As global stocks rose after a surprise dose of liquidity measures launched by China's central bank and dovish comments from European Central Bank President Mario Draghi, key equity benchmark indices in India hit record high. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high. However, there was a lack of strength in the broad market. The number of declining shares outnumbered gainers on BSE. The BSE Mid-Cap index was just a tad higher, underperforming the Sensex and the BSE Small-Cap index was in red. The Sensex was provisionally up 164.66 points or 0.58% at 28,499.29. Foreign portfolio investors (FPIs) bought shares worth a net Rs 122.50 crore during the previous trading session on Friday, 21 November 2014, as per provisional data.
Parliamentary Affairs Minster M.Venkaiah Naidu yesterday, 23 November 2014, said that there is the need for early passing of Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector by the Rajya Sabha. He also said that introduction of Goods and Service Tax (GST) is being discussed over a long time and the government would like to introduce a bill in this regard during Winter Session of Parliament. The month-long winter session of parliament began today, 24 November 2014.
Metal stocks rose after China on Friday, 21 November 2014, cut benchmark interest rates as leaders step up support for the world's second-largest economy. Realty stocks also edged higher. Index heavyweight Reliance Industries (RIL) declined.
Benchmark indices saw intraday volatility. After extending gains in mid-afternoon trade, key benchmark indices trimmed gains in late trade. Earlier, the Sensex and the Nifty had pared gains after both these indices struck record high in early trade.
In overseas markets, European stocks edged higher after German IFO's business climate index beat expectations by printing at 104.7 in November, its first rise in seven months. Asian stocks rose after a surprise cut in lending and deposit rates announced by China's central bank after trading hours in Asia on Friday, 21 November 2014. In the US on Friday, 21 November 2014, the S&P 500 and Dow Jones Industrial Average, both, attained record closing high after a surprise dose of liquidity measures launched by China's central bank and after dovish comments from European Central Bank President Mario Draghi.
In the foreign exchange market, the rupee edged lower against the dollar.
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Brent crude oil futures reversed intraday gains as markets brace for the highly anticipated meeting of the Organization of the Petroleum Exporting (OPEC) countries later this week.
Indian stocks may remain volatile this week 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 on Thursday, 27 November 2014.
As per provisional figures, the S&P BSE Sensex was up 164.66 points or 0.58% at 28,499.29. The index jumped 207.33 points at the day's high of 28,541.96, in late trade, a record high for the index. The index gained 59.85 points at the day's low of 28,394.48 in mid-morning trade.
The CNX Nifty was up 52.80 points or 0.62% at 8,530.15, as per provisional figures. The index hit a high of 8,534.65 in intraday trade, a record high for the index. The index hit a low of 8,490.80 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,745 shares declined and 1,326 shares rose. A total of 118 shares were unchanged.
The BSE Mid-Cap index was up 7.18 points or 0.07% at 10,202.97. The BSE Small-Cap index was off 7.01 points or 0.06% at 11,318.83. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3367 crore, lower than Rs 3380.51 crore on Friday, 21 November 2014.
Index heavyweight Reliance Industries (RIL) declined 1.36% to Rs 983.90. The stock hit high of Rs 1,003.15 and low of Rs 982.
Metal stocks rose after China on Friday, 21 November 2014, cut benchmark interest rates for the first time since July 2012 as leaders step up support for the world's second-largest economy. Steel Authority of India (up 3.93%), Hindalco Industries (up 3.37%), Tata Steel (up 3%), Hindustan Zinc (up 2.99%), and National Aluminum Company (up 2.32%), edged higher. NMDC (down 0.24%) Sesa Sterlite (down 0.51%), and Bhushan Steel (down 0.1%), declined China is the world's largest consumer of copper, steel, and aluminium.
JSW Steel rose 2.74%. With respect to the news titled "JSW Steel Submits Final Bids for Italy's Lucchini" JSW Steel has stated that in line with its long term strategy to acquire finishing mills near to the market, the company has submitted a binding bid for takeover of Rolling Mills of the Piombini Plant of Lucchini in Italy subject to certain terms and conditions. The company is yet to get the response on this bid. Once the company is informed about the outcome of the bid, the company will inform the exchanges about the same, JSW Steel said.
Jindal Steel & Power gained 4.3%. Jindal Steel has reportedly shelved a $10 billion coal-to-diesel project, becoming the first big casualty of a Supreme Court decision to scrap coalfields allocated to private firms since 1993. Jindal Steel's 1.5 billion tonne coalfield in Odisha was among 214 cancelled by the Supreme Court in September, when it ruled the practice of selective allocation was illegal and arbitrary.
Naveen Jindal, the chairman of the company, reportedly said it seemed the government was not keen to support his plan of converting low-quality coal to 80,000 barrels per day of diesel. "The project was specifically to meet the strategic needs of the country," Jindal said. "(But) the government does not seem to be interested. If there is no coal block, how can the project go ahead?" he was quoted by as saying.
