A bout of volatility was witnessed as key benchmark indices trimmed losses in early afternoon trade soon after extending intraday losses in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently off 36.34 points or 0.13% at 28,301.71. The market breadth indicating the overall health of the market was positive.
Brent crude oil futures edged lower. Indian government's decision last month to decontrol diesel prices 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. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1168.94 crore yesterday, 25 November 2014, as per provisional data.
Bajaj Auto and Bharti Airtel declined on reports Nigeria's central bank devalued the nation's currency by 8% and raised interest rates sharply yesterday, 25 November 2014. IT stocks declined.
Earlier, high volatility was witnessed as key indices alternately swung between positive and negative zone in morning trade. Before that, key indices had dropped amid initial volatility.
In the foreign exchange market, the rupee edged lower against the dollar.
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Brent crude oil futures edged lower amid intraday volatility as markets brace for the highly anticipated meeting of the Organization of the Petroleum Exporting Countries (OPEC) tomorrow, 27 November 2014.
In overseas markets, Asian stocks rose as materials and health-care shares advanced. US stocks ended marginally lower yesterday, 25 November 2014, snapping a three-day run on the S&P 500 and Dow Jones Industrial Average as a drop in consumer confidence offset faster economic expansion.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from November 2014 series to December 2014 series. The November 2014 derivatives contracts expire tomorrow, 27 November 2014.
At 12:17 IST, the S&P BSE Sensex was down 36.34 points or 0.13% at 28,301.71. The index rose 41.22 points at the day's high of 28,379.27, in morning trade. The index fell 76.74 points at the day's low of 28,261.31 in early afternoon trade.
The CNX Nifty was down 12.20 points or 0.14% at 8,450.90. The index hit a high of 8,468.70 in intraday trade. The index hit a low of 8,438.65 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,426 shares gained and 1,088 shares fell. A total of 104 shares were unchanged.
The BSE Mid-Cap index was up 50.09 points or 0.5% at 10,107.50. The BSE Small-Cap index was up 86.04 points or 0.78% at 11,142. Both these indices outperformed the Sensex.
IT stocks declined. HCL Technologies (down 2.1%), Infosys (down 0.54%), TCS (down 0.34%), Tech Mahindra (down 0.25%) and Wipro (down 0.78%) declined.
Bajaj Auto declined 1.77% and Bharti Airtel fell 1.18% on reports Nigeria's central bank devalued the naira by 8% and raised interest rates sharply yesterday, 25 November 2014.
As per reports, nearly 12% of Bajaj Auto's revenues come from Nigeria.
Nigeria is Bharti Airtel's biggest market in Africa. Bharti Airtel entered Africa in 2010 by acquiring loss-making telecom operations for $9 billion, funded by debt.
Meanwhile, a foreign brokerage has reportedly downgraded Bajaj Auto to "sell" from "neutral", saying falling emerging market currencies would impact margins.
Cox & Kings rose 1.51% to Rs 295 after the company said that the Committee of board of directors at its meeting held yesterday, 25 November 2014, approved the issue price of Rs 305 per share (including Rs 300 per share towards securities premium), for equity shares to be allotted to eligible qualified institutional buyers (QIBs) in the qualified institutional placement (QIP). The committee also approved the closure of QIP. The announcement was made before market hours today, 26 November 2014.
Atul Auto rose 3.79% to Rs 455 after Goldman Sachs India Fund bought 2.83 lakh shares of Atul Auto at an average price of Rs 428.87 per share in a bulk deal on NSE on Tuesday, 25 November 2014. Meanwhile, Kedia Securities sold 4.40 lakh shares of the company at an average price of Rs 428.86 per share in a bulk deal on NSE on Tuesday, 25 November 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.895, compared with its close of 61.87 during the previous trading session.
Brent crude oil futures edged lower amid intraday volatility as markets brace for the highly anticipated meeting of the Organization of the Petroleum Exporting Countries (OPEC) tomorrow, 27 November 2014. Brent crude for January settlement was off 10 cents at $78.23 a barrel. The contract had fallen $1.35 a barrel to finish at $78.33 a barrel during the previous trading session.
Oil ministers from the OPEC are scheduled to meet in Vienna tomorrow, 27 November 2014, to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015. OPEC, which pumps about 40% of the world's crude, has maintained its official quota at 30 million barrels a day since January 2012.
The 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.
The government will announce data on gross domestic product (GDP) for Q2 September 2014 at 17:30 IST on Friday, 28 November 2014. India's GDP grew 5.7% in Q1 June 2014 over the corresponding period of the previous year.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 2 December 2014. The central bank aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India eased to 5.52% in October 2014 from 6.46% in September 2014, data released by the government on 12 November 2014 showed.
Asian stocks rose today, 26 November 2014, as materials and health-care shares advanced. Key benchmark indices in China, South Korea, Hong Kong and Taiwan were up 0.03% to 0.73%. Key benchmark indices in Singapore, Japan and Indonesia fell 0.06% to 0.17%.
As per reports, police took their strongest action in weeks against pro-democracy protesters in Hong Kong, making dozens of arrests and driving activists from a portion of the most volatile of the three Hong Kong sites that have been occupied for nearly two months.
Trading in US index futures indicated that the Dow could gain 15 points at the opening bell today, 26 November 2014. US stocks broke a three-session streak of record highs yesterday, 25 November 2014, as a renewed slide in oil prices dragged down energy shares.
Economic data was mixed. The Commerce Department reported the US economy grew at its fastest pace in more than a decade during the spring and summer. But readings on consumer confidence and central-Atlantic manufacturing missed forecasts. The US government upgraded its reading on third quarter gross domestic product to 3.9% from 3.5% reported last month. The Conference Board said that consumer confidence fell to 88.7 in November, and a measure of manufacturing activity in the central Atlantic region came in below market expectations.
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