Key benchmark indices alternately swung between positive and negative zone in morning trade. The barometer index, the S&P BSE Sensex, was currently down 34.94 points or 0.12% at 28,409.07. The market breadth indicating the overall health of the market was strong.
Auto stocks were in demand on renewed buying. Tata Motors gained after the company's British luxury car unit Jaguar Land Rover (JLR) on Tuesday, 2 December 2014 announced that it started construction of its 750 million reais state-of-the-art manufacturing facility in the state of Rio de Janeiro (Brazil).
Foreign portfolio investors (FPIs) bought shares worth a net Rs 106.82 crore on Tuesday, 2 December 2014, as per provisional data.
In overseas markets, most Asian stocks edged higher today, 3 December 2014 as US automakers posted better-than-estimated car sales in November 2014. US stocks edged higher on Tuesday, 2 December 2014 sending the Dow Jones Industrial Average to a record, as biotechnology and energy companies rallied and data on construction spending boosted confidence in the economy.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil rebounded today, 3 December 2014, recouping some of its losses from the previous session.
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At 10:25 IST, the S&P BSE Sensex was down 34.94 points or 0.12% at 28,409.07. The index gained 60.64 points at the day's high of 28,504.65 at onset of the day's trading session. The index fell 73.28 points at the day's low of 28,370.73 in morning trade, its lowest level since 27 November 2014.
The CNX Nifty was down 4.55 points or 0.05% at 8,520.15. The index hit a high of 8,540.60 in intraday trade. The index hit a low of 8,508.35 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,534 shares gained and 608 shares fell. A total of 63 shares were unchanged.
The BSE Mid-Cap index was up 131.03 points or 1.27% at 10,487.14. The BSE Small-Cap index was up 139.77 points or 1.24% at 11,390.98. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 962 crore by 10:15 IST compared to Rs 313 crore by 09:30 IST.
Auto stocks were in demand on renewed buying. Maruti Suzuki India (up 0.9%), Ashok Leyland (up 1.46%), Eicher Motors (up 2.79%) and Mahindra & Mahindra (up 1.3%) edged higher.
Tata Motors gained 1.51%. Tata Motors British luxury car unit Jaguar Land Rover (JLR) on Tuesday, 2 December 2014 announced that it started construction of its 750 million reais state-of-the-art manufacturing facility in the state of Rio de Janeiro (Brazil) and confirmed plans to build its first overseas Education Business Partnership Centre there. JLR is the first British automotive company to invest in a manufacturing factory in Brazil. In the programme's first phase, the new manufacturing facility in Itatiaia will employ 400 people and will have an annual capacity of around 24,000 vehicles.
Among two-wheeler stocks, TVS Motor Company (up 4.82%) and Bajaj Auto (up 0.23%) rose.
Hero MotoCorp rose 0.05%. Hero MotoCorp after market hours on Tuesday, 2 December 2014 said the company has roped in golf champion Tiger Woods as its brand ambassador. The company did not share the financial details of the deal, but media reports suggested that a four-year deal between the company and Tiger Woods is pegged it at about Rs 200 crore.
The Reserve Bank of India had kept its main lending rate viz. the repo rate unchanged at 8% after the monetary policy review on Tuesday, 2 December 2014. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.9275, compared with its close of 61.89 during the previous trading session.
Brent crude oil rebounded today, 3 December 2014, recouping some of its losses from the previous session as a turbulent market struggled to find a price floor. Brent for January settlement was up 60 cents a barrel at $71.14 a barrel. The contract had dropped $2 a barrel to settle at $70.54 yesterday, 2 December 2014.
The HSBC India Services PMI for November 2014 is due today, 3 December 2014. 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.
The Ministry of Finance after trading hours yesterday, 2 December 2014, said that it is encouraging that the Reserve Bank of India (RBI) has taken note of the structural change in the outlook for inflation. Responding to the Monetary Policy Statement issued by the RBI, the finance ministry said that the government looks forward to the RBI supporting the revival of growth and employment. In the weeks ahead, the government and RBI will work towards a monetary policy framework that will help institutionalize the gains achieved on the inflation front, so as to reduce inflationary expectations and further support the revival of investment and growth, the finance ministry said in a statement.
The RBI kept its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review, yesterday, 2 December 2014, saying it still needs more proof that inflation is under control before it can start lowering lending rates. In the statement accompanying the rate decision, RBI Governor Raghuram Rajan said that the current slowdown in consumer prices may be short-lived. Rajan said the risk to the January 2016 target of 6% appear evenly balanced under the current policy stance.
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.
Most Asian stocks edged higher today, 3 December 2014 as US automakers posted better-than-estimated car sales in November 2014. Key benchmark indices in Singapore, Taiwan, China, Japan, and South Korea rose by 0.05% to 1.56%. Key benchmark indices in Indonesia and Hong Kong were off 0.3% to 0.42%.
The HSBC China services purchasing managers index rose to 53 in November from 52.9 in October, HSBC Holdings PLC said today, 3 December 2014 pointing to modest economic resilience outside the nation's factory sector. A reading above 50 indicates month-to-month expansion while a level below that points to contraction. New orders in the service sector grew at their fastest pace in 30 months, compared with a much weaker showing in factory activity, HSBC said.
Meanwhile, China's official nonmanufacturing purchasing managers' index rose to 53.9 in November from 53.8 in October, data from the China Federation of Logistics and Purchasing showed today, 3 December 2014.
Trading in US index futures indicated that the Dow could rise 13 points at the opening bell today, 3 December 2014. US stocks edged higher on Tuesday, 2 December 2014 sending the Dow Jones Industrial Average to a record, as biotechnology and energy companies rallied and data on construction spending boosted confidence in the economy.
November car and light truck sales were second-highest in eight years, according to figures from Autodata. Sales rose to a seasonally adjusted annual rate of 17.2 million in November, up from 16.5 million in October and the best level since August.
In economic news, data released on Tuesday, 2 December 2014 showed construction spending grew more than estimated in October. Construction spending rose 1.1% in October to a seasonally adjusted annual rate of $971 million.
Stanley Fisher, vice chairman of the Federal Reserve, speaking in Washington, D.C., reportedly said that continued labor market improvement and some signs that inflation is beginning to stir would be enough for the US central bank to start to raise interest rates. If inflation continues to move lower, the Fed will have to take that into account, Fischer reportedly said.
The European Central Bank (ECB) will meet tomorrow, 4 December 2014 to discuss monetary policy. The ECB has pledged more stimulus if needed to revive inflation.
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