After a range bound movement in early afternoon trade, key benchmark indices extended gains in afternoon trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently up 135.84 points or 0.48% at 28,470.47. Asian stocks rose after a surprise cut in lending and deposit rates announced by China's central bank after trading hours in Asia on Friday, 21 November 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 122.50 crore during the previous trading session on Friday, 21 November 2014, as per provisional data.
Sugar stocks witnessed selling pressure. Shares of hospitality companies declined. Cairn India rose as crude oil prices gained.
Parliamentary Affairs Minster M.Venkaiah Naidu yesterday, 23 November 2014, said that there is the need for early passing of Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector by the Rajya Sabha. He also said that introduction of Goods and Service Tax (GST) is being discussed over a long time and the government would like to introduce a bill in this regard during Winter Session of Parliament. The month-long winter session of parliament began today, 24 November 2014.
Earlier, the Sensex and the 50-unit CNX Nifty, both, struck record high in early trade as Asian stocks rose as China's unexpected interest-rate cut stoked optimism in the global economy.
In overseas markets, Asian stocks rose after a surprise cut in lending and deposit rates announced by China's central bank after trading hours in Asia on Friday, 21 November 2014. In the US on Friday, 21 November 2014, the S&P 500 and Dow Jones Industrial Average, both, attained record closing high after a surprise dose of liquidity measures launched by China's central bank and after dovish comments from European Central Bank President Mario Draghi.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged higher ahead of a possible output reduction by producer group OPEC this week.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from November 2014 series to December 2014 series. The November 2014 derivatives contracts expire on Thursday, 27 November 2014.
At 13:20 IST, the S&P BSE Sensex was up 135.84 points or 0.48% at 28,470.47. The index jumped 180.35 points at the day's high of 28,514.98, in early trade, a record high for the index. The index gained 59.85 points at the day's low of 28,394.48 in mid-morning trade.
The CNX Nifty was up 38.70 points or 0.46% at 8,516.05. The index hit a high of 8,529 in intraday trade, a record high for the index. The index hit a low of 8,490.80 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,421 shares declined and 1,360 shares rose. A total of 112 shares were unchanged.
The BSE Mid-Cap index was up 37.43 points or 0.37% at 10,233.22. The BSE Small-Cap index was up 26.23 points or 0.23% at 11,352.07. Both theses indices underperformed the Sensex.
Cairn India rose 2.59% as crude oil prices gained. Gains in crude oil prices would result in higher realizations from crude sales for oil exploration firms such as Cairn India.
Sugar stocks witnessed selling pressure. Eastern Sugar & Industries (down 3.95%), Rana Sugars (down 3.17%), Triveni Engineering & Industries (down 2.81%), Oudh Sugar Mills (down 2.47%), Balrampur Chini Mills (down 2.26%), Shree Renuka Sugars (down 1.69%), Bajaj Hindusthan (down 1.42%), Sakthi Sugars (down 1.36%), Simbhaoli Sugars (down 1.34%), Empee Sugars and Chemicals (down 1.33%), EID Parry (India) (down 0.83%) and DCM Shriram Industries (down 0.65%), edged lower.
Shares of hospitality companies declined. Indian Hotels Company (down 2.23%), EIH (down 2.12%), Hotel Leela Venture (down 1.88%), Sterling Holiday Resorts India (down 1.62%) and Taj GVK Hotels & Resorts (down 0.86%)
Rain Industries rose 2.1% after Goldman Sachs Investments Mauritius bought 22.24 lakh equity shares at Rs 49.97 per share in a bulk deal on NSE on Friday, 21 November 2014. Meanwhile, Eastspring Investments India Infrastructure Equity Open sold 19.91 lakh shares of the company at Rs 49.98 per share.
Lupin rose 1.22% on reports a government panel has cleared the company's request to raise foreign investment limit in the firm. Reports indicated that Lupin was looking to increase the foreign investment limit in the firm to 49%. Foreign institutional investors owned 31.75% stake in the firm as at 30 September 2014.
Crompton Greaves (CG) surged 4.14% after Avantha Power & Infrastructure signed a Memorandum of Understanding with Adani Power for sale of power plant. Shares of Adani Power rose 1.65%
CG during market hours today, 24 November 2014, said that Avantha Power & Infrastructure (APIL) in which CG holds an equity investment of about 23.14% has informed that it has signed a Memorandum of Understanding with Adani Power for 100% sale of APIL's Korba West Power Company (KWPCL). KWPCL, a special purpose vehicle (SPV) of APIL, is commissioning a coal based thermal power plant of 600 megawatt (MW). KWPCL is valued in excess of Rs 4200 crore, the company said.
