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, was currently up 73.92 points or 0.26% at 28,516.63. The market breadth indicating the overall health of the market was positive. Meanwhile, the finance ministry after trading hours yesterday, 3 December 2014, announced the setting up of a High Level Committee (HLC) to interact with trade and industry on tax laws.
Telecom stocks declined. ABB India galloped to 52-week high on reports of optimistic comments by global CEO. Among side counters, shares of biscuits major Britannia Industries and auto components major Bosch scaled record high. Bharat Electronics and Castrol India also scaled record high.
Earlier, key indices had trimmed gains after an initial rally. The 50-unit CNX Nifty had surged to record high in early trade on firm Asian stocks.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 391.07 crore yesterday, 3 December 2014, as per provisional data.
In overseas markets, European stocks reversed initial gains as investors turned cautions ahead of monetary policy review from European Central Bank (ECB) and a speech from ECB President Mario Draghi later in the global day today, 4 December 2014. Asian stocks edged higher amid fresh signs of resilience in the US economy, the world's biggest economy. In the US yesterday, 3 December 2014, big gains in energy, materials and industrials sectors helped propel the S&P 500 and Dow Jones Industrial Average to record levels.
In the foreign exchange market, the rupee was currently almost unchanged against the dollar.
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Brent crude oil futures rose after a US government-supply report yesterday, 3 December 2014, showed an unexpected decline in US crude inventories last week.
At 14:16 IST, the S&P BSE Sensex was up 73.92 points or 0.26% at 28,516.63. The index jumped 366.07 points at the day's high of 28,808.78 at onset of the day's trading session, its highest level since 1 December 2014. The index rose 6.24 points at the day's low of 28,448.95 in mid-morning trade.
The CNX Nifty was up 4.80 points or 0.06% at 8,542.45. The index hit a high of 8,626.95 in intraday trade, a record high for the index. The index hit a low of 8,526.40 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,463 shares gained and 1,353 shares fell. A total of 122 shares were unchanged.
The BSE Mid-Cap index was up 21.04 points or 0.2% at 10,520.90, underperforming the Sensex. The BSE Small-Cap index was up 48.29 points or 0.42% at 11,484.17, outperforming the Sensex.
ABB India galloped 13.66% to Rs 1,323 after hitting a 52-week high of Rs 1,396.70 in intraday trade. Reports quoted ABB's global CEO Ulrich Spiesshofer as saying that the company is planning to double exports from India in next 3-5 years and that exports are likely to form nearly 50% of India business. Spiesshofer said that there are no plans to delist ABB India from Indian bourses.
Bharat Electronics jumped 9.22% to Rs 2,872.80 after scaling a record high of Rs 2,975 in intraday trade.
Telecom stocks declined. Bharti Airtel (down 2.09%), Idea Cellular (down 1.96%), and Reliance Communications (down 1.32%) declined.
Auto components major Bosch gained 3.91% to Rs 20,550 after scaling a record high of Rs 21,168.05 in intraday trade.
Shares of biscuits major Britannia Industries gained 1.65% to Rs 1,838 after scaling a record high of Rs 1,840 in intraday trade.
Castrol India advanced 1.5% to Rs 530.95 after scaling a record high of Rs 535 in intraday trade.
Alok Industries spurted 11.52% to Rs 12.10 after a large bulk deal of 2.26 crore shares was executed on the counter at Rs 10.75 per share at 9:38 IST on BSE.
Archies lost 8.22% after a promoter pared his stake in the company on Wednesday, 3 December 2014. On Wednesday, 3 December 2014, Varun Moolchandani, part of the promoter group, sold 2.60 lakh shares, or 0.77% stake, at Rs 35.40 per share on NSE. As on 30 September 2014, Varun Moolchandani owned 20.30 lakh shares, or 6.01% stake in Archies.
In the foreign exchange market, the rupee was currently almost unchanged against the dollar. The partially convertible rupee was hovering at 61.9125, compared with its close of 61.91 during the previous trading session.
