In a sudden reversal, key benchmark indices staged a sharp recovery in late trade led by gains in IT shares and recovery in select bank shares. The barometer index, the S&P BSE Sensex maintained the psychological 28,000 mark after moving above and below that level during the day. The Sensex advanced 34.71 points or 0.12% to settle at 28,067.56. The market breadth indicating the overall health of the market was negative. Shares of power generation, metal and mining and cement stocks declined. Capital goods stocks edged lower. IT stocks advanced on weak rupee.
Foreign portfolio investors bought shares worth a net Rs 227.61 crore from secondary equity market yesterday, 19 November 2014.
In the global market, European shares declined today, 20 November 2014, hit by disappointing economic data in the Eurozone. Asian stocks were mixed as China's manufacturing weakened and the latest Fed minutes reminded investors that US interest rates are likely to rise next year.
In the foreign exchange market, the rupee was almost unchanged against the dollar.
Brent crude oil futures edged lower.
The S&P BSE Sensex advanced 34.71 points or 0.12% to settle at 28,067.56, its highest closing level since 18 November 2014. The index rose 85.68 points at the day's high of 28,118.53, at onset of the trading session. The index fell 117.62 points at the day's low of 27,915.23 in afternoon trade, its lowest level since 14 November 2014.
The CNX Nifty rose 19.60 points or 0.23% to settle at 8,401.90, its highest closing level since 18 November 2014. The index hit a high of 8,410.10 in intraday trade. The index hit a low of 8,353.15 in intraday trade, its lowest level since 17 November 2014.
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The BSE Mid-Cap index declined 6.87 points or 0.07% to settle at 10,203.73. The BSE Small-Cap index shed 31.82 points or 0.28% to settle at 11,336.73. Both theses indices underpeformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,637 shares fell and 1,372 shares gained. A total of 112 shares were unchanged.
Among sectoral indices on BSE, the S&P BSE Bankex index (up 0.37%), BSE FMCG index (up 0.39%), BSE Healthcare index (up 0.98%), BSE IT index (up 1.27%), BSE Oil & Gas index (up 0.31%), and BSE Teck index (up 0.81%) outperformed the Sensex.
The BSE Auto index (down 0.45%), BSE Consumer Durables index (down 1.72%), BSE Capital Goods index (down 0.72%), BSE Metal index (down 0.84%), BSE Power index (down 0.78%), and BSE Realty index (down 1.52%) underperformed the Sensex.
Power generation stocks declined. NHPC (down 1.21%), JSW Energy (down 0.36%), CESC (down 1.3%), GMR Infrastructures (down 1.47%), Reliance Power (down 1.5%) and Adani Power (down 0.97%) declined. Tata Power Company (up 1.02%) gained.
NTPC lost 1.32% at Rs 142.20. The company during market hours today, 20 November 2014 said that it has launched a issue of $500,000,000 fixed rate unsecured notes due 2024 which were priced on 19 November 2014. The notes carry a coupon of 4.375% per annum payable semi-annually and are of 10 years tenor. The notes are expected to be settled by 26 November 2014, NTPC said. The notes represent unsecured obligations of the issuer and will rank pari passu with all its other existing and future unsubordinated obligations, NTPC said. The notes will be listed on the Singapore Stock Exchange. The proceeds will be used for capital expenditure purposes in accordance with the RBI guidelines and regulations, NTPC said.
Separately, NTPC during market hours today, 20 November 2014 in a clarification with regard to news item titled "NTPC to join OTPCL to set up a 2400 mw power plant on Odisha" said that the details of the projects stated in the news item are tentative and as stated in the media reports have been released by Office of the Chief Minister, Govt. of Odisha. NTPC keeps evaluating projects based on feasibility at different places. Once feasibility is established the investment approval is taken by the Board, the company said. As per NTPC's disclosure policy only when investment approval is given by the Board, disclosure to exchanges is given, the company added.
