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Metal and mining stocks edge lower

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Last Updated : Nov 10 2014 | 1:00 PM IST

An extremely range bound movement was witnessed as key benchmark indices traded near the flat line in mid-morning trade. The Sensex was currently down 14.51 points or 0.05% at 27,854.12. The market breadth indicating the overall health of the market was positive. Chinese stocks led gains in Asian stocks after Chinese regulators said the exchange link between Hong Kong and Shanghai will debut on 17 November 2014.

In the first cabinet expansion exercise of the Narendra Modi government, 21 ministers were inducted into the council of ministers yesterday, 9 November 2014. Four ministers were allotted cabinet rank, whereas three took charge as Ministers of State (independent charge). The remaining 14 took oath as MoS. Among cabinet ministers, former Goa Chief Minister Manohar Parikkar was allotted Defense portfolio. Suresh Prabhu was handed over with Railways which was earlier held by D. V. Sadananda Gowda who has now been allocated the portfolio of Law & Justice. Jagat Prakash Nadda was made minister of Health & Family Welfare. Chaudhary Birender Singh was allotted Rural Development, Panchayati Raj, Drinking Water and Sanitation.

Metal and mining stocks edged lower. Sun Pharmaceutical Industries scaled record high after its overseas subsidiary Taro Pharmaceutical Industries reported strong Q2 September 2014 earnings. Neyveli Lignite Corporation declined after Q2 September 2014 results. Jet Airways (India) rose after reporting turnaround in Q2.

Earlier, high volatility was witnessed as the Sensex, and the 50-unit CNX Nifty reversed direction after both these indices struck record high in early trade. The Sensex fell below the psychological 28,000 level soon after regaining that level in early trade.

In overseas markets, Chinese stocks led gains in Asian stocks after Chinese regulators said the exchange link between Hong Kong and Shanghai will debut on 17 November 2014. US stocks eked out marginal gains amid thin volumes on Friday, 7 November 2014, with the S&P 500 and Dow Jones Industrial Average, both, attaining record closing high.

In the foreign exchange market, the rupee edged higher against the dollar as demand for the dollar weakened after data showed US employers added fewer jobs than economists estimated last month.

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Brent crude futures rose as Chinese export data signaled foreign demand may help sustain the economy in the world's second-biggest oil consumer.

At 11:20 IST, the S&P BSE Sensex was down 14.51 points or 0.05% at 27,854.12. The index jumped 159.33 points at the day's high of 28,027.96 in early trade, a record high for the index. The index lost 50.40 points at the day's low of 27,818.23 in morning trade.

The CNX Nifty was down 6.80 points or 0.08% at 8,330.20. The index hit a high of 8,383.05 in intraday trade, a record high for the index. The index hit a low of 8,320.75 in intraday trade.

The BSE Mid-Cap index was up 23.54 points or 0.24% at 10,023.23. The BSE Small-Cap index was up 29.90 points or 0.27% at 11,147.07. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1,296 shares gained and 1,197 shares fell. A total of 91 shares were unchanged.

Most metal and mining stocks edged lower. Jindal Steel & Power (down 2.26%), Hindalco Industries (down 1.51%), Tata Steel (down 1.08%), NMDC (down 0.6%), and Sesa Sterlite (down 0.55%) declined. Steel Authority of India (up 0.54%) and JSW Steel (up 0.54%) edged higher.

Sun Pharmaceutical Industries rose 2.96% at Rs 918.05. The stock hit a record high of Rs 932 intraday trade. Taro Pharmaceutical Industries' net profit jumped 48.9% to $143.4 million on 22.2% growth in net sales to $250.8 million in Q2 September 2014 over Q2 September 2013. The result was announced yesterday, 9 November 2014. Taro Pharmaceutical Industries is a subsidiary of Sun Pharmaceutical Industries.

Neyveli Lignite Corporation (NLC) lost 3.94% at Rs 89.05. The company's net profit rose 8.06% to Rs 259.35 crore on 1.42% growth in sales turnover to Rs 1402.49 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Friday, 7 November 2014. During the first half of FY 2015 NLC has generated 9,983.10 million units of power, achieving 100.04% of the set target, the company said in a statement.

Jet Airways (India) surged 3.9% at Rs 261.25. The company reported a net profit of Rs 70 crore in Q2 September 2014, compared with net loss of Rs 891 crore in Q2 September 2013. Revenue rose 16% to Rs 4772 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Friday, 7 November 2014.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 2537.13 crore during the previous trading session on Friday, 7 November 2014, provisional data released by the stock exchanges showed.

In the foreign exchange market, the rupee edged higher against the dollar as demand for the dollar weakened after data showed US employers added fewer jobs than economists estimated last month. The partially convertible rupee was hovering at 61.4675, compared with its close of 61.635 during the previous trading session on Friday, 7 November 2014.

