After witnessing a range bound movement earlier during the trading session, key benchmark indices slipped into the red from green in early afternoon trade. The losses for the benchmark indices were small. The barometer index, was currently off 17.89 points or 0.06% at 28,544.93. The market breadth indicating the overall health of the market was positive. Brent extended losses from a four-year low. Fall in global crude oil prices augur well for India as the nation imports about 80% of its crude oil requirements.
State Bank of India (SBI) slipped in volatile trade after the state-run bank announced reduced the interest rate on retail term deposit on select maturities. Realty stocks rose on renewed buying. Steel Authority of India (Sail) dropped in volatile trade as bidding continued for the sale of 5% stake of the government in the state-run steel major through the stock exchanges mechanism.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 474 crore yesterday, 4 December 2014, as per provisional data.
In overseas markets, Chinese stocks led gains in Asian stocks. US stocks fell from record levels yesterday, 4 December 2014, as the European Central Bank (ECB) decided to hold off on additional stimulus after a monthly monetary policy review.
In the foreign exchange market, the rupee edged higher against the dollar on increased selling of the US currency by exporters and banks amid persistent foreign capital inflows.
Brent extended losses from a four-year low as Saudi Arabia offered customers in Asia record discounts on its crude, bolstering speculation the country is defending its market share. Deregulation of diesel price announced by the Indian government in October 2014 and a sharp decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide 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.
At 12:15 IST, the S&P BSE Sensex was down 17.89 points or 0.06% at 28,544.93. The index fell 19.83 points at the day's low of 28,542.99 in early afternoon trade. The index gained 88.93 points at the day's high of 28,651.75 in early trade.
The CNX Nifty was down 0.85 points or 0.01% at 8,563.55. The index hit a low of 8,560.30 in intraday trade. The index hit a high of 8,588.35 in intraday trade.
The market breadth indicating the overall health of the market was positive. 1,480 shares gained and 1,106 shares fell. A total of 111 shares were unchanged.
The BSE Mid-Cap index was up 49.32 points or 0.47% at 10,575.14. The BSE Small-Cap index was up 99.62 points or 0.87% at 11,570.87. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1751 crore by 12:15 IST compared to Rs 1289 crore by 11:15 IST.
State Bank of India (SBI) slipped 0.3% to Rs 319.30. The stock was volatile. The stock hit high of Rs 321 and low of Rs 317.80 so far during the day. The state-run bank during market hours today, 5 December 2014, said it has reduced the interest rate on retail term deposit below Rs 1 crore on select maturities with effect from Monday, 8 December 2014. The bank has reduced interest rate on term deposits for maturity between one year and less than five years to 8.5% from 8.75%. The bank has reduced interest rate on term deposits for maturity of five years and above to 8.25% from 8.5%.
Realty stocks rose on renewed buying. DLF (up 2.17%), Indiabulls Real Estate (up 1.81%), Housing Development and Infrastructure (up 1.39%), Unitech (up 2.71%), Godrej Properties (up 0.46%), Oberoi Realty (up 0.22%) and Parsvnath Developers (up 0.77%) gained.
Steel Authority of India (Sail) declined 2.05% to Rs 83.60. The stock was volatile. The stock hit high of Rs 84.70 and low of Rs 83.50 so far during the day. As at 12:05 IST, bids were received for a total of 8.51 crore shares at an indicative price of Rs 83.54 per share for the Offer for Sale (OFS) of the state-run steel company's shares by the government, as per data from the stock exchanges. The government has put on the block 20.65 crore shares of Sail, representing a 5% stake through Offer for Sale (OFS) via the stock exchanges mechanism today, 5 December 2014. The OFS began at 9:15 IST and ends at 15:30 IST. The floor price for the offer for sale (OFS) has been fixed at Rs 83 per share.
In the foreign exchange market, the rupee edged higher against the dollar on increased selling of the US currency by exporters and banks amid persistent foreign capital inflows. The partially convertible rupee was hovering at 61.845, compared with its close of 61.935 during the previous trading session.
Brent extended losses from a four-year low as Saudi Arabia offered customers in Asia record discounts on its crude, bolstering speculation the country is defending its market share. Brent for January settlement was off 36 cents a barrel at $69.28 a barrel. The contract had lost 28 cents a barrel to settle at $69.64 yesterday, 4 December 2014, the lowest close since May 2010.
Saudi Arabia is the biggest and most influential member of the Organization of the Petroleum Exporting Countries (OPEC), which late last month decided to maintain output levels despite a global oversupply.
The Indian government intends to get the Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector passed during the winter session of parliament which began on 24 November 2014. The government is also likely to introduce the constitutional amendment bill for the goods & services tax in the winter session of parliament.
Meanwhile, Minister of State (Independent Charge) of the Ministry of Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr Jitendra Singh today, 5 December 2014, said that government is committed to ensure transparency in governance. Speaking to a delegation of Right to Information Assessment & Advocacy Group, an organization of RTI Activists, Dr Singh said that during the last six months, several important measures have been adopted to make the governance easy and more accountable. In this context, he referred to a recent decision to have a single self-attested affidavit which eliminates the requirement for attestation by gazetted officer, notary or a similar other authority.
Chinese stocks led gains in Asian stocks today, 5 December 2014. Key benchmark indices in China, Singapore, Hong Kong, Indonesia, Japan, South Korea were up 0.02% to 1.01%. In Taiwan, the Taiwan Weighted index fell 0.2%.
Trading in US index futures indicated a flat opening of US stocks today, 5 December 2014. US stocks fell from record levels yesterday, 4 December 2014, as the European Central Bank (ECB) decided to hold off on additional stimulus after a monthly monetary policy review.
In economic news, US jobless claims in the week ended Nov. 29 fell by 17,000 to 297,000, the Labor Department said yesterday, 4 December 2014. US government's monthly nonfarm payrolls report for November will be out later in the global day today, 5 December 2014.
In Europe, European Central Bank (ECB) left its key interest rate unchanged at 0.05% after a monthly monetary policy review yesterday, 4 December 2014, and announced that it will wait until 2015 to consider additional market supportive measures, including buying European sovereign debt.
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