As global stocks rose after a surprise dose of liquidity measures launched by China's central bank and dovish comments from European Central Bank President Mario Draghi, key equity benchmark indices in India hit another record high. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high on intraday basis as well as on closing basis. However, there was a lack of strength in the broad market. The number of declining shares outnumbered gainers on BSE. The BSE Mid-Cap index registered minuscule gains, underperforming the Sensex and the BSE Small-Cap index was in red. The Sensex garnered 164.91 points or 0.58% to settle at 28,499.54. Foreign portfolio investors (FPIs) bought shares worth a net Rs 267.65 crore from the secondary equity market during the previous trading session on Friday, 21 November 2014.
The Sensex and the Nifty, both, have been hitting record high this month.
Parliamentary Affairs Minster M.Venkaiah Naidu yesterday, 23 November 2014, said that there is the need for early passing of Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector by the Rajya Sabha. He also said that introduction of Goods and Service Tax (GST) is being discussed over a long time and the government would like to introduce a bill in this regard during Winter Session of Parliament. The month-long winter session of parliament began today, 24 November 2014.
Metal stocks rose after China on Friday, 21 November 2014, cut benchmark interest rates as leaders step up support for the world's second-largest economy. Realty stocks also edged higher. Index heavyweight Reliance Industries (RIL) declined.
Benchmark indices saw intraday volatility. After extending gains in mid-afternoon trade, key benchmark indices trimmed gains in late trade. Earlier, the Sensex and the Nifty had pared gains after both these indices struck record high in early trade.
In overseas markets, European stocks edged higher after the German Ifo business climate index beat expectations by printing at 104.7 in November, its first rise in seven months. Asian stocks rose after a surprise cut in lending and deposit rates announced by China's central bank after trading hours in Asia on Friday, 21 November 2014. In the US on Friday, 21 November 2014, the S&P 500 and Dow Jones Industrial Average, both, attained record closing high after a surprise dose of liquidity measures launched by China's central bank and after dovish comments from European Central Bank President Mario Draghi.
In the foreign exchange market, the rupee edged lower against the dollar on speculation importers stepped up dollar purchases to pay month-end bills.
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Brent crude oil futures edged higher ahead of a possible output reduction by producer group the Organization of the Petroleum Exporting (OPEC) this week.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from November 2014 series to December 2014 series. The November 2014 derivatives contracts expire on Thursday, 27 November 2014.
The S&P BSE Sensex garnered 164.91 points or 0.58% to settle at 28,499.54, its record closing high. The index jumped 207.33 points at the day's high of 28,541.96 in late trade, a lifetime high for the index. The index gained 59.85 points at the day's low of 28,394.48 in mid-morning trade.
The CNX Nifty rose 52.80 points or 0.62% at 8,530.15, its record closing high. The index hit a high of 8,534.65 in intraday trade, a lifetime high for the index. The index hit a low of 8,490.80 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,732 shares declined and 1,332 shares rose. A total of 125 shares were unchanged.
The BSE Mid-Cap index rose 7.18 points or 0.07% to settle at 10,202.97. The BSE Small-Cap index lost 7.01 points or 0.06% to settle at 11,318.83. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3367 crore, lower than Rs 3380.51 crore on Friday, 21 November 2014.
The S&P BSE IT index (up 1.86%), the S&P BSE Metal index (up 1.64%), the S&P BSE Realty index (up 1.62%), the S&P BSE Teck index (up 1.4%), the S&P BSE Bankex (up 1.18%), the S&P BSE Consumer Durables index (up 0.84%), the S&P BSE Capital Goods index (up 0.83%) and the S&P BSE Power index (up 0.6%) outperformed the Sensex.
The S&P BSE Oil & Gas index (down 0.73%), the S&P BSE Healthcare index (down 0.45%), the S&P BSE FMCG index (down 0.25%) and the S&P BSE Auto index (up 0.07%) underperformed the Sensex.
