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Sensex, Nifty trim gains after scaling record high

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Last Updated : Nov 03 2014 | 10:00 AM IST

Volatility ruled the roost in early trade as the key benchmark indices trimmed initial gains triggered by data showing that foreign funds were net buyers of Indian stocks on Friday, 31 October 2014. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their record high. The S&P BSE Sensex was up 10.45 points or 0.04% at 27,876.28. The market breadth indicating the overall health of the market was strong. Asian stocks were mixed today, 3 November 2014.

Hero MotoCorp declined after reportedly posting 8.05% decline in sales to 5.75 lakh units in October 2014 over in October 2013. Mahindra & Mahindra also dropped after reporting decline in total auto and tractor sales in October 2014 over October 2013. PSU OMCs shrugged petrol and diesel price cut.

Meanwhile, the provisional data released by the stock exchanges after trading hours on Friday, 31 October 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1754.73 crore on that day.

At 9:25 IST, the S&P BSE Sensex was up 10.45 points or 0.04% at 27,876.28. The index gained 103.99 points at the day's high of 27,969.82 in early trade, a record high for the index. The index fell 20.10 points at the day's low of 27,845.73 in early trade.

The CNX Nifty was up 0.50 points or 0.01% at 8,322.70. The index hit a high of 8,350.60 in intraday trade, a record high for the index. The index hit a low of 8,315.85 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,038 shares gained and 477 shares fell. A total of 61 shares were unchanged.

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The BSE Mid-Cap index was up 52.65 points or 0.54% at 9,887.25. The BSE Small-Cap index was up 71.60 points or 0.66% at 11,002.55. Both these indices outperformed the Sensex.

Among the 30-share Sensex pack, 18 stocks gained and rest of them declined.

Bharat Heavy Electricals (Bhel) shed 1.27%. Bhel on Sunday, 2 November 2014 said it bagged a contract for the supply and installation of the electrostatic precipitator (ESP) package for the 2x800 megawatts (MW) Darlipali Super Thermal Power Project (STPP). The order, valued at around Rs 220 crore, has been placed on Bhel by NTPC for the upcoming Darlipali STPP in Sundargarh district of Odisha.

Hero MotoCorp lost 2.86%. Hero MotoCorp reportedly posted 8.05% decline in sales to 5.75 lakh units in October 2014 over in October 2013.

Mahindra & Mahindra dropped 2.47%. M&M on Saturday, 1 November 2014 reported a 15.39% decline in total auto sales to 42,776 units in October 2014 over October 2013. The company's total tractor sales fell 17% to 31,907 units in October 2014 over October 2013.

PSU OMCs shrugged petrol and diesel price cut. BPCL (up 0.8%), HPCL (up 1.6%) and Indian Oil Corporation (up 1.18%) gained.

State-run oil marketing companies have cut petrol and diesel prices with effect from 1 November 2014. Indian Oil Corporation (IOCL) on Friday, 31 October 2014, said it has cut retail selling price of petrol by Rs 2.41 per litre at Delhi (including state levies) with corresponding decrease in other states. Retail selling price of diesel was slashed by Rs 2.25 a litre at Delhi (including state levies) with corresponding decrease in other states.

Since the last price changes, the international prices of both petrol and diesel have continued to be on a downtrend. The rupee-dollar exchange rate has appreciated slightly since the last price change. The combined impact of both these factors warrant the said decrease in retail selling prices of petrol and diesel, IOCL said in a statement.

NMDC lost 0.39% after net profit rose 19% to Rs 1567 crore on 25% growth in sales turnover to Rs 3105 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced after market hours on Friday, 31 October 2014.

Among macro economic data, HSBC Manufacturing Purchasing Managers' Index (PMI) for October 2014 will be announced today, 3 November 2014. Adjusted for seasonal factors, the headline HSBC India PMI - a composite gauge designed to give a single - figure snapshot of manufacturing business conditions - dropped from 52.4 in August to 51.0 in September.

The growth rate of India's eight core industries, which have a combined weight of 37.9% in the Index of Industrial Production (IIP), slowed down to 1.9% in September 2014 due to fall in output of crude oil, natural gas, refinery products and fertiliser, data released by government on Friday, 31 October 2014 showed. The core sector had grown by 9% in September 2013.

Finance Minster Arun Jaitley on Friday, 31 October 2014, said that major priorities of the government will be to revive and sustain higher GDP growth, increase savings, fiscal consolidation, keeping the current account deficit (CAD) at moderate level, reviving investment cycle, encouraging growth in manufacturing sector, augmenting supply response to contain inflation especially food inflation, boosting infrastructure sector and exports, rationalize subsidies and reforms in direct and indirect taxes among others. The Finance Minister was speaking at the first meeting of the Consultative Committee attached to the Ministry of Finance on the subject "Sustaining Growth Momentum - The Road Ahead". Jaitley said that the major priority of the government is to bring back growth momentum into country's economy. He said that the Indian economy has potential for achieving and sustaining higher growth. For 2014-15 the Finance Minster expects GDP growth in the range of 5.5% to 5.9%. He said the recent decline in international oil prices and prices of domestic food items point towards lower inflation in the coming months. The Finance Minister informed that the capital flows to finance the CAD is adequate and further moderation in CAD can be expected in 2014-15 due to lower oil prices.

Trading will be truncated this week as the stock market remains shut tomorrow, 4 November 2014, on account of Muharram. Stock market also remains closed on Thursday, 6 November 2014, on account of Gurunanak Jayanti.

Asian stocks were mixed today, 3 November 2014. Key benchmark indices in China, Singapore and Taiwan rose by 0.3% to 0.61%. Key benchmark indices in Hong Kong, South Korea and Indonesia fell by 0.11% to 0.45%. Stock market in Japan was closed for holiday.

A gauge of China's business activity outside of its factory floors dropped to a nine-month low in October, as a property market slowdown continued to drag on economic growth, official data showed today, 3 November 2014. China's official nonmanufacturing purchasing managers' index fell to 53.8 in October from 54.0 in September, data from the China Federation of Logistics and Purchasing showed.

Data released on Saturday, 1 November 2014, showed that China's manufacturing slowed further in October, as a property slump and slowdown in investment growth put the world's second-largest economy on course for the slowest full-year growth since 1990. The government's Purchasing Managers' Index was at 50.8 in October, compared with September's 51.1. Readings above 50 indicate expansion.

In an unexpected move, the Bank of Japan had on Friday, 31 October 2014, 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".

US stocks jumped on Friday, 31 October 2014 sending benchmark indexes to records, as an unexpected boost in stimulus from the Bank of Japan spurred optimism in the global economy.

Data on Friday, 31 October 2014 showed consumer spending in the US unexpectedly dropped in September as incomes rose at the slowest pace of the year. The Institute for Supply Management-Chicago Inc.'s business barometer rose to 66.2 in October from 60.5 in the prior month. A reading less than 50 signals contraction.

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First Published: Nov 03 2014 | 9:27 AM IST

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