After surging to fresh intraday high, key benchmark indices pared gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 194.58 points or 0.69% at 28,262.14. The market breadth indicating the overall health of the market was positive. World stocks rose.
Mahindra & Mahindra (M&M) rose after clarification. Shares of public sector oil marketing companies (PSU OMCs) edged higher. Cement makers were in demand. Shares of Kotak Mahindra Bank and ING Vysya Bank, both, edged higher after the two private sector banks after trading hours yesterday, 20 November 2014, announced that ING Vysya Bank will be merged with Kotak Mahindra Bank. Shares of many other private sector banks rose after the announcement of Kotak Mahindra Bank and ING Vysya Bank merger deal.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 477.15 crore yesterday, 20 November 2014, as per provisional data.
Earlier, the Sensex, the 50-unit CNX Nifty, had, both, surged to record high in mid-morning trade.
In overseas markets, Asian stocks rose after a report that China's central bank injected funds to ease a shortage of cash in the financial system. In the US, small gains took both the S&P 500 and the Dow Jones Industrial Average to record closing high yesterday, 20 November 2014, following some upbeat economic data and on better-than-expected earnings from retailers.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures rose on speculation the OPEC cartel will overcome internal resistance to trim output at a meeting next week, while upbeat US economic data also provided support.
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At 12:30 IST, the S&P BSE Sensex was up 194.58 points or 0.69% at 28,262.14. The index jumped 253.43 points at the day's high of 28,320.99 in mid-morning trade, a record high. The index fell 29.16 points at the day's low of 28,038.40 in early trade.
The CNX Nifty was up 62.40 points or 0.74% at 8,464.30. The index hit a high of 8,482 in intraday trade, a record high. The index hit a low of 8,398.60 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,445 shares gained and 1,260 shares fell. A total of 112 shares were unchanged.
The BSE Mid-Cap index was up 44.43 points or 0.44% at 10,248.16. The BSE Small-Cap index was up 45.70 points or 0.40% at 11,382.43. Both these indices underperformed the Sensex.
Index heavyweight ITC was up 1.02% at Rs 372.90.
Another index heavyweight Reliance Industries was up 1.10% at Rs 991.15.
Mahindra & Mahindra (M&M) rose 0.17% to Rs 1,234. With respect to the news media report titled "Mahindra Gets Nod to Sell Oz Planes Here", M&M clarified that the report pertains to an unlisted subsidiary of the company i.e. Mahindra Aerospace which is already in this line of business. In any case, the aerospace business carried on by the unlisted subsidiary is not significant to the operations or performance of M&M, the company added.
Shares of public sector oil marketing companies (PSU OMCs) edged higher. BPCL (up 0.9%), HPCL (up 0.47%) and Indian Oil Corporation (up 0.12%) edged higher.
Cement makers were in demand. ACC (up 2.12%), Jaiprakash Associates (up 1.73%), Ambuja Cements (up 1.4%), UltraTech Cement (up 1.36%) and Shree Cement (up 0.14%), edged higher.
Grasim Industries rose 1.03%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
The Ministry of Coal on 19 November 2014 placed in public domain the draft rules for auction/allocation of 204 coal blocks cancelled by the Supreme Court in September this year. The draft rules provide the process of allocation through auction and allotment. The central government will issue an order to the Nominated Authority specifying which coal mines are to be auctioned and which are to be allotted to the government companies. The Nominated Authority will prepare a 'Mine Dossier' for each mine containing the particulars of geographical area, coal reserves, mine infrastructure, approvals, permits, etc. in relation to such mine.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.855, compared with its close of 61.95 during the previous trading session.
Brent crude oil futures rose on speculation the OPEC cartel will overcome internal resistance to trim output at a meeting next week, while upbeat US economic data also provided support. Brent crude for January settlement was up 28 cents at $79.61 a barrel. The contract had jumped $1.23 to finish at $79.33 a barrel yesterday, 20 November 2014.
Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet in Vienna on 27 November 2014 to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015.
