 5.43% as on 31 December 2014 compared with 4.74% as on 30 September 2014 and 3.87% as on 31 December 2013. The ratio of net NPAs to net advances stood at 3.68% as on 31 December 2014 compared with 3.29% as on 30 September 2014 and 2.91% as on 31 December 2013.
The bank's provisions and contingencies jumped 57.75% to Rs 885.14 crore in Q3 December 2014 over Q3 December 2013. Provision coverage ratio as at 31 December 2014 stood at 57.39%.
OBC's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 11.26% as on 31 December 2014 as against 10.88% as on 30 September 2014 and 11% as on 31 December 2013.
Most cement shares edged higher. The Ramco Cement (up 2.80%), ACC (up 2.73%), India Cements (up 2.28%), Dalmia Cement (Bharat) (up 1.79%), JK Lakshmi Cement (up 1.22%), HeidelbergCement India (up 0.99%), UltraTech Cement (up 0.66%), J K Cement (up 0.54%), Prism Cement (up 0.48%) and Saurastra Cement (up 0.25%), edged higher. Jaiprakash Associates (down 0.38%), Kakatiya Cement (down 1.12%), Shree Cement (down 1.63%), Mangalam Cement (down 1.75%) and Birla Corporation (down 1.96%), edged lower.
Grasim Industries rose 1.44%. Grasim holds majority stake in UltraTech Cement.
Ambuja Cements rose 2.76% to Rs 255.40 after scaling a record high of Rs 256.50 in intraday trade.
Asian Paints fell 3.21% to Rs 881.05 after the company announced Q3 results during trading hours. The stock hit a high of Rs 922.80 and low of Rs 868.10 in intraday trade. On a consolidated basis, the company's net profit rose 11.79% to Rs 368.18 crore on 5.82% increase in total income to Rs 3684.64 crore in Q3 December 2014 over Q3 December 2013. Income from operations rose 5.8% to Rs 3652.60 crore in Q3 December 2014 over Q3 December 2013.
Separately Asian Paints announced that PT Asian Paints Indonesia has been incorporated in Indonesia as a wholly owned subsidiary of Berger International, Singapore (an indirect subsidiary of the company). Further steps to be taken for setting up the manufacturing plant with a capacity of 24,550 ton in Indonesia will be subject to necessary regulatory and other approvals, Asian Paints said.
Further, a second application for investment approval was made with Badan Koordinasi Penanaman Modal ("BKPM"), the Investment Coordinating Board of Republic of Indonesia, for incorporating a second company in Indonesia which will engage in import of finished goods including decorative paints, other coatings and related items for sale in Indonesia. BKPM has issued a principal license approving the said investment application, Asian Paints said in a statement.
Coal India fell 2.32% to Rs 375.15. The stock hit a high of Rs 380.10 and low of Rs 364.60 in intraday trade. The counter clocked volumes of 23.16 lakh shares compared with average daily volume of 2.15 lakh shares during the past one quarter. The government after market hours yesterday, 28 January 2015, announced divestment of its stake in the company. The government has offered to sell 31.58 crore equity shares, or 5% equity, of face value of Rs 10 each with an option to sell an additional upto 31.58 crore equity shares, or 5% equity, of face value of Rs 10 each of Coal India, collectively aggregating to 10% of the total paid up equity share capital of Coal India through a sale on the separate window provided by the stock exchanges for this purpose. The sale shall commence on 30 January 2015 at 9:15 IST and shall close on the same day at 15:30 IST. The floor price for the OFS will be announced after market hours today, 29 January 2015.
The government has reserved 20% of the size of the sale for retail investors. Retail investors will be offered a discount of 5% to the bid price entered by them in accordance with the Sebi OFS circulars. A minimum of 25% of the sale shares will be reserved for mutual funds and insurance companies.
Meanwhile, with respect to news titled "CIL Stake Sale : Unions Threaten to 'Go Slow' Now," Coal India clarified during trading hours that it is neither aware of the strike nor any notice has been received from any unions to this effect.
The Sensex has gained 2,182.35 points or 7.94% in this month so far (till 29 January 2015). From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 9718.65 points or 48.68%.
