A range bound movement was witnessed as key benchmark indices remained firm in afternoon trade. The barometer index, the S&P BSE Sensex, retained the psychological 28,000 level which it had regained in early trade. The Sensex was currently up 154.24 points or 0.55% at 28,064.30. The market breadth indicating the overall health of the market was positive. The BSE Mid-Cap index was up 1.01%, outperforming the Sensex.
Global crude oil prices edged lower. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement. Data after trading hours today, 12 November 2014, is likely to show consumer price inflation falling further in October 2014 and growth in industrial production remaining muted in September 2014. Asian stocks were in green.
Meanwhile, the empowered committee of state finance ministers on goods & services tax (GST) at its meeting held yesterday, 11 November 2014, reportedly agreed on the 'place of supply' rules that form the backbone of proposed GST. Foreign portfolio investors (FPIs) bought shares worth a net Rs 458.04 crore yesterday, 11 November 2014, as per provisional data. On the political front, the Devendra Fadnavis-led BJP government today, 12 November 2014, won the trust vote in Maharashtra assembly.
PSU OMCs edged higher as global crude oil prices dropped. HPCL scaled record high. BPCL rose ahead of its Q2 September 2014 results. Power generation stocks were mixed. Shares of non-banking financial companies extended Tuesday's gains triggered by the Reserve Bank of India's announcement of revised regulatory framework for Non-banking Finance Companies (NBFCs), with Shriram Transport Finance Corporation hitting record high.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit record high in mid-morning trade after extending initial gains.
In overseas markets, Asian stocks edged higher after Wall Street edged up to its fifth straight record close yesterday, 11 November 2014. US stocks eked out miniscule gains yesterday, 11 November 2014, with the Dow Jones Industrial Average and the S&P 500, both, attaining record closing high in light volume as consumer discretionary shares gained.
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In the foreign exchange market, the rupee edged higher against the dollar as key equity benchmark indices in India hit record high.
Brent crude futures fell amid signs that OPEC members are reluctant to reduce supply even as prices slump.
At 13:12 IST, the S&P BSE Sensex was up 154.24 points or 0.55% at 28,064.30. The index jumped 216.42 points at the day's high of 28,126.48 in mid-morning trade, a lifetime high for the index. The index rose 48.58 points at the day's low of 27,958.64 in opening trade.
The CNX Nifty was up 34.80 points or 0.42% at 8,397.45. The index hit a high of 8,415.05 in intraday trade, a lifetime high for the index. The index hit a low of 8,377.95 in intraday trade.
The BSE Mid-Cap index was up 102 points or 1.01% at 10,187.65. The BSE Small-Cap index was up 65.67 points or 0.59% at 11,227.62. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,571 shares gained and 1,226 shares fell. A total of 117 shares were unchanged.
The total turnover on BSE amounted to Rs 2160 crore by 13:15 IST.
PSU OMCs edged higher as global crude oil prices dropped. HPCL rose 1.62% to Rs 584.85 after scaling a record high of Rs 588.80 in intraday trade.
BPCL rose 0.74% ahead of its Q2 September 2014 results today, 12 November 2014.
Indian Oil Corporation shed 0.97%.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Power generation stocks were mixed. Tata Power Company (down 0.8%), NTPC (down 1.03%), NHPC (down 0.03%) and Jaiprakash Power Ventures (down 1.72%), edged lower. JSW Energy (up 1.76%), CESC (up 1.47%), Reliance Power (up 0.33%) and Adani Power (up 0.72%) rose.
Power and Coal Minister Piyush Goyal reportedly said today, 12 November 2014, that it was possible to stop imports of thermal coal into the country in two to three years. Goyal said at a conference that coal production will nearly double to 1 billion tonnes by 2019.
Reliance Infrastructure rose 0.05% at Rs 643.70. The stock was volatile. The stock hit a high of Rs 648.30 and a low of Rs 636 so far during the day. The company announces Q2 September 2014 results today, 12 November 2014.
Power Grid Corporation of India lost 2.17%. The company reported 3.06% fall in net profit to Rs 1201.27 crore on 4.99% growth in total income to Rs 4309.26 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 11 November 2014.
