Led by recovery in index heavyweights Reliance Industries and ITC, key equity benchmark indices moved into green from red in mid-afternoon trade. The barometer index, the S&P BSE Sensex, regained the psychological 28,000 mark after falling below that level earlier during the day. The market breadth indicating the overall health of the market once again turned positive from negative. The Sensex was currently up 2.60 points or 0.01% at 28,049.26. World stocks fell on global economic growth concerns after the latest data showed a surprise contraction in Japan's GDP in Q3 September 2014.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 645.90 crore during the previous trading session on Friday, 14 November 2014, as per provisional data. Global crude oil prices dropped. Indian government's decision last month to decontrol diesel prices and a sharp decline in global crude oil prices recently will reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide 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.
Index heavyweight Reliance Industries (RIL) edged higher in volatile trade after the company's Canadian partner Niko Resources on Friday, 14 November 2014, said it is evaluating plans for its oil and gas assets in India. NTPC rose after the company said Unit 1 of 660 megawatts (MW) of Barh Super Thermal Power Station, Stage-II has been declared for commercial operation with effect from 15 November 2014. Metal and mining stocks declined. Shares of decorative paints major Asian Paints scaled record high.
Earlier, the Sensex alternately swung above and below the psychological 28,000 level after initial slide. The barometer index had settled above the psychological 28,000 level during the previous trading session on Friday, 14 November 2014.
In overseas markets, European stocks fell amid global economic growth concerns as Japan unexpectedly slipped into a recession. Japanese stocks led decline in Asian stocks after the latest data showed that Japan's GDP unexpectedly shrank in the third quarter.
In the foreign exchange market, the rupee edged higher against the dollar.
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Brent crude futures edged lower following news Japan, the world's fourth-biggest crude importer, had slipped into recession and after comments from the West's energy watchdog that a return to high oil prices was unlikely soon.
At 14:12 IST, the S&P BSE Sensex was up 2.60 points or 0.01% at 28,049.26. The index rose 29.80 points at the day's high of 28,076.46 in mid-afternoon trade. The index lost 125.32 points at the day's low of 27,921.34 in early afternoon trade.
The CNX Nifty was up 0.05 points at 8,389.95. The index hit a high of 8,393.85 in intraday trade. The index hit a low of 8,349.10 in intraday trade.
The BSE Mid-Cap index was up 67.79 points or 0.67% at 10,222.60. The BSE Small-Cap index was up 103.10 points or 0.92% at 11,320.49. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market once again turned positive from negative in mid-afternoon trade. On BSE, 1,481 shares advance and 1,425 shares declined. A total of 92 shares were unchanged. Earlier, the breadth had turned negative from positive in mid-morning trade.
Index heavyweight and cigarette major ITC rose 0.39% to Rs 369.65. The stock was volatile. The stock hit high of Rs 369.95 and low of Rs 364.20 so far during the day.
Asian Paints gained 3.39% to Rs 694.50 after hitting a record high of Rs 694.90 in intraday trade.
Index heavyweight Reliance Industries (RIL) rose 1.18% to Rs 980.60. The stock was volatile. The stock hit high of Rs 982.30 and low of Rs 966.95 so far during the day. Canada's Niko Resources on Friday, 14 November 2014, said it is evaluating plans for its oil and gas assets in India. There is uncertainty around the long-term natural gas price outlook in India and as a result, the company is evaluating its plans for its assets in India, Niko Resources said at the time of announcement of its Q2 September 2014 results. 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.
In October 2014, the Government of India announced its new domestic gas pricing policy effective 1 November 2014. The announced price for the period from November 2014 to March 2015 is a 33% increase over the price received previously and the company expects to receive a cash benefit of $4 million over this period related to gas sales from the MA field in the D6 Block in India, Niko Resources said in a statement. The new gas pricing guidelines indicate that for all discoveries after the issuance of these guidelines, in Ultra Deep Water Areas, Deep Water Areas and High Pressure-High Temperature areas, a premium would be given on the gas price determined as per the formula defined in the guidelines, with the premium to be determined as per prescribed procedure. The applicability of the premium to existing undeveloped discoveries in the D6 and NEC-25 blocks, such as the discoveries included in the approved plans of development for the R-Cluster and Satellite Areas, remains to be clarified, Niko Resources said. The development of these discoveries is dependent on the future long-term price outlook for gas sales from these projects and the uncertainty in this outlook could mean that the development of these reserves could be deferred and/or material reductions in the company's reported reserves or future net revenues could result, Niko Resources said.
NTPC rose after the company said Unit 1 of 660 megawatts (MW) of Barh Super Thermal Power Station, Stage-II has been declared for commercial operation with effect from 15 November 2014. The stock was up 1.4%. With the declaration of commercial operation, the total commercial capacity of Barh Super Thermal Power Station has become 660 MW and the total commercial capacity of NTPC has become 42,628 MW, NTPC said.
Many metal and mining stocks declined. Sesa Sterlite (down 1.4%), JSW Steel (down 1%), Tata Steel (down 0.08%), Steel Authority of India (Sail) (down 2.14%), Hindustan Zinc (down 0.28%), NMDC (down 1.29%) and Jindal Steel & Power (down 1.96%) edged lower.
