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Railways stocks accelerate after change of guard at Rail Ministry

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Last Updated : Nov 10 2014 | 3:00 PM IST

A range bound movement was witnessed as key benchmark indices hovered in negative zone in afternoon trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently off 77.74 points or 0.28% at 27,790.89. Chinese stocks led gains in Asian stocks after Chinese regulators said the exchange link between Hong Kong and Shanghai will debut on 17 November 2014.

In the first cabinet expansion exercise of the Narendra Modi government, 21 ministers were inducted into the council of ministers yesterday, 9 November 2014. Four ministers were allotted cabinet rank, whereas three took charge as Ministers of State (independent charge). The remaining 14 took oath as MoS. Among cabinet ministers, former Goa Chief Minister Manohar Parikkar was allotted Defense portfolio. Suresh Prabhu was handed over with Railways which was earlier held by D. V. Sadananda Gowda who has now been allocated the portfolio of Law & Justice. Jagat Prakash Nadda was made minister of Health & Family Welfare. Chaudhary Birender Singh was allotted Rural Development, Panchayati Raj, Drinking Water and Sanitation.

Among private sector bank stocks, Axis Bank reversed direction after scaling a record high. ING Vysya Bank scaled record high. Shares of public sector oil marketing companies rose on renewed buying. Shares of companies whose fortunes are linked to orders from Indian Railways rose after Prime Minister Narendra Modi appointed Suresh Prabhu as new Union Railway Minister in a Cabinet expansion and reshuffle announced yesterday, 9 November 2014.

Motherson Sumi Systems fell after declaring poor Q2 September 2014 result. Adani Ports and Special Economic Zone rose after announcing strong Q2 September 2014 result. Among other side counters, Abbott India, Amara Raja Batteries, GIC Housing Finance, Greaves Cotton and Page Industries scaled record high.

Earlier, high volatility was witnessed as the Sensex, and the 50-unit CNX Nifty reversed direction after both these indices struck record high in early trade. The Sensex fell below the psychological 28,000 level soon after regaining that level in early trade.

In overseas markets, Chinese stocks led gains in Asian stocks after Chinese regulators said the exchange link between Hong Kong and Shanghai will debut on 17 November 2014. US stocks eked out marginal gains amid thin volumes on Friday, 7 November 2014, with the S&P 500 and Dow Jones Industrial Average, both, attaining record closing high.

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In the foreign exchange market, the rupee edged higher against the dollar as demand for the dollar weakened after data showed US employers added fewer jobs than economists estimated last month.

Brent crude futures rose as Chinese export data signaled foreign demand may help sustain the economy in the world's second-biggest oil consumer.

At 13:17 IST, the S&P BSE Sensex was down 77.74 points or 0.28% at 27,790.89. The index lost 103.88 points at the day's low of 27,764.75 in afternoon trade. The index jumped 159.33 points at the day's high of 28,027.96 in early trade, a record high for the index

The CNX Nifty was down 24.30 points or 0.29% at 8,312.70. The index hit a low of 8,304.45 in intraday trade. The index hit a high of 8,383.05 in intraday trade, a record high for the index.

The BSE Mid-Cap index was up 9.50 points or 0.1% at 10,009.19. The BSE Small-Cap index was up 4.21 points or 0.04% at 11,121.38. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was negative. On BSE, 1,468 shares fell and 1,315 shares advanced. A total of 114 shares were unchanged.

The total turnover on BSE amounted to Rs 2116 crore by 13:15 IST.

Axis Bank fell 1.61% to Rs 461.30. The stock reversed direction after scaling a record high of Rs 475 in intraday trade.

ING Vysya Bank surged 5.1% to Rs 715 after scaling a record high of Rs 745 in intraday trade.

Shares of public sector oil marketing companies rose on renewed buying. BPCL (up 1.21%), Indian Oil Corporation (up 1.39%) and HPCL (up 1.73%) edged higher.

Shares of companies whose fortunes are linked to orders from Indian Railways rose after Prime Minister Narendra Modi appointed Suresh Prabhu as new Union Railway Minister in a Cabinet expansion and reshuffle announced yesterday, 9 November 2014. Investors anticipate more reforms in railways sector after the appointment of the new minister.

BEML (up 4.04%), Texmaco Rail and Engineering (up 8.53%), Kalindee Rail Nirman (Engineers) (up 9.13%), Kernex Microsystems (India) (up 4.96%), Nelco (up 1.47%), Bharat Heavy Electricals (up 1.08%), Titagarh Wagons (up 5.95%), Stone India (up 3.99%), Container Corporation of India (up 0.06%) edged higher.

Former Shiv Sena leader Suresh Prabhu, who resigned from the party to join BJP, has replaced Sadananda Gowda as the railway minister in the expansion-cum-reshuffle of the Narendra Modi government announced yesterday, 9 November 2014.

Motherson Sumi Systems lost 4.1% after consolidated net profit fell 25.20% to Rs 104.44 crore on 10.67% increase in total income to Rs 8021.54 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 10 November 2014.

Adani Ports and Special Economic Zone rose 1.64% after consolidated net profit increased 67.77% to Rs 573.52 crore on 32.54% increase in total income to Rs 1865.21 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 10 November 2014.

Abbott India gained 3.27% to Rs 3,474.45 after scaling a record high of Rs 3,494.95 in intraday trade.

Amara Raja Batteries advanced 4.72% to Rs 695 after scaling a record high of Rs 706.10 in intraday trade.

GIC Housing Finance rose 3.57% to Rs 180 after scaling a record high of Rs 182 in intraday trade.

Greaves Cotton jumped 6.51% to Rs 152.05 after scaling a record high of Rs 155.80 in intraday trade.

