Firmness continued on the bourses in mid-morning trade. The BSE Sensex was currently up 181.95 points or 0.65% at 28,092.01. The market breadth indicating the overall health of the market was strong. Global crude oil prices edged lower. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement. Data after trading hours today, 12 November 2014, is likely to show consumer price inflation falling further in October 2014 and growth in industrial production remaining muted in September 2014. Asian stocks were in green.
Meanwhile, the empowered committee of state finance ministers on goods & services tax (GST) at its meeting held yesterday, 11 November 2014, reportedly agreed on the 'place of supply' rules that form the backbone of proposed GST. Foreign portfolio investors (FPIs) bought shares worth a net Rs 458.04 crore yesterday, 11 November 2014, as per provisional data.
Coal India was slightly higher after the company in its clarification to the exchanges said it is proposing to set up a coal-based Super-critical Thermal Power Plant in Odisha at a capital investment of Rs 11363.18 crore. Auto stocks rose on renewed buying. Eicher Motors hit record high ahead of Q3 September 2014 results. Aurobindo Pharma surged to record high after the company said its 100% subsidiary -- Aurobindo Pharma USA Inc. (Aurobindo USA) -- emerged as the highest bidder for acquisition of nutritional supplement maker, Natrol Inc. and other affiliate entities. Reliance Infrastructure dropped amid volatility ahead of Q2 September 2014 results.
The Sensex and the 50-unit CNX Nifty, both, hit record high today, 12 November 2014. The Sensex hit record high above the psychological 28,000 level.
In overseas markets, Asian stocks edged higher after Wall Street edged up to its fifth straight record close yesterday, 11 November 2014. US stocks eked out miniscule gains yesterday, 11 November 2014 with the Dow Jones Industrial Average and the S&P 500, both, attaining record closing high in light volume as consumer discretionary shares gained.
In the foreign exchange market, the rupee edged higher against the dollar as key equity benchmark indices in India hit record high.
Brent crude futures fell amid signs that OPEC members are reluctant to reduce supply even as prices slump.
At 11:16 IST, the S&P BSE Sensex was up 181.95 points or 0.65% at 28,092.01. The index jumped 203.97 points at the day's high of 28,114.03 in morning trade, a record high for the index. The index rose 48.58 points at the day's low of 27,958.64 in opening trade.
The CNX Nifty was up 44.05 points or 0.53% at 8,406.70. The index hit a high of 8,408.90 in intraday trade, a record high for the index. The index hit a low of 8,377.95 in intraday trade.
The BSE Mid-Cap index was up 84.08 points or 0.83% at 10,169.73, outperforming the Sensex. The BSE Small-Cap index was up 70.50 points or 0.63% at 11,232.45, underperforming the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,487 shares gained and 983 shares fell. A total of 82 shares were unchanged.
Coal India (CIL) rose 0.03% at Rs 345.75. The stock hit a high of Rs 348.40 and a low of Rs 345. The company during market hours today, 12 November 2014, in a clarification with regard to news item titled "CIL ratifies Rs 11000 crore thermal power project" said that Mahanadi Basin Power, a wholly owned subsidiary of Mahanadi Coalfields which is wholly owned subsidiary of Coal India is proposing to set up 2x800 megawatts (MW) coal based Super-critical Thermal Power Plant (STPP), at Hemgir (Sundargarh, Odisha) at a capital investment of Rs 11363.18 crore. The project report of proposed thermal power project was presented in CIL board meeting held on 8 November 2014. The minutes of the board meeting is under preparation and will be finalized shortly, the company said. Coal India proposed to intimate stock exchanges about the decision of Board under Clause 36 of the Listing Agreement immediately after the approval of minutes, it added.
Auto stocks edged higher on renewed buying. Tata Motors (up 2.36%) and Maruti Suzuki India (up 0.57%) gained.
Mahindra & Mahindra (M&M) declined 0.04% at Rs 1,260.20. The stock was volatile. The stock hit a high of Rs 1,275 and a low of Rs 1,256. M&M at the fag end of trading hours yesterday, 11 November 2014, announced that it has increased prices of its passenger and commercial vehicles by an average of 1%. The increase is in the range of Rs 2,300 to Rs 11,500 (ex-showroom) depending on the model and has been effective this month, the company said. The price hike has been necessitated to partly offset the impact of rising input costs, M&M said.
M&M also announced increase in prices of its tractors effective from this month. The increase is in the range of Rs 6,000 to Rs 10,000 depending on the model. The price hike has been necessitated owing to increase in commodity prices and conversion costs, M&M said.
Shares of two-wheeler makers rose. Hero MotoCorp (up 1.31%), Bajaj Auto (up 2.92%), and TVS Motor Company (up 1.77%) gained.
