A sudden surge took key benchmark indices higher in morning trade, with the 50-unit CNX Nifty hitting record high. The barometer index, the S&P BSE Sensex, was currently up 159.65 points or 0.57% at 28,227.21. The market breadth indicating the overall health of the market was strong. World stocks rose.
Shares of Kotak Mahindra Bank and ING Vysya Bank, both, edged higher after the two private sector banks after trading hours yesterday, 20 November 2014, announced that ING Vysya Bank will be merged with Kotak Mahindra Bank. Shares of other private sector and public sector banks rose after the announcement of Kotak Mahindra Bank and ING Vysya Bank merger deal. Metal and mining shares rose across the board.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 477.15 crore yesterday, 20 November 2014, as per provisional data.
In overseas markets, Asian stocks rose after data overnight showed broad US economic strength. In the US, small gains took both the S&P 500 and the Dow Jones Industrial Average to record closing high yesterday, 20 November 2014, following some upbeat economic data and on better-than-expected earnings from retailers.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures rose on speculation the OPEC cartel will overcome internal resistance to trim output, while upbeat US economic data also provided support.
At 10:20 IST, the S&P BSE Sensex was up 159.65 points or 0.57% at 28,227.21. The index jumped 187.29 points at the day's high of 28,254.85 in morning trade, its highest level since 19 November 2014. The index fell 29.16 points at the day's low of 28,038.40 in early trades.
The CNX Nifty was up 52.40 points or 0.62% at 8,454.30. The index hit a high of 8,461.65 in intraday trade, a record high. The index hit a low of 8,398.60 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,422 shares gained and 770 shares fell. A total of 81 shares were unchanged.
The BSE Mid-Cap index was up 79.40 points or 0.78% at 10,283.13. The BSE Small-Cap index was up 71.55 points or 0.63% at 11,408.28. Both these indices outperformed the Sensex.
Among the 30 Sensex shares, 24 rose and the remaining shares declined.
Shares of Kotak Mahindra Bank and ING Vysya Bank, both, edged higher after the two private sector banks after trading hours yesterday, 20 November 2014, announced that ING Vysya Bank will be merged with Kotak Mahindra Bank. Kotak Mahindra Bank was 5.99% to Rs 1,226.30. ING Vysya Bank was up 3.41% at Rs 842.
Kotak Mahindra Bank's board of directors at its meeting held yesterday, 20 November 2014, considered and granted its approval for the amalgamation of ING Vysya Bank with Kotak Mahindra Bank. The board has approved the share swap ratio of 725 equity share of Rs 5 each of Kotak Mahindra Bank for every 1,000 equity shares of Rs 10 each held in ING Vysya Bank.
The proposed consolidation is founded on leveraging significant complementarities that exist between both the banks, particularly relating to branch network, product offerings and customer segments, Kotak Mahindra Bank and ING Vysya Bank said in a joint statement. This revenue synergy led and growth oriented amalgamation, adopting best practices of banking, governance and prudence from both banks is expected to result in a superior platform benefitting from efficiencies of size and scope over time for all stakeholders such as shareholders, customers, and employees, they said.
Yes Bank rose 3.33%. The Reserve Bank of India (RBI) on Thursday, 20 November 2014, notified that the aggregate share holdings in Yes Bank by Foreign Institutional Investors (FII)/Registered Foreign Portfolios Investors (RFPI)/Non-Resident Indians (NRI)/Persons of Indian Origin (PIO) and through American Depository Receipts (ADR)/Global Depository Receipts (GDR)/Foreign Direct Investment (FDI) has gone below the prescribed threshold caution limit stipulated under the extant FDI policy. Hence the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect, the RBI said.
Among other private sector banks, City Union Bank (up 2.65%), Federal Bank (up 2.15%), Axis Bank (up 1.47%), IndusInd Bank (up 1.59%), HDFC Bank (up 0.59%) and ICICI Bank (up 0.33%) edged higher.
