A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming intraday gains in afternoon trade. The barometer index, the S&P BSE Sensex, was currently above the psychological 27,000 mark, having alternately moved above and below that mark in intraday trade so far. The Sensex was currently up 159.38 points or 0.59% at 27,040.20. The market breadth indicating the overall health of the market was positive. Gains in world stocks boosted sentiment.
FMCG shares were in demand. Dabur India and Jindal Steel & Power rose after issuing clarifications. Dr Reddy's Laboratories slipped after Q2 earnings.
Earlier, the Sensex and the 50-unit CNX Nifty, both, had hit their highest level in more than five weeks in morning trade after opening higher.
In overseas markets, Asian stocks rose after US stocks surged overnight on optimism about earnings and economic data in the US. US stocks surged yesterday, 28 October 2014, with Standard & Poor's 500 Index settling near a record on speculation the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.
In the foreign exchange market, the rupee was currently unchanged against the dollar.
Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected.
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Indian stocks may remain volatile in near future as traders roll over positions in the futures & options (F&O) segment from the near month October 2014 series to November 2014 series. The near month October 2014 derivatives contract expire tomorrow, 30 October 2014.
At 13:18 IST, the S&P BSE Sensex was up 159.38 points or 0.59% at 27,040.20. The index jumped 181.30 points at the day's high of 27,062.12 in morning trade, its highest level since 23 September 2014. The index rose 90.34 points at the day's low of 26,971.16 in morning trade.
The CNX Nifty was up 39.25 points or 0.49% at 8,066.85. The index hit a high of 8,081.05 in intraday trade, its highest level since 23 September 2014. The index hit a low of 8,052.25 in intraday trade.
The BSE Mid-Cap index was up 47.44 points or 0.49% at 9,647.84, underperforming the Sensex. The BSE Small-Cap index was up 70.55 points or 0.66% at 10,794.61, outperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,506 shares rose while 1,229 shares declined. A total of 99 shares were unchanged.
Among the 30 Sensex shares, 18 rose and the remaining shares fell.
Hindalco Industries (up 4.23%), Tata Motors (up 2.89%), Mahindra & Mahindra (up 2.53%), Tata Steel (up 2.31%), Infosys (up 1.72%) and Reliance Industries (up 1.58%) edged higher from the Sensex pack.
Bharat Heavy Electricals (down 1.14%), GAIL (India) (down 0.80%), Bharti Airtel (down 0.77%), Tata Power (down 0.77%) and Sun Pharmaceuticals Industries (down 0.73%) edged lower from the Sensex pack.
Dr Reddy's Laboratories (DRL) lost 1.81% after consolidated net profit fell 17% to Rs 574.10 crore on 7% growth in revenue to Rs 3587.90 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours today, 29 October 2014.
At the time of announcement of the second quarter results, DRL said that the company recently entered into an asset purchase agreement with Novartis Consumer Health Inc. to acquire the title and rights to Habltrol franchise (an over the counter nicotine replacement therapy transdermal path) and to market the product in the US territory.
FMCG stocks were in demand. Marico (up 6.52%), Bata India (up 2.40%), Godrej Consumer Products (up 1.86%), ITC (up 1.10%), Procter & Gamble Hygiene & Health Care (up 0.89%), Britannia Industries (up 0.86%), Tata Global Beverages (up 0.41%), Hindustan Unilever (up 0.32%) and GlaxoSmithKline Consumer Healthcare (up 0.26%), edged higher.
Dabur India was up 1.73% after the company issued clarification with regard to media news reports. The stock exchanges had sought clarification from the company regarding media reports naming Mr. Pradip Burman, one of the promoter family members, as holding a black money account in foreign country. Dabur India clarified after market hours on Tuesday, 28 October 2014, that this account was opened when he was an non-resident India (NRI), and was legally allowed to open this account. The complete details regarding the account have been voluntarily, and as per law, filed with the Income Tax Department, and appropriate taxes paid, wherever applicable, the company said.
