A bout of volatility was witnessed as key benchmark indices retained positive zone in mid-afternoon trade. The gains for the benchmark indices were small. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 28,000 level, after piercing that level for the first time in its history earlier during the trading session. The Sensex was currently up 37.26 points or 0.13% at 27,897.64. The market breadth indicating the overall health of the market was positive. A survey released today, 5 November 2014, showed that business activity at India's service sector stagnated last month. Global crude oil prices extended previous day's slide. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
Foreign portfolio investors bought shares worth a net Rs 1413.34 crore during the previous trading session on Monday, 3 November 2014, as per provisional data released by the stock exchanges. The stock market was closed yesterday, 4 November 2014, on account of Moharram.
Ranbaxy Laboratories surged after the company said that it has received approval from the US Food and Drug Administration to manufacture and market Fenofibrate Capsules USP, 43 mg and 130 mg. Tyre stocks gained on renewed buying.
Meanwhile, as per media reports, security forces in Kolkata are on high alert following a central intelligence warning that the city's port may be the target of an attack by militants posing as fishermen.
Earlier, the Sensex and the 50-unit CNX Nifty had extended initial gains and struck record high.
In overseas markets, US index futures were in green after the results showed that the Republican Party recaptured control of the US Senate in Tuesday's midterm elections, notching victories in races around the country. European stocks rose as better-than-estimated earnings offset investor concern about the health of the region's economy. Asian stocks declined after weak economic data from China.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains for the dollar after victory for the Republican Party in US mid-term elections.
Brent crude dropped as weak economic data from top energy consumer China stoked worries about demand in a market that is already battling a deepening global supply glut.
At 14:12 IST, the S&P BSE Sensex was up 37.26 points or 0.13% at 27,897.64. The index jumped 146.22 points at the day's high of 28,006.60 in morning trade, a record high for the index. The index fell 2.73 points at the day's low of 27,857.65 in afternoon trade.
The 50-unit CNX Nifty was up 10.05 points or 0.12% at 8,334.20. The index hit a high of 8,363.95 in intraday trade, a record high for the index. The index hit a low of 8,323.50 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,599 shares gained and 1,273 shares fell. A total of 111 shares were unchanged.
The BSE Mid-Cap index was up 54.22 points or 0.55% at 9,995.62. The BSE Small-Cap index was up 96.42 points or 0.87% at 11,173.54. Both these indices outperformed the Sensex.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
Sun Pharmaceutical Industries (up 2.78%), Axis Bank (up 2.28%) and State Bank of India (up 2.24%) edged higher from the Sensex pack.
Coal India (down 3.5%), Sesa Sterlite (down 3.1%) and Bharti Airtel (down 2.89%) edged lower from the Sensex pack.
Ranbaxy Laboratories rose 3.22%. Ranbaxy Laboratories today, 5 November 2014, said that the company has received approval from the US Food and Drug Administration to manufacture and market Fenofibrate Capsules USP, 43 mg and 130 mg. Total market sales for Fenofibrate Capsules USP, 43 mg and 130 mg stood at $56 million in the United States (IMS - MAT: September 2014).
IPCA Laboratories lost 10.07% to Rs 671.15 after a foreign brokerage downgraded the stock to "underperform" from "neutral", citing negative US Food and Drug Administration observations. US Food and Drug Administration (USFDA)'s observations are on IPCA Laboratories' Indore facility, the brokerage said, adding that two of these observations are critical, and could delay the recovery of US sales for IPCA Laboratories.
Clariant Chemicals (India) tumbled 7.31% after the company reported a net loss of Rs 1.32 crore in Q3 September 2014, compared with net profit of Rs 123.99 crore in Q3 September 2013. Total income from operations declined 27.91% to Rs 256.07 crore in Q3 September 2014 over Q3 September 2013. The Q3 result was announced after market hours on Monday, 3 November 2014.
Monsanto India slumped 4.62% after the company reported a net loss of Rs 4.81 crore in Q2 September 2014 compared with net profit of Rs 75.90 crore in Q2 September 2013. Total income rose 0.86% to Rs 101.57 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced after market hours on Monday, 3 November 2014.
Tyre stocks rose on renewed buying. CEAT (up 1.55%), TVS Srichakra (up 1.1%), MRF (up 2.12%), JK Tyre & Industries (up 0.69%), and Goodyear India (up 1.1%) edged higher.
Apollo Tyres gained 2.39% to Rs 235.35 after scaling a record high of Rs 236.80 in intraday trade.
