After moving in an extremely narrow range in mid-morning trade, key benchmark indices drifted lower in early afternoon 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 81.76 points or 0.29% at 27,786.87. 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.
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.
Bank stocks edged lower. But, Central Bank of India edged higher from turnaround Q2 results. ITC rose after change of guard at the health ministry. TCS dropped in volatile trade. NTPC edged higher. CESC dropped after shares allotted by the company to institutional investors under qualified institutional placement (QIP) were admitted for trading on the bourses.
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, 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 12:17 IST, the S&P BSE Sensex was down 81.76 points or 0.29% at 27,786.87. The index lost 88.25 points at the day's low of 27,780.38 in early afternoon trade. 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 CNX Nifty was down 26.70 points or 0.32% at 8,310.30. The index hit a low of 8,306.25 in intraday trade. The index hit a high of 8,383.05 in intraday trade, a record high for the index.
The BSE Mid-Cap index was up 8.82 points or 0.09% at 10,008.51. The BSE Small-Cap index was up 11.30 points or 0.1% at 11,128.47. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market turned negative from positive in early afternoon trade. On BSE, 1,348 shares fell and 1,311 shares advanced. A total of 99 shares were unchanged.
Bank stocks were mostly lower. Canara Bank (down 2.37%), Federal Bank (down 1.31%), Axis Bank (down 1.33%), KotaK Mahindra Bank (down 0.59%), Bank of India (down 0.94%), ICICI Bank (down 0.68%), Yes Bank (down 0.89%), and HDFC Bank (down 0.33%) declined. Bank of Baroda (up 2.23%), Punjab National Bank (up 0.19%), IndusInd Bank (up 0.09%), and State Bank of India (up 0.17%) gained.
Central Bank of India rose 0.97% at Rs 72.50. The stock hit a high of Rs 74.75 and a low of Rs 71.75. The bank reported a net profit of Rs 102.91 crore in Q2 September 2014 compared with net loss of Rs 1508.74 crore in Q2 September 2013. Total income rose 12.58% to Rs 7021.10 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced on Saturday, 8 November 2014.
The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 6.14% as on 30 September 2014 as against 6.15% as on 30 June 2014 and 6.47% as on 30 September 2013. The ratio of net NPAs to net advances stood at 3.38% as on 30 September 2014 as against 3.62% as on 30 June 2014 and 3.77% as on 30 September 2013.
Shares of cigarette major ITC jumped 3.14% at Rs 366.80 after change of guard at the health ministry. Dr Harsh Vardhan was replaced by senior Bharatiya Janata Party (BJP) leader Jagat Prakash Nadda as the union health minister in a Cabinet expansion and reshuffle announced yesterday, 9 November 2014. Dr Harsh Vardhan was shifted to the more low-key Science and Technology and Earth Sciences Ministry. The health department would now also be overlooked by an additional minister Sripad Yasso Naik. He will independently be responsible for Ayush (ayurveda, yoga and naturopathy, unani, siddhi and homeopathy) department.
TCS lost 0.62% at Rs 2,557.50. The stock hit a high of Rs 2,588 and a low of Rs 2,551. The company during market hours today, 10 November 2014, said it has successfully delivered Qantas with an upgrade to Oracle E-Business Suite Release 12 (R12) provisioned in a Software as a Service model altogether with Macquarie Telecom. The new cloud-based version of Oracle E-Business Suite will provide Qantas with key benefits including enhanced system functionality, reduced system management complexity and unification of vendors, TCS said in statement.
NTPC rose 0.1% at Rs 144.65. The company's Chairman & Managing Director Dr Arup Roy Choudhury on Friday, 7 November 2014, said that the company currently has 42 units under construction totalling 23,854 megawatts (MW) capacity. He was speaking at NTPC's first International Technical Summit titled 'Global Energy Technology Summit' GETS 2014 in New Delhi. A.K.Jha, Director Technical NTPC mentioned that in house engineering capability has been the key differentiator for NTPC in the industry. The entire engineering for all 42 units under construction at 21 different locations all over the country in thermal, hydro and renewables is being done in house, he said.
CESC lost 2.57% at Rs 671 as shares allotted by the company to institutional investors under Qualified Institutional Placement (QIP) were admitted for trading on the bourses today, 10 November 2014. A total of 76.21 lakh shares will be admitted for trading. CESC had priced the issue of shares to institutional investors at Rs 644 per share.
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 23 cents at $83.62 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 21 cents at $84.18 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.
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 0.67% to 1.88%. Key incdices in Japan and Indonesia were off 0.12% 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 20 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.
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