In the foreign exchange market, the rupee edged lower against the dollar as the US central bank reiterated its commitment to raising interest rates in the United States some time in the latter part of the year after the conclusion of a two-day meeting on monetary policy review yesterday, 28 January 2015. The partially convertible rupee was hovering at 61.82, compared with its close of 61.41 during the previous trading session.82
Brent crude oil futures edged higher in volatile trade. Brent for March settlement was up 49 cents at $48.96 a barrel. The contract had declined $1.13 a barrel or 2.27% to settle at $48.47 a barrel during the previous trading session.
Meanwhile, the Union Cabinet yesterday, 28 January 2015, decided that the Government of India (GoI) will not file Special Leave Petition (SLP) before the Supreme Court of India against a Bombay High Court order dated 10 October 2014 which had quashed a transfer pricing-related tax demand on Vodafone Group Plc. The Union Cabinet also decided that the GoI will accept orders of courts/IT AT/DRP in cases of other taxpayers where similar transfer pricing adjustments have been made and the courts/IT AT/DRP have decided/decide in favour of the taxpayer. These decisions will bring greater clarity and predictability for taxpayers as well as tax authorities, thereby facilitating tax compliance and reducing litigation on similar issues, according to a government statement. This will also set at rest the uncertainty prevailing in the minds of foreign investors and taxpayers in respect of possible transfer pricing adjustments in India on transactions related to issuance of shares and thereby improve the investment climate in the country, the statement said. The Union Cabinet came to this view as this is a transaction on the capital account and there is no income to be chargeable to tax. So applying any pricing formula is irrelevant.
Meanwhile, the Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged at 7.75% after a monetary policy review next week. The sixth bi-monthly monetary review from the RBI is scheduled on Tuesday, 3 February 2015. The central bank may focus on the details of the upcoming Union Budget 2015-16 which is scheduled on 28 February 2015, before taking a call on further monetary policy easing. The RBI surprised financial markets by announcing a cut in the repo rate by 25 basis points in an unscheduled monetary policy review on 15 January 2015, citing easing of inflationary pressures in the economy. 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 4.4% in November 2014. Over the long term, the RBI aims to restrict consumer price inflation to 4%, within a two-per-cent band.
European stocks fell today, 29 January 2015, as disappointing earnings from Royal Dutch Shell Plc dragged energy companies lower. Key benchmark indices in UK and Germany were off 0.10% to 0.48%. France's CAC 40 was up 0.18%.
German unemployment fell in January, the country's labor office said today, 29 January 2015. The number of unemployed fell by 9,000 in January after seasonal variations in the data, following a 25,000 drop in December. The seasonally adjusted unemployment rate was 6.5% in January, down from 6.6% in December.
Greece's Prime Minister Alexis Tsipras reportedly said yesterday, 28 January 2015, that he will push for debt relief from the country's international creditors.
Asian stocks declined today, 29 January 2015, after the US Federal Reserve unexpectedly lifted its view on the economy, signalling that the US central bank remains firmly on track with plans to raise interest rates this year. Key benchmark indices in China, Taiwan, Hong Kong, Japan, Indonesia and South Korea fell by 0.12% to 1.31%. In Singapore, the Straits Times index was unchanged at 3,419.05.
Japanese retail sales rose 0.2% in December from a year earlier, marking the sixth straight month of increase, the government said today, 29 January 2015. The figures, released by the Ministry of Economy, Trade and Industry, highlighted that consumer demand continues to rebound after the national sales tax increased to 8% from 5% in April.
Trading in US index futures indicated that the Dow could rise 86 points at the opening bell today, 29 January 2015. US stocks ended yesterday's choppy trading session sharply lower after the Federal Reserve's policy-making committee reiterated it plans to remain patient and watch the data as it decides when to raise interest rates.
The US Federal Reserve yesterday, 28 January 2015 said the US economy was expanding "at a solid pace" with strong job gains in a signal that the central bank remains on track with its plans to raise interest rates this year. The Fed repeated it would be "patient" in deciding when to raise benchmark borrowing costs from zero, though it also acknowledged a decline in certain inflation measures.
After a two-day meeting of the Federal Open Market Committee, policymakers struck an upbeat tone on the US economy's prospects and held to their view that energy-led weakness in inflation would dissipate. "Economic activity has been expanding at a solid pace," the Fed said in a statement that marked an upgrade to its prior assessment of a "moderate pace" of growth. "Labor market conditions have improved further, with strong job gains and a lower unemployment rate."
The US Commerce Department releases its first estimate of fourth-quarter GDP tomorrow, 30 January 2015.