Kotak Mahindra Bank ended almost unchanged for the day at Rs 1,199.60. ING Vysya Bank fell 0.41%. According to media reports, the Securities and Exchange Board of India (Sebi) is looking into unusual trading activity in the shares of Kotak Mahindra Bank and ING Vysya Bank on the eve of the announcement of the merger between these two private sector banks last week. Shares of Kotak Mahindra Bank had surged 7.28% to settle at Rs 1,157.05 on Thursday, 20 November 2014. On that day, shares of ING Vysya Bank had surged 7.15% to settle at Rs 814.20. Kotak Mahindra Bank and ING Vysya Bank after trading hours on Thursday, 20 November 2014, announced merger of ING Vysya Bank with Kotak Mahindra Bank. ING Vysya shareholders will receive 725 shares of Kotak for every 1,000 shares held in ING Vysya as per the swap ratio for merger.
Among other private sector banks, City Union Bank (up 2.46%), ICICI Bank (up 2.25%), HDFC Bank (up 1.33%), IndusInd Bank (up 0.86%) and Axis Bank (up 0.24%) edged higher.
Among public sector banks, State Bank of Bikaner (down 3.41%), Central Bank (down 1.89%), Jammu & Kashimir Bank (down 1.81%), Punjab & Sind Bank (down 1.78%), State Bank of Mysore (down 1.77%), UCO Bank (down 1.46%), Andhra Bank (down 1.24%), Vijaya Bank (down 0.88%), Allahabad Bank (down 0.8%), Bank of Maharashtra (down 0.79%), United Bank of India (down 0.23%) and Dena Bank (down 0.08%) edged lower. Punjab National Bank (up 0.87%) and State Bank of India (up 1.13%) edged higher.
Index heavyweight Reliance Industries (RIL) declined 1.29% to Rs 984.60. The stock hit high of Rs 1,003.15 and low of Rs 982.
Metal stocks rose after China on Friday, 21 November 2014, cut benchmark interest rates for the first time since July 2012 as leaders step up support for the world's second-largest economy. Steel Authority of India (up 3.93%), Hindalco Industries (up 3.37%), Tata Steel (up 3%), Hindustan Zinc (up 2.99%) edged higher. NMDC (down 0.24%) Sesa Sterlite (down 0.51%) declined. Bhushan Steel ended flat at Rs 101.35. China is the world's largest consumer of copper, steel, and aluminium.
JSW Steel rose 2.74%. With respect to the news titled "JSW Steel Submits Final Bids for Italy's Lucchini" JSW Steel has stated that in line with its long term strategy to acquire finishing mills near to the market, the company has submitted a binding bid for takeover of Rolling Mills of the Piombini Plant of Lucchini in Italy subject to certain terms and conditions. The company is yet to get the response on this bid. Once the company is informed about the outcome of the bid, the company will inform the exchanges about the same, JSW Steel said.
Jindal Steel & Power gained 4.3%. Jindal Steel has reportedly shelved a $10 billion coal-to-diesel project, becoming the first big casualty of a Supreme Court decision to scrap coalfields allocated to private firms since 1993. Jindal Steel's 1.5 billion tonne coalfield in Odisha was among 214 cancelled by the Supreme Court in September, when it ruled the practice of selective allocation was illegal and arbitrary.
Naveen Jindal, the chairman of the company, reportedly said it seemed the government was not keen to support his plan of converting low-quality coal to 80,000 barrels per day of diesel. "The project was specifically to meet the strategic needs of the country," Jindal said. "(But) the government does not seem to be interested. If there is no coal block, how can the project go ahead?" he was quoted by as saying.
Shares of public sector oil marketing companies (PSU OMCs) declined on higher crude oil prices. HPCL (down 0.88%), Indian Oil Corporation (down 0.79%) and BPCL (down 0.60%) declined. Higher crude oil prices would increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Meanwhile, Finance minister Arun Jaitley on Friday, 21 November 2014, reportedly said that the government is considering stopping the sale of cheap cooking gas to the relatively well-off. "The next important decision India will have to take is whether people like me (are) entitled to get our LPG subsidy," Jaitley reportedly said at a session titled 'Making India a Superpower: Hope or Fantasy' at the 12th Hindustan Times Leadership Summit. At present, the government provides 12 subsidised cylinders a year to a household, each costing Rs 417 in Delhi, compared with the market price of Rs 865. Oil firms lost an estimated Rs 46458 crore on cooking gas sales in 2013-14. "I think the sooner we are able to take these decisions as to who is entitled to these subsidies - of course, some people would be - the better it would be for our system. These decisions are all on our agenda," Jaitley reportedly said.
Shares of GAIL (India) fell 0.22%. GAIL (India) shares a part of under recoveries of PSU OMCs on sale of LPG.
