Key benchmark indices are seen opening higher today, 20 October 2014, following strong Asian cues. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could rise 137.50 points at the opening bell. The Bharatiya Janata Party (BJP) stormed to power in Haryana on Sunday, 19 October 2014, and was set to form the government in Maharashtra. BJP's victory could help step up the pace of economic reforms in the country.
Shares of oil and gas firms are seen rising after the government deregulated diesel and raised gas prices on Saturday, 18 October 2014.
On Saturday, 18 October 2014, the Government decided to make the price of Diesel market determined at both retail and refinery gate level for all consumers wef midnight of 18/19th Oct14. Henceforth, Oil Marketing Companies (OMCs) are free to determine selling prices of the product in the domestic market, Indian Oil Corporation (IOC) said in a statement.
The International oil prices have been on a steady and steep decline in the last few weeks. The falling international prices of Diesel warrant a decrease in selling price of diesel in the domestic market. Thus a downward revision in selling price of Diesel is being effected w.e.f midnight of 18th and 19th October 2014, IOC said.
With this price revision, retail selling price at Delhi of diesel shall decrease by Rs 3.37 a litre (including VAT), with corresponding decrease in other States, IOC said.
The movement of prices in international oil market and INR-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes in Diesel prices, the company added.
Meanwhile, the Cabinet Committee of Economic Affairs (CCEA) on Saturday, 18 October 2014, approved the new domestic gas pricing policy. As per the formulation approved by the CCEA, upward revision in gas prices will be approximately 75% less as compared to the price arrived at using Rangarajan formula. Approximately 80% of the additional revenue due to revision in gas price will go to the Government companies. Government will get additional revenue of approximately Rs 3800 crore per annum on account of higher royalty, higher profit petroleum and higher taxes.
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Among corporate news, Axis Bank's net profit rose 18.23% to Rs 1610.71 crore on 12.53% growth in total income to Rs 10549.97 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Friday, 17 October 2014. The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 1.34% as on 30 September 2014, unchanged from 30 June 2014, but higher than 1.19% as on 30 September 2013. The ratio of net NPAs to net advances stood at 0.44% as on 30 September 2014, unchanged from 30 June 2014, but higher than 0.37% as on 30 September 2013.
UltraTech Cement's consolidated net profit rose 48.01% to Rs 414.24 crore on 18.52% rise in total income to Rs 5821.48 crore in Q2 September 2014 over Q2 September 2013. The company announced Q2 results on Saturday, 18 October 2014.
In terms of the scheme of arrangement between Jaypee Cement Corporation (JCCL) and the company and their respective shareholders and creditors (the scheme) 27,261 additional equity shares of the company of Rs 10 each credited as fully paid-up has been allotted to the equity shareholders of JCCL in terms of the scheme as final consideration. The financial results of the acquired units have been combined with the company's financial results with effect from 12 June 2014. As a result, figures for the three months and six months ended 30 September 2014 are strictly not comparable with previous periods.
UltraTech Cement also said that the board of directors of the company at its meeting held on 18 October 2014, extended the term of appointment of Mr O. P. Puranmalka, Managing Director, for a period of one year i.e. from 1 April 2015 to 31 March 2016 and appointed Mr. Atul Daga as Chief Financial Officer of the company in place of Mr. K. C. Birla, with effect from 1 December 2014.
Mindtree turns ex-dividend today, 20 October 2014, for interim dividend of Rs 3 per share for the year ending 31 March 2015 (FY 2015).
Persistent Systems' consolidated net profit rose 3.6% to Rs 71.31 crore on 6.7% rise in total income to Rs 464.17 crore in Q2 September 2014 over Q1 June 2014. The company announced Q2 results on Saturday, 18 October 2014.
LIC Housing Finance's net profit rose 10.08% to Rs 341.35 crore on 15.47% rise in total income to Rs 2658.69 crore in Q2 September 2014 over Q2 September 2013. The company announced Q2 results on Saturday, 18 October 2014.
Canara Bank announced on Saturday, 18 October 2014, that the bank has received approval of the Government dated 17 October 2014, for rising of equity capital of Rs 80 crore with additional premium of Rs 5 crore through qualified institutional placement (QIP) during financial year ending 31 March 2015 (FY 2015). The bank is taking steps in this direction to raise he equity capital during the current financial year.
The board of directors in its meeting held on 28 April 2014, had discussed about the various options of raising capital on account of Basel III guidelines & also to fund the general business needs of the bank and decided to raise funds through QIP mode & through preferential allotment during the current financial year. The board had constituted a committee of directors to decide on the modalities of the cited two options. The bank had also obtained the consent of the shareholders at the 12th annual general meeting on 21 July 2014, by way of a special resolution to raise equity capital of the bank through QIP mode.
Key benchmark indices edged higher on Friday, 17 October 2014, on positive cues from European stocks and on a rally in US index futures. The S&P BSE Sensex surged 109.19 points or 0.42% to settle at 26,108.53. The CNX Nifty advanced 31.50 points or 0.41% to settle at 7,779.70.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Friday, 17 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1430.03 crore on that day.
Japanese stocks led a rally in Asia on Monday, 20 October 2014, after solid US data and earnings reassured investors worried about the health of the world economy. Key benchmark indices in Japan, China, Taiwan, South Korea Hong Kong, Singapore and Indonesia were up by 0.28% to 3.33%.
US stocks rallied on Friday, 18 October 2014, as earnings beat estimates, consumer confidence reached a seven-year high and investors speculated that central banks will add more economic stimulus. The Standard & Poor's 500 Index (SPX) rose 1.3% to 1,886.76. The Dow Jones Industrial Average increased 263.17 points, or 1.6%, to 16,380.41. The Nasdaq Composite Index climbed 0.96% to 4,258.
US consumer confidence unexpectedly rose in October to the highest level in seven years, showing a brightening in Americans' moods as gas prices drop and the labor market gains traction. The Thomson Reuters/University of Michigan preliminary sentiment index for this month increased to 86.4, the strongest since July 2007.
The Federal Reserve may want to extend its bond-buying program beyond October to keep its policy options open given falling US inflation expectations, Federal Reserve Bank of St. Louis President James Bullard said on 16 October 2014.
The Federal Open Market Committee (FOMC) next undertakes a monetary policy review at a two-day meeting on 28-29 October 2014.
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