FOREIGN MARKET

Asia Pacific Market: Stocks fall on profit booking, weak offshore cues
Asia Pacific share market ended down on Thursday, 29 January 2015, as participants' locked-in recent gains in bluechip stocks after the US Federal Reserve unexpectedly lifted its view on the economy, signaling that the US central bank remains firmly on track with plans to raise interest rates this year.
The MSCI Asia Pacific Index lost 1.1% to 140.79. Key benchmark indices in New Zealand, Japan, Taiwan, South Korea, China, Hong Kong, and Malaysia and fell by 0.54% to 1.31% while Singapore Strait Times ended steady.
Among major regional bourses
Australia market rises for sixth straight session
The Australian share market ended higher, registering sixth session of consecutive rise, as gains in utilities, financial, material and consumer goods stocks were more than offset by losses in energy, technology, and bullion counters. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both rose by 0.3% to 5569.50 and 5532.20, respectively.
Financial stocks extended gains on belief that interest rates will fall, with top lenders leading rally. Commonwealth Bank of Australia advanced 1.2% to A$88.76, ANZ Banking Group 1% to A$32.95, and National Australia Bank 0.9% to A$35.50, while Westpac Banking Corp fell 0.1% to A$34.64 amid news it was selling its businesses in five smaller Pacific-Island nations but keeping those in Fiji and Papua New Guinea. Financial services firm AMP gained 1.8% to A$5.80. Insurance Australia Group closed up 2.1% at A$6.41. Insurer Suncorp gained 1.3% to A$14.58.
Fortescue Metals rocketed 9.3% to A$2.23 after a production report that included a downward revision for the cost outlook and a halving of capital-spending guidance. The miner lowered its cost guidance for the full year by 9% while maintaining its full-year production and shipping guidance. Fortescue also believes it will escape asset write-downs at its half-year financial results next month. Atlas Iron, which also cut its capex view but raised its output forecast, rallied 6.3% to A$0.17.
Copper miner PanAust strengthened 5% to A$1.27 after posting better than expected December quarter results and exceeding its own full-year guidance. However, PanAust indicated the carrying values of some assets would have to be revisited on the back of the 24% decline in the copper price over the past year.
Woodside Petroleum tumbled 1.8% to A$33.74 after it and its partners were accused of holding back natural gas shipments to China as a negotiating tactic to raise the price of a contract guaranteeing 25 years of cheap energy. The A$25 billion contract, signed in 2002, contained no clause to raise the historically low price.
Nikkei falls on stronger yen, earnings disappointment
Japanese share market ended down, as profit booking triggered amid stronger yen against the greenback and brisk selloff on the Wall Street overnight. Meanwhile, selloff pressure intensified with some disappointing earnings and a surprise bankruptcy from Skymark Airlines Inc. The benchmark Nikkei Stock Average declined 1.06% to close at 17606.22, while the broader Topix has lost 1.14% to close at 1413.58.
Shares of Canon fell 5.1% to 3741 yen after the firm booked a fourth quarter operating profit of 98.5 billion yen, up 5.3% on-year but short of the street consensus. The firm also said it expects profit growth to slow in 2015 due to weaker demand in Europe and a weaker euro.
Game maker Nintendo plunged 8.7% after the company slashed its operating profit guidance to Y20 billion from Y40 billion.
Shares of Nintendo Co. lost 8.7% to 11235 yen after the game maker posted a net-profit gain but cut its operating-profit outlook to Y20 billion from Y40 billion.
Komatsu dropped 8.5% to 2366 yen despite a 5.5% gain in quarterly earnings, as its chief executive officer said China sales would continue to be weak.
Industrial robot-maker Fanuc Corp lost 3.4% to 20130 yen as management made no changes to its full year guidance, despite the fact that operating profits for its first three quarters accounted for a high 80% of its full-year target.
Fujifilm Holdings was up 3.9% to 3985 yen after posting better than expected quarterly results and raising guidance, dividend estimate, and a share buyback program announcement of up Y50 billion.
shares of Skymark Airlines settled at their daily limit-down low of Y237 (dropping 25%) after the company filed for bankruptcy protection, cited rising fuel costs due to a weak yen and a cancelled order for several jumbo jets with Airbus last year that incurred large cancellation fees.
Shanghai Composite falls 1.3%
Mainland China share market closed down for third consecutive session, extending losses into a second session, in response to fresh worries over Beijing's restrictions on lending by local brokerages. The Shanghai Composite Index dropped 1.3% to 3262.31 at the close, paring January's gain to 0.9%.