Page Industries galloped 11.17% to Rs 10,250 after scaling a record high of Rs 10,291.85 in intraday trade.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 2537.13 crore during the previous trading session on Friday, 7 November 2014, provisional data released by the stock exchanges showed.

In the foreign exchange market, the rupee edged higher against the dollar as demand for the dollar weakened after data showed US employers added fewer jobs than economists estimated last month. The partially convertible rupee was hovering at 61.46, compared with its close of 61.635 during the previous trading session on Friday, 7 November 2014.

Brent crude futures rose as Chinese export data signaled foreign demand may help sustain the economy in the world's second-biggest oil consumer. Brent for December delivery was up 29 cents at $83.68 a barrel. The contract had risen 53 cents to settle at $83.39 a barrel during the previous trading session on Friday, 7 November 2014. Brent for January 2015 delivery was up 21 cents at $84.18 a barrel.

The Indian government will unveil industrial production data for September 2014 on Wednesday, 12 November 2014. Growth of industrial output remained subdued at 0.4% in August 2014 same as 0.4% (revised) increase in July 2014.

The government will release annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India for October 2014 on Wednesday, 12 November 2014. CPI for urban and rural India eased to 6.46% in September 2014, from 7.73% in August 2014.

The government will release the inflation data based on wholesale price index (WPI) for October 2014 on Friday, 14 November 2014. WPI eased to 2.38% in September 2014, from 3.74% in August 2014.

The Central Board of Direct Taxes (CBDT) on Friday, 7 November 2014, issued instructions to its field offices regarding its constant endeavour towards a non-adversarial tax regime. Though less than 1% of returns filed are selected for scrutiny, this area of work has often drawn adversarial comments. Supervisory officers have been directed to play a more pro-active role in monitoring and guiding assessments towards ensuring that high-pitched assessments without proper basis are not made and that lengthy questionnaires or summons without due application of mind are avoided, the Ministry of Finance said in a statement. They have been directed to ensure Inspections and Reviews in accordance with guidelines issued to enable capacity building within the Department and accountability of the officers, the finance ministry said. Senior officers have been directed to ensure that appeals are filed only on the merits thereof and not merely on the tax effect involved, the finance ministry said.

Chinese stocks led gains in Asian stocks after Chinese regulators said the exchange link between Hong Kong and Shanghai will debut on 17 November 2014. Key benchmark indices in China, Hong Kong, Taiwan, Singapore and South Korea were up 0.6% to 2.3%. Key indices in Japan and Indonesia were off 0.13% to 0.59%.

China said today, 10 November 2014, that the exchange link between Hong Kong and Shanghai will debut on 17 November 2014. Bourses in the two cities will begin trading through the program, which allows a net 23.5 billion yuan ($3.8 billion) a day in cross-border purchases, on 17 November 2014, regulators said in a joint statement today, 10 November 2014.

China's consumer inflation held steady in October, allowing more room for monetary easing as growth momentum slips in the world's second-largest economy. The consumer-price index (CPI) matched September's nearly five-year low and remained well below the government's goal of keeping inflation below 3.5% this year. The CPI expanded 1.6% in October from a year earlier, unchanged from September, the National Bureau of Statistics said today, 10 November 2014. China's producer-price index, a gauge of factory-gate prices, dropped 2.2% in October from a year earlier, accelerating from a 1.8% year-over-year decline in September.

China's exports jumped 11.6% in October 2014 from a year earlier, according to Chinese customs data released on Saturday, 8 November 2014. China's imports rose 4.6% in October 2014.

China's President Xi Jinping told executives at the Asia-Pacific Economic Cooperation meeting yesterday, 9 November 2014, that China has the tools to address perceived risks to the Chinese economy. Economic data in the first nine months remained in a reasonable range, he said, adding that slower growth is a "new normal," and annual growth above 7% still puts China's economy among global leaders in speed and size. China needs to improve its social safety net and open its capital markets, the Chinese president said, adding that urbanization, agricultural modernization, better use of technology and new approaches to macroeconomic management will help relieve "growing pains" as the economy increasingly relies on consumption and reduces its reliance on exports.

Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe met for their first talks today, 10 November 2014, since they took power in the two neighboring nations. Abe and Xi met in Beijing on the sidelines of the Asia-Pacific Economic Cooperation forum, with the Chinese leader saying after the meeting that stable bilateral ties were in the interest of both China and Japan, according to reports. It was the first step for improving relations by returning to the starting point of mutually beneficial relations based on common strategic interests, Abe said according to reports. Tensions have run high between Japan and China recently, in part due to rising tensions from their territorial dispute over a strategic but uninhabited island group called Diaoyu in Chinese and Senkaku in Japanese.

Trading in US index futures indicated that the Dow could rise 7 points at the opening bell today 10 November 2014. US stocks eked out marginal gains amid thin volumes on Friday, 7 November 2014, but it was still enough to register fresh record highs for two of the three main benchmarks. The S&P 500 and Dow Jones Industrial Average closed at record highs for the third consecutive day. However, investors' reaction to the latest employment data, showing 214,000 new jobs were added last month was mostly muted. The Bureau of Labor Statistics report showed the US created 214,000 jobs in October, nudging the unemployment rate down a notch to 5.8%, as many companies added workers to gear up for the holiday season. The economy has now added 200,000 workers or more for nine straight months, a feat last accomplished in 1994.

Federal Reserve Chairwoman Janet Yellen and her colleagues continue to prepare the market for an increase in interest rates. In speeches in Paris on Friday, 7 November 2014, Yellen and New York Fed President William Dudley appeared to prepare the markets for the eventuality of rising rates. Dudley said rates likely will be hiked next year, as many market watchers anticipate.

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First Published: Nov 10 2014 | 1:17 PM IST

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