A drop in global crude oil prices provided fresh trigger for a strong rally on the domestic bourses, with the key equity benchmark indices surging to fresh record high in mid-morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit fresh record high in mid-morning trade. Gains in world stocks also boosted sentiment. The Sensex was currently up 329.85 points or 1.21% at 27,676.18. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. The BSE Mid-Cap index was up 1.32%, outperforming the Sensex. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore yesterday, 30 October 2014, as per provisional data. Brent crude oil prices declined. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
Metal and mining stocks gained. Shares of state-run upstream oil and gas companies rose as lower crude oil prices will reduce subsidy sharing burden.
In overseas markets, Japanese stocks led gains in Asian stocks after the Bank of Japan (BOJ) after a monetary policy review today, 31 October 2014, unexpectedly boosted its unprecedented monetary easing. US stocks edged higher yesterday, 30 October 2014, as a report showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment.
Brent crude oil prices edged lower as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012.
At 11:17 IST, the S&P BSE Sensex was up 329.85 points or 1.21% at 27,676.18. The index surged 331.16 points at the day's high of 27,677.49 in mid-morning trade, a lifetime high for the index. The index rose 91.95 points at the day's low of 27,438.28 in early trade.
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The CNX Nifty was up 97.90 points or 1.2% at 8,267.10. The index hit a high of 8,269.70 in intraday trade, a lifetime high for the index. The index hit a low of 8,198.05 in intraday trade.
The BSE Mid-Cap index was up 128.62 points or 1.32% at 9,843.05, outperforming the Sensex. The BSE Small-Cap index was up 120.96 points or 1.12% at 10,948.42, underperforming the Sensex.
The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. On BSE, 1,639 shares rose while 673 shares declined. A total of 85 shares were unchanged.
Metal and mining stocks gained. JSW Steel (up 1.57%), Bhushan Steel (up 0.95%), Hindustan Copper (up 1.98%), Sesa Sterlite (up 0.67%), Hindustan Zinc (up 1.33%), Jindal Steel & Power (up 1.01%), Tata Steel (up 1.67%), Steel Authority of India (Sail) (up 0.54%), National Aluminum Company (up 0.77%) and NMDC (up 1.54%) gained. Hindalco Industries fell 0.5%.
Shares of state-run upstream oil and gas companies rose as lower crude oil prices will reduce subsidy sharing burden. ONGC (up 1.52%), GAIL (India) (up 0.57%) and Oil India (up 0.72%) gained.
State-run upstream oil and gas companies share a part of the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell. The government has already deregulated petrol and diesel prices.
Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 30 October 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore on that day.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 61.385, compared with its close of 61.455 during the previous trading session.
Brent crude oil prices edged lower as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012. Brent crude for December delivery was off 34 cents at $85.90 a barrel. The contract had fallen 88 cents to settle at $86.24 a barrel during the previous trading session.
The government's decision this month to decontrol diesel prices and a sharp decline in global crude oil prices recently will help India in containing its fiscal deficit. The fall in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. A slump in Brent crude since the end of June contributed to consumer-price index slowing to 6.46% last month, the least since 2012.
Finance Minister Arun Jaitley yesterday, 30 October 2014, asked the senior officers of the Central Board of Direct Taxes (CBDT) not to lose sight of domestic black money keeping in view its much higher magnitude. He asked the senior officers of the Income Tax Department to make their best efforts to chase those sectors where the domestic black money is most prevalent. He said that the recovery of black money and taxes due thereon will also help the Department in achieving its tax collection targets. The Finance Minister was speaking at a Review Meeting of Principal Chief Commissioners, Principal Directors General, Chief Commissioners and Directors General of Income Tax in order to assess and analyse the achievements of the Budget Targets for Revenue Collections for Financial Year 2014-15. He asked the tax officials to widen the tax base in order to bring more and more people within tax domain.
Japanese stocks led gains in Asian stocks today, 31 October 2014, after the Bank of Japan (BOJ) after a monetary policy review today, 31 October 2014, unexpectedly boosted its unprecedented monetary easing. Key benchmark indices in Indonesia, South Korea, Hong Kong, Taiwan, Singapore, and China were up 0.14% to 1.15%.
Japan's Nikkei Avergae jumped 4.56%. In an unexpected move, the Bank of Japan's policy board today, 31 October 2014, voted by a 5-to-4 margin to expand the pace of its quantitative easing. The central bank expanded the size of its Japanese Government Bond (JGBs) purchases to the equivalent of about 80 trillion yen ($727 billion) a year, an increase of 30 trillion yen from the previous pace. It said it would also buy longer-dated JGBs, seeking an average remaining maturity of 7-10 years. The central bank also said it would triple its purchases of exchange-traded funds and real-estate investment trusts. It also added that the so-called "quantitative and qualitative easing" program would continue "as long as it is necessary". Earlier in the day, data showed that Japan's inflation rate in September had hit its lowest level in almost a year.
Trading in US index futures indicated that the Dow could jump 199 points at the opening bell today, 31 October 2014. US stocks edged higher yesterday, 30 October 2014, as a report showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.
The American economy expanded at a more-than-estimated annualized rate of 3.5% last quarter, capping its strongest six months in a decade, while other data showed fewer Americans filed applications for unemployment benefits over the past month than at any time in more than 14 years.
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