With provisional data showing foreign portfolio investors (FPIs) making substantial purchases of Indian stocks yesterday, 30 October 2014, key equity benchmark indices extended initial gains and hit fresh record high in morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit fresh record high in morning trade. Gains in world stocks boosted sentiment. The Sensex was currently up 218.82 points or 0.8% at 27,565.15. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. The BSE Mid-Cap index was up 1.04%, outperforming the Sensex. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore yesterday, 30 October 2014, as per provisional data. Brent crude oil prices declined. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
IT stocks rose on positive US economic data, with Infosys hitting record high. Shares of public sector oil marketing companies rose on fall in crude oil prices.
In overseas markets, Asian stocks rose after data overnight showed that the US economy grew faster than forecast in Q3 September 2014 and amid a report that Japan's $1.2 trillion Government Pension Investment Fund will increase holdings of equities. US stocks edged higher yesterday, 30 October 2014, as a report showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment.
Brent crude oil prices edged lower as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012.
At 10:17 IST, the S&P BSE Sensex was up 218.82 points or 0.8% at 27,565.15. The index surged 237.78 points at the day's high of 27,584.11 in morning trade, a lifetime high for the index. The index rose 91.95 points at the day's low of 27,438.28 in early trade.
The CNX Nifty was up 66.30 points or 0.81% at 8,235.50. The index hit a high of 8,241.50 in intraday trade, a lifetime high for the index. The index hit a low of 8,198.05 in intraday trade.
The BSE Mid-Cap index was up 101.13 points or 1.04% at 9,815.56. The BSE Small-Cap index was up 103.33 points or 0.95% at 10,930.79. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. On BSE, 1,390 shares rose while 505 shares declined. A total of 66 shares were unchanged.
IT stocks rose on positive US economic data. The US is the biggest outsourcing market for the Indian IT firms. TCS (up 1.31%), Wipro (up 1.09%) and HCL Technologies (up 2.13%) gained.
Infosys rose 1.53% to Rs 4,006.35 after hitting record high of Rs 4,019.95 In intraday trade.
Shares of public sector oil marketing companies rose on fall in crude oil prices. BPCL (up 1.53%), Indian Oil Corporation (up 2.78%) and HPCL (up 2.03%) edged higher. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
The government on 18 October 2014 announced deregulation of diesel prices. Soon after the announcement, Indian Oil Corporation (IOCL) on that day announced a reduction in diesel price by Rs 3.37/litre (including VAT) in Delhi with corresponding decrease in other price in other states from the midnight of 18/19 October 2014. The movement of prices in international oil market and rupee dollar exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes in diesel prices, IOCL said at that time.
PSU OMCs review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight. Media reports suggest that price of petrol and diesel will be cut by around Rs 2.50 each tomorrow, 1 November 2014.
Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 30 October 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore on that day.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 61.3375, compared with its close of 61.455 during the previous trading session.
Brent crude oil prices edged lower as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012. Brent crude for December delivery was off 33 cents at $85.91 a barrel. The contract had fallen 88 cents to settle at $86.24 a barrel during the previous trading session.
The government's decision this month to decontrol diesel prices and a sharp decline in global crude oil prices recently will help India in containing its fiscal deficit. The fall in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. A slump in Brent crude since the end of June contributed to consumer-price index slowing to 6.46% last month, the least since 2012.
Finance Minister Arun Jaitley yesterday, 30 October 2014, asked the senior officers of the Central Board of Direct Taxes (CBDT) not to lose sight of domestic black money keeping in view its much higher magnitude. He asked the senior officers of the Income Tax Department to make their best efforts to chase those sectors where the domestic black money is most prevalent. He said that the recovery of black money and taxes due thereon will also help the Department in achieving its tax collection targets. The Finance Minister was speaking at a Review Meeting of Principal Chief Commissioners, Principal Directors General, Chief Commissioners and Directors General of Income Tax in order to assess and analyse the achievements of the Budget Targets for Revenue Collections for Financial Year 2014-15. He asked the tax officials to widen the tax base in order to bring more and more people within tax domain.
Asian stocks rose today, 31 October 2014, led by Japanese stocks after US economic growth topped estimates and investors speculated Japan's pension fund will boost equity holdings. Key benchmark indices in Indonesia, South Korea, Hong Kong, Taiwan, Singapore, Japan and China were up 0.22% to 1.82%.
Trading in US index futures indicated that the Dow could gain 31 points at the opening bell today, 31 October 2014. US stocks edged higher yesterday, 30 October 2014, as a report showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.
The American economy expanded at a more-than-estimated annualized rate of 3.5% last quarter, capping its strongest six months in a decade, while other data showed fewer Americans filed applications for unemployment benefits over the past month than at any time in more than 14 years.
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