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Nifty attains record closing high

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Banking and cement stocks rose as key benchmark indices eked out small gains. The 50-unit CNX Nifty attained record closing high. The barometer index, the S&P BSE Sensex, attained its highest closing level in almost a week. The Sensex rose 35.33 points or 0.13% to settle at 27,910.06. The market breadth indicating the overall health of the market was positive. December Brent crude oil futures hit four-year low as a strong dollar and robust production from US shale oil fields weighed on prices. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement. Meanwhile, the Narendra Modi government is reportedly set to embark on a series of economic reforms aimed at putting the country on track for 8% growth in the intermediate term and an even faster pace beyond that.

 

Data this week is likely to show growth in industrial production remaining muted in September 2014 and inflation falling further in October 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 371.70 crore from the secondary equity markets yesterday, 10 November 2014.

FMCG stocks advanced. ITC declined on profit booking. Most metal and mining stocks declined. Hindalco Industries slipped in immensely volatile trade after the announcement of results by its US subsidiary Novelis yesterday, 10 November 2014. Tata Power Company edged higher in volatile trade. Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. Bharat Forge extended yesterday's rally triggered by the company reporting strong Q2 earnings. Cairn India fell as crude oil price declined.

Shares of non-banking financial companies rose after the central bank announced a revised regulatory framework for Non-banking Finance Companies (NBFCs), yesterday, 10 November 2014, with a view to streamlining the regulations for the sector. Shares of companies engaged in highway construction projects surged after the Ministry of Road Transport & Highways and the Ministry of Railways yesterday, 10 November 2014, signed a Memorandum of Understanding (MoU) on policy related to constructions of Road Over/Under Bridges (ROBs/RUBs) on National Highway corridors.

Benchmark indices alternately swung between positive and negative zone in intraday trade.

In overseas markets, European stocks rose after well received corporate earnings. Japanese stocks led gains in Asian stocks on speculation Japan's Prime Minister Shinzo Abe will delay a sales-tax increase in the country. US stocks finished a thinly-traded day with modest gains yesterday, 10 November 2014, that sent the S&P 500 and Dow Jones Industrial Average to close at record levels for the fourth straight session.

In the foreign exchange market, the rupee edged lower against the dollar on broad gains for the dollar.

December Brent crude oil futures hit four-year low as a strong dollar and robust production from US shale oil fields weighed on prices.

The S&P BSE Sensex rose 35.33 points or 0.13% to settle at 27,910.06, its highest closing level since 5 November 2014. The index jumped 122.19 points at the day's high of 27,996.92 in morning trade. The index lost 84.33 points at the day's low of 27,790.40 in early afternoon trade.

The CNX Nifty rose 18.40 points or 0.22% to settle at 8,362.65, a record closing high for the index. The index hit a high of 8,378.70 in intraday trade. The index hit a low of 8,321.85 in intraday trade.

The BSE Mid-Cap index gained 72.38 points or 0.72% to settle at 10,085.65. The BSE Small-Cap index gained 27.14 points or 0.24% to settle at 11,161.95. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1,579 shares advanced and 1,433 shares declined. A total of 108 shares were unchanged.

The total turnover on BSE amounted to Rs 3265 crore, lower than Rs 3867.15 crore on Monday, 10 November 2014.

The S&P BSE Realty index (up 1.05%), the S&P BSE Bankex (up 0.74%), the S&P BSE Auto index (up 0.68%), the S&P BSE Capital Goods index (up 0.63%), the S&P BSE Oil & Gas index (up 0.44%) and the S&P BSE Healthcare index (up 0.37%) outperformed the Sensex.

The S&P BSE Power index (down 0.06%), the S&P BSE Metal index (down 0.13%), the S&P BSE Teck index (down 0.3%), the S&P BSE IT index (down 0.37%), the S&P BSE FMCG index (down 0.69%) and the S&P BSE Consumer Durables index (down 1.2%) underperformed the Sensex.

Index heavyweight Reliance Industries (RIL) gained 0.88% to Rs 978. The stock was volatile. The stock hit high of Rs 987.20 and low of Rs 967.

Cairn India fell 1.55% as crude oil price declined. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.

Shares of cigarette major ITC shed 1.69% at Rs 364.60 on profit booking after yesterday's rally. Shares of ITC had jumped 4.27% to settle at Rs 370.85 yesterday, 10 November 2014, 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 on Sunday 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.

FMCG stocks were mostly higher. Marico (up 5.19%), Godrej Consumer Products (up 2.58%), Nestle India (up 1.51%), and Dabur India (up 0.88%) gained. Hindustan Unilever (down 0.01%) and Colgate-Palmolive (India) (down 0.95%) declined.