Most metal and mining stocks declined after a private survey showed China's factory growth stalled and was at six-month low in November 2014. Bhushan Steel (down 0.72%), Hindustan Zinc (down 0.03%), JSW Steel (down 0.27%) and Jindal Steel & Power (down 3.88%), Sesa Sterlite (down 2.33%), NMDC (down 2.85%), and Tata Steel (down 0.98%) declined. Hindalco Industries (up 0.7%) and Steel Authority of India (up 0.29%) gained.
China is the world's largest consumer of copper, steel and aluminum.
Cement stocks edged lower. ACC (down 1.14%), Ambuja Cements (down 0.29%), Shree Cement (down 0.55%), and UltraTech Cement (down 1.3%), edged lower.
Grasim Industries lost 1.16% at Rs 3,517.25. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Meanwhile, the Ministry of Coal yesterday, 19 November 2014, placed in public domain the draft rules for auction/allocation of 204 coal blocks cancelled by the Supreme Court in September this year. The draft rules provide the process of allocation through auction and allotment. The central government will issue an order to the Nominated Authority specifying which coal mines are to be auctioned and which are to be allotted to the government companies. The Nominated Authority will prepare a 'Mine Dossier' for each mine containing the particulars of geographical area, coal reserves, mine infrastructure, approvals, permits, etc. in relation to such mine.
Eligibility to bid for Schedule II & III coal mines shall be dependent on the status of preparedness of their end use plant viz. 80% of investment made in the EUP for Schedule II mines and 60% of investment made in the EUP for Schedule III mines. In case of allotment to government companies, the progress of development of coal blocks by the applicant in the past, financial and technical capabilities of the applicant, status of preparedness of end use plant, per-capita power availability in the state of the applicant, its current and future requirements etc. will be the factors for selecting the allottee. The Nominated Authority may also specify the maximum number of mines and/or coal reserves that may be allocated to one or more persons. The draft rules for auction/allocation of coal blocks also provide the manner of determination of compensation, priority of disbursal of proceeds arising out of land and mine infrastructure, determination of claims and manner of disbursement.
A successful bidder or allottee may utilize coal mined from a particular coal mine in any of its other similar end use plants by giving a prior intimation to the Central Government in writing and the Central Government may impose such terms and conditions as may be found necessary.
The coal ministry has invited comments on the draft rules for auction/allocation of coal blocks from the public and stakeholders. The comments and suggestions can be sent by 9:00 IST on Monday 24 November 2014, the coal ministry said. Coal is used in the production of steel.
Cipla rose 3.23% at Rs 618.60. The company announced during market hours today, 20 November 2014 that Cipla Europe NV signed a distribution agreement with Serum Institute of India (SII). Under the agreement, SII will develop and manufacture paediatric vaccines, Cipla will seek European Medicines Agency approval and market the products in Europe, Cipla said in a statement. This collaboration with SII enables Cipla to enter into the vaccines segment, continuing its commitment to inclusive healthcare for the world, Cipla said. The vaccines will be manufactured in Serum's world class production facilities approved by WHO, the company said.
Dr Reddy's Laboratories rose 0.13% at Rs 3,519.25. The company at the fag end of trading hours today, 20 November 2014 said it has launched its over-the-counter (OTC) Fexofenadine Hydrochloride and Pseudoephedrine Hydrochloride Extended Release Tablets 60 mg/120 mg, a bioequivalent generic version of Allegra-D 12 hour allergy & congestion, in the US market on 18 November 2014. Dr Reddy's ANDA is approved by the United States Food and Drug Administration (USFDA).
The Allegra-D 12 hour brand has US sales of approximately $49.8 million for the latest 52 weeks ended 6 October 2014 for total US multi outlet according to IRI, Dr Reddy's said in a statement.
IT stocks gained as rupee declined against the dollar today, 20 November 2014. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. MindTree (up 5.52%), Tech Mahindra (up 2.97%), Wipro (up 1.25%), HCL Technologies (up 1.09%), TCS (up 1.08%), and Infosys (up 1%) gained.
Banks stocks were mixed. Among private sector banks, City Union Bank (down 1.57%), IndusInd Bank (down 1.27%), HDFC Bank (down 0.99%), Axis Bank (down 0.67%), Yes Bank (down 0.72%) and Federal Bank (down 0.7%), edged lower.
