Investors sentiment continued to be upbeat in afternoon trade. The barometer index, the S&P BSE Sensex, further strengthened and hit fresh record high while the 50-unit CNX Nifty held firm at higher level. Gains in world stocks, fall in crude oil prices and provisional data showing substantial buying of Indian stocks by foreign portfolio investors yesterday, 30 October 2014, aided the latest rally on the domestic bourses. The Sensex was currently up 399.45 points or 1.46% at 27,745.78. The market breadth indicating the overall health of the market was strong, with almost two gainers for every loser on BSE. The BSE Mid-Cap index was up 1.20%. The BSE Small-Cap index was up 1.06%.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore yesterday, 30 October 2014, as per provisional data. Brent crude oil prices declined. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
ITC rose after decent Q2 results. Bank stocks edged higher.
In overseas markets, Japanese stocks led gains in Asian stocks after the Bank of Japan (BOJ) after a monetary policy review today, 31 October 2014, unexpectedly boosted its unprecedented monetary easing. US stocks edged higher yesterday, 30 October 2014, as a report showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment.
Brent crude oil prices edged lower as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012.
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At 13:17 IST, the S&P BSE Sensex was up 399.45 points or 1.46% at 27,745.78. The index surged 415.80 points at the day's high of 27,762.13 in afternoon trade, a lifetime high for the index. The index rose 91.95 points at the day's low of 27,438.28 in early trade.
The CNX Nifty was up 115.25 points or 1.41% at 8,284.45. The index hit a high of 8,291.65 in intraday trade, a lifetime high for the index. The index hit a low of 8,198.05 in intraday trade.
The BSE Mid-Cap index was up 116.28 points or 1.20% at 9,830.71. The BSE Small-Cap index was up 114.55 points or 1.06% at 10,942.01. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was strong, with almost two gainers for every loser on BSE. On BSE, 1743 shares rose while 989 shares declined. A total of 101 shares were unchanged.
Among the 30 Sensex shares, 25 rose and the remaining shares declined.
ITC rose 0.11% to Rs 355.25 after net profit rose 8.73% to Rs 2425.16 crore on 15.68% increase in total income to Rs 9379.96 crore Q2 September 2014 over Q2 September 2013. The result was announced during trading hours today, 31 October 2014.
The Scheme of Arrangement between Wimco and ITC became effective on 27 June 2014 on filing of the Order of the High Court with the respective Registrar of Companies. The Scheme, with effect from 1 April 2013, provided for the demerger of the Non Engineering Business of Wimco into the company. The results for the quarters ended 30 June 2014 and 30 September 2014 and for the six months ended 30 September 2014 reflect the effect of the Scheme, and consequently, the figures for the previous periods are not strictly comparable.
Pavan Poplar and Prag Agro Farm have become direct subsidiaries of the company with effect from 27 June 2014, consequent upon the scheme becoming effective, ITC said in a statement.
Bank shares edged higher. IndusInd Bank rose rose 0.88% to Rs 714.85. The stock hit a record high of Rs 717.70 in intraday trade.
Kotak Mahindra Bank rose 1.76% to Rs 1,115.20. The stock hit a record high of Rs 1,115.20 in intraday trade.
Yes Bank rose 1.30% to Rs 671.30. The stock hit a record high of Rs 674.80 in intraday trade. The bank's net profit surged 30.01% to Rs 482.54 crore on 13.25% growth in total income to Rs 3337.97 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours Thursday, 30 October 2014.
Among other private sector banks, Axis Bank (up 1.92%), Federal Bank (up 1.65%) and HDFC Bank (up 1.63%), edged higher.
ICICI Bank was almost flat at Rs 1,610.85. The bank's net profit rose 15.18% to Rs 2709.01 crore on 14.71% growth in total income to Rs 14888.95 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours on Thursday, 30 October 2014.