Cairn India rose 1.63% as crude oil prices gained. Gains in crude oil prices would result in higher realizations from crude sales for oil exploration firms such as Cairn India.
Dr Reddy's Laboratories declined 0.14%. The company announced during market hours today, 24 November 2014, that it has launched Docetaxel Injection USP 20mg/ml and 80mg/4 ml, a therapeutic equivalent generic version of TAXOTERE (Docetaxel injection) in the US market on 21 November 2014. Dr Reddy's ANDA is approved by the USFDA. The TAXOTERE brand and genric version has US sales of approximately $218 million for twelve months ended September 2014, according to IMS Health data.
Lupin rose 0.57% on reports a government panel has cleared the company's request to raise foreign investment limit in the firm. Reports indicated that Lupin was looking to increase the foreign investment limit in the firm to 49%. Foreign institutional investors owned 31.75% stake in the firm as at 30 September 2014.
Crompton Greaves (CG) rose 4.37% after Avantha Power & Infrastructure signed a Memorandum of Understanding with Adani Power for sale of power plant. Shares of Adani Power rose 1.65%
CG during market hours today, 24 November 2014, said that Avantha Power & Infrastructure (APIL) in which CG holds an equity investment of about 23.14% has informed that it has signed a Memorandum of Understanding with Adani Power for 100% sale of APIL's Korba West Power Company (KWPCL). KWPCL, a special purpose vehicle (SPV) of APIL, is commissioning a coal based thermal power plant of 600 megawatt (MW). KWPCL is valued in excess of Rs 4200 crore, the company said.
Separately, Crompton Greaves said that one of the entities of the promoter group of the company (Avantha Holdings) is likely to sell a portion of its shareholding in the resultant company viz. Crompton Greaves Consumer Products, subject to agreement of terms and conditions and execution of a definitive agreement. The above is based on a communication to this effect received from Avantha Holdings. CG had already informed of a proposal to demerge the Consumer Products undertaking into Crompton Greaves Consumer Products on 16 October, 2014, after the decision of its company's Board of Directors.
KNR Constructions rose 0.93% after the company said its 51:49 joint venture with Tomar Builders & Construction secured orders worth Rs 109.56 crore in Madhya Pradesh.
Rajesh Exports surged 3.78% said that the company said it has bagged an export order worth Rs 1350 crore of designer range of gold and diamond studded jewellery and medallions from Al Sultan Jewellery, UAE. The order is to be completed by 28 February 2015 and execution of this order will significantly add to the bottom line of the company, Rajesh Exports said. The order will be executed at the company's manufacturing facility at Bangalore.
Rain Industries rose 2.30% after Goldman Sachs Investments Mauritius bought 22.24 lakh equity shares at Rs 49.97 per share in a bulk deal on NSE on Friday, 21 November 2014. Meanwhile, Eastspring Investments India Infrastructure Equity Open sold 19.91 lakh shares of the company at Rs 49.98 per share.
State Bank of India reported highest turnover of Rs 72.32 crore on BSE. Just Dial (Rs 58.13%), Container Corporation of India (Rs 48.14%), Infosys (Rs 44.48%) and ICICI Bank (Rs 41.57%), were the other turnover toppers on BSE in that order.
Unitech clocked highest volumes of 51.29 lakh shares on BSE. Suzlon Energy (37.48 lakh shares), Rasoya Proteins (32.11 lakh shares), Jaiprakash Associates (26.42 lakh shares) and Kailash Auto Finance (24.58 lakh shares), were the other volume toppers on BSE in that order.
The Sensex has gained 466.69 points or 1.66% in three trading sessions from a recent low of 28,032.85 on 19 November 2014. The Sensex has gained 633.71 points or 2.27% in this month so far (till 24 November 2014). The Sensex has gained 7,328.86 points or 34.62% in calendar year 2014 so far (till 24 November 2014). From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 8,536.42 points or 42.76%.
In the foreign exchange market, the rupee edged lower against the dollar on speculation importers stepped up dollar purchases to pay month-end bills. The partially convertible rupee was hovering at 61.9325, compared with its close of 61.785 during the previous trading session.
Brent crude oil futures edged higher ahead of a possible output reduction by producer group the Organization of the Petroleum Exporting (OPEC) this week. Brent crude for January settlement was up 20 cents at $80.56 a barrel. The contract had jumped $1.03 a barrel to finish at $80.36 a barrel during the previous trading session on Friday, 21 November 2014.
