After seeing initial volatility, key benchmark indices drifted lower in morning trade. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was currently off 80.91 points or 0.29% at 27,834.97. Asian stocks were in green. As per media reports, at least a dozen new ministers are set to be inducted by Narendra Modi government as part of the cabinet expansion that is likely to take place on Sunday, 9 November 2014. Meanwhile, the Indian government is reportedly considering dropping a provision in the tax treaty between India and Cyprus that exempts capital gains made in India by investors from Cyprus from tax.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1030.85 crore during the previous trading session on Wednesday, 5 October 2014, as per provisional data released by the stock exchanges. The stock market was closed yesterday, 6 November 2014, on account of Gurunanak Jayanti.
Realty major DLF gained on reports the Securities Appellate Tribunal has allowed the company to redeem Rs 1806-crore in mutual fund holdings in order to service outstanding loans. Other realty stocks declined.
In overseas markets, Asian stocks rose after a drop in American jobless claims bolstered optimism in the world's largest economy before a US government report on employment. US stocks edged higher yesterday, 6 November 2014, with the S&P 500 and Dow Jones Industrial Average climbing to record levels for the second straight day after European Central Bank president Mario Draghi hinted at monetary stimulus of as much as euro 1 trillion for eurozone economy.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude futures dropped as a stronger dollar weighed.
At 10:15 IST, the S&P BSE Sensex was down 80.91 points or 0.29% at 27,834.97. The index fell 88.40 points at the day's low of 27,827.48 in morning trade, its lowest level since 3 November 2014. The index gained 65.05 points at the day's high of 27,980.93 in early trade.
The CNX Nifty was down 23.05 points or 0.28% at 8,315.25. The index hit a low of 8,313.55 in intraday trade, its lowest level since 3 November 2014. The index hit a high of 8,360.35 in intraday trade.
The market breadth indicating the overall health of the market turned negative from positive in morning trade. On BSE, 1,088 shares declined and 1,033 shares gained. A total of 63 shares were unchanged.
The BSE Mid-Cap index was off 14.55 points or 0.15% at 9,950.06. The BSE Small-Cap index was off 18.82 points or 0.17% at 11,142.16. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 939 crore by 10:15 IST, compared with a turnover of Rs 338 crore by 09:25 IST.
Realty major DLF gained 3.04% on reports the Securities Appellate Tribunal allowed the company to redeem Rs 1806-crore in mutual fund holdings in order to service outstanding loans. In an interim relief against Securities and Exchange Board of India (Sebi) order, the Securities Appellate Tribunal (SAT) on Wednesday, 5 November 2014, reportedly allowed DLF to redeem Rs 1806-crore in mutual fund holdings in order to service outstanding loans. After hearing an appeal for interim relief by DLF, SAT allowed the company to redeem mutual funds worth Rs 767 crore in the current month and further funds worth Rs 1039 crore in December 2014.
DLF had sought permission to redeem funds locked in mutual funds after being slapped with the market regulator's ban last month from accessing the capital market for 3 years.
Other realty stocks declined. Unitech (down 2.9%), Godrej Properties (down 2.6%), Oberoi Realty (down 0.64%), Parsvnath Developers (down 0.71%), Housing Development and Infrastructure (down 2014%) and D B Realty (down 1.78%) declined. Indiabulls Real Estate rose 0.48%.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.54, compared with its close of 61.42 during the previous trading session on Wednesday, 5 November 2014. The currency market was shut yesterday, 6 November 2014, on account of Gurunanak Jayanti.
Brent crude futures dropped as a stronger dollar weighed. A stronger greenback makes it more expensive for holders of other currencies to buy dollar-denominated commodities. Brent for December delivery was off 54 cents at $82.32 a barrel. The contract had fallen 9 cents a barrel to settle at $82.86 a barrel yesterday, 6 November 2014.
Meanwhile, as per media reports, at least a dozen new ministers are set to be inducted by Narendra Modi government as part of the cabinet expansion that is likely to take place on Sunday, 9 November 2014. Goa Chief Minister Manohar Parrikar is tipped to get the defence portfolio. Currently Finance Minister Arun Jaitley is handling the defence portfolio. BJP general secretary JP Nadda's name is doing the rounds as a possible environment minister. Jayant Sinha, who is the son of former finance minister Yashwant Sinha, is tipped to become minister of state for finance.
Prime Minister Narendra Modi is also likely to induct some representatives of the allies into the union cabinet. According to reports, Suresh Prabhu might get an important cabinet berth, possibly rural development.
India's Ministry of Urban Development yesterday, 6 November 2014, said that Singapore has shown keen interest in partnering with India in the urban development sector, including development of a new smart satellite city and a new capital for the state of Andhra Pradesh. Top leadership of Singapore conveyed their areas of interest during the extensive talks that the Minister of Urban Development M.Venkaiah Naidu held with Singapore's Prime Minister Lee Hsien Loong and former Prime Minister and Emeritus Minister Goh Chok Tong in separate meetings in Singapore yesterday, 6 November 2014.
Meanwhile, the Indian government is reportedly considering dropping a provision in the tax treaty between India and Cyprus that exempts capital gains made in India by investors from Cyprus from tax. India, which has blacklisted the tax haven for not sharing information on bank accounts, will lift this restriction only if Cyprus agrees to scrap the capital gains exemption. A team of officials from the external affairs ministry will reportedly travel to Cyprus this month. India is also concerned at the misuse of the tax benefit by investors from third countries that route their investments via Cyprus into the South Asian nation to take advantage of the tax exemption.
Asian stocks rose today, 7 November 2014, after a drop in American jobless claims bolstered optimism in the world's largest economy before a US government report on employment. Key benchmark indices in China, Singapore, Hong Kong, Taiwan, Japan and South Korea were up 0.09% to 0.59%. In Indonesia, the Jakarta Composite index was off 0.47%.
China's central bank vowed to lower funding costs for corporate borrowers amid increasing pressure on the nation's slowing economy. In a report published yesterday, 6 November 2014, on third-quarter monetary policy, the People's Bank of China also confirmed it had already conducted two rounds of liquidity injections into the country's banking system in September and October totaling 769.5 billion yuan ($125.9 billion) in a bid to guide interest rates lower and support economic growth. A report on the central bank's website indicated that the central bank had pumped the funds with a tenor of 3 months at an interest rate of 3.5% into the country's state, midsize and smaller lenders.
US stocks edged higher yesterday, 6 November 2014, with the S&P 500 and Dow Jones Industrial Average climbing to record levels for the second straight day after European Central Bank president Mario Draghi hinted at monetary stimulus of as much as euro 1 trillion for eurozone economy. In economic news, the number of Americans applying for new jobless benefits lingered below 300,000 for the eighth straight week amid the lowest level of layoffs in years. US productivity in the third quarter grew at a 2% annual pace, preliminary data show, marking the fourth sizable increase in the past five quarters.
The European Central Bank, left interest rates unchanged after a policy meeting yesterday, 6 November 2014. The ECB's key lending rate, known as the refi rate, was left at 0.05%, while the rate the ECB pays on deposits held at the central bank remains at minus 0.2%. ECB President Mario Draghi said policy makers will be ready to implement further measures if needed as he signaled officials may cut growth forecasts next month. Speaking at a press conference in Frankfurt yesterday, 6 November 2014, Draghi said that the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate.
The Bank of England yesterday, 6 November 2014, held the size of its bond-buying program steady and left its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee maintained its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($599 billion). The minutes from the November meeting will be published on Nov. 19.
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