The news reported on Wednesday that securities regulator plans a new round of checks into the margin-lending businesses of brokerages. Regulators are increasing scrutiny on margin financing and umbrella trusts after investors ramped up bets on rallying shares through the use of leverage. Higher leverage exposes individuals to larger losses in the event of stock-market drops, which can be exaggerated as investors scramble to repay debt during a selloff.
Investors have ramped up bets on rallying shares by borrowing through structures known as umbrella trusts, which allow for more leverage than brokerage financing. In umbrella trusts, private investors take up the junior tranche, while cash from trusts and banks' wealth-management products form the senior tranches. The latter receive fixed returns while the former take the rest, so private investors are effectively borrowing from trusts and banks. The higher leverage allowed by the products exposes individuals to larger losses in the event of stock-market drops, which can be exaggerated as investors scramble to repay debt during a selloff.
Total of 8 out of ten SSE industry groups declined, with shares of financial issue falling the most, down 2.1%, followed by healthcare (down 1.8%), consumer discretionary (down 1.8%), telecom (down 1.5%), consumer staples (down 1.2%), materials (down 1.2%), energy (down 1.1%), and industrials (down 0.5%). On the upside, information technology was up 0.4% and utilities rose 1.2%.
Shares of lenders, brokerages, insurers and some new economy stocks which have benefited from growth in margin debt were the most vulnerable in the Beijing. Citic Securities Co dropped 2.4% and Haitong Securities fell 3.2%. Western Securities Co. slumped 3.9%. China Life Insurance Co. declined 2.3%. Industrial & Commercial Bank of China Ltd. slid 2.8%.
Railway-related stocks advanced after the government said it will promote railway firms' overseas investments. CSR added 0.9% and China Railway Group gained 1.2%.
Hang Seng ends 1.07% down
Hong Kong share market declined on Thursday, 29 January 2015, as risk sentiments dented after Wall Street had reacted negatively overnight to a drop in the oil price and the US Federal Reserve's assessment of the US economy. Meanwhile, selloff pressure intensified on tracking decline in Mainland A-share market which fell on speculation of increased scrutiny of margin trading. The Hang Seng Index ended down 265.96 points or 1.07% to 24595.85, off an intra-day high of 24739.22 and day low of 24524.18. Turnover increased to HK$89.47 billion from HK$80.37 billion on Wednesday.
Within HK 50 blue chips, 21 stocks rose and 29 fell. Hengan (01044) put on 3.6% to HK$88.8 after Goldman Sachs put the stock into its conviction buy list, while CR Power (00836) declined 4% to HK$21.85, making themselves the biggest blue chip winner and loser.
Banks and financial companies retreated broadly, with China Minsheng Banking Corp down 4.5% to HK$9.50, while China Merchants Bank Co shed 2.2% to HK$17.28, Industrial & Commercial Bank of China lost 2.1% to HK$5.60, and Bank of Communications Co fell 2.6% to HK$6.45. London-based Standard Chartered PLC tumbled 4% to HK$106.50 amid further reports its chief executive was under pressure from shareholders, and Sino-British banking giant HSBC Holdings PLC dropped 1% to HK$72.30.
Chinese brokerage firms suffered substantial losses after the securities regulator announced on Wednesday that it soon would launch a second round of its crackdown on margin trading practices. Shenyin Wanguo HK slid 4.9% to HK$6.17, Guotai Junan International Holdings fell 3.1% to HK$5.58, China Galaxy Securities Co shed 2% to HK$8.38 and Citic Securities Co moved 2.8% lower at HK$24.75.
Shares of energy companies declined after crude oil prices plunged to 6-year low after the US released higher-than-expected oil inventory. CNOOC (00883) slipped 2.5% to HK$10.2. PetroChina (00857) fell 2% to HK$8.42. Sinopec (00386) dipped 1% to HK$6.17.
Sensex, Nifty logs new closing peaks on fag-end buying
A rebound in late trade took key benchmark indices into positive zone from negative zone. The rebound in late trade materialized after key benchmark indices languished in negative zone almost throughout the trading session. As per provisional closing, the S&P BSE Sensex was up 122.59 points or 0.4% at 29684.77. The CNX Nifty was up 38.05 points or 0.43% at 8,952.35.
