A range bound movement was witnessed as key benchmark indices retained positive zone in mid-afternoon trade. The barometer index, the S&P BSE Sensex, retained the psychological 28,000 level which it had regained in early trade. The Sensex was currently up 107.10 points or 0.38% at 28,017.16. The market breadth indicating the overall health of the market was positive. Prime Minister Narendra Modi today, 12 November 2014, said that a new era of economic development, industrialization and trade has begun in India. Asian stocks were in green. European stocks dropped.
Global crude oil prices edged lower. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement. Data after trading hours today, 12 November 2014, is likely to show consumer price inflation falling further in October 2014 and growth in industrial production remaining muted in September 2014.
Meanwhile, the empowered committee of state finance ministers on goods & services tax (GST) at its meeting held yesterday, 11 November 2014, reportedly agreed on the 'place of supply' rules that form the backbone of proposed GST. Foreign portfolio investors (FPIs) bought shares worth a net Rs 458.04 crore yesterday, 11 November 2014, as per provisional data. On the political front, the Devendra Fadnavis-led BJP government today, 12 November 2014, won the trust vote in Maharashtra assembly.
Realty stocks were mostly higher. Tata Steel dropped amid volatility ahead of Q2 September 2014 results. Bharat Heavy Electricals edged higher. HMT spurted after the company reported lower net loss in Q2 September 2014 compared to Q2 September 2013.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit record high in mid-morning trade after extending initial gains.
In overseas markets, bank stocks led European stocks lower after US, Swiss, and British regulators ordered five banks to pay about $3.3 billion in the first wave of penalties since authorities began a global probe into the rigging of key foreign-exchange benchmarks last year. Asian stocks edged higher after Wall Street edged up to its fifth straight record close yesterday, 11 November 2014. US stocks eked out miniscule gains yesterday, 11 November 2014, with the Dow Jones Industrial Average and the S&P 500, both, attaining record closing high in light volume as consumer discretionary shares gained.
In the foreign exchange market, the rupee edged higher against the dollar as key equity benchmark indices in India hit record high.
Brent crude futures fell amid signs that OPEC members are reluctant to reduce supply even as prices slump.
At 14:18 IST, the S&P BSE Sensex was up 107.10 points or 0.38% at 28,017.16. The index jumped 216.42 points at the day's high of 28,126.48 in mid-morning trade, a lifetime high for the index. The index rose 48.58 points at the day's low of 27,958.64 in opening trade.
The CNX Nifty was up 15.85 points or 0.19% at 8,378.50. The index hit a high of 8,415.05 in intraday trade, a lifetime high for the index. The index hit a low of 8,377.95 in intraday trade.
The BSE Mid-Cap index was up up 79.01 points or 0.78% at 10,164.66. The BSE Small-Cap index was up 54.58 points or 0.49% at 11,216.53. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,539 shares gained and 1,360 shares fell. A total of 114 shares were unchanged.
Among Sensex pack, Bajaj Auto (up 2.42%), Axis Bank (up 2.26%), Tata Motors (up 1.98%), Housing Development Finance Corporation (up 1.67%) and ICICI Bank (up 1.51%) edged higher.
NTPC (down 2.06%), Cipla (down 1.29%), L&T (down 1.03%), Tata Power Company (down 1.23%), Sun Pharmaceutical Industries (down 0.92%), and Hindustan Unilever (down 0.95%) edged lower from the Sensex pack.
Realty stocks were mostly higher. Indiabulls Real Estate (up 1.53%), DLF (up 1.28%), Godrej Properties (up 0.69%), D B Realty (up 0.07%) and Housing Development & Infrastructure (up 0.44%) gained. Unitech (down 0.7%) and Oberoi Realty (down 1.33%) declined.
Tata Steel lost 1.45% at Rs 472.75. The stock hit a high of Rs 483 and a low of Rs 470.50. The company announces Q2 September 2014 results today, 12 November 2014.
Bharat Heavy Electricals (Bhel) rose 1.08% at Rs 247.70 after the company after market hours yesterday, 11 November 2014, said that the company has achieved yet another landmark in its After-Market-Service business by successfully renovating and modernizing (R&M) Unit-2 (110 megawatt) at Muzaftarpur Thermal Power Station (TPS) Plant of Kanti Bijlee Utpadan Nigam in Bihar.
HMT rose 7.22% at Rs 40.10 after the company reported net loss of Rs 24.68 crore in Q2 September 2014, lower than net loss of Rs 40.12 crore in Q2 September 2013. Total income from operations (net) rose 62.73% to Rs 17.51 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 11 November 2014.
In the foreign exchange market, the rupee edged higher against the dollar as key equity benchmark indices in India hit record high. The partially convertible rupee was hovering at 61.49, compared with its closing of 61.555 during the previous trading session.
