After hitting record high in early trade, the two key benchmark indices trimmed gains in morning trade. The barometer index, the S&P BSE Sensex, was currently up 115.46 points or 0.41% at 28,450.09. The market breadth indicating the overall health of the market was positive. 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. 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 begins today, 24 November 2014.
Cement stocks gained. Shares Crompton Greaves (CG) and Adani Power, both, edged higher after CG said that Avantha Power & Infrastructure (APIL) has signed a Memorandum of Understanding with Adani Power for 100% sale of APIL's Korba West Power Company (KWPCL).
The Sensex and the 50-unit CNX Nifty, both, struck record high in early trade as Asian stocks rose as China's unexpected interest-rate cut stoked optimism in the global economy.
In overseas markets, 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 higher against the dollar as key equity benchmark indices in India hit record high.
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Brent crude oil futures edged higher ahead of a possible output reduction by producer group OPEC 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.
At 10:17 IST, the S&P BSE Sensex was up 115.46 points or 0.41% at 28,450.09. The index jumped 180.35 points at the day's high of 28,514.98, in early trade, a record high for the index. The index gained 71.32 points at the day's low of 28,405.95 in early trade.
The CNX Nifty was up 28.40 points or 0.34% at 8,505.75. The index hit a high of 8,529 in intraday trade, a record high for the index. The index hit a low of 8,490.95 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,240 shares gained and 854 shares fell. A total of 77 shares were unchanged.
The BSE Mid-Cap index was up 43.46 points or 0.43% at 10,239.25. The BSE Small-Cap index was up 47.30 points or 0.42% at 11,373.14. Both these indices outperformed the Sensex.
Cement stocks gained. UltraTech Cement (up 0.04%) and Shree Cement (up 0.29%) gained.
Grasim Industries gained 0.37%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
ACC rose 0.06% and Ambuja Cements gained 0.13%. The Competition Commission of India (CCI) on Saturday, 22 November 2014, invited comments from any person(s) adversely affected or likely to be affected by the proposed combination between Holcim and Lafarge S.A. Swiss cement major Holcim and French cement major Lafarge have announced a merger at the global level to form LafargeHolcim. In India, Holcim is active through its two subsidiaries viz. ACC and Ambuja Cements. Lafarge is active in India through its two unlisted subsidiaries viz. Lafarge India and Lafarge Aggregates & Concrete India. The CCI has formed a prima facie opinion that the combination is likely to have an appreciable adverse effect on competition in India.
Crompton Greaves rose 3.02%. Crompton Greaves (CG) during market hours today, 24 November 2014, said that Avantha Power & Infrastructure (APIL) in which CG holds an equity investment of about 23.14% has informed that it has signed a Memorandum of Understanding with Adani Power for 100% sale of APIL's Korba West Power Company (KWPCL). KWPCL, a SPV of APIL, is commissioning a coal based thermal power plant of 600 MW. KWPCL is valued in excess of Rs 4200 crore.
Separately, Crompton Greaves said that one of the entities of the promoter group of the company (Avantha Holdings) is likely to sell a portion of its shareholding in the resultant company viz. Crompton Greaves Consumer Products, subject to agreement of terms and conditions and execution of a definitive agreement. The above is based on a communication to this effect received from Avantha Holdings. CG had already informed of a proposal to demerge the Consumer Products undertaking into Crompton Greaves Consumer Products on 16 October, 2014, after the decision of its company's Board of Directors.
Shares of Adani Power gained 2.32%.
Astral Poly Technik advanced 2.33% after the company announced that it has acquired 76% stake in Resinova Chemie for Rs 212.80 crore.
In the foreign exchange market, the rupee edged higher against the dollar as key equity benchmark indices in India hit record high. The partially convertible rupee was hovering at 61.6750, compared with its close of 61.785 during the previous trading session.
Brent crude oil futures edged higher ahead of a possible output reduction by producer group OPEC this week. Brent crude for January settlement was up 27 cents at $80.63 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.
Another key event is the deadline for the expiry of Iran's nuclear agreement today, 24 November 2014.
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 begins 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 after trading hours on 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.
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, Singapore, Indonesia, South Korea, and Taiwan were up 0.08% to 1.96%. 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 7 points 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.
In Europe, European Central Bank (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.
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