Index heavyweight and cigarette major ITC edged higher. Index heavyweight Reliance Industries (RIL) edged higher on reports that RIL and its partner BP plc of UK will invest about Rs 6000 crore by 2016 to help sustain and improve recovery from the two main gas fields in the eastern offshore KG-D6 block. Dr Reddy's Laboratories (DRL) rose in volatile trade after declaring Q3 result. Sesa Sterlite rose after declaring Q3 result.
HDFC Bank edged higher after the Cabinet Committee on Economic Affairs gave its approval to the proposal of the private sector bank for maintaining the permissible foreign holding in the bank up to 74% of the total paid up capital and issuance of equity shares of the bank aggregating to an amount of Rs 10000 crore to NRIs/FIIs/FPIs subject to aggregate foreign shareholding not exceeding 74% of the post issue paid up capital of the bank. HDFC dropped after announcing Q3 result.
PSU OMCs were in demand as global crude oil prices dropped overnight with shares of HPCL scaling record high. Coal India dropped in volatile trade after the government after market hours yesterday, 28 January 2015, announced that it will sell up to 10% stake in the state-run coal major through the stock exchanges mechanism on Friday, 30 January 2015.
Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 1723.17 crore yesterday, 28 January 2015, as per provisional data.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index fell 0.88% to 9426.90. South Korea KOSPI sank 0.54% to 1951.02. New Zealand's NZX50 shed 0.6% at 5759.81. Singapore's Straits Times index was a tad lower at 3419.05. Indonesia's Jakarta Composite index was down 0.12% to 5262.72. Malaysia's KLCI fell 0.76% to 1782.18

TOP 50

BSE Sensex on Jan 29,2015 29681.77 [122.59]
Prev. Day Close:29559.18 Change:0.41%
CodeRankCompanyMkt. Cap.EquityFVLast PriceTrd.Value*% of Mkt.Cap*Last traded DateLast traded timeVolume
532540  TCS LTD. 497774.22 195.87 2541.35 13.43 .00 Jan 29,2015 52837 
500312  ONGC CORPN 301024.56 4277.74 351.85 10.76 .00 Jan 29,2015 305906 
500325  RELIANCE 300223.90 3235.52 10 927.90 51.04 .02 Jan 29,2015 550069 
500875  ITC LTD. 295756.30 799.99 369.70 15.82 .01 Jan 29,2015 427992 
500180  HDFC BANK 264689.28 483.76 1094.30 41.28 .02 Jan 29,2015 377264 
500209  INFOSYS LTD 246107.78 574.24 2142.90 33.86 .01 Jan 29,2015 158005 
500112  STATE BANK 243941.75 746.57 326.75 40.48 .02 Jan 29,2015 1238834 
533278  COAL INDIA 236958.25 6316.36 10 375.15 86.87 .04 Jan 29,2015 2315703 
532174  ICICI BANK 220099.34 1158.57 379.95 23.14 .01 Jan 29,2015 609137 
500010 10  HDFC 205913.64 314.48 1309.55 32.50 .02 Jan 29,2015 248193 
CodeRankCompanyMkt. Cap.EquityFVLast PriceTrd.Value*% of Mkt.Cap*Last traded DateLast traded timeVolume
500696 11  HIND UNI LT 203329.98 216.32 939.95 10.71 .01 Jan 29,2015 113941 
524715 12  SUN PHARMA. 190384.70 207.12 919.20 11.28 .01 Jan 29,2015 122676 
500570 13  TATA MOTORS 163517.83 547.34 597.50 18.95 .01 Jan 29,2015 317098 
500510 14  LARSEN & TOU 159697.18 185.77 1719.30 24.65 .02 Jan 29,2015 143347 
532454 15  BHARTI ARTL 149962.46 1998.70 375.15 8.92 .01 Jan 29,2015 237795 
507685 16  WIPRO LTD. 148513.67 493.77 601.55 8.00 .01 Jan 29,2015 132997 
