Banking and cement stocks rose as key benchmark indices eked out small gains. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was provisionally up 55.92 points or 0.2% to 27,930.65. 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 355.30 crore yesterday, 10 November 2014, as per provisional data.
FMCG stocks advanced. ITC declined on profit booking. 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.
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.
As per provisional closing, the S&P BSE Sensex was up 55.92 points or 0.2% to 27,930.65. 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 was up 18.40 points or 0.22% at 8,362.65, as per provisional closing. 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 was up 70.39 points or 0.7% at 10,083.66. The BSE Small-Cap index was up 22.84 points or 0.21% at 11,157.65. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,564 shares advanced and 1,442 shares declined. A total of 114 shares were unchanged.
The total turnover on BSE amounted to Rs 3265 crore, lower than Rs 3867.15 crore on Monday, 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.
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.
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.
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.
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.
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 61.60, 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 16 cents at $82.18 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 15 cents at $82.80 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.
European stocks edged higher today, 11 November 2014, after well-received corporate earnings. Key indices in Germany, UK, and France were up 0.19% to 0.45%.
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 0.18% to 0.31%.
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 23 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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