Nestle India rose 1.38% to Rs 6,040 after net profit rose 9.2% to Rs 311.29 crore on 8.9% rise in net sales to Rs 2557.80 crore in Q3 September 2014 over Q3 September 2013. Nestle India said that net domestic sales in Q3 September 2014 grew by 9.9% mainly from better realisations while export sales declined by 3.9% due to lower coffee exports.
Nestle India said that while cost of materials consumed has increased mainly due to significantly higher cost of milk and its derivatives in India which was even higher than those in international markets, finance costs have reduced mainly due to repayment of External Commercial Borrowing (ECB). The operating margins have been stable, Nestle India said.
Jindal Steel & Power (JSPL) rose 2.09% to Rs 153.95. With reference to the media reports, "CBI begins on Investigation against Jindal Steel and Power for mining in Saranda Forests," Jindal Steel & Power clarified during trading hours today, 29 October 2014, that it has not received any communication from Central Bureau of Investigation (CBI) or any other government agency regarding the media report about registration of preliminetary enquiry with regard to the grant of 'In Principle' Forest Clearance (FC Stage-I) for Jeraldaburu Iron Ore Mine in Saranda Forests, which was allotted for steel project of the company in Jharkhand. The 'In Principle' Forest Clearance (FC Stage-1) was accorded by the Ministry of Environment & Forests (MoEF) after it was duly approved by Forest Advisory Committee (FAC), which is a statutory authority under FC Act, JSPL said.
Media reports had stated recently that the CBI has begun a probe into how JSPL got permission from the environment ministry under Jayanti Natarajan in 2013 to mine iron ore in Asia's largest sal forest in the Naxal-affected Saranda area of Jharkhand.
In the foreign exchange market, the rupee was currently unchanged against the dollar. The partially convertible rupee was hovering at 61.33, same as its close of 61.33 during the previous trading session.
Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected. Brent crude for December delivery was up 46 cents at $86.49 a barrel. The contract had gained 20 cents to settle at $86.03 a barrel during the previous trading session.
Meanwhile, according to a latest survey by Nielsen, India remained the most bullish consumer market, while Italy became the most pessimistic, according to reports. The Nielsen Global Consumer Confidence Index rose 1 point in the third quarter to 98, according to the survey conducted between 13 August and 5 September 2014. The index has been steadily rising since the first quarter of 2012 and the latest reading headed closer to the 100 mark that signals optimism among consumers.
Asian stocks rose today, 29 October 2014, after US stocks surged overnight on optimism about earnings and economic data in the US. Key benchmark indices in Indonesia, South Korea, Singapore, Japan, China, Hong Kong and Taiwan were up 0.34% to 1.84%.
The latest data showed a sharp rebound in Japanese industrial output last month. Industrial production in Japan rose 2.7% in September from the previous month, the latest data showed. Industrial output had contracted 1.9% in August.
China's focus on meeting short-term growth targets could hamper reform efforts it needs for sustain longer-term economic expansion, the World Bank said today, 29 October 2014, in its China Economic Update. The World Bank praised Beijing for tightening credit growth, reducing excess capacity and grappling with pollution, adding these necessary steps toward economic rebalancing had also contributed to slower growth this year. China's gross domestic product grew a year-on-year 7.4% over the January-September period.
Trading in US index futures indicated that the Dow could rise 7 points at the opening bell today, 29 October 2014. US stocks surged yesterday, 28 October 2014, with Standard & Poor's 500 Index settling near a record on speculation the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.
Among economic data, US consumer confidence hit its highest since 2007 in October. The report overshadowed a separate read that showed new orders for capital goods fell the most in eight months in September.
A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy review concludes today, 29 October 2014. The Fed is expected to announce the end of quantitative easing after the meeting. Investors will be looking to see if the Fed drops the "considerable period" for keeping rates low at the latest policy meeting. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.
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