The stock market remains closed tomorrow, 6 November 2014, on account of Gurunanak Jayanti.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains for the dollar after victory for the Republican Party in US mid-term elections. The partially convertible rupee was hovering at 61.425, compared with its close of 61.405 on Monday, 3 November 2014. The currency market was shut yesterday, 4 November 2014, on account of Moharram.
Brent crude dropped as weak economic data from top energy consumer China stoked worries about demand in a market that is already battling a deepening global supply glut. Brent crude for December delivery was off 77 cents at $82.05 a barrel. The contract had fallen $1.96 a barrel to settle at $82.82 a barrel yesterday, 4 November 2014, its lowest close since 21 October 2010, after Saudi Arabia cut oil prices for the US, in a move meant to remain competitive amid booming oil production in the US.
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.
The government is open to privatisation of certain loss-making public sector companies, Finance Minister Arun Jaitley reportedly said today, 5 November 2014, during an interaction at the World Economic Forum in New Delhi. Jaitley also reportedly said the government will soon unveil reforms for other natural resources sectors along the lines of coal block auctions.
Jaitley also reportedly said that the government intends to open railways further to private investment, review tough land purchase rules and relax labour laws, but added that the government needed to build support for some of these measures.
Meanwhile, a survey released today, 5 November 2014, showed that business activity at India's service sector stagnated last month. Adjusted for seasonal factors, the headline HSBC India Services PMI Business Activity Index -- a single question tracking changes in activity at Indian services companies on a month-by-month basis -- fell to 50 in October, from 51.6 in September. Despite rising for the sixth consecutive month, new work intakes in the Indian service sector increased at the weakest pace since May during October. Growth of employment in the Indian service sector also slowed in October. The services sector contributes about 60% to India's gross domestic product.
On the positive side, the latest data indicated that service sector firms in India remained highly optimistic regarding prospects for activity growth in the coming year. Business sentiment was the strongest in three months, with panellists commenting on anticipated improvements in demand and new marketing initiatives as key sources of optimism.
European stocks edged higher today, 5 November 2014, as better-than-estimated earnings offset investor concern about the health of the region's economy. Key benchmark indices in UK, France and Germany were up 0.48% to 0.65%.
The European Commission yesterday, 4 November 2014, cut its forecast for growth domestic product for the 18-country eurozone region to 0.8% this year, from a previous forecast of 1.2%, in the spring. In 2015, the eurozone economy will likely grow 1.1%, also less than the 1.7% growth seen in the spring. In 2016, growth in the currency union will rise to 1.7%, the commission said.
Investors are awaiting policy decisions by the European Central Bank (ECB) after a monetary policy review tomorrow, 6 November 2014. Investors will weigh ECB President Mario Draghi's speech for hints of further stimulus, including the purchase of government bonds. The ECB began buying covered bonds last month as part of a strategy to revive prices, boost lending and spur growth.
The Bank of England (BoE) also undertakes a monthly monetary policy review tomorrow, 6 November 2014.
Asian stocks declined today, 5 November 2014, after weak economic data from China. Key benchmark indices in China, Indonesia, Taiwan, South Korea and Hong Kong were off 0.19% to 0.63%. Key benchmark indices in Japan and Singapore were up 0.19% to 0.44%.
The HSBC China services purchasing managers index edged down to 52.9 in October from 53.5 in September, but most major components of the index remain solid, HSBC Holdings PLC said today, 5 November 2014. A reading above 50 indicates month-on-month expansion while a level below that points to contraction.
Trading in US index futures indicated that the Dow could rise 38 points at the opening bell today, 5 November 2014. The latest results showed that the Republican Party recaptured control of the US Senate in Tuesday's midterm elections, notching victories in races around the country. Republicans also kept control of the House of Representatives on Tuesday, as was widely expected. By taking the Senate and keeping the House, the Republican Party takes control of Congress for the first time in eight years.
The US stock market finished Tuesday's choppy session mostly lower, as steep losses in energy companies' stocks weighed on the main benchmark. In economic news, US trade deficit jumped in September to the highest level since the late spring. The surprising spike in the trade deficit is likely to reduce third-quarter growth when the US government revises the report later this month.
St. Louis Fed President James Bullard yesterday, 4 November 2014, said that the US economy is on track to grow at a 3% annual rate over the next 14 months, which should allow the Federal Reserve to move ahead with plans to hike short-term interest rates.
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