Brent crude futures rose as Chinese export data signaled foreign demand may help sustain the economy in the world's second-biggest oil consumer. Brent for December delivery was up 42 cents at $83.81 a barrel. The contract had risen 53 cents to settle at $83.39 a barrel during the previous trading session on Friday, 7 November 2014. Brent for January 2015 delivery was up 40 cents at $84.37 a barrel.

The Indian government will unveil industrial production data for September 2014 on Wednesday, 12 November 2014. Growth of industrial output remained subdued at 0.4% in August 2014 same as 0.4% (revised) increase in July 2014.

The government will release annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India for October 2014 on Wednesday, 12 November 2014. CPI for urban and rural India eased to 6.46% in September 2014, from 7.73% in August 2014.

The government will release the inflation data based on wholesale price index (WPI) for October 2014 on Friday, 14 November 2014. WPI eased to 2.38% in September 2014, from 3.74% in August 2014.

The Central Board of Direct Taxes (CBDT) on Friday, 7 November 2014, issued instructions to its field offices regarding its constant endeavour towards a non-adversarial tax regime. Though less than 1% of returns filed are selected for scrutiny, this area of work has often drawn adversarial comments. Supervisory officers have been directed to play a more pro-active role in monitoring and guiding assessments towards ensuring that high-pitched assessments without proper basis are not made and that lengthy questionnaires or summons without due application of mind are avoided, the Ministry of Finance said in a statement. They have been directed to ensure Inspections and Reviews in accordance with guidelines issued to enable capacity building within the Department and accountability of the officers, the finance ministry said. Senior officers have been directed to ensure that appeals are filed only on the merits thereof and not merely on the tax effect involved, the finance ministry said.

Chinese stocks led gains in Asian stocks after Chinese regulators said the exchange link between Hong Kong and Shanghai will debut on 17 November 2014. Key benchmark indices in China, Hong Kong, Taiwan, Singapore, and South Korea were up 0.66% to 1.72%. Key incdices in Japan and Indonesia were off 0.13% to 0.6%.

China said today, 10 November 2014, that the exchange link between Hong Kong and Shanghai will debut on 17 November 2014. Bourses in the two cities will begin trading through the program, which allows a net 23.5 billion yuan ($3.8 billion) a day in cross-border purchases, on 17 November 2014, regulators said in a joint statement today, 10 November 2014.

China's consumer inflation held steady in October, allowing more room for monetary easing as growth momentum slips in the world's second-largest economy. The consumer-price index (CPI) matched September's nearly five-year low and remained well below the government's goal of keeping inflation below 3.5% this year. The CPI expanded 1.6% in October from a year earlier, unchanged from September, the National Bureau of Statistics said today, 10 November 2014. China's producer-price index, a gauge of factory-gate prices, dropped 2.2% in October from a year earlier, accelerating from a 1.8% year-over-year decline in September.

China's exports jumped 11.6% in October 2014 from a year earlier, according to Chinese customs data released on Saturday, 8 November 2014. China's imports rose 4.6% in October 2014.

China's President Xi Jinping told executives at the Asia-Pacific Economic Cooperation meeting yesterday, 9 November 2014, that China has the tools to address perceived risks to the Chinese economy. Economic data in the first nine months remained in a reasonable range, he said, adding that slower growth is a "new normal," and annual growth above 7% still puts China's economy among global leaders in speed and size. China needs to improve its social safety net and open its capital markets, the Chinese president said, adding that urbanization, agricultural modernization, better use of technology and new approaches to macroeconomic management will help relieve "growing pains" as the economy increasingly relies on consumption and reduces its reliance on exports.

Trading in US index futures indicated that the Dow could rise 15 points at the opening bell today 10 November 2014. US stocks eked out marginal gains amid thin volumes on Friday, 7 November 2014, but it was still enough to register fresh record highs for two of the three main benchmarks. The S&P 500 and Dow Jones Industrial Average closed at record highs for the third consecutive day. However, investors' reaction to the latest employment data, showing 214,000 new jobs were added last month was mostly muted. The Bureau of Labor Statistics report showed the US created 214,000 jobs in October, nudging the unemployment rate down a notch to 5.8%, as many companies added workers to gear up for the holiday season. The economy has now added 200,000 workers or more for nine straight months, a feat last accomplished in 1994.

Federal Reserve Chairwoman Janet Yellen and her colleagues continue to prepare the market for an increase in interest rates. In speeches in Paris on Friday, 7 November 2014, Yellen and New York Fed President William Dudley appeared to prepare the markets for the eventuality of rising rates. Dudley said rates likely will be hiked next year, as many market watchers anticipate.

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First Published: Nov 10 2014 | 11:19 AM IST

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