532215 17  AXIS BANK 141665.86 472.85 599.20 30.54 .02 Jan 29,2015 509645 
532555 18  NTPC LTD 116961.85 8245.46 10 141.85 2.01 .00 Jan 29,2015 141549 
532281 19  HCL TECHNO 115608.02 140.48 1645.90 9.51 .01 Jan 29,2015 57787 
532500 20  MARUTISUZUK 111382.94 151.04 3687.20 17.91 .02 Jan 29,2015 48580 
CodeRankCompanyMkt. Cap.EquityFVLast PriceTrd.Value*% of Mkt.Cap*Last traded DateLast traded timeVolume
500247 21  KOTAK MAH.BK 102642.62 385.86 1330.05 16.15 .02 Jan 29,2015 121454 
532538 22  ULTRATECH CM 86562.22 274.40 10 3154.60 7.91 .01 Jan 29,2015 25084 
530965 23  INDIAN OIL 84529.08 2427.95 10 348.15 5.65 .01 Jan 29,2015 162308 
500820 24  ASIAN PAINTS 84510.32 95.92 881.05 51.91 .06 Jan 29,2015 589158 
500520 25  MAH & MAH 80447.98 310.55 1295.25 8.65 .01 Jan 29,2015 66758 
532898 26  POWER GRID 77793.74 5231.59 10 148.70 1.94 .00 Jan 29,2015 130465 
500188 27  HINDUS.ZI 73710.36 845.06 174.45 3.01 .00 Jan 29,2015 172559 
500530 28  BOSCH LTD 73644.78 31.40 10 23453.75 4.41 .01 Jan 29,2015 1879 
532921 29  ADANI PORTS 71126.92 414.01 343.60 10.73 .02 Jan 29,2015 312258 
534816 30  BH INFRATEL 70658.85 1891.55 10 373.55 .90 .00 Jan 29,2015 24121 
CodeRankCompanyMkt. Cap.EquityFVLast PriceTrd.Value*% of Mkt.Cap*Last traded DateLast traded timeVolume
500103 31  BHEL 70282.83 489.52 287.15 11.38 .02 Jan 29,2015 396462 
500257 32  LUPIN LTD. 69889.65 89.87 1555.35 18.19 .03 Jan 29,2015 116932 
532755 33  TECH MAH 69661.70 240.01 10 2902.45 9.41 .01 Jan 29,2015 32411 
532977 34  BAJAJ AUTO 69526.93 289.37 10 2402.70 3.71 .01 Jan 29,2015 15441 
500790 35  NESTLE (I) 69417.58 96.42 10 7199.50 1.41 .00 Jan 29,2015 1956 
512599 36  ADANI ENTER 64228.32 109.98 584.00 43.83 .07 Jan 29,2015 750575 
500295 37  SSLT 59412.59 296.47 200.40 15.61 .03 Jan 29,2015 779131 
500182 38  HEROMOTOCO 57421.74 39.94 2875.40 4.46 .01 Jan 29,2015 15528 
532822 39  IDEA CELL 57381.88 3597.61 10 159.50 4.63 .01 Jan 29,2015 290574 
500124 40  DR.REDDY'S 57234.05 85.19 3359.20 26.39 .05 Jan 29,2015 78554 
CodeRankCompanyMkt. Cap.EquityFVLast PriceTrd.Value*% of Mkt.Cap*Last traded DateLast traded timeVolume
500087 41  CIPLA LTD. 55829.11 160.59 695.30 23.15 .04 Jan 29,2015 332969 
526371 42  NMDC LTD 55585.09 396.47 140.20 2.82 .01 Jan 29,2015 201319 
532155 43  GAIL (I) LTD 53631.33 1268.48 10 422.80 4.78 .01 Jan 29,2015 113082 
500547 44  BHARAT PET. 52875.23 723.08 10 731.25 11.93 .02 Jan 29,2015 163098 
532432 45  UNITD SPR 50824.08 145.33 10 3497.15 13.97 .03 Jan 29,2015 39952 
532134 46  BANKBARODA 46985.51 432.15 217.45 10.36 .02 Jan 29,2015 476297 
532187 47  INDUSIND BNK 46369.45 529.09 10 876.40 5.12 .01 Jan 29,2015 58425 
500096 48  DABUR (I) 45370.40 175.65 258.30 3.38 .01 Jan 29,2015 130706 
505200 49  EICHER MOTOR 44595.49 27.10 10 16455.90 9.12 .02 Jan 29,2015 5540 
532792 50  CAIRN IND 43889.77 1874.83 10 234.10 5.26 .01 Jan 29,2015 224857 

* During market trading hours, as traded values are not available on a real time basis, an approximation is done. The traded value is calculated as follows, using the last traded price:
Traded Value (Rs. cr) = (Last Price * Volume) /100,00,000 
This value will be updated with the actual figures, once trading closes and end-of-day data is available.