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Offshore oil services providers rally

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Last Updated : Nov 19 2013 | 11:55 PM IST

Key benchmark indices eked out small gains in lacklustre trade. The market breadth, indicating the overall health of the market, once again turned positive from negative in late trade. The barometer index, the S&P BSE Sensex, was provisionally up 27.69 points or 0.13%, off 55.97 points from the day's high and up 49.74 points from the day's low. In the foreign exchange market, the rupee edged higher against the dollar, on broad decline in dollar triggered by speculation Federal Reserve speakers including Chairman Ben S. Bernanke will reiterate economic growth isn't yet sufficient to trim stimulus.

Index heavyweight and cigarette major ITC edged lower in volatile trade. IT major Infosys extended intraday gains in late trade. Small car maker Maruti Suzuki India edged higher. Bharat Heavy Electricals (Bhel) rose after the company said it has bagged a main plant package contract worth Rs 1300 crore for setting up thermal unit from NTPC. Offshore oil services providers gained on renewed buying.

Key benchmark indices edged higher in early trade. The Sensex and the 50-unit CNX Nifty, both, hit over 1-1/2-week high. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving away almost entire initial gains in morning trade. Key benchmark indices moved in a narrow range in mid-morning trade. A bout of volatility was witnessed as key benchmark indices trimmed gains in early afternoon trade. The Sensex regained positive zone after slipping into the red in afternoon trade. Key benchmark indices moved in a narrow range in positive zone in mid-afternoon trade.

As per provisional closing, the S&P BSE Sensex was up 27.69 points or 0.13% to 20,878.43. The index gained 83.66 points at the day's high of 20,934.40 in early trade, its highest level since 7 November 2013. The index fell 22.05 points at the day's low of 20,828.69 in afternoon trade.

The CNX Nifty was up 12.60 points or 0.2% to 6,201.60. The index hit a high of 6,212.40 in intraday trade, its highest level since 7 November 2013. The index hit a low of 6,180.20 in intraday trade.

The market breadth, indicating the overall health of the market, once again turned positive from negative in late trade. Earlier, the breadth had turned negative from positive in early afternoon trade. On BSE, 1,300 shares gained and 1,204 shares dropped. A total of 154 shares were unchanged.

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The total turnover on BSE amounted to Rs 1954 crore, lower than Rs 2037 crore on Monday, 18 November 2013.

Among the 30-share Sensex pack, 15 stocks gained and rest of them declined.

Index heavyweight and cigarette major ITC shed 0.84% at Rs 323 in volatile trade. The stock hit high of Rs 327.85 and low of Rs 322.65.

IT major Infosys rose 1.2% to Rs 3,441. The stock hit a 52-week high of Rs 3,447.90 in intraday trade.

Small car maker Maruti Suzuki India gained 2.79%.

Metal shares were mixed. JSW Steel (up 1.46%), Hindustan Copper (up 2.91%), Jindal Steel & Power (up 4.11%) and Hindalco Industries (up 4.16%) edged higher. Hindustan Zinc (down 1.45%), Sesa Sterlite (down 1.8%), Tata Steel (down 1.05%) and Sail (down 0.91%) declined.

Bharat Heavy Electricals (Bhel) reversed intraday losses after the company said it has bagged a main plant package contract worth Rs 1300 crore for setting up thermal unit from NTPC. The stock rose 1.25% at Rs 141.60 The stock hit a high of Rs 142.15 and low of Rs 138.10.

Bhel said during trading hours today, 19 November 2013, that it received a major order from NTPC for supply and installation of the main plant package for a power project in Uttar Pradesh, involving one thermal power generating unit of 500 megawatts (MW). Valued at Rs 1300 crore, the order for the supply and installation of the steam generator, steam turbine generator and electrics package for the upcoming 500 MW Feroze Gandhi Unchahar Thermal Power Project (TPP), was received from NTPC BHEL Power Projects (NBPPL), a joint venture between NTPC and Bhel.

