As investors awaited monetary policy statement from the Reserve Bank of India (RBI) which is due at 11:00 IST today, 2 December 2014, key equity benchmark indices edged lower in morning trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently off 98.29 points or 0.34% at 28,461.33. BSE Small-Cap and Mid-Cap indices were, both, a tad lower for the day.
Bank stocks declined ahead of the Reserve Bank of India's (RBI's) monetary policy statement. Cairn India rose as global crude futures staged a rebound yesterday, 1 December 2014, from five-year low. Airline stocks also dropped.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 12.36 crore yesterday, 1 December 2014, as per provisional data.
In overseas markets, Asian stocks rose as a rebound in the crude oil price gave resource-related sectors a breather. US stocks fell yesterday, 1 December 2014, as disappointing economic data from China and Europe triggered a bout of selling in global equity markets.
In the foreign exchange market, the rupee strengthened past 62 against the dollar.
Brent crude oil futures dropped as investors weighed OPEC's decision to let the market curb a global supply glut.
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At 10:18 IST, the S&P BSE Sensex was down 98.29 points or 0.34% at 28,461.33. The index lost 112.98 points at the day's low of 28,446.64 in morning trade, its lowest level since 27 November 2014. The index fell 17.66 points at the day's high of 28,541.96 in early trade.
The CNX Nifty was down 33.55 points or 0.39% at 8,522.35. The index hit a low of 8,520.45 in intraday trade, its lowest level since 28 November 2014. The index hit a high of 8,548.35 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,044 shares declined and 920 shares gained. A total of 75 shares were unchanged.
The BSE Mid-Cap index was off 3.34 points or 0.03% at 10,259.56. The BSE Small-Cap index was off 4.05 points or 0.04% at 11,185.65. The fall in both these indices was lower than Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 629 crore by 10:15 IST compared to Rs 198 crore by 09:30 IST.
Bank stocks declined ahead of the Reserve Bank of India's (RBI's) monetary policy statement. Among private bank stocks, HDFC Bank (down 0.57%), IndusInd Bank (down 1.2%), Axis Bank (down 0.59%), Yes Bank (down 1.26%), and ICICI Bank (down 0.7%) declined. Kotak Mahindra Bank (up 0.68%) and ING Vysya Bank (up 0.12%) rose.
Among PSU bank stocks, State Bank of India (SBI) (down 0.99%), Andhra Bank (down 1.18%), Punjab National Bank (down 0.43%), Bank of Baroda (down 1.27%), Canara Bank (down 1.07%), Bank of India (down 0.63%) and Union Bank of India (down 1.72%) dropped.
Meanwhile, the Department of Financial Services, Ministry of Finance, Government of India yesterday, 1 December 2014, invited suggestions from general public on various parameters as to how to improve performance of public sector banks.
Cairn India rose as global crude futures staged a rebound yesterday, 1 December 2014, from five-year low. The stock was up 0.84%.
Airline stocks dropped. SpiceJet lost 7.03%. Jet Airways (India) declined 4.67%. Shares of both these aviation firms had rallied yesterday, 1 December 2014, after state-owned oil marketing companies reduced the prices of aviation turbine fuel (ATF) by 4.1% with effect from 1 December 2014. ATF constitutes over 40% of an airline's operating costs. Prices of jet fuel are directly linked to crude oil prices.
Shares of Infosys were trading at Rs 2,144. The stock was volatile. The stock hit high of Rs 2,165 and low of Rs 2,116 so far during the day. The stock is trading after turning 1:1 ex-bonus from today, 2 December 2014.
Sun Pharma Advanced Research Company jumped 12.56% after the company said US drug regulator issued a complete response letter to its new drug application for Latanoprost BAK-free eyedrops. While the FDA did not seek any additional information for supporting clinical data, it sought additional information on certain labeling and other deficiencies for processing the NDA. SPARC believes that this additional information request from the FDA can be addressed on priority. The announcement was made after market hours on Monday, 1 December 2014.
In the foreign exchange market, the rupee strengthened past 62 against the dollar. The partially convertible rupee was hovering at 61.9875, compared with its close of 62.025 during the previous trading session.
Brent crude slipped, giving up some of the gains seen yesterday, 1 December 2014 when prices rallied for the first time in six sessions staging a recovery after touching five-year lows. Brent for January settlement was off 52 cents a barrel at $72.02 a barrel. The contract had gained $2.39 a barrel to settle at $72.54 yesterday, 1 December 2014
The Reserve Bank of India (RBI) will announce monetary statement at 11:00 IST today, 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.
The output of eight core industries, having a combined weight of 37.9% in the Index of Industrial Production (IIP), galloped 6.3% in October 2014, government data released on Monday, 1 December 2014 showed. Coal production shot up 16.2%, while the electricity generation zoomed 13.2% in October 2014 over October 2013, mainly contributing to the healthy growth in the output of overall eight core industries. The core sectors output growth stood at 4.3% in April-October 2014 compared with 4.2% growth in the corresponding period last year.
HSBC India Services PMI for November 2014 is due tomorrow, 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.
Asian stocks rose today, 2 December 2014, as a rebound in the crude oil price gave resource-related sectors a breather. Key benchmark indices in China, Hong Kong, Japan, Indonesia and Singapore rose by 0.1% to 0.77%. Key benchmark indices in Taiwan and South Korea fell by 0.18% to 0.99%.
Trading in US index futures indicated that the Dow could rise 17 points at the opening bell today, 2 December 2014. US stocks fell on Monday, 1 December 2014 with the S&P 500 suffering its biggest one-day drop in more than a month, as economic data indicated weakness across the globe.
In economic data, the Institute for Supply Management said its US manufacturing index edged down to 58.7% in November from 59% in October. A number above 50% signals expansion and the latest reading kept the ISM index near a three-year high. A separate report on Monday, 1 December 2014 by the research firm Markit said that purchasing managers index for November showed a reading of 54.8, down from 55.9 in October. That marks the lowest reading in ten months. US retailers reported sluggish Black Friday spending, with sales falling 11% from the same period last year, according to the National Retail Federation (NRF). US consumers spent on average $380.95 per person, down 6.4% from a year ago. Overall, total holiday weekend sales were estimated to be $50.9 billion.
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