Infosys fell 1.23%. Infosys today, 11 November 2014, announced that it has successfully implemented its Finacle core banking solution for Discover Financial Services, a leading US direct bank and payment services company. The new Finacle platform provides Discover with real-time processing and customer servicing for the company's deposits portfolio, and is expected to be extended to support Discover's installment lending products as well, Infosys said.

Mahindra & Mahindra (M&M) gained 2.79%. M&M today, 11 November 2014, announced that it has increased prices of its passenger and commercial vehicles by an average of 1%. This increase would be in the range of Rs 2,300 to Rs 11,500 (ex- showroom) depending on the model and has been effective this month, the company said. The price hike has been necessitated to partly offset the impact of rising input costs, M&M said.

M&M also announced increase in prices of its tractors effective from this month. The increase is in the range of Rs 6,000 to Rs 10,000 depending on the model. The price hike has been necessitated owing to increase in commodity prices and conversion costs, M&M said.

Bosch rose 1.02% at Rs 15,565. The stock hit a record high of Rs 15,870.75 in intraday trade. The stock hit an intraday low of Rs 15,350. Bosch's net profit surged 30.78% to Rs 306.36 crore on 19.82% growth in total income to Rs 2676.43 crore in Q3 September 2014 over Q3 September 2013. The result was announced during market hours today, 11 November 2014.

Bharat Forge rose 3.25% at Rs 914.20, with the stock extending yesterday's 5.81% rally triggered by the company's good Q2 September 2014 earnings. Bharat Forge's net profit rose 81% to Rs 174.50 crore on 34.7% rise in total revenues to Rs 1138.30 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours yesterday, 10 November 2014.

Bank stocks surged. Punjab National Bank (up 3.48%), Canara Bank (up 3%), Bank of Baroda (up 3.57%), Bank of India (up 2.57%), Axis Bank (up 1.72%), ICICI Bank (up 1.26%), Federal Bank (up 1.24%), HDFC Bank (up 0.42%), Yes Bank (up 0.56%), and State Bank of India (up 0.32%), and Kotak Mahindra Bank (up 0.45%) gained. IndusInd Bank (down 0.44%) declined.

DCB Bank jumped 6.55% to Rs 100.10 after hitting a 52-week high of Rs 100.30 in intraday trade.

Shares of non-banking financial companies rose after the central bank announced a revised regulatory framework for Non-banking Finance Companies (NBFCs), yesterday, 10 November 2014, with a view to streamlining the regulations for the sector. Magma Fincorp (up 0.13%), IDFC (up 2.62%), L&T Finance Holdings (up 2.86%), LIC Housing Finance (up 2.4%), Mahindra & Mahindra Financial Services (up 0.93%) and Bajaj Finance (up 0.87%) edged higher.

Shriram Transport Finance Corporation surged 5.4% to Rs 1,020 after scaling a record high of Rs 1,047.65 in intraday trade.

Explaining the rationale behind the revised framework for NBFCs, the RBI stated that a lighter regulatory framework has been placed on NBFCs other than for those with large asset sizes and deposit accepting. For NBFCs with large asset sizes, and for all deposit accepting NBFCs, regulations have been harmonised across NBFCs, and to some extent, with banks. The intent is to create a level playing field that does not unduly favour or disfavour any institution. The RBI further stated that in limited areas where harmonisation has resulted in strengthening the regulations, generally adequate time has been given to manage the transition.

Metal and mining stocks were mostly lower. Steel Authority of India (down 0.84%), Sesa Sterlite (down 1.02%), Hindustan Zinc (down 1.03%), Hindustan Copper (down 1.15%) and NMDC (down 2.04%) declined. Tata Steel (up 2.21%) and Jindal Steel & Power (up 0.32%) gained. National Aluminium Company was unchanged at Rs 82.35

Hindalco Industries slipped in immensely volatile trade after the announcement of results by its US subsidiary Novelis yesterday, 10 November 2014. The stock shed 0.72% at Rs 151.25. The stock hit a high of Rs 154.85 and a low of Rs 150. Hindalco's US subsidiary Novelis Inc. yesterday, 10 November 2014, said its consolidated net profit jumped 65% to $38 million on 17% increase in net sales to $2.8 billion in Q2 September 2014 over Q2 September 2013. Novelis said its net profit excluding certain tax-effected items rose 14% to $42 million in Q2 September 2014 over Q2 September 2013. Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) rose 1% to $230 million in Q2 September 2014 over Q2 September 2013. The increase was primarily driven by higher shipments and cost benefits from using recycled metal inputs. These favorable drivers were partially offset by continued pricing pressures in the Asian markets, a higher fixed cost base due to expansions ahead of revenue generation, and unfavorable currency fluctuations late in the second quarter. "It's an exciting time at Novelis as we continue to transform our business with a more sustainable focus on growing high recycled content premium products," said Phil Martens, President and Chief Executive Officer for Novelis.

