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Market trims initial gains after scaling record high

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Capital Market
Last Updated : Nov 05 2014 | 10:00 AM IST

Key benchmark indices trimmed initial gains triggered by data showing that foreign funds were net buyers of Indian stocks on Monday, 3 November 2014. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty both hit record high. The S&P BSE Sensex was currently up 35.36 points or 0.13% at 27,895.74. The market breadth indicating the overall health of the market was strong. Asian stocks declined today, 5 November 2014 as commodity producers slumped.

The market sentiment was boosted by data showing substantial buying of Indian stocks by foreign portfolio investors on Monday, 3 November 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1413.34 crore on that day. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.

At 9:25 IST, the S&P BSE Sensex was up 35.36 points or 0.13% at 27,895.74. The index gained 111.45 points at the day's high of 27,971.83 in early trade, a record high for the index. The index rose 27.89 points at the day's low of 27,888.27 in early trade.

The CNX Nifty was up 7.20 points or 0.09% at 8,331.35. The index hit a high of 8,351.55 in intraday trade, a record high for the index. The index hit a low of 8,330.50 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,029 shares gained and 383 shares fell. A total of 48 shares were unchanged.

The BSE Mid-Cap index was up 45.73 points or 0.46% at 9,987.13. The BSE Small-Cap index was up 61.02 points or 0.55% at 11,138.14. Both these indices outperformed the Sensex.

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The total turnover on BSE amounted to Rs 302 crore by 09:30 IST.

Among the 30-share Sensex pack, 25 stocks gained and rest of them declined.

Sun Pharmaceutical Industries (up 1.5%), Bharat Heavy Electricals (Bhel) (up 1.26%) and Tata Power Company (up 0.81%) edged higher from the Sensex pack.

Infosys shed 0.13%. Infosys announced on Tuesday, 4 November 2014, that it is helping Fayetteville Public Works Commission (FPWC) become more customer centric, operationally efficient, agile and smart grid ready. The two-year transformation program saw Infosys overhauling FPWC's core ERP business processes and implementing Oracle software platforms along with the Infosys Customer Self-Service Energy Manager (CSEM) solution. Infosys CSEM, which is part of the Infosys Smart Grid Suite of products, helps utilities enhance customer experience through self-service and manage usage through adoption of energy efficient programs. The transformation program covered critical functions across FPWC including customer service, finance, human resources, supply chain, work management and field services.

Hero MotoCorp (HMCL) shed 0.7%. Hero MotoCorp on Tuesday, 4 November 2014 announced its plans to enter the European markets by the end of 2015. The company made this announcement at "the biggest event in the world dedicated to two-wheelers," organised by EICMA at Milan in Italy. EICMA is the marketing body of Italy's National Association of Bicycles, Motorcycles and Accessories (ANCMA)

In the first phase of its foray into Europe, Hero MotoCorp aims to launch its products in Italy, Spain and France; followed by the UK and Germany in the next phase of expansion. To begin with, the company will launch its first serial-hybrid scooter "Leap" in these markets, and subsequently bring more models including scooters and motorcycles.

NMDC rose 0.15%. The state-run miner has slashed price of iron ore lumps by Rs 200 per tonne for November 2014, the first time it has opted for a rate cut in four months. However, the company has decided to roll over the last month's price for iron ore fines.

After the latest rate cut, the price of lump ore, used mainly by domestic steel makers, now stands at Rs 4400 a tonne from Rs 4600 earlier. The price of fines, however, remains unchanged at Rs 3160 a tonne.

NMDC, which reviews prices every month going by domestic demand, had not changed rates in the last four months, since July 2014.

Meanwhile, NMDC said that its total iron ore production rose 13.06% to 16.71 million tonne in the 7-months period ended October 2014 over the 7-months period ended October 2013. Total iron ore sales rose 10.11% to 17.65 million tonne in the 7-months period ended October 2014 over the 7-months period ended October 2013.

Jindal Steel & Power (JSPL) fell 1.47%. JSPL's consolidated net profit fell 2.26% to Rs 441.83 crore on 7.15% rise in total income to Rs 5183.18 crore in Q2 September 2014 over Q2 September 2013. The result was announced on Tuesday, 4 November 2014.

JSPL, notwithstanding several unfavourable developments during Q2 September 2014, including de-allocation of its coal mines, reduced demand for steel due to monsoon season and major difficulties encountered in importing raw material due to heavy congestion in ports and non - availability of rail transport out of ports. Earnings before interest, taxes, depreciation and amortization (EBITDA) in percentage terms increased from 30% in Q2 September 2013 to 32% in Q2 September 2014. However, due to 53% increase in burden of interest and depreciation, the PAT for Q2 September 2014 was lower by 12%. The company's cash profit during Q2 increased from Rs 907 crore in Q2 September 2013 to Rs 1308 crore in Q2 September 2014 - a net increase of 44%.

Pidilite Industries rose 0.76%. Pidilite Industries reported 17.2% rise in consolidated net profit to Rs 138.90 crore on 14.6% rise in total income to Rs 1269.71 crore in Q2 September 2014 over Q2 September 2013. The result was announced on Tuesday, 4 November 2014.

Brent crude oil prices dropped to its lowest level in three years after Saudi Arabian Oil Co. lowered the cost of its crude to the US, where production is the highest in three decades. Brent crude for December delivery was off 25 cents at $82.57 a barrel. The contract had fallen sharply by $1.96 to settle at $82.82 a barrel during the previous trading session, its lowest close since 21 October 2010.

Trading for this week is truncated as stock market remains closed tomorrow, 6 November 2014, on account of Gurunanak Jayanti. Earlier, the stock market had remained shut on Tuesday, 4 November 2014, on account of Muharram.

Most Asian stocks declined today, 5 November 2014 as commodity producers slumped. Key benchmark indices in China, Taiwan, Hong Kong and Japan and fell by 0.21% to 0.49%. Key benchmark indices in Singapore, South Korea and Indonesia rose 0.08% to 0.21%.

The HSBC China services purchasing managers index edged down to 52.9 in October from 53.5 in September, but most major components of the index remain solid, HSBC Holdings PLC said today, 5 November 2014. A reading above 50 indicates month-on-month expansion while a level below that points to contraction.

The S&P 500 and Nasdaq Composite ended lower on Tuesday, 4 November 2014 after the big drop in oil prices, while the Dow Jones industrial average eked out a small gain, with energy shares under pressure from low oil prices.

The European Central Bank (ECB) and Bank of England (BoE) will make interest-rate decisions tomorrow, 6 November 2014.

The European Commission on Tuesday, 4 November 2014 cut its growth forecasts for the eurozone and the European Union, citing the tensions in Ukraine and the Middle East along with a lack of investment. The commission said it now expects gross domestic product in the 18-country eurozone to grow 0.8% in 2014, down from 1.2% growth it forecast this spring. In 2015, the eurozone economy will likely grow 1.1%, also less than the 1.7% growth seen in the spring. In 2016, growth in the currency union will rise to 1.7%, the commission said.

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First Published: Nov 05 2014 | 9:29 AM IST

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