Oil ministers from the OPEC are scheduled to meet in Vienna on Thursday, 27 November 2014, to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015.
A news agency on Saturday, 22 November 2014, quoted Finance minister Arun Jaitley as saying that he does not favour burdening the salaried and middle class with more taxes and that he would go after the evaders in widening the net. Jaitley also said he was against reducing the exemptions to widen the tax net. The finance minister's comments indicate that the government is unlikely to withdraw tax concessions on home loans and savings such as public provident fund deposits, moves that were being contemplated by the UPA regime.
Parliamentary Affairs Minster M.Venkaiah Naidu yesterday, 23 November 2014, said that there is the need for early passing of Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector by the Rajya Sabha. He also said that introduction of Goods and Service Tax (GST) is being discussed over a long time and the government would like to introduce a bill in this regard during Winter Session of Parliament. The month-long winter session of parliament began today, 24 November 2014.
Naidu gave details of the 37 bills that the government likes to move for introduction and taking up pending bills for consideration and passing during the winter session of parliament. Several political partied assured that they will extend cooperation in enabling smooth functioning of the Parliament during the winter session, the Ministry of Parliamentary Affairs said.
The government will announce data on gross domestic product (GDP) for Q2 September 2014 at 17:30 IST on Friday 28 November 2014. India's GDP grew 5.7% in Q1 June 2014 over the corresponding period of the previous year.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 2 December 2014. The central bank aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India eased to 5.52% in October 2014 from 6.46% in September 2014, data released by the government on 12 November 2014 showed.
The White House on Friday, 21 November 2014, said that at the invitation of India's Prime Minister Narendra Modi, US President Barack Obama will travel to India in January 2015 to participate in the Indian Republic Day celebration in New Delhi as the Chief Guest. This visit will mark the first time a US president will have the honor of attending Republic Day, which commemorates the adoption of India's constitution. The US President will meet Modi and Indian officials to strengthen and expand the US-India strategic partnership, the White House said.
European stocks edged higher today, 24 November 2014, after the German Ifo business climate index beat expectations by printing at 104.7 in November, its first rise in seven months. Key benchmark indices in France, UK and Germany were up 0.01% to 1.03%.
German business confidence improved unexpectedly in November, easing concerns over the health of the euro zone's largest economy, industry data showed today, 24 November 2014. In a report, the German research institute, Ifo said its Business Climate Index rose to a seasonally adjusted 104.7 this month, up from a reading of 103.2 in October. The Current Assessment Index increased to 110 in November, up from 108.4 in October. The Business Expectations Index, which measures attitudes toward business prospects over the next six months, improved to 99.7 this month from 98.3 in October. The monthly index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.
In his speech in Frankfurt, European Central Bank (ECB) President Mario Draghi on Friday, 21 November 2014, indicated that further stimulus measures for the euro zone are likely from the ECB.
The ECB on Friday, 21 November 2014, began buying asset-backed securities, thereby expanding its quantitative easing regimen. The asset-based-securities purchases represent the second leg of the ECB's quest to catalyze growth by expanding its balance sheet. In September, the central bank began buying covered corporate bonds, which are guaranteed against a company's assets.
Asian stocks rose today, 24 November 2014, after a surprise cut in lending and deposit rates announced by China's central bank after trading hours in Asia on Friday, 21 November 2014. Key benchmark indices in China, Hong Kong, Indonesia, South Korea, and Taiwan were up 0.34% to 1.95%. Singapore's Straits Times fell 0.14%. Japanese markets are closed for a holiday.
China cut benchmark interest rates for the first time since July 2012 as leaders step up support for the world's second-largest economy. The one-year lending rate was reduced by 0.4 percentage point to 5.6%, while the one-year deposit rate was lowered by 0.25 percentage point to 2.75%, the People's Bank of China said on 21 November 2014.
In Japan, the minutes of Bank of Japan's monetary policy meeting will be released today, 24 November 2014.
Trading in US index futures indicated that the Dow could rise 38 point at opening bell today, 24 November 2014. The S&P 500 and Dow Jones Industrial Average, both, attained record closing high on Friday, 21 November 2014, after a surprise dose of liquidity measures launched by China's central bank and after dovish comments from European Central Bank President Mario Draghi.
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