JSW Steel rose 1.25% to Rs 1,247.50. The stock was volatile. The stock hit high of Rs 1,249 and low of Rs 1,223. The company during market hours today, 11 November 2014, said its total crude steel production declined 2% to 10.46 lakh tonnes in October 2014 over October 2013. The company said crude steel production declined due to planned shutdown of blast furnace at Dolvi for about 7 days in October 2014. JSW Steel's production of flat rolled products fell 5% to 8.28 lakh tonnes in October 2014 over October 2013. Production of long rolled products rose 3% to 1.53 lakh tonnes in October 2014 over October 2013.

Tata Power Company rose 0.11% at Rs 93.25. The stock hit a high of Rs 93.80 and a low of Rs 92.50. The company during market hours today, 11 November 2014, said that Unit-1 of Maithon Power (MPL), a subsidiary of the company with Damodar Valley Corporation, tripped on Sunday evening due to failure of Y-Phase GT bushing. The porcelain portion ruptured due to the fault and the oil of the bushing caught fire. Mulsifier system (automatic water sprinkler) operated on auto supported by Fire control team of MPL extinguished the fire. No oil has spilled from the Transformer itself. As a precautionary measure all the drains near to GT were sealed with mud dumping, Tata Power said. The unit was shut down safely. No casualty or injury is reported. Damage assessment and repair thereof will be carried out by BHEL, it added.

IT stocks slipped. MphasiS (down 0.69%), HCL Technologies (down 0.02%), Tech Mahindra (down 0.62%) and Wipro (down 0.27%) declined. TCS rose 0.22%.

Cement stocks gained. ACC (up 0.96%), Ambuja Cements (up 1.6%), and UltraTech Cement (up 3.06%) gained.

Grasim Industries rose 0.56% at Rs 3,601.15. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.

Cadila Healthcare surged 7.44% to Rs 1,598 after scaling a record high of Rs 1,760 in intraday trade.

Shares of companies engaged in highway construction projects edged higher after the Ministry of Road Transport & Highways and the Ministry of Railways yesterday, 10 November 2014, signed a Memorandum of Understanding (MoU) on policy related to constructions of Road Over/Under Bridges (ROBs/RUBs) on National Highway corridors. Tarmat (up 20%), Madhucon Projects (up 0.94%), IRB Infrastructure Developers (up 0.22%) and J. Kumar Infraprojects (up 1.95%) edged higher.

Through this MoU, there will be speedy clearances of various design & drawings for construction of ROBs/RUBs on National Highway Corridors and clear cut defined responsibility for construction of ROB/RUB on National Highway Corridors, the Ministry of Railways said in a statement. The announcement was made after trading hours yesterday, 10 November 2014.

Hindustan Construction Company jumped 8.21% on reports the company's realty unit, Lavasa Corporation, has received market regulator the Securities and Exchange Board of India (Sebi)'s approval for raising Rs 750 crore through an initial public offer (IPO).

Redington (India) rose 5.67% to Rs 103.45 after Reliance mutual fund bought 1.63 crore shares, or 4.07% equity at Rs 97.50 per share through bulk deals on BSE on Monday, 10 November 2014. Shares were acquired from Harrow Investment Holding, which sold 2 crore shares of Redington (India) at Rs 97.55 per share.

TV Today Network slumped 16.94%. The company's net profit rose 2.88% to Rs 13.20 crore on 21.78% rise in total income from operations (net) to Rs 111.68 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced after market hours on Monday, 10 November 2014.

Dredging Corporation of India fell 2.85% after net profit fell 67.23% to Rs 3.24 crore on 7.71% fall in total income from operations (net) to Rs 168.96 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Monday, 10 November 2014.

Jyoti Structures lost 11.09% after the company reported net loss of Rs 69.37 crore in Q2 September 2014 as against net profit of Rs 14.63 crore in Q2 September 2013. The company's net sales declined 2.55% to Rs 631.49 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Monday, 10 November 2014.

Jain Irrigation Systems jumped 7.8% after the company reported consolidated net loss of Rs 23.59 crore in Q2 September 2014, lower than net loss of Rs 80.70 crore in Q2 September 2013. Jain Irrigation Systems' total income rose 4.54% to Rs 1279.87 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced after market hours on Monday, 10 November 2014.

Amtek Auto surged 16.78% to Rs 193.15 at 13:47 IST on BSE after the company's subsidiary, Amtek Global Technologies, raised about Rs 1800 crore from global investment firm Kohlberg Kravis Roberts.