However, ICICI Bank was up 0.41% at Rs 1,689.10. It recovered from the day's low of Rs 1,676.
Shares of ING Vysya Bank and Kotak Mahindra Bank advanced on reports that Kotak Mahindra Bank is in final stages to buy ING Vysya Bank.
Shares of ING Vysya Bank (up 7.15%) and Kotak Mahindra Bank (up 7.28%) gained.
Kotak Mahindra Bank is reportedly in final stages to buy ING Vysya Bank in ratio of 2:2.5 (two shares of Kotak Mahindra Bank for 2.5 shares of ING Vysya Bank). The deal values ING Vysya Bank at Rs 16500 crore, reports added. As per reports, acquiring ING Vysya Bank may strategically fill many gaps for Kotak Mahindra Bank. Both banks have low geographical overlap, similar liability mix and adding it will provide Kotak with an (small and medium enterprises) SME banking platform, reports added. Potential acquisition will also help Kotak comply with the Reserve Bank of India's (RBIs) deadline on reducing promoter stake, reports further informed.
However, Kotak Mahindra Bank during market hours today, 20 November 2014 clarified that no decision has been made by the bank in relation to any merger or acquisition transaction. Also ING Vysya Bank during market hours today, 20 November 2014 clarified that the bank is aware of disclosure obligations of the Listing Agreement and will abide by its obligations to make appropriate disclosures as and when such disclosures are necessitated by decisions taken by it.
Among public sector banks, Indian Bank (down 3.46%), Bank of India (down 2.76%), Canara Bank (down 3.02%), Andhra Bank (down 2.9%), Union Bank of India (down 2.51%), UCO Bank (down 2.33%), United Bank of India (down 1.86%), Vijaya Bank (down 1.96%), Syndicate Bank (down 2.01%), IDBI Bank (down 1.38%), Bank of Baroda (down 1.13%), and Punjab National Bank (down 1.28%) declined.
State Bank of India was up 2.05% at Rs 297.10. It recovered from the day's low of Rs 291.05.
Shares of Anil Dhirubhai Ambani Group companies declined. Reliance Communications (down 0.27%), Reliance Infrastructure (down 2.03%), Reliance Capital (down 1.6%), and Reliance Power (down 1.5%) declined.
Shares of tyre makers edged lower. Dunlop India (down 4.55%), Falcon Tyres (down 0.97%), CEAT (down 1.08%), JK Tyre & Industries (down 0.38%), and MRF (down 0.12%) edged lower.
Capital goods stocks declined. Bharat Heavy Electricals (down 1.49%), Siemens (down 2.28%), Alstom T&D India (down 0.494%), ABB (down 1.3%), and Crompton Greaves (down 0.28%) declined. Thermax (up 3.26%) gained.
Shares of L&T were down 0.73%. L&T after market hours yesterday, 19 November 2014 in a clarification with regard to news item titled "L &T, Sojits win India railway order worth 50 bn Yen" said that Sojitz Corporation has informed on 19 November 2014 in the media about the above order received by the consortium and the same has been confirmed by L&T.
Idea Cellular rose 2.57% to Rs 171.50. With respect to the news media report titled, "Ericsson bags two Mega Network Deals from Idea", Idea Cellular clarified that while it is policy of the company not to comment on media reports, it clarifies that the news item is relating to purchase of telecom equipments in the regular course of business and is not anything extra-ordinary that would trigger any reporting requirement. The clarification was issued during trading hours today, 20 November 2014.
Tata Communications lost 0.52% at Rs 430.20. The stock hit a high of Rs 436.30 and a low of Rs 425.30. The company after market hours today, 20 November 2014 announced the launch of its mobile LNS. The new service enables OTTs and cloud communications companies to open their communication ecosystem to telecommunication services such as voice calls and text messages, by assigning dedicated local numbers to their customers in countries of their choice. This allows the OTT's customer's contacts or employees in those countries to call and text the customer using a local number - significantly reducing the cost to the contact or employee, Tata Communications said. It also gives mobile operators a new revenue stream from leasing mobile phone numbers, offering growth opportunities to the entire mobile ecosystem, the company said in a statement.