Bhushan Steel declined 1.87% after the company reported net loss of Rs 297.19 crore in Q2 September 2014 as compared to net profit of Rs 60.06 crore in Q2 September 2013. Total income rose 30.3% to Rs 2966.55 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Friday, 14 November 2014.
Hindustan Copper (up 2.34%), National Aluminium Company (up 0.59%) and Hindalco Industries (up 0.25%) gained.
Reliance Capital rose 2.98% after the company reported 19.88% rise in consolidated net profit to Rs 217 crore on 11.5% rise in total income to Rs 2084 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Friday, 14 November 2014.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.69, compared with its close of 61.725 during the previous trading session on Friday, 14 November 2014.
Brent crude futures edged lower following news Japan, the world's fourth-biggest crude importer, had slipped into recession and after comments from the West's energy watchdog that a return to high oil prices was unlikely soon. Brent for January settlement was off $1.07 a barrel at $78.34 a barrel. The contract had edged higher during the previous trading session on Friday, 14 November 2014, amid speculation that OPEC may cut its oil production, a move that would help stabilize plunging prices. Brent for January settlement had risen $1.92 a barrel to settle at $79.41 on Friday, 14 November 2014.
The International Energy Agency (IEA) said in its monthly report which was released on Friday, 14 November 2014, that the oil market had entered a new era with lower Chinese economic growth and booming US shale output, making a quick return to high prices unlikely. The IEA said prices could fall further in 2015 after dropping below $80 a barrel for the first time since 2010.
Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet in Vienna on 27 November 2014 to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015.
On 13 November 2014, the Indian government announced increase in excise duty on petrol and diesel by Rs 1.50 per litre each. The hike in excise duty on the two transportation fuels will help boost government's revenue. The government's decision last month to decontrol diesel prices and a sharp decline in global crude oil prices recently would reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide 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.
European stocks fell today, 17 November 2014, amid global economic growth concerns as Japan unexpectedly slipped into a recession. Key benchmark indices in UK, France and Germany were off 0.36% to 0.69%.
Japanese stocks led decline in Asian stocks today, 17 November 2014, after the latest data showed that Japan's GDP unexpectedly shrank in the third quarter. Key benchmark indices in Singapore, Taiwan, Japan and South Korea were off 0.08% to 2.96%. In Indonesia, the Jakarta Composite index was up 0.4%.
Japan's real GDP shrank 1.6% on an annualized basis in July-September third quarter as firms cut inventories and held back on capital investment. The figure marked the second quarter of contraction, after the economy shrank 7.3% in the April-June second quarter after the national sales tax ticked up to 8% from 5% on 1 April 2014.
In mainland China, the Shanghai Composite index was off 0.19%. In Hong Kong, the Hang Seng was off 1.15%. A trading program linking Hong Kong's stock market with Shanghai began today, 17 November 2014. For the first time, the pilot program allows eligible mainland investors to trade stocks listed on the Stock Exchange of Hong Kong (SEHK) directly through the Shanghai Stock Exchange (SSE). At the same time, it allows Hong Kong and overseas investors to trade stocks listed on the SSE directly through the SEHK, also for the first time. China will waive capital gains tax for foreign investors buying mainland through the Connect, according to statement released by the Finance Ministry last week.
China's banks reported the biggest jump in bad loans last quarter since 2005. Nonperforming loans rose 72.5 billion yuan ($11.8 billion) from the previous quarter to 766.9 billion yuan, the China Banking Regulatory Commission said in a statement on Saturday, 15 November 2014. Soured credit accounted for 1.16% of lending, up from 1.08% three months earlier.
Trading in US index futures indicated that the Dow could fall 46 points at the opening bell today, 17 November 2014. US stocks ended Friday's uneven trading session fractionally higher. The main benchmarks switched between small gains and losses throughout the trading session, as investor reaction to upbeat economic data, namely retail sales and consumer confidence, was mostly muted.
Sales at US retailers rose in October, snapping back from the first decline in eight months as gasoline prices continued to plunge, data showed on Friday, 14 November 2014. The uptick in spending last month, especially when gasoline is stripped out, suggests households could be prepared to spend more during the holiday season than they have in years. The prices paid for imported goods fell in October, largely due to plunging global oil prices, the US Labor Department said Friday, 14 November 2014. The preliminary November reading on the University of Michigan/Thomson Reuters consumer-sentiment index rose to the highest level since July 2007.
Leaders from the G 20 group of nations agreed on Sunday, 16 November 2014, to boost flagging global growth, tackle climate change and crack down on tax avoidance but ties between the West and Russia plummeted to a new low over the crisis in Ukraine. Group of 20 leaders agreed to take measures that would boost their economies by a collective $2 trillion by 2018 as they battle patchy growth and the threat of a European recession. Citing risks from financial markets and geopolitical tensions, the leaders said the global economy is being held back by lackluster demand, according to their communiqufollowing a two-day summit that ended yesterday, 16 November 2014, in Brisbane. The group submitted almost 1,000 individual policy changes designed to lift growth and said they would hold each other to account to ensure they are implemented.
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