Key benchmark indices edged higher in early trade as lower crude oil prices boosted sentiment. The barometer index, the S&P BSE Sensex, was currently up 66.16 points or 0.25% at 26,819.06. The 50-unit CNX Nifty regained psychological 8,000 mark after closing below that mark yesterday, 27 October 2014. The market breadth indicating the overall health of the market was strong. The fall in global crude oil prices will help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Coal India (CIL) declined after the Ministry of Corporate Affairs after trading hours yesterday, 27 October 2014, said that the Competition Commission of India (CCI) has issued two separate orders against CIL and its subsidiaries for abusing their dominant position.
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.US stocks ended mostly higher yesterday, 27 October 2014, with gains limited by weak economic data.
At 9:25 IST, the S&P BSE Sensex was up 66.16 points or 0.25% at 26,819.06. The index rose 85.38 points at the day's high of 26,838.28 in early trade. The index rose 32.99 points at the day's low of 26,785.89 in early trade.
The CNX Nifty was up 19 points or 0.24% at 8,010.70. The index hit a high of 8,013.70 in intraday trade. The index hit a low of 7,999.65 in intraday trade.
The BSE Mid-Cap index was up 29.38 points or 0.31% at 9,621.45. The BSE Small-Cap index was up 41.40 points or 0.39% at 10,684.09. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 697 shares rose while 280 shares declined. A total of 44 shares were unchanged.
Coal India (CIL) declined 1% after the Ministry of Corporate Affairs after trading hours yesterday, 27 October 2014, said that the Competition Commission of India (CCI) has issued two separate orders against CIL and its subsidiaries for abusing their dominant position. In one of the cases, the CCI inter alia found that the buyer of coal from CIL and its subsidiaries is saddled with penalty by way of forfeiture of Earnest Money Deposit (EMD) for non-lifting of coal after successful participation in the e-Auction without any corresponding liability upon CIL and its subsidiaries for failure to deliver coal in respect of accepted bids. Apart from issuing a cease and desist order, the CCI has ordered modification of the terms and conditions of the scheme suitably. In another case, the CCI held that CIL and its subsidiaries operate independently of market forces and enjoy undisputed dominance in the relevant market of production and supply of non-coking coal to the thermal power producers in India. The CCI inter alia found that CIL and its subsidiaries were imposing unfair conditions in fuel supply Agreements (FSAs) with the power producers for supply of non-coking coal. In both these cases, the CCI has not imposed any monetary penalty on CIL.
Jindal Steel & Power (JSPL) dropped 2.98%. The company after market hours yesterday, 27 October 2014 in a clarification with regard to media news item titled "Coal Scam : CBI files fresh case against Jindal Steel" said that Central Bureau of Investigation (CBI) has, based on the preliminary enquiry initiated by it on directions from Central Vigilance Commission (CVC), registered an FIR in connection with the allotment of coal block in Chhattisgarh to the company. JSPL further said that all its actions are in keeping with the legal framework of the country & that it complies with the law in letter & in spirit. JSPL continues to co-operate with all the authorities in a responsive manner, it added.
Jindal Steel & Power had tumbled close to 8% on Monday, 27 October 2014, on buzz the CBI has begun a probe into how Congress leader Naveen Jindal's company got permission from the environment ministry under Jayanti Natarajan in 2013 during United Progressive Alliance's government to mine iron ore in Asia's largest sal forest in the Naxal-affected Saranda area of Jharkhand.
TCS rose 0.62%. With respect to news article appearing titled "TCS eyes $5 billion digital services opportunity," TCS clarified after market hours on Monday, 27 October 2014, that it does not have any specific comment to offer with regard to this news item. The company affirmed its commitment to fair disclosure.
The market 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.
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 down 0.27% to 0.76%. Key benchmark indices in China, Hong Kong, and Taiwan were up 0.6% to 1.47%.
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" for keeping rates low at its two-day policy meeting. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.
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