IL&FS Engineering and Construction Company shed 1.18% at Rs 67. The stock hit a high of Rs 70.50 and a low of Rs 66. The company before market hours today, 20 November 2014 said it has bagged two contracts from Paschimanchal Vidhyut Vitran Nigam totaling Rs 239.6 crore.
The Sensex has gained 201.73 points or 0.72% in this month so far (till 20 November 2014). The Sensex has gained 6,896.88 points or 32.57% in calendar year 2014 so far (till 20 November 2014). From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 8,104.44 points or 40.59%.
In the foreign exchange market, the rupee was almost unchanged against the dollar. The partially convertible rupee was hovering at 61.9650, compared with its close of 61.96 during the previous trading session.
Brent crude for January settlement was currently down 30 cents at $77.80 a barrel. The contract had lost 37 cents to finish at $78.10 a barrel yesterday, 19 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.
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.
European shares declined today, 20 November 2014, hit by disappointing economic data in the Eurozone. Key benchmark indices in UK, France and Germany were down by 0.73% to 1.39%.
Eurozone economic growth has slipped to a 16-month low in November, hit by deteriorating conditions in its two largest economies. France was a key area of weakness and there is stagnation in German manufacturing activity, according to Markit's Flash Eurozone purchasing managers' index (PMI) report. Its overall flash composite index gave a reading of 51.4, down from 52.1 in October. The Services sector index hit an 11-month low of 51.3, while manufacturing read 50.4, with 50.0 representing the dividing line between a contraction and expansion of activity.
France's manufacturing PMI survey missed expectations, although data for the services sector came in slightly ahead of forecasts. The preliminary Markit France Manufacturing purchasing managers' index (PMI) for November fell to 47.6 - a three-month low - down from 48.5 in October. The Services sector gave a slightly better reading than expected - 48.8, up from 48.3 in October and this helped to lift the overall composite PMI to 48.4 from 48.2 last month.
Germany's private sector has grown at the slowest rate in 16 months in November as manufacturing stagnates and services lose momentum, a survey showed on Thursday, signalling a weak fourth quarter for Europe's largest economy. Markit's flash composite Purchasing Managers' Index (PMI), which tracks growth in the manufacturing and services sectors that account for more than two-thirds of the economy, fell to 52.1 in November from 53.9 in October, marking a 16-month low.
Asian stocks were mixed as China's manufacturing weakened and the latest Fed minutes reminded investors that U.S. interest rates are likely to rise next year. Key benchmark indices in Japan and Taiwan were up 0.07% to 1.29%. Key benchmark indices in Indonesia, Hong Kong, Singapore and South Korea were off 0.10% 0.67%.
China's Shanghai Composite was up 0.07%. The China flash HSBC/Markit manufacturing purchasing managers' index published on Thursday showed factory output contracted in the world's third-biggest economy for the first time in six months. The preliminary HSBC China Manufacturing Purchasing Managers Index fell to 50.0 in November, compared with a final reading of 50.4 in October, HSBC Holdings PLC said Thursday. A reading above 50 indicates expansion from the previous month, while a reading below 50 indicates contraction.
Trading in US index futures indicated that the Dow could fall 69 points at the opening bell today, 20 November 2014. US stocks edged lower on Wednesday, 19 November 2014, as minutes from the most recent Federal Reserve meeting gave investors few new clues as to when US interest rates may rise. The S&P 500 snapped a four-day run of gains and a two-day streak of record closing highs. Minutes of the US central bank's October 28-29 meeting, where policymakers decided to finally end their bond-buying stimulus, indicated a debate among policymakers over the outlook for inflation and the economy.
Following the release of the minutes, US short-term interest-rate futures traders were still betting on a first Fed rate hike by September next year. Tech names were among the biggest drags on the market, with the Nasdaq underperforming both the Dow and S&P 500.
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