With European stocks reversing initial losses, key equity benchmark indices in India moved into positive zone from negative zone in mid-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 40.53 points or 0.15% at 27,909.16.
In the first cabinet expansion exercise of the Narendra Modi government, 21 ministers were inducted into the council of ministers yesterday, 9 November 2014. Four ministers were allotted cabinet rank, whereas three took charge as Ministers of State (independent charge). The remaining 14 took oath as MoS. Among cabinet ministers, former Goa Chief Minister Manohar Parikkar was allotted Defense portfolio. Suresh Prabhu was handed over with Railways which was earlier held by D. V. Sadananda Gowda who has now been allocated the portfolio of Law & Justice. Jagat Prakash Nadda was made minister of Health & Family Welfare. Chaudhary Birender Singh was allotted Rural Development, Panchayati Raj, Drinking Water and Sanitation.
FMCG stocks edged higher on renewed buying. Adani Power dropped after reporting Q2 results. IPCA Laboratories declined after weak Q2 results. Aviation scrips rallied. Bharat Forge surged after strong Q2 earnings.
Earlier, high volatility was witnessed as the Sensex, and the 50-unit CNX Nifty reversed direction after both these indices struck record high in early trade. The Sensex fell below the psychological 28,000 level soon after regaining that level in early trade.
In overseas markets, European stocks reversed initial losses as investors weighed latest corporate results. Mainland Chinese stocks led gains in Asian stocks after Chinese regulators said the exchange link between Hong Kong and Shanghai will debut on 17 November 2014. US stocks eked out marginal gains amid thin volumes on Friday, 7 November 2014, with the S&P 500 and Dow Jones Industrial Average, both, attaining record closing high.
In the foreign exchange market, the rupee edged higher against the dollar as demand for the dollar weakened after data showed US employers added fewer jobs than economists estimated last month.
Brent crude futures rose as Chinese export data signaled foreign demand may help sustain the economy in the world's second-biggest oil consumer.
At 14:15 IST, the S&P BSE Sensex was up 40.53 points or 0.15% at 27,909.16. The index jumped 159.33 points at the day's high of 28,027.96 in early trade, a record high for the index. The index lost 103.88 points at the day's low of 27,764.75 in afternoon trade.
The CNX Nifty was up 7.75 points or 0.09% at 8,344.75. The index hit a high of 8,383.05 in intraday trade, a record high for the index. The index hit a low of 8,304.45 in intraday trade.
The BSE Mid-Cap index was 26.83 points or 0.27% at 10,026.52. The BSE Small-Cap index was up 22.59 points or 0.2% at 11,139.76. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,452 shares fell and 1,376 shares advanced. A total of 124 shares were unchanged.
Among 30-share Sensex pack, 17 stocks advanced while remaining shares declined.
Adani Power lost 1.89% at Rs 46.75. The stock hit a high of Rs 48.70 and a low of Rs 46.50. The company reported a consolidated net loss of Rs 798.71 crore in Q2 September 2014, lower than net loss of Rs 1071.91 crore in Q2 September 2013. Total income rose 34.26% to Rs 4173.12 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 10 November 2014.
IPCA Laboratories lost 1.75% at Rs 649.75. The stock hit a high of Rs 675.50 and a low of Rs 636.65. The company's net profit fell 52.64% to Rs 61.30 crore on 7.36% decline in total income to Rs 789.31 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 10 November 2014.
Aviation stocks surged. Jet Airways (India) jumped 5.55% at Rs 265.40 after reporting turnaround Q2 results. The company reported a net profit of Rs 70 crore in Q2 September 2014, compared with net loss of Rs 891 crore in Q2 September 2013. Revenue rose 16% to Rs 4772 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Friday, 7 November 2014.
Shares of SpiceJet were up 4.35% at Rs 15.58.
Bharat Forge jumped 4.4% to Rs 873.65 after the company's profit after tax jumped 81% to Rs 174.50 crore on 34.7% growth in total revenue to Rs 1138.30 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 10 November 2014.
FMCG stocks edged higher on renewed buying. Colgate-Palmolive (India) (up 4.92%), Marico (up 2.3%), Godrej Consumer Products (up 1.51%), and Hindustan Unilever (up 0.68%) gained. Dabur India (down 0.53%) and Nestle India (down 0.22%) declined.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 2537.13 crore during the previous trading session on Friday, 7 November 2014, provisional data released by the stock exchanges showed.
In the foreign exchange market, the rupee edged higher against the dollar as demand for the dollar weakened after data showed US employers added fewer jobs than economists estimated last month. The partially convertible rupee was hovering at 61.4525, compared with its close of 61.635 during the previous trading session on Friday, 7 November 2014.
Brent crude futures rose as Chinese export data signaled foreign demand may help sustain the economy in the world's second-biggest oil consumer. Brent for December delivery was up 77 cents at $84.16 a barrel. The contract had risen 53 cents to settle at $83.39 a barrel during the previous trading session on Friday, 7 November 2014. Brent for January 2015 delivery was up 72 cents at $84.69 a barrel.
The Indian government will unveil industrial production data for September 2014 on Wednesday, 12 November 2014. Growth of industrial output remained subdued at 0.4% in August 2014 same as 0.4% (revised) increase in July 2014.
The government will release annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India for October 2014 on Wednesday, 12 November 2014. CPI for urban and rural India eased to 6.46% in September 2014, from 7.73% in August 2014.