The Union Cabinet yesterday, 20 November 2014, gave its approval to launch "Integrated Power Development Scheme" (IPDS) with the objective of strengthening of sub-transmission and distribution network in the urban areas. The scheme will help in reduction in AT&C losses, establishment of IT enabled energy accounting/auditing system, improvement in billed energy based on metered consumption and improvement in collection efficiency. The estimated cost of the present scheme with the components of strengthening of sub-transmission and distribution networks, including metering of consumers in the urban areas is Rs 32612 crore which includes the requirement of budgetary support from Government of India of Rs 25354 crore over the entire implementation period. The component of IT enablement of distribution sector and strengthening of distribution network approved by CCEA in June 2013 in the form of RAPDRP for 12th and 13th Plans will get subsumed in this scheme and CCEA-approved scheme outlay of Rs 44011 crore including a budgetary support of Rs 22727 crore will be carried over to the new scheme of IPDS. The process of sanction of projects wil commence immediately. After sanction of projects, contracts for execution of projects are to be awarded by States Discoms/Power Departments. The projects shall be completed within 24 months from date of award, a government statement said.
The Union Cabinet yesterday, 20 November 2014, also approved the launch of Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) with components to separate agriculture and non agriculture feeders facilitating judicious rostering of supply to agricultural and non-agricultural consumers in rural areas and strengthening and augmentation of sub transmission and distribution infrastructure in rural areas, including metering of distribution transformers/feeders/consumers. The estimated cost of the scheme is Rs 43033 crore which includes the requirement of budgetary support of Rs 33453 crore from Government of India over the entire implementation period. The Cabinet further approved that the balance work relating to rural electrification as per the approval of the Cabinet Committee on Economic Affairs (CCEA) in August 2013 with the norms of the ongoing scheme of RGGVY in 12th and 13th Plans will get subsumed in DDUGJY as a distinct component for rural electrification for which CCEA has already approved the scheme cost of Rs 39275 crore, including budgetary support of Rs 35447 crore. This outlay will be carried forward to the new scheme of DDUGJY in addition to the outlay of Rs 43033 crore, a government statement said. The scheme would help in improvement in hours of power supply in rural areas, reduction in peak load, improvement in billed energy based on metered consumption and providing access to electricity to rural households.
The process of sanction of projects will commence immediately, the government said. After sanction of projects, contracts for execution of projects will be awarded by States Discoms/Power Departments. The projects shall be completed within 24 months from date of award, the government statement said.
The Union Cabinet yesterday, 20 November 2014, also gave its approval for the North Eastern Region Power System Improvement Project (NERPSlP) for six states (Assam, Manipur, Meghalaya, Mizoram, Tripura and Nagaland) for strengthening of the Intra State Transmission and Distribution System at an estimated cost of Rs 5111.33 crore including capacity building expenditure of Rs 89 crore. The scheme is to be taken up under a new Central Sector Plan Scheme of Ministry of Power (MoP). The scheme is to be implemented with the assistance of World Bank loan and the budget of MoP. The project will be funded on 50:50 (World Bank loan: GoI) basis except the component of capacity building for Rs 89 crore for which GoI will bear entirely.
This project is a major step towards meeting the national objective of "Power to All" through enhancement in access of consumers to grid connected power supply through improving its availability and reliability, thereby facilitating inclusive growth. This shall also increase the per capita power consumption of these states which is lagging behind the average national consumption and shall contribute to the economic development of the North-Eastern Region.
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, 21 November 2014, after a report that China's central bank injected funds to ease a shortage of cash in the financial system. Key benchmark indices in China, Hong Kong, Singapore, South Korea and Taiwan were up 0.14% to 1.04%. Indonesia's Jakarta Composite was down 0.08%.
As per reports, China's central bank -- the People's Bank of China -- offered 50 billion yuan ($8.17 billion) of short-term funds to ease a shortage of cash in the financial system.
In Japan, the Nikkei 225 Average was up 0.33%. Japanese Prime Minister Shinzo Abe officially dissolved the lower house of parliament today, 21 November 2014, setting the stage for a snap election next month in what he said is a bid to win a mandate for his reflationary economic policies. The dissolution effectively renders all 480 members of the lower house jobless. They must all win back their seats in a poll expected to take place on 14 December 2014.
Citing worsening economic conditions, Mr. Abe announced earlier this week that he would postpone a national sales-tax increase scheduled for October 2015, and called an election for next month that he cast as a referendum on Abenomics, his economic program of easy money, government stimulus and structural changes.
Trading in US index futures indicated that the Dow could rise 16 points at opening bell today, 21 November 2014. Small gains took both the S&P 500 and the Dow Jones Industrial Average to record closing high yesterday, 20 November 2014, following some upbeat economic data and on better-than-expected earnings from retailers. Among yesterday's positive economic releases was a rise in existing home sales, a jump in the Philly Fed index and weekly jobless claims remaining below 300,000 for the 10th straight week. Consumer prices were flat in October, while US November Markit flash PMI was the weakest since January, declining for a third straight month.
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