Key benchmark indices gained for the second day in a row today, 11 November 2014. The Sensex has risen 41.43 points or 0.14% in two trading days from its recent low of 27,868.63 on 7 November 2014. The Sensex has risen 44.23 points or 0.15% in this month (so far till 11 November 2014. The Sensex has gained 6,739.38 points or 31.83% in calendar year 2014 so far (till 11 November 2014). From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 7,946.94 points or 39.8%. The Sensex is off 117.90 points or 0.42% from record high of 28,027.96 hit yesterday, 10 November 2014.

In the foreign exchange market, the rupee edged lower against the dollar on broad gains for the dollar. The partially convertible rupee was hovering at 61.615, compared with its close of 61.505 during the previous trading session yesterday, 10 November 2014.

December Brent crude oil futures hit four-year low as a strong dollar and robust production from US shale oil fields weighed on prices. Brent for December delivery was off 39 cents at $81.95 a barrel. The contract hit a four-year low of $81.23 a barrel. The contract had fallen $1.05 a barrel to settle at $82.34 a barrel during the previous trading session on Monday, 10 November 2014, the lowest level since October 2010. Brent for January 2015 delivery was off 46 cents at $82.49 a barrel. Production from shale oil fields in the United States showed no signs of slowing despite falling prices, the Energy Information Administration said in a forecast yesterday, 10 November 2014.

Indian government's decision last 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% in September 2014, the least since 2012. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent.

Data this week is likely to show growth in industrial production remaining muted in September 2014 and inflation falling further in October 2014.

Industrial production is seen rising a muted 0.4% in September 2014, matching the growth in August 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for September 2014 at 17:30 IST tomorrow, 12 November 2014.

The rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen easing further to 5.7% in October 2014, from 6.46% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release consumer price inflation data for October 2014 at 17:30 IST tomorrow, 12 November 2014.

The rate of inflation based on wholesale price index (WPI) is seen easing further to 2.1% in October 2014, from 2.38% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI inflation data for October 2014 at 12:00 noon on Friday, 14 November 2014.

Meanwhile, the Narendra Modi government is reportedly set to embark on a series of economic reforms aimed at putting the country on track for 8% growth in the intermediate term and an even faster pace beyond that. On the agenda are changes in the Land Acquisition, Rehabilitation and Resettlement Act, 2013, the Constitution Amendment Bill to implement the long awaited goods & services tax (GST), rapidly modernising the railway system to its fullest potential and fixing the seriously flawed agricultural produce marketing system.

The Winter Session of Parliament, during which the Insurance Bill is likely to be taken up for discussion and passage, will begin on 24 November 2014. The Bill, which proposes to hike the foreign direct investment (FDI) limit in the insurance sector to 49%, has been caught in a logjam with the Congress-led opposition insisting that it be referred to a select committee.

European stocks edged higher today, 11 November 2014, after well-received corporate earnings. Key indices in Germany, UK, and France were up 0.9% to 0.37%.

Japanese stocks led gains in Asian stocks today, 11 November 2014, on speculation Japan's Prime Minister Shinzo Abe will delay a sales-tax increase in the country. Key indices in Hong Kong, South Korea and Indonesia were up 0.24% to 1.35%. Key benchmark indices China, Taiwan and Singapore were off 0.16% to 0.27%.

In Japan, the Nikkei 225 Average jumped 2.05% after a newspaper report that Abe may call a snap election if he decides to scrap the sales-tax increase. With more than two-thirds of the public against the planned tax increase, winning a snap election may secure Abe's position as prime minister with a large majority while the opposition is divided.

China yesterday, 10 November 2014, said that the Stock Connect program, which allows individual investors outside of China to buy Shanghai-listed shares for the first time ever, will start on 17 November 2014.

Trading in US index futures indicated that the Dow could rise 18 points at the opening bell today 11 November 2014. US stocks finished a thinly-traded day with modest gains yesterday, 10 November 2014, that sent the S&P 500 and Dow Jones Industrial Average to close at record levels for the fourth straight session. The Nasdaq Composite index attained its highest closing level since March 2000. The index was helped by big gains in the biotech and internet stocks.

Federal Reserve Bank of Boston President Eric Rosengren said yesterday, 10 November 2014, the US central bank should refrain from raising short-term term interest rates until there is stronger evidence price pressures are beginning to rise. Monetary policymakers should remain patient about removing accommodation until it is clear that we are on the path to achieving both our 2% inflation target and maximum sustainable employment, Mr. Rosengren said.

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First Published: Nov 11 2014 | 4:34 PM IST

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