Coal India (CIL) shed 0.17% at Rs 345.05. The stock was volatile. The stock hit a high of Rs 348.40 and a low of Rs 344.10 so far during the day. The company during market hours today, 12 November 2014, in a clarification with regard to news item titled "CIL ratifies Rs 11000 crore thermal power project" said that Mahanadi Basin Power, a wholly owned subsidiary of Mahanadi Coalfields which is wholly owned subsidiary of Coal India is proposing to set up 2x800 megawatts (MW) coal based Super-critical Thermal Power Plant (STPP), at Hemgir (Sundargarh, Odisha) at a capital investment of Rs 11363.18 crore. The project report of proposed thermal power project was presented in CIL board meeting held on 8 November 2014. The minutes of the board meeting is under preparation and will be finalized shortly, the company said. Coal India proposed to intimate stock exchanges about the decision of Board under Clause 36 of the Listing Agreement immediately after the approval of minutes, it added.
Shares of non-banking financial companies extended Tuesday's gains triggered by the Reserve Bank of India's announcement of revised regulatory framework for Non-banking Finance Companies (NBFCs), with Shriram Transport Finance Corporation hitting record high. IDFC (up 2.36%), Reliance Capital (up 1.95%), LIC Housing Finance (up 2.28%), Mahindra & Mahindra Financial Services (up 8.91%), Bajaj Finserv (up 0.58%) and Bajaj Finance (up 1.21%) edged higher.
The RBI early this week announced a revised regulatory framework for Non-banking Finance Companies (NBFCs) with a view to streamlining the regulations for the sector. Explaining the rationale behind the revised framework for NBFCs, the RBI stated that a lighter regulatory framework has been placed on NBFCs other than for those with large asset sizes and deposit accepting. For NBFCs with large asset sizes, and for all deposit accepting NBFCs, regulations have been harmonised across NBFCs, and to some extent, with banks. The intent is to create a level playing field that does not unduly favour or disfavour any institution. The RBI further stated that in limited areas where harmonisation has resulted in strengthening the regulations, generally adequate time has been given to manage the transition.
L&T Finance Holdings (LTFH) surged 3.4% to Rs 74.55, with the stock extending yesterday's 3% rally. Shares of LTFH had jumped 3% to settle at Rs 72.10 yesterday, 11 November 2014, after the company during market hours yesterday, 11 November 2014 issued a clarification with regard to a news report published on 11 November 2014 that the company has approached the Reserve Bank of India for seeking prior approval to merge or acquire ING Vysya Bank. LTFH, as a policy, does not comment on speculative news appearing in the media, the company said. As a part of its normal course of business, the company keeps evaluating opportunities on both organic and inorganic basis. The investors/stock exchanges would be informed as and when definitive developments take place, LTFH said.
Shares of ING Vysya Bank were up 2.32% at Rs 724.
Shriram Transport Finance Corporation surged 3.19% to Rs 1,047.85 after scaling a record high of Rs 1,052 in intraday trade.
Manjushree Technopack was locked in 20% upper circuit at Rs 440.25 after the company said its board approved the proposal of delisting the company's shares from BSE and NSE. The announcement was made before trading hours today, 12 November 2014.
Minda Industries galloped 14.46% after the company said its net profit jumped 399.6% to Rs 25.58 crore on 32.5% rise in total income to Rs 368.83 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced after market hours on Tuesday, 11 November 2014.
Uflex rose 10.32% after consolidated net profit rose 42.25% to Rs 65.11 crore on 9.17% rise in net sales to Rs 1610.20 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Tuesday, 11 November 2014.
Bayer CropScience jumped 13.02% after the company said its net profit rose 51.15% to Rs 176.10 crore on 17.65% rise in total income to Rs 1268.70 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced after market hours on Tuesday, 11 November 2014.
In the foreign exchange market, the rupee edged higher against the dollar as key equity benchmark indices in India hit record high. The partially convertible rupee was hovering at 61.505, compared with its closing of 61.555 during the previous trading session.