Brent crude oil futures rose after a US government-supply report yesterday, 3 December 2014, showed an unexpected decline in US crude inventories last week. Brent for January settlement was up 26 cents a barrel at $70.18 a barrel. The contract had slipped 62 cents a barrel to settle at $69.92 yesterday, 3 December 2014.
The finance ministry after trading hours yesterday, 3 December 2014, announced the setting up of a High Level Committee (HLC) to interact with trade and industry on tax laws. The HLC will interact with trade and industry on regular basis and ascertain areas where clarity in tax laws is required. The HLC will give recommendations to the CBDT/CBEC for issuance of appropriate clarifications by way of circulars, instructions etc. on tax issues. The CBDT/CBEC will issue the required clarifications, circulars, instructions etc. within a period of 2 months from the date of receipt of recommendations of the HLC, the finance ministry said in a statement. The term of the committee shall be for one year from the date of its constitution, subject to further extensions, as may be considered appropriate by the Department of Revenue, Ministry of Finance.
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.
European stocks reversed initial gains today, 4 December 2014, as investors turned cautions ahead of monetary policy review from European Central Bank (ECB) and a speech from ECB President Mario Draghi later in the global day today, 4 December 2014. Key benchmark indices in France and Germany were off 0.12% each. In Germany, the DAX index was up 0.18%.
The European Central Bank (ECB) reviews interest rates today, 4 December 2014, amid speculation policy makers will add to stimulus measures to ward off deflation.
Separately, the Bank of England is seen keeping its interest rates at a record low after a monetary policy review today, 4 December 2014.
Asian stocks edged higher today, 4 December 2014, amid fresh signs of resilience in the US economy, the world's biggest economy. Key benchmark indices in Singapore, Taiwan, Japan, Indonesia and South Korea were up 0.19% to 1.72%.
Chinese stocks surged on prospects a jump in trading will boost profits at brokerages. In mainland China, the Shanghai Composite index jumped 4.31% to settle at 2,899.46, its highest closing level since May 2011. Hong Kong's Hang Seng index jumped 1.72%.
In Japan, the result of polls by Japanese news organizations today, 4 December 2014, showed that Japanese Prime Minister Shinzo Abe 's ruling Liberal Democratic Party is poised for a landslide victory in Dec. 14 parliamentary elections in Japan. The poll results come despite some disappointing economic news recently for Abe and his pro-growth Abenomics platform built on measures such as monetary easing and measures such as labor-market liberalization. All the polls cautioned that many voters have yet to make up their minds, meaning the final outcome could change. All the polls predicted that the Japan Communist Party, which currently has eight seats, would make gains.
Trading in US index futures indicated a flat opening of US stocks today, 4 December 2014. Big gains in energy, materials and industrials sectors, following a rebound in oil and gold prices, helped propel the S&P 500 and Dow Jones Industrial Average to record levels yesterday, 3 December 2014.
In economic data, a private report showed hiring in the US topped 200,000 workers for the seventh time in eight months, while the Federal Reserve's Beige Book indicated widespread hiring. Service industries in the US expanded last month at the second-fastest pace in more than nine months.
US government's monthly nonfarm payrolls report for November will be out tomorrow, 5 December 2014.
Federal Reserve Bank of Dallas President Richard Fisher yesterday, 3 December 2014, said that he'd like the US central bank to revisit its recently revised plans for raising borrowing costs in way that could help ease conditions in the bond market. In remarks in Dallas, Fisher, who will retire from the Fed next March, said he'd like the central bank to think again about its current plan to stop reinvesting the proceeds of maturing Treasury and mortgage bonds into new holdings only after it begins to raise short-term interest rates. The Fed's ongoing reinvestment process is designed to keep its $4.5 trillion balance sheet size steady. If it didn't buy new securities with the proceeds of its maturing holdings, the balance sheet would automatically begin to shrink. In a plan updated in September, the Fed said the reinvestment process would stop only after the Fed begins to raise short-term rates.
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