Bhel said the scope of work in the contract envisages design, engineering, manufacture, supply and erection and commissioning of steam generator, steam turbine generator and their auxiliaries; electrics and switchyard with associated civil works along with controls & instrumentation (C&I).

The key equipment for the project will be manufactured at Bhel's Trichy, Ranipet, Haridwar, Hyderabad, Bangalore and Bhopal Plants, while the company's power sector - Northern Region will be responsible for erection and commissioning of the equipment, Bhel said in a statement.

Indian Overseas Bank fell 0.19% to Rs 53.05. The state-run bank during market hours today, 19 November 2013, said that the Committee of Directors for preferential issue of shares met on 18 November 2013 and has fixed the price at Rs 52.23 per share and determined to allot 22.97 crore equity shares to Government of India aggregating to about Rs 1200 crore subject to receipt of funds from Government of India and approval by shareholders at the EGM to be held on 16 December 2013 at Chennai.

Shares of offshore oil services providers gained on renewed buying. Aban Offshore (up 19.83%), GOL Offshore (up 11.79%), Global Offshore Services (up 6.45%), Dolphin Offshore Enterprises (India) (up 9.89%) and SEAMEC (up 2.7%) gained.

In the foreign exchange market, the rupee edged higher against the dollar, on broad decline in dollar triggered by speculation Federal Reserve speakers including Chairman Ben S. Bernanke will reiterate economic growth isn't yet sufficient to trim stimulus. The partially convertible rupee was hovering at 62.12, compared with its close of 62.41/42 on Monday, 18 November 2013

European stock markets dropped on Tuesday, 19 November 2013, retreating from multiyear highs reached the prior day, with investors waiting for the latest take on German investment sentiment, the ZEW survey. Key benchmark indices in UK, Germany and France fell by 0.37% to 0.83%.

Asian markets were mostly lower on Tuesday, 19 November 2013. Key benchmark indices in Hong Kong, China, Singapore, and Japan fell by 0.01% to 0.34%. Key benchmark indices in Taiwan, Indonesia and South Korea rose by 0.11% to 1.04%.

Consumers confidence in China continued to pick up in the third quarter, as consumers from small cities grew more optimistic about their financial conditions and were willing to spend more against the backdrop of a modest economic recovery, a private survey released Tuesday showed. China's consumer confidence index was at 110 in the third quarter, steady from the second quarter and up from 106 in the third quarter of 2012, according to Nielsen -- a global consumer information provider. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

Trading in US index futures indicated that the Dow could slide 9 points at the opening bell on Tuesday, 19 November 2013. Most US stocks fell on Monday, 18 November 2013, after cautious comments by activist investor Carl Ichan on the equities market. Investors will closely watch minutes of the Fed's October 29-30 meeting due tomorrow, 20 November 2013. Federal Reserve Chairman Ben Bernanke will speak at the National Economists Club in Washington later today, 19 November 2013.

At a Nov. 14 congressional hearing on her nomination to run the Fed, Vice Chairman Janet Yellen indicated she'll press on with the central bank's monetary stimulus until she sees a robust recovery, downplaying risks the policy is inflating asset bubbles.

New York Fed President William C. Dudley said on Monday, 18 November 2013, he's more hopeful about the economy while indicating no change in bond buying. "While growth in 2013 has been disappointing, I believe a good case can be made that the pace of growth will pick up some in 2014 and then somewhat more in 2015. As growth picks up, I expect to see more substantial improvement in labor market conditions," Dudley said.

Economic growth in Brazil has started to recover as investment picks up, and in Mexico the economy is poised to bounce back along with exports, the Organization for Economic Co-operation and Development (OECD) said in an economic report published on Tuesday, 19 November 2013. Chile's economy, meanwhile, has slowed this year, and will accelerate next year and in 2015, the Paris-based OECD said in the report.

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First Published: Nov 19 2013 | 3:39 PM IST

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