Market may jump on strong global cues

Market is seen opening higher in the early trade tracking positive leads from Asian markets and overnight rally on the Wall Street. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could rise 66.50 points at the opening bell.

In overseas markets, Asian stocks edged higher after the US Federal Reserve's meeting minutes sent strong signals of a rate increase in December, a vote of confidence in the health of the world's largest economy and a boon for the banking sector. US stocks rallied yesterday, 18 November 2015, after minutes from last month's Federal Reserve meeting showed most officials anticipated economic conditions could be strong enough for a December interest-rate increase. The Fed has kept its benchmark for short-term rates near zero since late 2008. A string of rate increases can eventually weigh on stock markets, but investors have mostly become prepared for the Fed to act next month and do not anticipate that an initial rate increase will derail the bull market.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 768.46 crore yesterday, 18 November 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 759.26 crore on yesterday, 18 November 2015, as per provisional data.

Among corporate news, Hero MotoCorp (HMCL) after market hours yesterday, 18 November 2015, said it has clocked over 10 lakh units in retail sales during the festive season this year. The 10-lakh units sales landmark was achieved during the 35-day festive period starting with the Navratras, a 11% growth over the corresponding period last year, HMCL said in a statement.

Shares of Reliance Industries will be in focus. The Union Cabinet yesterday, 18 November 2015, gave its approval for determination of marketing margin for supply of domestic gas to urea and LPG producers. Marketing margin is the charge levied by gas marketing company on its consumers over and above the cost or basic price of gas for taking on the additional risk and cost associated with marketing gas. Currently, different transporters are charging different marketing margins for supply of natural gas. With this decision, there would be uniformity in the marketing margin on domestic gas charged by gas marketers for the regulated sectors, namely, urea and LPG, a statement released by the government after market hours yesterday, 18 November 2015 said. There would be a reduction in marketing margin paid by urea and LPG producers as a result of this decision, the statement said.

Shares of roads and highways construction firms will be in spotlight after the Cabinet Committee on Economic Affairs (CCEA) yesterday, 18 November 2015, gave its approval for authorizing National Highways Authority of India (NHAI) to allow extension of concession period for all current projects in build, operate and transfer (BOT) (Toll) mode that are languishing during the construction period due to causes not attributable to the concessionaire, subject to certain conditions.

Coal India (CIL) will be in focus. The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, yesterday, 18 November 2015, has approved the disinvestment of 10% paid up equity capital of Coal India. This implies divesting of 63.16 crore shares out of the Government of India (GoI) shareholding of 78.65% (after adjusting one percent equity to be offered for sale to the employees of CIL as per CCEA decision in September 2014, which is under process of implementation) through public offering in the domestic market. The paid up equity capital of the CIL is Rs 6316 crore. After the disinvestment of 10% equity, the GoI's shareholding in CIL would come down to 68.65% (with slight variation based on outcome of sale of one percent equity shares to employees of CIL). The disinvestment transaction will be an offer for sale (OFS) of shares by the promoters through the stock exchange mechanism method.

Losses in banking, metal and IT stocks and index heavyweight Reliance Industries pulled key benchmark indices lower as further security scares in Paris weighed on investor confidence yesterday, 18 November 2015. The barometer index, the S&P BSE Sensex fell 381.95 points or 1.48% to settle at 25,482.52. The Nifty 50 index fell 105.75 points or 1.35% to settle at 7,731.80. The Sensex and Nifty, both, hit their lowest closing level in more than 10 weeks.

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