A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming intraday gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently above the psychological 27,000 mark, having alternately moved above and below that mark in intraday trade so far. The Sensex was currently up 159.63 points or 0.59% at 27,040.45. The market breadth indicating the overall health of the market was strong. Gains in world stocks boosted sentiment.
Some realty and construction stocks rose on reports that the union cabinet is likely to consider a proposal today, 29 October 2014, to liberalise foreign direct investment in construction sector. Metal and mining stocks gained. Sesa Sterlite fell ahead of its Q2 results. Auto stocks edged higher on buzz of strong sales during the Diwali festive season.
Earlier, the Sensex and the 50-unit CNX Nifty, both, had hit their highest level in more than five weeks in morning trade after opening higher.
In overseas markets, Asian stocks rose after US stocks surged overnight on optimism about earnings and economic data in the US. US stocks surged yesterday, 28 October 2014, with Standard & Poor's 500 Index settling near a record on speculation the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment.
Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected.
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Indian stocks may remain volatile in near future as traders roll over positions in the futures & options (F&O) segment from the near month October 2014 series to November 2014 series. The near month October 2014 derivatives contract expire tomorrow, 30 October 2014.
At 11:17 IST, the S&P BSE Sensex was up 159.63 points or 0.59% at 27,040.45. The index jumped 181.30 points at the day's high of 27,062.12 in morning trade, its highest level since 23 September 2014. The index rose 90.34 points at the day's low of 26,971.16 in morning trade.
The CNX Nifty was up 42.85 points or 0.53% at 8,070.45. The index hit a high of 8,081.05 in intraday trade, its highest level since 23 September 2014. The index hit a low of 8,052.25 in intraday trade.
The BSE Mid-Cap index was up 61.41 points or 0.64% at 9,661.81. The BSE Small-Cap index was up 70.63 points or 0.66% at 10,794.69. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,428 shares rose while 929 shares declined. A total of 97 shares were unchanged.
Metal and mining stocks gained. Bhushan Steel (up 0.14%), Hindalco Industries (up 0.78%), Jindal Steel & Power (up 0.2%), JSW Steel (up 2.28%), Tata Steel (up 1.24%), Steel Authority of India (Sail) (up 0.74%), National Aluminum Company (up 0.01%) and NMDC (up 0.06%) gained. Hindustan Zinc declined 0.82%.
Sesa Sterlite fell 0.92% ahead of its Q2 results today, 29 October 2014.
Auto stocks edged higher on buzz of strong sales during the Diwali festive season. Tata Motors (up 2.4%), Maruti Suzuki India (up 0.27%), Ashok Leyland (up 0.55%) and Mahindra & Mahindra (M&M) (up 1.81%) edged higher. Escorts declined 0.39%.
Shares of two wheeler makers also gained. Bajaj Auto (up 0.36%) and TVS Motor Company (up 0.75%) gained.
Hero MotoCorp gained 1.37% after the company after trading hours yesterday, 28 October 2014, said that the company is confident of clocking over 90,000 units of scooters in retail sales in this month, which will be the company's all-time high monthly retail scooter sales. The company further said that it is raising scooter production capacity to about 1 lakh units per month by January 2015. Like the previous year, Hero MotoCorp is confident of clocking good double digit growth in scooters this year as well. The company has lined up two new scooter models for launch over the next few months, Hero MotoCorp said.
Separately, the Reserve Bank of India yesterday, 28 October 2014, notified that foreign institutional investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49% of the paid up capital of Hero MotoCorp under the Portfolio Investment Scheme. The Reserve Bank has stated that the company has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs.
PI Industries tumbled 8.25% after net profit fell 11.4% to Rs 49 crore on 7.8% decline in revenue to Rs 426.60 crore in Q2 September 2014 over Q2 September 2013. PI Industries' EBITDA declined 21.1% to Rs 72.60 crore in Q2 September 2014 over Q2 September 2013.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 61.29, compared with its close of 61.33 during the previous trading session.
Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected. Brent crude for December delivery was up 39 cents at $86.42 a barrel. The contract had gained 20 cents to settle at $86.03 a barrel during the previous trading session.
Asian stocks rose today, 29 October 2014, after US stocks surged overnight on optimism about earnings and economic data in the US. Key benchmark indices in Indonesia, South Korea, Singapore, Japan, China, Hong Kong and Taiwan were up 0.37% to 1.8%.
China's focus on meeting short-term growth targets could hamper reform efforts it needs for sustain longer-term economic expansion, the World Bank said today, 29 October 2014, in its China Economic Update. The World Bank praised Beijing for tightening credit growth, reducing excess capacity and grappling with pollution, adding these necessary steps toward economic rebalancing had also contributed to slower growth this year. China's gross domestic product grew a year-on-year 7.4% over the January-September period.
Trading in US index futures indicated that the Dow could fall 14 points at the opening bell today, 29 October 2014. US stocks surged yesterday, 28 October 2014, with Standard & Poor's 500 Index settling near a record on speculation the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.
Among economic data, US consumer confidence hit its highest since 2007 in October. The report overshadowed a separate read that showed new orders for capital goods fell the most in eight months in September.
A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy review concludes today, 29 October 2014. The Fed is expected to announce the end of quantitative easing after the meeting. Investors will be looking to see if the Fed drops the "considerable period" for keeping rates low at the latest policy meeting. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.
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