A bout of volatility was witnessed as key benchmark indices edged lower once again after erasing almost entire intraday losses in morning trade. The barometer index, the S&P BSE Sensex, once again fell below the psychological 28,000 mark. The Sensex was currently off 59.24 points or 0.21% at 27,987.42. Asian stocks and US index futures dropped after the latest Japanese data showed a surprise economic contraction in the world's third-largest economy in Q3 September 2014. The market breadth indicating the overall health of the market was positive.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 645.90 crore on Friday, 14 November 2014, as per provisional data.
Bank stocks were mixed. State Bank of India (SBI) hit 52-week high, with the stock extending Friday's gains triggered by the bank's strong Q2 September 2014 results. Shares of JSW Energy and Jaiprakash Power Ventures, both, edged higher after the two companies yesterday, 16 November 2014, announced that JSW Energy has agreed to acquire from Jaiprakash Power Ventures and other shareholders, 100% stake in Himachal Baspa Power Company for a base Enterprise Value of approximately Rs 9700 crore.
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, 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.
Also Read
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 10:20 IST, the S&P BSE Sensex was down 59.24 points or 0.21% at 27,987.42. The index lost 79.65 points at the day's low of 27,967.01 in early trade. The index rose 5.61 points at the day's high of 28,052.27 at onset of the trading session.
The CNX Nifty was down 18.15 points or 0.22% at 8,371.75. The index hit a low of 8,361.55 in intraday trade. The index hit a high of 8,382.60 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,251 shares gained and 1,046 shares fell. A total of 73 shares were unchanged.
The BSE Mid-Cap index was up 40.94 points or 0.4% at 10,195.75. The BSE Small-Cap index was up 83.58 points or 0.75% at 11,300.97. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 780 crore by 10:15 IST compared with Rs 136 crore by 09:20 IST.
Bank stocks were mixed. Among private bank stocks, IndusInd Bank (down 0.25%), Kotak Mahindra Bank (down 0.11%), Axis Bank (down 0.43%) and ICICI Bank (down 0.68%) declined. Yes Bank rose 0.83%.
HDFC Bank shed 1.97%. As per media reports, the foreign investment promotion board (FIPB) has approved the bank's revised proposal to increase foreign investment ceiling in the bank to 74% from 49%. Currently, the Reserve Bank of India has put a ban on further purchases of shares of HDFC Bank by foreign institutional investors (FIIs). The RBI had on 16 December 2013 notified that foreign shareholding through FIIs/Non Resident Indian (NRI)/persons of Indian Origin (PIO)/Foreign Direct Investment (FDI)/Asset Development Reserve (ADR)/Global Depository Receipt (GDR) in HDFC Bank had crossed the overall limit of 49% of the bank's paid-up capital. Therefore, no further purchases of shares of this bank would be allowed through stock exchanges in India on behalf of FII/NRI/PIO/FDI/ADR/GDRs, the RBI had said at that time.
PSU bank stocks gained. Punjab National Bank (up 0.74%), Bank of India (up 0.68%), Union Bank of India (up 0.37%), Allahabad Bank (up 0.29%) and Canara Bank (up 0.26%) gained. Bank of Baroda fell 0.07%.
State Bank of India (SBI) edged higher with the stock extending Friday's gains triggered by the bank's strong Q2 September 2014 results. The stock was up 2.49% at Rs 2,856.10. The stock hit 52-week high of Rs 2,866.90 in intraday trade. SBI's net profit jumped 30.54% to Rs 3100.41 crore on 12.46% increase in total income to Rs 41833.36 crore in Q2 September 2014 over Q2 September 2013. The bank announced the results during trading hours on Friday 14 November 2014.
Shares of JSW Energy and Jaiprakash Power Ventures, both, edged higher after the two companies yesterday, 16 November 2014, announced that JSW Energy has agreed to acquire from Jaiprakash Power Ventures and other shareholders, 100% stake in Himachal Baspa Power Company for a base Enterprise Value of approximately Rs 9700 crore. JSW Energy was up 9.29%. Shares of Jaiprakash Power Ventures were up 2.23%.
The board of directors of Jaiprakash Power Ventures has approved the transfer of the 300 megawatts (MW) Baspa II hydro electric project located at Himachal Pradesh and the 1,091 MW Karcham Wangtoo hydro electric project located at Himachal Pradesh into a separate company, i.e. the Himachal Baspa Power Company (Target), as a going concern through a scheme of arrangement. Subsequent to the scheme of arrangement being made effective and subject to other terms and conditions agreed between JSW Energy and Jaiprakash Power Ventures, JSW Energy proposes to acquire 100% of the securities of the Target held by Jaiprakash Power Ventures.
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 41 cents at $79 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.
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.
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 0.22% to 2.34%. In Indonesia, the Jakarta Composite index was up 0.11%.
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 up 0.68%. In Hong Kong, the Hang Seng was off 0.53%. 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.
Trading in US index futures indicated that the Dow could fall 64 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 communique following 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.
Powered by Capital Market - Live News