Brent crude futures fell amid signs that OPEC members are reluctant to reduce supply even as prices slump. Brent for December delivery was off 72 cents at $80.95 a barrel. The contract dropped 67 cents yesterday, 11 November 2014, after first touching $80.46 a barrel, its lowest since September 2010. The contract had settled at $81.67 a barrel yesterday, 11 November 2014, the lowest price since October 2010. Brent for January 2015 delivery was off 71 cents at $81.68 a barrel.
Indian government's decision last 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% in September 2014, the least since 2012.
Data after trading hours today, 12 November 2014, is likely to show consumer price inflation falling further in October 2014 and data later this week is likely to show wholesale price inflation falling further last month.
The rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen easing further to 5.7% in October 2014, from 6.46% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release consumer price inflation data for October 2014 at 17:30 IST today, 12 November 2014.
The rate of inflation based on wholesale price index (WPI) is seen easing further to 2.1% in October 2014, from 2.38% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI inflation data for October 2014 at 12:00 noon on Friday, 14 November 2014.
Industrial production is seen rising a muted 0.4% in September 2014, matching the growth in August 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for September 2014 at 17:30 IST today, 12 November 2014.
Meanwhile, the empowered committee of state finance ministers on goods & services tax (GST) at its meeting held yesterday, 11 November 2014, reportedly agreed on the 'place of supply' rules that form the backbone of proposed GST. The place of supply rules decide where goods or services will be taxed, fixing a crucial element of the levy that has gained in importance because of the surge in ecommerce and electronic delivery of services. However, both the Centre and the states continue to differ on the threshold limit beyond which GST will be levied. As per reports, the states have stuck to their stand that the revenue threshold limit beyond which GST will be levied should be Rs 10 lakh for general category states and Rs 5 lakh for special category states and north-eastern states, despite the central government asking states to review its earlier decision on this limit and increase it upwards to Rs 25 lakh.
The government is reportedly proposing to introduce the GST Constitutional Amendment Bill and push for its passage in the winter session of Parliament. GST is a major indirect tax reform. GST will subsume central indirect taxes such as excise duty and service tax at the central level and value added tax at the state level besides other local levies such as octroi and entry tax.
On the political front, the Devendra Fadnavis-led BJP government today, 12 November 2014, won the trust vote in Maharashtra assembly. The confidence motion was passed by voice-vote. Shiv Sena's Eknath Shinde became the Leader of Opposition in the Maharashtra assembly. BJP legislator Haribhau Bagde was elected unopposed as Speaker of Maharashtra Assembly after Shiv Sena and Congress candidates withdrew their nominations.
Asian stocks edged higher today, 12 November 2014, after Wall Street edged up to its fifth straight record close yesterday, 11 November 2014. Key indices in China, South Korea, Hong Kong, and Indonesia were up 0.22% to 1%. Key indices in Singapore and Taiwan were off 0.04% to 1.28%.
Japanese stocks rose for the second day in a row amid speculation the nation will delay raising its sales tax again. The Nikkei 225 Average was up 0.43%. Newspaper reports yesterday, 11 November 2014, suggested that Japan's Prime Minister Shinzo Abe is considering postponing a second increase in sales-tax next year and preparing to call snap elections next month. Abe told reporters yesterday, 11 November 2014, at the Asia-Pacific Economic Cooperation forum in Beijing that he hadn't made a decision on dissolving parliament.
Meanwhile, a trading program linking Hong Kong's stock market with Shanghai's will open on 17 November 2014.
Trading in US index futures indicated that the Dow could fall 18 points at the opening bell today 12 November 2014. US stocks eked out miniscule gains yesterday, 11 November 2014 with the Dow Jones Industrial Average and S&P 500 hitting record closing high in light volume as consumer discretionary shares gained. The National Federation of Independent Business said its small-business optimism index rose 0.8 point to 96.1 in October, a two-month high.
Repeating a familiar message, Philadelphia Fed President Charles Plosser today, 12 November 2014, said US interest rates should be raised "sooner rather than later." In a speech in London, Plosser said rising rates are not inconsistent with a continuing recovery. Plosser, one of the more hawkish members, has a vote on this year's Federal Open Market Committee.
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