KNR Constructions rose 0.93% after the company said its 51:49 joint venture with Tomar Builders & Construction secured orders worth Rs 109.56 crore in Madhya Pradesh.
Rajesh Exports surged 3.73% said that the company said it has bagged an export order worth Rs 1350 crore of designer range of gold and diamond studded jewellery and medallions from Al Sultan Jewellery, UAE. The order is to be completed by 28 February 2015 and execution of this order will significantly add to the bottom line of the company, Rajesh Exports said. The order will be executed at the company's manufacturing facility at Bangalore.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.90, compared with its close of 61.785 during the previous trading session.
Brent crude oil futures reversed intraday gains as markets brace for the highly anticipated meeting of the Organization of the Petroleum Exporting (OPEC) countries later this week. Brent crude for January settlement was off 9 cents at $80.27 a barrel. The contract had jumped $1.03 a barrel to finish at $80.36 a barrel during the previous trading session on Friday, 21 November 2014.
Oil ministers from the OPEC are scheduled to meet in Vienna on Thursday, 27 November 2014, to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015.
A news agency on Saturday, 22 November 2014, quoted Finance minister Arun Jaitley as saying that he does not favour burdening the salaried and middle class with more taxes and that he would go after the evaders in widening the net. Jaitley also said he was against reducing the exemptions to widen the tax net. The finance minister's comments indicate that the government is unlikely to withdraw tax concessions on home loans and savings such as public provident fund deposits, moves that were being contemplated by the UPA regime.
Parliamentary Affairs Minster M.Venkaiah Naidu yesterday, 23 November 2014, said that there is the need for early passing of Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector by the Rajya Sabha. He also said that introduction of Goods and Service Tax (GST) is being discussed over a long time and the government would like to introduce a bill in this regard during Winter Session of Parliament. The month-long winter session of parliament began today, 24 November 2014.
Naidu gave details of the 37 bills that the government likes to move for introduction and taking up pending bills for consideration and passing during the winter session of parliament. Several political partied assured that they will extend cooperation in enabling smooth functioning of the Parliament during the winter session, the Ministry of Parliamentary Affairs said.
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.
The White House on Friday, 21 November 2014, said that at the invitation of India's Prime Minister Narendra Modi, US President Barack Obama will travel to India in January 2015 to participate in the Indian Republic Day celebration in New Delhi as the Chief Guest. This visit will mark the first time a US president will have the honor of attending Republic Day, which commemorates the adoption of India's constitution. The US President will meet Modi and Indian officials to strengthen and expand the US-India strategic partnership, the White House said.
European stocks edged higher today, 24 November 2014, after German IFO's business climate index beat expectations by printing at 104.7 in November, its first rise in seven months. Key benchmark indices in France, UK and Germany were up 0.04% to 0.99%.
German business confidence improved unexpectedly in November, easing concerns over the health of the euro zone's largest economy, industry data showed today, 24 November 2014. In a report, the German research institute, Ifo said its Business Climate Index rose to a seasonally adjusted 104.7 this month, up from a reading of 103.2 in October. The Current Assessment Index increased to 110 in November, up from 108.4 in October. The Business Expectations Index, which measures attitudes toward business prospects over the next six months, improved to 99.7 this month from 98.3 in October. The monthly index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.
In his speech in Frankfurt, European Central Bank (ECB) President Mario Draghi on Friday, 21 November 2014, indicated that further stimulus measures for the euro zone are likely from the ECB.
The ECB on Friday, 21 November 2014, began buying asset-backed securities, thereby expanding its quantitative easing regimen. The asset-based-securities purchases represent the second leg of the ECB's quest to catalyze growth by expanding its balance sheet. In September, the central bank began buying covered corporate bonds, which are guaranteed against a company's assets.
Asian stocks rose today, 24 November 2014, after a surprise cut in lending and deposit rates announced by China's central bank after trading hours in Asia on Friday, 21 November 2014. Key benchmark indices in China, Hong Kong, Indonesia, South Korea, and Taiwan were up 0.34% to 1.95%. Singapore's Straits Times fell 0.14%. Japanese markets are closed for a holiday.
China cut benchmark interest rates for the first time since July 2012 as leaders step up support for the world's second-largest economy. The one-year lending rate was reduced by 0.4 percentage point to 5.6%, while the one-year deposit rate was lowered by 0.25 percentage point to 2.75%, the People's Bank of China said on 21 November 2014.
In Japan, the minutes of Bank of Japan's monetary policy meeting will be released today, 24 November 2014.
Trading in US index futures indicated that the Dow could rise 34 point at opening bell today, 24 November 2014. The S&P 500 and Dow Jones Industrial Average, both, attained record closing high on Friday, 21 November 2014, after a surprise dose of liquidity measures launched by China's central bank and after dovish comments from European Central Bank President Mario Draghi.
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