A bout of volatility was witnessed as key benchmark indices retained positive zone in morning trade. The 50-unit CNX Nifty retained the psychological 8,000 mark which it had regained after a higher opening. The barometer index, the S&P BSE Sensex, was currently up 87.11 points or 0.33% at 26,840.01. The market breadth indicating the overall health of the market was positive. Brent crude oil prices extended its decline to a third day. Falling crude oil prices augur well for India as the country imports 80% of its crude oil requirement. However, a slide in rupee against the dollar will restrict the benefit of falling crude oil prices.
Realty stocks edged higher. Some capital goods stocks gained. L&T rose after the company said its construction division has won a engineering, procurement and construction (EPC) order worth Rs 2989 crore for the design and construction of Statue of Unity from the Government of Gujarat.
In overseas markets, Asian stocks fell after American data from home sales to manufacturing fell short of estimates and investors awaited a Federal Reserve decision on its stimulus program.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil prices extended its decline to a third day on ample global oil supplies.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month October 2014 series to November 2014 series. The near month October 2014 derivatives contract expire on Thursday, 30 October 2014.
At 10:17 IST, the S&P BSE Sensex was up 87.11 points or 0.33% at 26,840.01. The index jumped 112.21 points at the day's high of 26,865.11 in morning trade. The index rose 32.99 points at the day's low of 26,785.89 in early trade.
The CNX Nifty was up 24.95 points or 0.31% at 8,016.65. The index hit a high of 8,020.80 in intraday trade. The index hit a low of 7,999.65 in intraday trade.
The BSE Mid-Cap index was up 37.67 points or 0.39% at 9,629.76. The BSE Small-Cap index was up 53.41 points or 0.5% at 10,696.10. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,158 shares rose while 775 shares declined. A total of 77 shares were unchanged.
Realty stocks edged higher. DLF (up 1.54%), D B Realty (up 0.01%), Housing Development & Infrastructure (HDIL) (up 0.4%), Sobha (up 2.04%) and Unitech (up 0.58%) gained.
Some capital goods stocks gained. Siemens (up 0.69%), and Thermax (up 0.58%) gained. But, Bharat Heavy Electricals (Bhel) declined 1.71%.
L&T rose 1.3%. The company said during market hours that its construction division has won a engineering, procurement and construction (EPC) order worth Rs 2989 crore for the design and construction of Statue of Unity from the Government of Gujarat. The Statue of Unity has been a dream project of Prime Minister, Mr. Narendra Modi. The 182 metres bronze statue of Sardar Vallabhbhai Patel will be built on the Sadhu-Bet island.
Lakshmi Machine Works lost 3.27% after net profit declined 10.3% to Rs 46.84 crore on 4.8% growth in total income to Rs 615.58 crore in Q2 September 2014 over Q2 September 2013.
State Bank of Mysore jumped 16.66% after net profit surged 238.76% to Rs 101.90 crore on 12.61% growth in total income to Rs 1900.52 crore in Q2 September 2014 over Q2 September 2013. The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 5.07% as on 30 September 2014 as against 5.13% as on 30 June 2014 and 5.96% as on 30 September 2013. The ratio of net NPAs to net advances stood at 2.94% as on 30 September 2014 as against 2.72% as on 30 June 2014 and 3.69% as on 30 September 2013.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.37, compared with its close of 61.31 during the previous trading session.
Brent crude oil prices extended its decline to a third day on ample global oil supplies. Brent crude for December delivery was off 60 cents at $85.23 a barrel. The contract had lost 30 cents to settle at $85.83 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.
However, a slide in rupee against the dollar will restrict the benefit of falling crude oil prices.
Asian stocks fell today, 28 October 2014, after American data from home sales to manufacturing fell short of estimates and investors awaited a Federal Reserve decision on its stimulus program. Key benchmark indices in Indonesia, South Korea, Singapore and Japan were off 0.33% to 0.76%. Key benchmark indices in China, Hong Kong and Taiwan were up 0.63% to 1.46%.
Trading in US index futures indicated that the Dow could gain 8 points at the opening bell today, 28 October 2014. US stocks ended mostly higher on Monday, 27 October 2014, with gains limited by weak economic data.
Data yesterday, 27 October 2014, indicated uneven economic growth in the US. Contracts to purchase previously owned homes rose less than forecast in September, showing housing will take time to gain momentum. Another release showed growth in services activity slowed this month, while the Dallas Fed's gauge of regional manufacturing fell.
A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy review begins today, 28 October 2014. The Fed is expected to announce the end of quantitative easing after the meeting. Investors will be looking to see if the Fed drops the "considerable period" language in referencing its plans keeping rates low, at the two-day policy meeting, which concludes tomorrow, 29 October 2014. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.
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