The government will release the inflation data based on wholesale price index (WPI) for October 2014 on Friday, 14 November 2014. WPI eased to 2.38% in September 2014, from 3.74% in August 2014.
The Central Board of Direct Taxes (CBDT) on Friday, 7 November 2014, issued instructions to its field offices regarding its constant endeavour towards a non-adversarial tax regime. Though less than 1% of returns filed are selected for scrutiny, this area of work has often drawn adversarial comments. Supervisory officers have been directed to play a more pro-active role in monitoring and guiding assessments towards ensuring that high-pitched assessments without proper basis are not made and that lengthy questionnaires or summons without due application of mind are avoided, the Ministry of Finance said in a statement. They have been directed to ensure Inspections and Reviews in accordance with guidelines issued to enable capacity building within the Department and accountability of the officers, the finance ministry said. Senior officers have been directed to ensure that appeals are filed only on the merits thereof and not merely on the tax effect involved, the finance ministry said.
European stocks reversed initial losses today, 10 November 2014, as investors weighed latest corporate results. Key indices in Germany, UK, and France were up 0.19% to 0.52%.
Mainland Chinese stocks led gains in Asian stocks after Chinese regulators said the exchange link between Hong Kong and Shanghai will debut on 17 November 2014. Key benchmark indices in China, Hong Kong, Taiwan, Singapore and South Korea were up 0.5% to 2.27%. Key indices in Japan and Indonesia were off 0.26% to 0.59%.
China said today, 10 November 2014, that the exchange link between Hong Kong and Shanghai will debut on 17 November 2014. Bourses in the two cities will begin trading through the program, which allows a net 23.5 billion yuan ($3.8 billion) a day in cross-border purchases, on 17 November 2014, regulators said in a joint statement today, 10 November 2014.
China's consumer inflation held steady in October, allowing more room for monetary easing as growth momentum slips in the world's second-largest economy. The consumer-price index (CPI) matched September's nearly five-year low and remained well below the government's goal of keeping inflation below 3.5% this year. The CPI expanded 1.6% in October from a year earlier, unchanged from September, the National Bureau of Statistics said today, 10 November 2014. China's producer-price index, a gauge of factory-gate prices, dropped 2.2% in October from a year earlier, accelerating from a 1.8% year-over-year decline in September.
China's exports jumped 11.6% in October 2014 from a year earlier, according to Chinese customs data released on Saturday, 8 November 2014. China's imports rose 4.6% in October 2014.
China's President Xi Jinping told executives at the Asia-Pacific Economic Cooperation meeting yesterday, 9 November 2014, that China has the tools to address perceived risks to the Chinese economy. Economic data in the first nine months remained in a reasonable range, he said, adding that slower growth is a "new normal," and annual growth above 7% still puts China's economy among global leaders in speed and size. China needs to improve its social safety net and open its capital markets, the Chinese president said, adding that urbanization, agricultural modernization, better use of technology and new approaches to macroeconomic management will help relieve "growing pains" as the economy increasingly relies on consumption and reduces its reliance on exports.
Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe met for their first talks today, 10 November 2014, since they took power in the two neighboring nations. Abe and Xi met in Beijing on the sidelines of the Asia-Pacific Economic Cooperation forum, with the Chinese leader saying after the meeting that stable bilateral ties were in the interest of both China and Japan, according to reports. It was the first step for improving relations by returning to the starting point of mutually beneficial relations based on common strategic interests, Abe said according to reports. Tensions have run high between Japan and China recently, in part due to rising tensions from their territorial dispute over a strategic but uninhabited island group called Diaoyu in Chinese and Senkaku in Japanese.
Trading in US index futures indicated that the Dow could rise 12 points at the opening bell today 10 November 2014. US stocks eked out marginal gains amid thin volumes on Friday, 7 November 2014, but it was still enough to register fresh record highs for two of the three main benchmarks. The S&P 500 and Dow Jones Industrial Average closed at record highs for the third consecutive day. However, investors' reaction to the latest employment data, showing 214,000 new jobs were added last month was mostly muted. The Bureau of Labor Statistics report showed the US created 214,000 jobs in October, nudging the unemployment rate down a notch to 5.8%, as many companies added workers to gear up for the holiday season. The economy has now added 200,000 workers or more for nine straight months, a feat last accomplished in 1994.
Federal Reserve Chairwoman Janet Yellen and her colleagues continue to prepare the market for an increase in interest rates. In speeches in Paris on Friday, 7 November 2014, Yellen and New York Fed President William Dudley appeared to prepare the markets for the eventuality of rising rates. Dudley said rates likely will be hiked next year, as many market watchers anticipate.
The world's largest banks will have to hold 16-20% of their risk-weighted assets in equity and cancelable debt to shield taxpayers from big bills for bailing out failed banks during a crisis, according to a plan by global regulators published today, 10 November 2014. The plan, drawn up by the Basel-based Financial Stability Board, would force the biggest lenders to maintain a sizable capital cushion so that they could be wound down without causing global financial panic. Under the plan, the minimum so-called total loss absorption capacity, or TLAC, of the world's top 30 banks should be between 16-20% of their assets weighted according to risk. It should also be at least twice the Basel leverage requirementthe ratio of capital held by a bank against its total assets. If the leverage ratio is 3%, therefore, systemic banks would have to hold at least 6% of their total assets as capital.
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