Key benchmark indices opened on a firm note on positive Asian stocks. The 50-unit CNX Nifty scaled record high. The barometer index, the S&P BSE Sensex was currently up 204.07 points or 0.72% at 28,646.78. The market breadth indicating the overall health of the market was strong with more than two gainers for every loser.
Index heavyweight and cigarette major ITC jumped over 5% on reports that the government has indicated that it is in favour of wider consultations before bringing any amendments to the existing laws to restrict the sale of loose cigarettes. Reliance Industries (RIL) rose after the Minister of State for Petroleum & Natural Gas Dharmendra Pradhan informed the Rajya Sabha in a written reply yesterday, 3 December 2014, that the possible alternatives for affecting the recovery of additional profit petroleum for the government from the contractor of the D6 Block are being worked out. Steel Authority of India (Sail) dropped after the government announced an offer for sale (OFS) of upto 20.65 crore equity shares, or 5% stake, of Sail through a sale on tomorrow, 5 December 2014.
Asian stocks edged higher today, 4 December 2014 amid fresh signs of resilience in the US economy.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 391.07 crore yesterday, 3 December 2014, as per provisional data.
At 9:22 IST, the S&P BSE Sensex was up 204.07 points or 0.72% at 28,646.78. The index jumped 366.07 points at the day's high of 28,808.78 at onset of the day's trading session, its highest level since 1 December 2014. The index gained 145.04 points at the day's low of 28,587.75 in early trade.
The CNX Nifty was up 42.85 points or 0.5% at 8,580.50. The index hit a high of 8,626.95 in intraday trade, a record high for the index. The index hit a low of 8,578.95 in intraday trade.
The market breadth indicating the overall health of the market was strong with more than two gainers for every loser. On BSE, 1,018 shares gained and 374 shares fell. A total of 37 shares were unchanged.
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The BSE Mid-Cap index was up 56.07 points or 0.53% at 10,555.93. The BSE Small-Cap index was up 67.84 points or 0.59% at 11,503.72. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 222 crore by 09:25 IST.
Index heavyweight and cigarette major ITC jumped 5.23% on reports that the government has indicated that it is in favour of wider consultations before bringing any amendments to the existing laws to restrict the sale of loose cigarettes.
Reliance Industries (RIL) rose 0.55%. The Minister of State for Petroleum & Natural Gas Dharmendra Pradhan informed the Rajya Sabha in a written reply yesterday, 3 December 2014, that the possible alternatives for affecting the recovery of additional profit petroleum for the government from the contractor of the D6 Block are being worked out. He said that the government had disallowed development cost based on the cumulative shortfall in production of gas vis-vis production estimates under the approved AIDP (Addendum to Initial Development Plan). The total disallowed development costs as on 31 March 2014 amount to $2.376 billion. RIL is the operator of the D6 Block, off the eastern coast of India with 60% stake. Niko owns 10% and BP Plc has a 30% stake in the block. As a result of disallowance of a portion of contract cost, the contractor is liable to pay additional profit petroleum of $195.34 million to the government for period up to 2013-14, Pradhan said. The contractor of the block has invoked arbitration on this issue, he said.
Indian Oil Corporation (IOC) rose 0.97%. IOC announced after market hours yesterday, 3 December 2014, that company alongwith Mangalore Refinery and Petrochemicals (MRPL) have signed a non-binding Memorandum of Understanding (MoU) with State Trading Corporation (STC), a Government entity of Mauritius for exploring the possibilities for setting up oil storage terminal(s) in Mauritius through a joint venture company. For this purpose, a detailed feasibility study and market study would be carried out. The MoU executed on 27 November 2014 does not have any material impact on the financials of IndianOil at present.
Steel Authority of India (Sail) dropped 2.63% to Rs 83.40. The government has announced an offer for sale (OFS) of upto 20.65 crore equity shares, or 5% stake, of Sail through a sale on the separate window provided by the BSE and NSE tomorrow, 5 December 2014 at 9:15 IST and shall close on the same date at 15:30 IST. As much as 10% of the offered shares has been reserved for retail investors, who can buy shares worth up to Rs 2 lakh in the share sale. A minimum of 25% of the issue size would be reserved for mutual funds and insurance companies. Retail investors will be allocated shares at a discount of 5% to the bid price entered by them. The floor price for the OFS would be determined after market hours today, 4 December 2014. Shares of Sail had settled 4.67% lower at Rs 85.65 on BSE yesterday, 3 December 2014.
ICICI Bank was trading at Rs 365. The stock turned ex-split today, 4 December 2014, for 5 for 1 stock split.
The finance ministry after trading hours yesterday, 3 December 2014, announced the setting up of a High Level Committee (HLC) to interact with trade and industry on tax laws. The HLC will interact with trade and industry on regular basis and ascertain areas where clarity in tax laws is required. The HLC will give recommendations to the CBDT/CBEC for issuance of appropriate clarifications by way of circulars, instructions etc. on tax issues. The CBDT/CBEC will issue the required clarifications, circulars, instructions etc. within a period of 2 months from the date of receipt of recommendations of the HLC, the finance ministry said in a statement. The term of the committee shall be for one year from the date of its constitution, subject to further extensions, as may be considered appropriate by the Department of Revenue, Ministry of Finance.
The Indian government intends to get the Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector passed during the winter session of parliament which began on 24 November 2014. The government is also likely to introduce the constitutional amendment bill for the goods & services tax in the winter session of parliament.
Asian stocks edged higher today, 4 December 2014 amid fresh signs of resilience in the US economy. Key benchmark indices in China, Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea rose by 0.02% to 1.62%.
Meanwhile, Japanese Prime Minister Shinzo Abe 's ruling Liberal Democratic Party is poised for a landslide victory in 14 December 2014 parliamentary elections, reports indicated.
Big gains in energy, materials and industrials sectors, following a rebound in oil and gold prices, helped propel the S&P 500 and Dow Jones Industrial Average to record levels yesterday, 3 December 2014.
The influential US nonfarm payrolls report for November will be out in the US on tomorrow, 5 December 2014.
The European Central Bank (ECB) will meet today, 4 December 2014 to discuss monetary policy. The ECB has pledged more stimulus if needed to revive inflation.
In economic data, a reading of private sector employment showed that hiring slowed in November, though employers added more than 200,000 jobs in seven of the past eight months. The productivity for the third quarter was revised upwards, however, labor costs fell, pointing at lagging wages.
Meanwhile, US services companies reported that growth ramped up in November, with a gauge of activity rising to 59.3% from 57.1% in October, according to a survey of senior executives released yesterday, 3 December 2014 by the Institute for Supply Management.
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