Among public sector banks, Andhra Bank (up 2.33%), Syndicate Bank (up 2.08%), United Bank of India (up 2.01%), Central Bank (up 1.92%), UCO Bank (up 1.85%), State Bank of India (up 1.60%), Bank of Baroda (up 1.58%), Union Bank of India (up 1.53%), Bank of India (up 1.39%), Allahabad Bank (up 1.36%), Bank of Maharashtra (up 1.35%), IDBI Bank (up 1.26%), Indian Bank (up 1.24%), Punjab & Sind Bank (up 1.21%), Corporation Bank (up 1.11%), Dena Bank (up 1.08%), Punjab National Bank (up 1.01%), Canara Bank (up 0.85%), Jammu & Kashmir Bank (up 0.60%) and Vijaya Bank (up 0.40%) edged higher.
The finance ministry yesterday, 20 November 2014, said that the government is committed to keeping the public sector banks (PSBs) adequately capitalised with the twin objective of meeting the credit requirements of the productive sectors of the economy and meeting the regulatory capital adequacy requirements of PSBs. Towards this end, the government will be infusing Rs 11200 crore in PSBs shortly, the finance ministry said in a statement after a review of the quarterly performance of PSBs yesterday, 20 November 2014.
Metal and mining shares rose across the board. Sesa Sterlite (up 1.17%), Hindalco Industries (up 1.12%), Hindustan Zinc (up 1.11%), Tata Steel (up 0.84%), NMDC (up 0.59%), JSW Steel (up 0.41%), Bhushan Steel (up 0.24%), Jindal Steel & Power (up 0.14%) and Steel Authority of India (up 0.12%), edged higher.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.8375, compared with its close of 61.94/95 during the previous trading session.
Brent crude oil futures rose on speculation the OPEC cartel will overcome internal resistance to trim output, while upbeat US economic data also provided support. Brent crude for January settlement was up 27 cents at $79.60 a barrel. The contract had jumped $1.23 to finish at $79.33 a barrel yesterday, 20 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.
Meanwhile, the Union Cabinet chaired by the Prime Minister, Narendra Modi, on Thursday, 20 November 2014, gave its approval for the North Eastern Region Power System Improvement Project (NERPSlP) for six states (Assam, Manipur, Meghalaya, Mizoram, Tripura and Nagaland) for strengthening of the Intra State Transmission and Distribution System at an estimated cost of Rs 5111.33 crore including capacity building expenditure of Rs 89 crore. The scheme is to be taken up under a new Central Sector Plan Scheme of Ministry of Power (MoP). The scheme is to be implemented with the assistance of World Bank loan and the budget of MoP. The project will be funded on 50:50 (World Bank loan: GoI) basis except the component of capacity building for Rs 89 crore for which GoI will bear entirely.
The Union Cabinet also gave its approval for signing of "SAARC Framework Agreement for Energy Cooperation (Electricity)" among the SAARC Member States during the forthcoming 18th SAARC Summit scheduled to be held at Kathmandu, Nepal on 26-27 November 2014. The agreement will enable greater cooperation in the power sector among SAARC countries. The agreement is expected to improve the power availability in the entire SAARC region. It would facilitate integrated operation of the regional power grid.
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.
Asian stocks rose today, 21 November 2014, after data overnight showed broad US economic strength. Key benchmark indices in Indonesia, China, Hong Kong, Singapore, South Korea and Taiwan were up 0.11% to 0.69%. Japan's Nikkei 225 was off 0.69%
Trading in US index futures indicated a flat opening of US stocks later in the global day today, 21 November 2014. Small gains took both the S&P 500 and the Dow Jones Industrial Average to record closing high yesterday, 20 November 2014, following some upbeat economic data and on better-than-expected earnings from retailers. Among yesterday's positive economic releases was a rise in existing home sales, a jump in the Philly Fed index and weekly jobless claims remaining below 300,000 for the 10th straight week. Consumer prices were flat in October, while US November Markit flash PMI was the weakest since January, declining for a third straight month.
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