A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. The barometer index, the S&P BSE Sensex, and 50-unit CNX Nifty, trimmed losses after both the indices hit one-week low. The Sensex was currently off 69.70 points or 0.25% at 27,846.18. The market breadth indicating the overall health of the market was negative. Asian stocks were in green. As per media reports, at least a dozen new ministers are set to be inducted by Narendra Modi government as part of the cabinet expansion that is likely to take place on Sunday, 9 November 2014. Meanwhile, the Indian government is reportedly considering dropping a provision in the tax treaty between India and Cyprus that exempts capital gains made in India by investors from Cyprus from tax.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1030.85 crore during the previous trading session on Wednesday, 5 October 2014, as per provisional data released by the stock exchanges. The stock market was closed yesterday, 6 November 2014, on account of Gurunanak Jayanti.
Private sector bank stocks were mixed. Shares of ICICI Bank and IndusInd Bank scaled record high. Axis Bank edged higher after the bank said it has allotted Senior Notes aggregating to $20,000,000 under the MTN Programme through its Dubai International Financial Centre (DIFC) branch. PSU bank stocks declined. IT major Infosys edged higher after the company today, 7 November 2014, announced a strategic partnership with Tableau Software, a global leader in rapid-fire, easy-to-use business analytics software.
In overseas markets, Asian stocks rose after a drop in American jobless claims bolstered optimism in the world's largest economy before a US government report on employment. US stocks edged higher yesterday, 6 November 2014, with the S&P 500 and Dow Jones Industrial Average climbing to record levels for the second straight day after European Central Bank president Mario Draghi hinted at monetary stimulus of as much as euro 1 trillion for eurozone economy.
In the foreign exchange market, the rupee edged lower against the dollar on broad strength in dollar.
Brent crude futures dropped as a stronger dollar weighed.
At 11:15 IST, the S&P BSE Sensex was down 69.70 points or 0.25% at 27,846.18. The index lost 176.32 points at the day's low of 27,739.56 in morning trade, its lowest level since 31 October 2014. The index gained 65.05 points at the day's high of 27,980.93 in early trade.
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The CNX Nifty was down 17.60 points or 0.21% at 8,320.70. The index hit a low of 8,290.25 in intraday trade, its lowest level since 31 October 2014. The index hit a high of 8,360.35 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,343 shares declined and 1,170 shares gained. A total of 94 shares were unchanged.
The BSE Mid-Cap index was up 29.26 points or 0.29% at 9,993.87. The BSE Small-Cap index was off 22.98 points or 0.21% at 11,138. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1544 crore by 11:15 IST, compared with a turnover of Rs 939 crore by 10:15 IST.
Private sector bank stocks were mixed. HDFC Bank (down 1.51%), Kotak Mahindra Bank (down 2.39%) and Federal Bank (down 0.26%) declined.
Yes Bank rose 0.66%.
ICICI Bank rose 0.11% to Rs 1,674.20 after scaling a record high of Rs 1,689 in intraday trade.
IndusInd Bank rose 0.32% to Rs 724.50 after scaling a record high of Rs 726 in intraday trade.
Axis Bank advanced 1.94% to Rs 466.60 after scaling a record high of Rs 466.80 in intraday trade. The bank today, 7 November 2014, said that it has yesterday, 6 November 2014, allotted Senior Notes aggregating to $20,000,000 under the MTN Programme through its Dubai International Financial Centre (DIFC) branch. The announcement was made before market hours today, 7 November 2014.
PSU bank stocks declined. State Bank of India (SBI) (down 0.98%), Canara Bank (down 1.69%), Bank of India (down 0.37%), Union Bank of India (down 2.37%), Punjab National Bank (down 0.88%), Indian Overseas Bank (down 0.34%) and Andhra Bank (down 0.82%) declined.
Bank of Baroda lost 0.96% after net profit declined 5.46% to Rs 1104.22 crore on 13.11% growth in total income to Rs 11817.32 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours today, 7 November 2014.
Bank of Baroda's provisions and contingencies rose 3.16% to Rs 888.04 crore in Q2 September 2014 over Q2 September 2013.
The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 3.32% as on 30 September 2014 as against 3.11% as on 30 June 2014 and 3.15% as on 30 September 2013. The ratio of net NPAs to net advances stood at 1.74% as on 30 September 2014 as against 1.58% as on 30 June 2014 and 1.86% as on 30 September 2013. The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 12.19% as on 30 September 2014 as against 11.91% as on 30 June 2014 and 12.07% as on 30 September 2013.
Syndicate Bank fell 1.06% after net profit declined 32.86% to Rs 315.60 crore on 17.12% growth in total income to Rs 5680.96 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours today, 7 November 2014.
Infosys rose 0.63% to Rs 4,152 after scaling a record high of Rs 4,175 in intraday trade. Infosys today, 7 November 2014, announced a strategic partnership with Tableau Software, a global leader in rapid-fire, easy-to-use business analytics software. The announcement was made during market hours today, 7 November 2014. The partnership will combine the global talent pool and client reach of Infosys with Tableau's breakthrough analytics technology. As part of the partnership, Infosys will integrate Tableau's software into the solutions it deploys to help clients unlock the power of big data. Infosys will use its global training facilities to substantially increase the number of Tableau analytics experts in the company. This will ensure that the benefits of business analytics are included within a wide range of client solutions across multiple industries, Infosys said.