Eicher Motors rose 1.52% at Rs 13,190. The stock hit a record hihg of Rs 13,200 in intraday trade. The company unveils Q3 September 2014 results today, 12 November 2014.
Reliance Infrastructure lost 0.62% at Rs 639.35. The stock hit a high of Rs 648.30 and a low of Rs 636. The company announces Q2 September 2014 results today, 12 November 2014.
Aurobindo Pharma surged 3.74% to Rs 1,066.50. The stock hit a record high of Rs 1,067.60 in intraday trade. The company during market hours today, 12 November 2014, said that its 100% subsidiary, Aurobindo Pharma USA Inc. (Aurobindo USA) emerged as the highest bidder for acquisition of nutritional supplement maker, Natrol Inc. and other affiliate entities (Natrol), under a process to be finally approved by the United States Bankruptcy Court for the District of Delaware. Under the auction process, Aurobindo USA emerged as the highest and best bidder with a bid of $132.5 million to acquire the assets of Natrol with an agreement to take on certain liabilities, Aurobindo Pharma said in a statement.
In the foreign exchange market, the rupee edged higher against the dollar as key equity benchmark indices in India hit record high. The partially convertible rupee was hovering at 61.49, compared with its closing of 61.555 during the previous trading session.
Brent crude futures fell amid signs that OPEC members are reluctant to reduce supply even as prices slump. Brent for December delivery was off 51 cents at $81.16 a barrel. The contract had fallen 67 cents a barrel to settle at $81.67 a barrel during the previous trading session on Tuesday, 11 November 2014, the lowest price since October 2010. Brent for January 2015 delivery was off 50 cents at $81.89 a barrel.
Indian government's decision last 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% in September 2014, the least since 2012.
Data after trading hours today, 12 November 2014, is likely to show consumer price inflation falling further in October 2014 and data later this week is likely to show wholesale price inflation falling further last month.
The rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen easing further to 5.7% in October 2014, from 6.46% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release consumer price inflation data for October 2014 at 17:30 IST today, 12 November 2014.
The rate of inflation based on wholesale price index (WPI) is seen easing further to 2.1% in October 2014, from 2.38% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI inflation data for October 2014 at 12:00 noon on Friday, 14 November 2014.
Industrial production is seen rising a muted 0.4% in September 2014, matching the growth in August 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for September 2014 at 17:30 IST today, 12 November 2014.
Meanwhile, the empowered committee of state finance ministers on goods & services tax (GST) at its meeting held yesterday, 11 November 2014, reportedly agreed on the 'place of supply' rules that form the backbone of proposed GST. The place of supply rules decide where goods or services will be taxed, fixing a crucial element of the levy that has gained in importance because of the surge in ecommerce and electronic delivery of services. However, both the Centre and the states continue to differ on the threshold limit beyond which GST will be levied. As per reports, the states have stuck to their stand that the revenue threshold limit beyond which GST will be levied should be Rs 10 lakh for general category states and Rs 5 lakh for special category states and north-eastern states, despite the central government asking states to review its earlier decision on this limit and increase it upwards to Rs.25 lakh.
The government is reportedly proposing to introduce the GST Constitutional Amendment Bill and push for its passage in the winter session of Parliament. GST is a major indirect tax reform. GST will subsume central indirect taxes such as excise duty and service tax at the central level and value added tax at the state level besides other local levies such as octroi and entry tax.
Asian stocks edged higher today, 12 November 2014, after Wall Street edged up to its fifth straight record close yesterday, 11 November 2014. Key indices in South Korea, Hong Kong, and Indonesia were up 0.06% to 0.54%. Key indices in China, Singapore, and Taiwan were off 0.06% to 1.28%.
Japanese stocks rose for the second day in a row amid speculation the nation will delay raising its sales tax again. The Nikkei 225 Average was up 0.5%. Newspaper reports yesterday, 11 November 2014, suggested that Japan's Prime Minister Shinzo Abe is considering postponing a second increase in sales-tax next year and preparing to call snap elections next month. Abe told reporters yesterday, 11 November 2014, at the Asia-Pacific Economic Cooperation forum in Beijing that he hadn't made a decision on dissolving parliament.
Meanwhile, a trading program linking Hong Kong's stock market with Shanghai's will open on 17 November 2014.
Trading in US index futures indicated that the Dow could fall 26 points at the opening bell today 12 November 2014. US stocks eked out miniscule gains yesterday, 11 November 2014 with the Dow Jones Industrial Average and S&P 500 hitting record closing high in light volume as consumer discretionary shares gained. The National Federation of Independent Business said its small-business optimism index rose 0.8 point to 96.1 in October, a two-month high.
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