ICICI Bank's net non-performing assets stood at Rs 3997 crore as on 30 September 2014, higher than Rs 3474 crore as on 30 June 2014 and Rs 2707 crore as on 30 September 2013. The net non-performing asset ratio was 0.96% as on 30 September 2014, higher than 0.87% as on 30 June 2014 and 0.73% as on 30 September 2013. The bank's provision coverage ratio, computed in accordance with RBI guidelines, was 65.9% at end September 2014. Net loans to companies whose facilities have been restructured stood at Rs 11020 crore as on 30 September 2014, lower than Rs 11265 crore as on 30 June 2014, but sharply higher than Rs 6826 crore as on 30 September 2013.
ICICI Bank said it has seen healthy trends in current and savings account (CASA) deposits mobilisation. During Q2 September 2014, savings account deposits increased by Rs 2871 crore and current account deposits increased by Rs 6440 crore. The bank's CASA ratio improved to 43.7% as on 30 September 2014, from 43% as on 30 June 2014. The average CASA ratio for Q2 September 2014 remained stable at 39.5%.
On a consolidated basis, ICICI Bank's net profit rose 13.61% to Rs 3064.62 crore on 16.49% growth in total income to Rs 22150.39 crore in Q2 September 2014 over Q2 September 2013.
Among state-run banks, Canara Bank (up 3.63%), IDBI Bank (up 3.30%), Bank of India (up 3.23%), State Bank of India (up 2.15%), Punjab National Bank (up 1.91%), Bank of Baroda (up 1.72%) and Union Bank of India (up 0.85%), edged higher.
Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 30 October 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore on that day.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 61.4250, compared with its close of 61.455 during the previous trading session.
Brent crude oil prices edged lower as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012. Brent crude for December delivery was off 9 cents at $86.15 a barrel. The contract had fallen 88 cents to settle at $86.24 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.
Finance Minister Arun Jaitley yesterday, 30 October 2014, asked the senior officers of the Central Board of Direct Taxes (CBDT) not to lose sight of domestic black money keeping in view its much higher magnitude. He asked the senior officers of the Income Tax Department to make their best efforts to chase those sectors where the domestic black money is most prevalent. He said that the recovery of black money and taxes due thereon will also help the Department in achieving its tax collection targets. The Finance Minister was speaking at a Review Meeting of Principal Chief Commissioners, Principal Directors General, Chief Commissioners and Directors General of Income Tax in order to assess and analyse the achievements of the Budget Targets for Revenue Collections for Financial Year 2014-15. He asked the tax officials to widen the tax base in order to bring more and more people within tax domain.
Japanese stocks led gains in Asian stocks today, 31 October 2014, after the Bank of Japan (BOJ) after a monetary policy review today, 31 October 2014, unexpectedly boosted its unprecedented monetary easing. Key benchmark indices in Indonesia, South Korea, Hong Kong, Taiwan, Singapore, and China were up 0.28% to 1.22%.
Japan's Nikkei Average jumped 4.83%. In an unexpected move, the Bank of Japan's policy board today, 31 October 2014, voted by a 5-to-4 margin to expand the pace of its quantitative easing. The central bank expanded the size of its Japanese Government Bond (JGBs) purchases to the equivalent of about 80 trillion yen ($727 billion) a year, an increase of 30 trillion yen from the previous pace. It said it would also buy longer-dated JGBs, seeking an average remaining maturity of 7-10 years. The central bank also said it would triple its purchases of exchange-traded funds and real-estate investment trusts. It also added that the so-called "quantitative and qualitative easing" program would continue "as long as it is necessary". Earlier in the day, data showed that Japan's inflation rate in September had hit its lowest level in almost a year.
Trading in US index futures indicated that the Dow could jump 209 points at the opening bell today, 31 October 2014. US stocks edged higher yesterday, 30 October 2014, as a report showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.
The American economy expanded at a more-than-estimated annualized rate of 3.5% last quarter, capping its strongest six months in a decade, while other data showed fewer Americans filed applications for unemployment benefits over the past month than at any time in more than 14 years.
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