Infosys yesterday, 6 November 2014, announced a strategic engineering partnership with DreamWorks Animation. The two companies intend to work together to further develop DreamWorks' technologies to bring them to wider use. Infosys will deploy its global talent pool available across cloud, big data, Java and open source capabilities to develop next generation solutions based on the DreamWorks technology.
Infosys also announced yesterday, 6 November 2014, a major recruitment drive in the US to support the growth of its business and enhance its capabilities.
In the foreign exchange market, the rupee edged lower against the dollar on broad strength in dollar. The partially convertible rupee was hovering at 61.4975, compared with its close of 61.42 during the previous trading session on Wednesday, 5 November 2014. The currency market was shut yesterday, 6 November 2014, on account of Gurunanak Jayanti.
Brent crude futures dropped as a stronger dollar weighed. A stronger greenback makes it more expensive for holders of other currencies to buy dollar-denominated commodities. Brent for December delivery was off 49 cents at $82.37 a barrel. The contract had fallen 9 cents a barrel to settle at $82.86 a barrel yesterday, 6 November 2014.
Meanwhile, as per media reports, at least a dozen new ministers are set to be inducted by Narendra Modi government as part of the cabinet expansion that is likely to take place on Sunday, 9 November 2014. Goa Chief Minister Manohar Parrikar is tipped to get the defence portfolio. Currently Finance Minister Arun Jaitley is handling the defence portfolio. BJP general secretary JP Nadda's name is doing the rounds as a possible environment minister. Jayant Sinha, who is the son of former finance minister Yashwant Sinha, is tipped to become minister of state for finance.
Prime Minister Narendra Modi is also likely to induct some representatives of the allies into the union cabinet. According to reports, Suresh Prabhu might get an important cabinet berth, possibly rural development.
India's Ministry of Urban Development yesterday, 6 November 2014, said that Singapore has shown keen interest in partnering with India in the urban development sector, including development of a new smart satellite city and a new capital for the state of Andhra Pradesh. Top leadership of Singapore conveyed their areas of interest during the extensive talks that the Minister of Urban Development M.Venkaiah Naidu held with Singapore's Prime Minister Lee Hsien Loong and former Prime Minister and Emeritus Minister Goh Chok Tong in separate meetings in Singapore yesterday, 6 November 2014.
Meanwhile, the Indian government is reportedly considering dropping a provision in the tax treaty between India and Cyprus that exempts capital gains made in India by investors from Cyprus from tax. India, which has blacklisted the tax haven for not sharing information on bank accounts, will lift this restriction only if Cyprus agrees to scrap the capital gains exemption. A team of officials from the external affairs ministry will reportedly travel to Cyprus this month. India is also concerned at the misuse of the tax benefit by investors from third countries that route their investments via Cyprus into the South Asian nation to take advantage of the tax exemption.
Asian stocks rose today, 7 November 2014, after a drop in American jobless claims bolstered optimism in the world's largest economy before a US government report on employment. Key benchmark indices in China, Singapore, Hong Kong, Taiwan, Japan and South Korea were up 0.19% to 1.13%. In Indonesia, the Jakarta Composite index was off 0.5%.
China's central bank vowed to lower funding costs for corporate borrowers amid increasing pressure on the nation's slowing economy. In a report published yesterday, 6 November 2014, on third-quarter monetary policy, the People's Bank of China also confirmed it had already conducted two rounds of liquidity injections into the country's banking system in September and October totaling 769.5 billion yuan ($125.9 billion) in a bid to guide interest rates lower and support economic growth. A report on the central bank's website indicated that the central bank had pumped the funds with a tenor of 3 months at an interest rate of 3.5% into the country's state, midsize and smaller lenders.
Trading in US index futures indicated that the Dow could rise 31 points at the opening bell today 7 November 2014. US stocks edged higher yesterday, 6 November 2014, with the S&P 500 and Dow Jones Industrial Average climbing to record levels for the second straight day after European Central Bank president Mario Draghi hinted at monetary stimulus of as much as euro 1 trillion for eurozone economy. In economic news, the number of Americans applying for new jobless benefits lingered below 300,000 for the eighth straight week amid the lowest level of layoffs in years. US productivity in the third quarter grew at a 2% annual pace, preliminary data show, marking the fourth sizable increase in the past five quarters.
The influential US nonfarm payrolls report for October will be released later in the global day today, 7 November 2014.
The European Central Bank, left interest rates unchanged after a policy meeting yesterday, 6 November 2014. The ECB's key lending rate, known as the refi rate, was left at 0.05%, while the rate the ECB pays on deposits held at the central bank remains at minus-0.2%. ECB President Mario Draghi said policy makers will be ready to implement further measures if needed as he signaled officials may cut growth forecasts next month. Speaking at a press conference in Frankfurt yesterday, 6 November 2014, Draghi said that the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate.
The Bank of England yesterday, 6 November 2014, held the size of its bond-buying program steady and left its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee maintained its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($599 billion). The minutes from the November meeting will be published on Nov. 19.
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