Key benchmark indices extended gains in early afternoon trade after latest data showed that the annual rate of inflation based on wholesale price index (WPI) eased to 1.77% in October from 2.38% in September 2014. The barometer index, the S&P BSE Sensex, retained the psychological 28,000 level. The BSE Sensex was currently up 92 points or 0.33% at 28,032.64. The market breadth indicating the overall health of the market was positive.
Foreign portfolio investors bought shares worth a net Rs 690.61 crore yesterday, 13 November 2014, as per provisional data.
Bank stocks edged higher after the latest data showed inflation based on WPI eased further in October 2014. State Bank of India advanced ahead of Q2 earnings. CESC edged higher after strong Q2 earnings. Hindustan Copper declined after weak Q2 numbers.
In overseas markets, Asian stocks were mixed. US stocks eked out small gains yesterday, 13 November 2014.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude futures edged lower amid concerns over excess supply.
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At 12:16 IST, the S&P BSE Sensex was up 92 points or 0.33% at 28,032.64. The index jumped 104.17 points at the day's high of 28,044.81 in early afternoon trade. The index lost 27.74 points at the day's low of 27,912.90 in early trade.
The CNX Nifty was up 27.60 points or 0.33% at 8,385.45. The index hit a high of 8,389.70 in intraday trade. The index hit a low of 8,346.80 in intraday trade.
The BSE Mid-Cap index was up 87.69 points or 0.87% at 10,189.86. The BSE Small-Cap index was up 100.32 points or 0.9% at 11,259.86. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,499 shares gained and 1,128 shares fell. A total of 92 shares were unchanged.
Bank stocks edged higher after the latest data showed inflation based on WPI eased further in October 2014. Punjab National Bank (up 1.49%), Federal Bank (up 1.16%), IndusInd Bank (up 1.11%), Axis Bank (up 1.08%), Bank of Baroda (up 0.83%), Bank of India (up 0.65%), Yes Bank (up 0.45%) and HDFC Bank (up 0.21%) gained. ICICI Bank (down 0.14%) and Kotak Mahindra Bank (down 0.58%) declined.
Shares of State Bank of India were up 1.72% at Rs 2,766 ahead of Q2 September 2014 results today, 14 November 2014.
Indian Oil Corporation (IOC) rose 2.51% at Rs 355.10. The company during market hours today, 14 November 2014, in a clarification with regard to news item titled "Indian Oil Corporation board okays Ennore LNG terminal" said that the Chairman, Indian Oil, while interacting with the press at Chennai on 12 November 2014, in response to a query, stated that Indian Oil would be setting up 5 million tonne LNG Terminal at Ennore at a cost of Rs 5150 crore. It is clarified that the board of Indian Oil at its meeting held on 17 October 2014 had accorded approval for setting up a 5 million tonne capacity LNG Import Terminal at Ennore through a joint venture route. Currently, the formation of joint venture company and project related activities are being initiated, IOC said. As and when any significant development takes place in the project, the stock exchanges would be duly notified, IOC said.
Separately, IOC during market hours today, 14 November 2014, in a clarification with regard to news item titled "IOC, Chennai Petroleum may merge" said that the Chairman, Indian Oil, while interacting with press at Chennai on 12 November 2014 had referred to the performance of Chennai Petroleum Corporation (CPCL) which a subsidiary of Indian Oil in response to a query from the press. It is clarified that the Chairman merely observed that amongst the various options being examined for improving the performance of CPCL, the possibilities of merger is also being evaluated, IOC said. IOC further said that no proposal on merger is presently under consideration of the management.
CESC was up 3.15% at Rs 735.85. The company's net profit rose 12.28% to Rs 192 crore on 1.14% growth in total income to Rs 1678 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 14 November 2014.
Hindustan Copper lost 1.24% at Rs 79.50 after net profit fell 72.24% to Rs 17.21 crore on 33.2% decline in total income to Rs 237.62 crore in Q2 September 2014 over Q2 September 2013. The company announced Q2 results after market hours yesterday, 13 November 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.645, compared with its closing of 61.57 during the previous trading session.
Brent crude futures edged lower amid concerns over excess supply. Brent for January settlement was off 19 cents at $77.30 a barrel. The contract had lost $3.63 a barrel to settle at $77.49 a barrel yesterday, 13 November 2014.
The government yesterday, 13 November 2014, announced increase in excise duty on petrol and diesel by Rs 1.50 per litre each. The hike in excise duty on the two transportation fuels will help boost government's revenue. The government's decision last month to decontrol diesel prices and a sharp decline in global crude oil prices recently would 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. 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.
The annual rate of inflation based on wholesale price index (WPI) eased to 1.77% in October from 2.38% in September 2014, data released from the government today, 14 November 2014, showed. Meanwhile, the rate of WPI inflation for August 2014 was revised upwards to 3.85% from 3.74% reported earlier.
The easing of WPI inflation comes close on the heels of another data which showed easing of consumer price inflation. The annual rate of inflation based on the combined consumer price indices (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 Reserve Bank of India (RBI) 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.
Asian stocks were mixed today, 14 November 2014. Key indices in Japan, Taiwan, and Singapore were up 0.02% to 0.56%. Key indices in China, Hong Kong, South Korea, and Indonesia were off 0.06% to 1.02%.
China's industrial output growth in October unexpectedly dropped, reflecting the continued headwinds faced by the Chinese economy, official data showed yesterday 13 November 2014.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell today 14 November 2014. US stocks eked out small gains yesterday, 13 November 2014. The Dow Jones Industrial Average gyrated between gains and losses, but ended the session at a fresh record high -- recording its 25th record closing high this year.
In US, more workers quit their jobs in September as hires reached their highest level in nearly seven years, the Labor Department said yesterday, 13 November 2014. Hires increased to a seasonally adjusted 5 million, a level last seen in December 2007. Quits rose to a seasonally adjusted 2.8 million in September from 2.5 million in the previous month, data showed.
Federal Reserve Chair Janet Yellen yesterday, 13 November 2014, said that the growing globalization of financial markets requires the Federal Reserve to understand how economic developments in other nations may affect the US economy. Yellen said the Fed needs better insights into things such as global capital flows to achieve its domestic objectives of maximum employment and price stability. Yellen's remarks came at the start of a two-day conference sponsored by the Fed, the European Central Bank and the Federal Reserve Bank of New York.
In Europe, according to survey of economic forecasters released yesterday, 13 November 2014, by the European Central Bank (ECB), inflation in the eurozone is expected to remain super low for the remainder of this year and accelerate only gradually in the next two years, according to a survey of economic forecasters. According to the quarterly survey, consumer prices are expected to grow just 0.5% this year, down from the August forecast of a 0.7% rise. Next year, the inflation rate is expected to come in at 1% followed by 1.4% in 2016. These rates are far below the ECB's inflation target of just below 2% over the medium term. Over a longer five-year horizon, the inflation rate is expected to be closer to the ECB's objective, at 1.8%. That compares with a 1.9% rate forecast in the previous survey.
Forecasters surveyed by the ECB also marked down their projections for economic growth over the next two years. Economists expect gross domestic product growth of 0.8% this year, down from 1% in the August round of forecasts. GDP is expected to expand 1.2% next year and 1.5% in 2016, which were also below the August projections.
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