Brent crude futures fell amid signs that OPEC members are reluctant to reduce supply even as prices slump. Brent for December delivery was off 51 cents at $81.16 a barrel. The contract dropped 67 cents yesterday, 11 November 2014, after first touching $80.46 a barrel, its lowest since September 2010. The contract had settled at $81.67 a barrel yesterday, 11 November 2014, the lowest price since October 2010. Brent for January 2015 delivery was off 52 cents at $81.87 a barrel.
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.
Data after trading hours today, 12 November 2014, is likely to show consumer price inflation falling further in October 2014 and data later this week is likely to show wholesale price inflation falling further last month.
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 today, 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.
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 today, 12 November 2014.
Meanwhile, the empowered committee of state finance ministers on goods & services tax (GST) at its meeting held yesterday, 11 November 2014, reportedly agreed on the 'place of supply' rules that form the backbone of proposed GST. The place of supply rules decide where goods or services will be taxed, fixing a crucial element of the levy that has gained in importance because of the surge in ecommerce and electronic delivery of services. However, both the Centre and the states continue to differ on the threshold limit beyond which GST will be levied. As per reports, the states have stuck to their stand that the revenue threshold limit beyond which GST will be levied should be Rs 10 lakh for general category states and Rs 5 lakh for special category states and north-eastern states, despite the central government asking states to review its earlier decision on this limit and increase it upwards to Rs 25 lakh.
The government is reportedly proposing to introduce the GST Constitutional Amendment Bill and push for its passage in the winter session of Parliament. GST is a major indirect tax reform. GST will subsume central indirect taxes such as excise duty and service tax at the central level and value added tax at the state level besides other local levies such as octroi and entry tax.
Prime Minister Narendra Modi today, 12 November 2014, said that a new era of economic development, industrialization and trade has begun in India. He was speaking at the India-ASEAN Summit in Myanmar.
Finance Minister Arun Jaitley today, 12 November 2014, said that the government is making efforts to raise the share of manufacturing sector from 15% to 25% of GDP. He was delivering inaugural address at the Services Conclave, 2014 in the national capital. Jaitley highlighted the importance of the services sector exports to compensate for the deficit in the merchandise exports. Earlier during the day, delivering the special address, the Minister of State (I/C) for Commerce and Industry Nirmala Sitharaman said that there was an immense untapped potential in the services sector that needs to be harnessed for increasing the share of India's export in the global services arena. The Commerce Minister listed the sectors of entertainment, wellness, hospitality and professional services that could provide a suitable platform for services export from India. Sitharaman said that the two-day Services Conclave shall provide valuable inputs to Ministry of Commerce & Industry for further push to services exports.
On the political front, the Devendra Fadnavis-led BJP government today, 12 November 2014, won the trust vote in Maharashtra assembly. The confidence motion was passed by voice-vote. Shiv Sena's Eknath Shinde became the Leader of Opposition in the Maharashtra assembly. BJP legislator Haribhau Bagde was elected unopposed as Speaker of Maharashtra Assembly after Shiv Sena and Congress candidates withdrew their nominations.
European stocks edged lower today, 12 November 2014, after US, Swiss, and British regulators ordered five banks to pay about $3.3 billion in the first wave of penalties since authorities began a global probe into the rigging of key foreign-exchange benchmarks last year. Key indices in Germany, UK, and France were down 0.37% to 1.15%.
Germany's wholesale price index fell to minus 0.6% in October, from 0.1% in the preceding month, official data released today, 12 November 2014 showed.
Asian stocks edged higher today, 12 November 2014, after Wall Street edged up to its fifth straight record close yesterday, 11 November 2014. Key indices in China, South Korea, Hong Kong, and Indonesia were up 0.22% to 1%. Key indices in Singapore and Taiwan were off 0.36% to 1.28%.
Japanese stocks rose for the second day in a row amid speculation the nation will delay raising its sales tax again. The Nikkei 225 Average was up 0.43%. Newspaper reports yesterday, 11 November 2014, suggested that Japan's Prime Minister Shinzo Abe is considering postponing a second increase in sales-tax next year and preparing to call snap elections next month. Abe told reporters yesterday, 11 November 2014, at the Asia-Pacific Economic Cooperation forum in Beijing that he hadn't made a decision on dissolving parliament.
Meanwhile, a trading program linking Hong Kong's stock market with Shanghai's will open on 17 November 2014.
Trading in US index futures indicated that the Dow could fall 38 points at the opening bell today 12 November 2014. US stocks eked out miniscule gains yesterday, 11 November 2014 with the Dow Jones Industrial Average and S&P 500 hitting record closing high in light volume as consumer discretionary shares gained. The National Federation of Independent Business said its small-business optimism index rose 0.8 point to 96.1 in October, a two-month high.
Repeating a familiar message, Philadelphia Fed President Charles Plosser today, 12 November 2014, said US interest rates should be raised "sooner rather than later." In a speech in London, Plosser said rising rates are not inconsistent with a continuing recovery. Plosser, one of the more hawkish members, has a vote on this year's Federal Open Market Committee.
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