As European stocks edged higher in early trade there, key equity benchmark indices in India extended intraday gains in mid-afternoon trade. The 50-unit CNX Nifty was currently above the psychological 8,000 mark, having alternately moved above and below that mark in intraday trade so far. The index had reclaimed that mark in opening trade. The barometer index, the S&P BSE Sensex, was currently up 107.87 points or 0.4% at 26,860.77. The market breadth indicating the overall health of the market once again turned positive from negative in mid-afternoon trade. Brent crude oil prices extended its decline to a third day. Falling crude oil prices augur well for India as the country imports 80% of its crude oil requirement. However, a slide in rupee against the dollar will restrict the benefit of falling crude oil prices.
Ranbaxy Laboratories and Sun Pharmaceutical Industries jumped after Ranbaxy reported a turnaround Q2 results. Lupin declined on profit taking after announcing strong Q2 results.
Meanwhile, Japanese telecommunications company SoftBank Corp. and Indian e-retailer Snapdeal today, 28 October 2014, announced definitive agreements under which the SoftBank Group will become the largest investor in Snapdeal, through a total investment of $627 million. Separately, SoftBank Corp. and ANI Technologies -- which runs the popular Ola Cabs taxi booking service in India -- announced a definitive agreement under which SoftBank Group will lead an investment of $210 million in Ola along with existing investors. Both Snapdeal and ANI Technologies are not listed on the bourses.
The Indian government issued a statement today, 28 October 2014, stating that Chairman and CEO of SoftBank, Mr. Masayoshi Son told the Minister for Communications and Information Technology and Law & Justice Mr. Ravi Shankar Prasad that SoftBank would like to invest approximately $10 billion in India in the coming years. Son met Prasad in New Delhi last evening. Son placed it on record that India is the top most priority for SoftBank. He further expressed immense faith in the great eCommerce potential of India. He estimated it to become a $0.5 trillion business in the next 10 years, the Ministry of Communications & Information Technology said in a statement.
In overseas markets, European stocks rose as investors weighed company earnings and awaited US data to gauge whether the Federal Reserve will end its bond purchases this month. Asian stocks fell after American data overnight fell short of estimates and investors awaited a Federal Reserve decision on its stimulus program.
In the foreign exchange market, the rupee edged lower against the dollar.
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Brent crude oil prices extended its decline to a third day on ample global oil supplies.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month October 2014 series to November 2014 series. The near month October 2014 derivatives contract expire on Thursday, 30 October 2014.
At 14:17 IST, the S&P BSE Sensex was up 107.87 points or 0.4% at 26,860.77. The index jumped 122.98 points at the day's high of 26,875.88 in mid-afternoon trade. The index rose 11.25 points at the day's low of 26,764.15 in early afternoon trade.
The CNX Nifty was up 32.70 points or 0.41% at 8,024.40. The index hit a high of 8,028.90 in intraday trade. The index hit a low of 7,995.05 in intraday trade.
The BSE Mid-Cap index was up 3.77 points or 0.04% at 9,595.86, underperforming the Sensex. The BSE Small-Cap index was up 62.58 points or 0.59% at 10,705.27, outperforming the Sensex.
The market breadth indicating the overall health of the market once again turned positive from negative in mid-afternoon trade. On BSE, 1,367 shares rose while 1,303 shares fell. A total of 115 shares were unchanged. Earlier, the breadth had turned negative from positive in afternoon trade.
Maruti Suzuki India dropped 0.6%. The company today, 28 October 2014, unveiled a refreshed version of its car model Swift with 10% improved fuel efficiency. The new Swift has been aggressively priced at Rs 4.42 lakh onwards and is available in both petrol and diesel variants, Maruti said in a statement.
Lupin declined on profit taking after announcing strong Q2 results. The stock was off 1.98%. The company's consolidated net profit jumped 55.1% to Rs 630 crore on 18.9% increase in total revenue from operations to Rs 3173.40 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours. The company said it continues to enjoy debt free status. Revenue expenditure on R&D for Q2 September 2014 amounted to Rs 284.80 crore or 9.1% of net sales as against Rs 217.20 crore or 8.3% of net sales in Q2 September 2013. Revenue expenditure on R&D for six months ended 30 September 2014 stood at Rs 528.70 crore or 8.3% of net sales as against Rs 412.80 crore or 8.2% of net sales in six months ended 30 September 2013.
Ranbaxy Laboratories jumped 5.66% after the company reported a turnaround Q2 results. The company reported a consolidated net profit of Rs 477.75 crore in Q2 September 2014, as against net loss of Rs 454.16 crore in Q2 September 2013. Total income rose 15.91% to Rs 3277.87 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours.
Sun Pharmaceutical Industries surged 4.52% after Ranbaxy Laboratories reported a turnaround Q2 results. In April 2014, Sun Pharma acquired Ranbaxy in $4 billion landmark transaction.
R S Software India jumped 7% after the company said its board of directors will meet on 7 November 2014, to consider stock-split.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.3225, compared with its close of 61.31 during the previous trading session.
Brent crude oil prices extended its decline to a third day on ample global oil supplies. Brent crude for December delivery was off 16 cents at $85.67 a barrel. The contract had lost 30 cents to settle at $85.83 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.
However, a slide in rupee against the dollar will restrict the benefit of falling crude oil prices.
European stocks rose today, 28 October 2014, as investors weighed company earnings and awaited US data to gauge whether the Federal Reserve will end its bond purchases this month. Key benchmark indices in France, Germany and UK were up 0.54% to 0.91%.
Asian stocks fell today, 28 October 2014, after American data overnight fell short of estimates and investors awaited a Federal Reserve decision on its stimulus program. Key benchmark indices in Indonesia, South Korea, Singapore and Japan were off 0.33% to 0.44%. Key benchmark indices in China, Hong Kong and Taiwan were up 1.63% to 2.07%.
Data from China's statistics bureau showed profit at China's industrial companies grew 0.4% last month, compared with a 0.6% drop in August.
Trading in US index futures indicated that the Dow could gain 49 points at the opening bell today, 28 October 2014. US stocks ended mostly higher on Monday, 27 October 2014, with gains limited by weak economic data.
Data yesterday, 27 October 2014, indicated uneven economic growth in the US. Contracts to purchase previously owned homes rose less than forecast in September, showing housing will take time to gain momentum. Another release showed growth in services activity slowed this month, while the Dallas Fed's gauge of regional manufacturing fell.
A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy review begins today, 28 October 2014. The Fed is expected to announce the end of quantitative easing after the meeting. Investors will be looking to see if the Fed drops the "considerable period" language in referencing its plans keeping rates low, at the two-day policy meeting, which concludes tomorrow, 29 October 2014. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.
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