Key benchmark indices were volatile in mid-morning trade. The CNX Nifty was marginally higher. The S&P BSE Sensex re-entered negative zone after a mild recovery. The Sensex was currently down 9.45 points or 0.03% at 28,023.40. The market breadth indicating the overall health of the market was negative. Shares of construction companies declined. Sugar shares edged lower.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Wednesday, 19 November 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 71.80 crore on that day.
In the global market, Asian stocks were mixed as China's manufacturing weakened and the latest Fed minutes reminded investors that U.S. interest rates are likely to rise next year.
The Indian rupee breached the 62 mark, tracking the dollar's strength against major currencies.
Brent crude held above $78 a barrel on Thursday as the market waited for news on possible cuts in oil output ahead of next week's OPEC meeting.
At 11:20 IST, the S&P BSE Sensex was down 9.45 points or 0.03% at 28,023.40. The index rose 85.68 points at the day's high of 28,118.53, at onset of the trading session. The index fell 63.28 points at the day's low of 27,969.57 in early trade.
The CNX Nifty was up 2.30 points or 0.03% at 8,384.60. The index hit a high of 8,410.10 in intraday trade. The index hit a low of 8,366.55 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,267 shares fell and 1,223 shares gained. A total of 91 shares were unchanged.
The BSE Mid-Cap index was up 19.84 points or 0.19% at 10,230.44. The BSE Small-Cap index was up 14.17 points or 0.12% at 11,382.72. Both these indices outperformed the Sensex.
Among the 30-share Sensex pack, 16 shares declined and the remaining shares fell.
Shares of construction companies declined. Era Infra Engineering (down 4.91%), PBA Infrastructure (down 4.52%), Tarmat (down 4.19%), NCC (down 2.98%), C & C Constructions (down 2.67%), KNR Constructions (down 1.75%), IVRCL (down 1.62%), Madhucon Projects (down 1.58%), Gammon Infrastructure Projects (down 1.32%), GVK Power and Infrastructure (down 0.98%), IRB Infrastructure Developers (down 0.95%), Valecha Engineering (down 0.64%), Unity Infraprojects (down 0.43%) and Hindustan Construction Company (down 0.3%), edged lower.
Sugar shares edged lower. Simbhaoli Sugar Mills (down 8.49%), Triveni Engineering & Industries (down 5.15%), Oudh Sugar Mills (down 4.59%), Eastern Sugar & Industries (down 3.92%), Sakthi Sugars (down 3.55%), Bajaj Hindusthan (down 3.23%), Shree Renuka Sugars (down 3.1%), Rana Sugars (down 2.11%), Dhampur Sugar Mills (down 1.45%), Balrampur Chini Mills (down 1.19%), KCP Sugar & Industries Corp (down 0.48%) and DCM Shriram Industries (down 0.07%), edged lower.
Pennar Industries advanced 2.36% after the central bank removed restriction on purchase of shares by foreign portfolio investors in company. On Wednesday, 19 November 2014, the Reserve Bank of India (RBI) notified that the foreign shareholding by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) in Pennar Industries have gone below the revised threshold limit. Hence, the restrictions placed on the purchase of shares of the company are withdrawn with immediate effect.
The RBI further advised that FIIs/RFPIs can now invest upto 35% of the paid up capital of Pennar Industries under the Portfolio Investment Scheme. The RBI stated that Pennar Industries has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit from 24% to 35% for the purchase of its equity shares and convertible debentures by FIIs. The purchases could be made through primary market and through stock exchanges, the RBI said.
Indiabulls Securities jumped 7% after the company said its wholly owned subsidiary, Indiabulls Distribution Services, acquired 100% of the share capital of India Land and Properties. The company made the announcement after market hours yesterday, 19 November 2014.
In the foreign exchange market, the rupee breached the 62 mark, tracking the dollar's strength against major currencies. The partially convertible rupee was hovering at 62.0850, compared with its close of 61.96 during the previous trading session.
Brent crude held above $78 a barrel on Thursday as the market waited for news on possible cuts in oil output ahead of next week's OPEC meeting. Brent for January settlement was currently up 22 cents at $78.32 a barrel. The contract had lost 37 cents to finish at $78.10 a barrel yesterday, 19 November 2014.
Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet in Vienna on 27 November 2014 to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 2 December 2014. The central bank aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India eased to 5.52% in October 2014 from 6.46% in September 2014, data released by the government on 12 November 2014 showed.
Asian stocks were mixed as China's manufacturing weakened and the latest Fed minutes reminded investors that U.S. interest rates are likely to rise next year. Key benchmark indices in Hong Kong, Japan and Taiwan were up by 0.17% to 1.18%. Key benchmark indices in Indonesia, Singapore and South Korea were off 0.45% 1.05%.
China's Shanghai Composite was up 0.26%, bouncing from the day's low. The China flash HSBC/Markit manufacturing purchasing managers' index published on Thursday showed factory output contracted in the world's third-biggest economy for the first time in six months. The preliminary HSBC China Manufacturing Purchasing Managers Index fell to 50.0 in November, compared with a final reading of 50.4 in October, HSBC Holdings PLC said Thursday. A reading above 50 indicates expansion from the previous month, while a reading below 50 indicates contraction.
Trading in US index futures indicated that the Dow could fall 27 points at the opening bell today, 20 November 2014. US stocks edged lower on Wednesday, 19 November 2014, as minutes from the most recent Federal Reserve meeting gave investors few new clues as to when US interest rates may rise. The S&P 500 snapped a four-day run of gains and a two-day streak of record closing highs. Minutes of the US central bank's October 28-29 meeting, where policymakers decided to finally end their bond-buying stimulus, indicated a debate among policymakers over the outlook for inflation and the economy.
Following the release of the minutes, US short-term interest-rate futures traders were still betting on a first Fed rate hike by September next year. Tech names were among the biggest drags on the market, with the Nasdaq underperforming both the Dow and S&P 500.
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