Separately, Crompton Greaves said that one of the entities of the promoter group of the company (Avantha Holdings) is likely to sell a portion of its shareholding in the resultant company viz. Crompton Greaves Consumer Products, subject to agreement of terms and conditions and execution of a definitive agreement. The above is based on a communication to this effect received from Avantha Holdings. CG had already informed of a proposal to demerge the Consumer Products undertaking into Crompton Greaves Consumer Products on 16 October, 2014, after the decision of its company's Board of Directors.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.82, compared with its close of 61.785 during the previous trading session.
Brent crude oil futures edged higher ahead of a possible output reduction by producer group OPEC this week. Brent crude for January settlement was up 25 cents at $80.61 a barrel. The contract had jumped $1.03 a barrel to finish at $80.36 a barrel during the previous trading session on Friday, 21 November 2014.
Oil ministers from the OPEC are scheduled to meet in Vienna on Thursday, 27 November 2014, to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015.
A news agency on Saturday, 22 November 2014, quoted Finance minister Arun Jaitley as saying that he does not favour burdening the salaried and middle class with more taxes and that he would go after the evaders in widening the net. Jaitley also said he was against reducing the exemptions to widen the tax net. The finance minister's comments indicate that the government is unlikely to withdraw tax concessions on home loans and savings such as public provident fund deposits, moves that were being contemplated by the UPA regime.
Parliamentary Affairs Minster M.Venkaiah Naidu yesterday, 23 November 2014, said that there is the need for early passing of Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector by the Rajya Sabha. He also said that introduction of Goods and Service Tax (GST) is being discussed over a long time and the government would like to introduce a bill in this regard during Winter Session of Parliament. The month-long winter session of parliament began today, 24 November 2014.
Naidu gave details of the 37 bills that the government likes to move for introduction and taking up pending bills for consideration and passing during the winter session of parliament. Several political partied assured that they will extend cooperation in enabling smooth functioning of the Parliament during the winter session, the Ministry of Parliamentary Affairs said.
The government will announce data on gross domestic product (GDP) for Q2 September 2014 at 17:30 IST on Friday 28 November 2014. India's GDP grew 5.7% in Q1 June 2014 over the corresponding period of the previous year.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 2 December 2014. The central bank 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 annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India eased to 5.52% in October 2014 from 6.46% in September 2014, data released by the government on 12 November 2014 showed.
The White House on Friday, 21 November 2014, said that at the invitation of India's Prime Minister Narendra Modi, US President Barack Obama will travel to India in January 2015 to participate in the Indian Republic Day celebration in New Delhi as the Chief Guest. This visit will mark the first time a US president will have the honor of attending Republic Day, which commemorates the adoption of India's constitution. The US President will meet Modi and Indian officials to strengthen and expand the US-India strategic partnership, the White House said.
Asian stocks rose today, 24 November 2014, after a surprise cut in lending and deposit rates announced by China's central bank after trading hours in Asia on Friday, 21 November 2014. Key benchmark indices in China, Hong Kong, Indonesia, South Korea, and Taiwan were up 0.34% to 1.98%. Singapore's Straits Times fell 0.11%. Japanese markets are closed for a holiday.
China cut benchmark interest rates for the first time since July 2012 as leaders step up support for the world's second-largest economy. The one-year lending rate was reduced by 0.4 percentage point to 5.6%, while the one-year deposit rate was lowered by 0.25 percentage point to 2.75%, the People's Bank of China said on 21 November 2014.
In Japan, the minutes of Bank of Japan's monetary policy meeting will be released today, 24 November 2014.
Trading in US index futures indicated that the Dow could rise 22 point at opening bell today, 24 November 2014. The S&P 500 and Dow Jones Industrial Average, both, attained record closing high on Friday, 21 November 2014, after a surprise dose of liquidity measures launched by China's central bank and after dovish comments from European Central Bank President Mario Draghi.
In Europe, the European Central Bank (ECB) on Friday, 21 November 2014, began buying asset-backed securities, thereby expanding its quantitative easing regimen. The asset-based-securities purchases represent the second leg of the ECB's quest to catalyze growth by expanding its balance sheet. In September, the central bank began buying covered corporate bonds, which are guaranteed against a company's assets.
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