The government's decision to deregulate diesel prices and raise gas prices triggered a firm opening on the domestic bourses. Investors also cheered a strong showing of the Bharatiya Janata Party (BJP) in assembly election in Maharashtra and Haryana. Gains in Asian stocks also boosted sentiment on the domestic bourses. The barometer index, the S&P BSE Sensex, was current up 357.91 points or 1.37% at 26,466.44. The market breadth was extremely strong, with more than 7 gainers for every loser on BSE. The BSE Mid-Cap index was up 1.49%, outperforming the Sensex. The BSE Small-Cap index was up 1.32%.
The Bharatiya Janata Party (BJP) on Sunday, 19 October 2014, created history in Haryana by securing a clear majority on its own for the first time and is set to form the government in state. For the first time, the BJP emerged with a clear mandate in Haryana, winning 47 seats in the 90-member assembly with a 33.2% vote share. The party emerged as the single largest party in Maharashtra and is set to form the government in state. In Maharashtra, the BJP won 122 seats in the 288-member assembly, falling well short of the 145 seats required for a simple majority. Its ally Rashtriya Samaj Paksha won one. The NCP, which won 41 seats, said it will offer BJP "outside support" to form a stable government in the state, leaving the former BJP ally and runner up Shiv Sena high and dry. The Shiv Sena won 63 seats. Shiv Sena chief Uddhav Thackeray after the election results said that nobody from the BJP has approached his party for support, and his party would not approach it with any proposal.
The results of the assembly elections for Maharashtra and Haryana were announced yesterday, 19 October 2014. The polls for the assembly election in these two states were held on 15 October 2014.
Shares of oil and gas firms rose after the government deregulated diesel and raised gas prices on Saturday, 18 October 2014. Axis Bank and UltraTech Cement rose after strong Q2 results.
At 9:25 IST, the S&P BSE Sensex was up 357.91 points or 1.37% at 26,466.44. The index jumped 392.51 points at the day's high of 26,501.04 at the onset of the trading session. The index jumped 325.63 points at the day's low of 26,434.16 in opening trade
The CNX Nifty was up 104.80 points or 1.35% at 7,883.80. The index hit a high of 7,898.40 in intraday trade. The index hit a low of 7,883.80 in intraday trade.
The BSE Mid-Cap index was up 138.02 points or 1.49% at 9,410.51. The BSE Small-Cap index was up 136.45 points or 1.32% at 10,450.42.
The market breadth indicating the overall health of the market was negative. On BSE, 880 shares rose while 117 shares declined. A total of 11 shares were unchanged.
Among the 30 Sensex shares, 27 rose and the remaining shares fell.
Shares of oil and gas firms rose after the government deregulated diesel and raised gas prices on Saturday, 18 October 2014. Shares of public sector oil marketing companies (PSU OMCs) surged after the government deregulated diesel prices. Indian Oil Corporation (up 8.22%), HPCL (up 6.88%) and BPCL (up 5.09%) surged.
Soon after the government on Saturday, 18 October 2014, announced deregulation of diesel prices, PSU OMCs cut diesel prices. Indian Oil Corporation (IOCL) on Saturday, 18 October 2014 said it has cut 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.
Shares of gas production and exploration firms rose after the government on Saturday, 18 October 2014, approved the new domestic gas pricing policy. ONGC (up 8.24%) and Oil India (up 2.46%). Shares of state-run gas transmission and distribution major GAIL (India) were up 1.35%. rose.
As per the new formula, gas price will increase to $5.61 per million BTU (MMBTU) from exitisting $4.2 MMBTU with effect from 1 November 2014. Gas prices will be revised every six months. The next revision will be due on 1 April 2015.
Among private sector oil and gas companies, Cairn India was up 1.30%.
Reliance Industries (RIL) was down 0.06%. Since RIL's block KG-DWN-98-3 is under arbitration, the price revision will not be applicable for this block. Hence the operator would be paid the exitign price of $4.2/MMBTU till the shortfall quantity of gas is made good, a government statement said. It is proposed that the difference between the revised price and the present price ($4.2 per million BTU) would be credited to the gas pool account maintained by GAIL (India) and whether the amount so collected is payable or not, to the contractors of this block, would be dependent on the outcome of the award of pending arbitration and any attendant legal proceedings, the government said.
Axis Bank rose 2.62%. The bank's net profit rose 18.23% to Rs 1610.71 crore on 12.53% growth in total income to Rs 10549.97 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Friday, 17 October 2014. The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 1.34% as on 30 September 2014, unchanged from 30 June 2014, but higher than 1.19% as on 30 September 2013. The ratio of net NPAs to net advances stood at 0.44% as on 30 September 2014, unchanged from 30 June 2014, but higher than 0.37% as on 30 September 2013.
UltraTech Cement rose 2.90% The company's consolidated net profit rose 48.01% to Rs 414.24 crore on 18.52% rise in total income to Rs 5821.48 crore in Q2 September 2014 over Q2 September 2013. The company announced Q2 results on Saturday, 18 October 2014.
In terms of the scheme of arrangement between Jaypee Cement Corporation (JCCL) and the company and their respective shareholders and creditors (the scheme) 27,261 additional equity shares of the company of Rs 10 each credited as fully paid-up has been allotted to the equity shareholders of JCCL in terms of the scheme as final consideration. The financial results of the acquired units have been combined with the company's financial results with effect from 12 June 2014. As a result, figures for the three months and six months ended 30 September 2014 are strictly not comparable with previous periods.
Meanwhile, provisional data released by the stock exchanges after trading hours on Friday, 17 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1430.03 crore on that day.
Japanese stocks led a rally in Asia on Monday, 20 October 2014, after solid US data and earnings reassured investors worried about the health of the world economy. Key benchmark indices in Japan, China, Taiwan, South Korea Hong Kong, Singapore and Indonesia were up 0.2% to 3.34%.
US stocks rallied on Friday, 17 October 2014, as earnings beat estimates, consumer confidence reached a seven-year high and investors speculated that central banks will add more economic stimulus. The Standard & Poor's 500 Index (SPX) rose 1.3% to 1,886.76. The Dow Jones Industrial Average increased 263.17 points, or 1.6%, to 16,380.41. The Nasdaq Composite Index climbed 0.96% to 4,258.
US consumer confidence unexpectedly rose in October to the highest level in seven years, showing a brightening in Americans' moods as gas prices drop and the labor market gains traction. The Thomson Reuters/University of Michigan preliminary sentiment index for this month increased to 86.4, the strongest since July 2007.
The Federal Reserve may want to extend its bond-buying program beyond October to keep its policy options open given falling US inflation expectations, Federal Reserve Bank of St. Louis President James Bullard said on 16 October 2014.
The Federal Open Market Committee (FOMC) next undertakes a monetary policy review at a two-day meeting on 28-29 October 2014.
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