Key benchmark indices moved in an extremely narrow range in afternoon trade. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 28,000 level, after piercing that level for the first time in its history earlier during the trading session. The Sensex was currently up 15.05 points or 0.05% at 27,875.43. The market breadth indicating the overall health of the market was positive. A survey released today, 5 November 2014, showed that business activity at India's service sector stagnated last month. Global crude oil prices extended previous day's slide. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
Foreign portfolio investors bought shares worth a net Rs 1413.34 crore during the previous trading session on Monday, 3 November 2014, as per provisional data released by the stock exchanges. The stock market was closed yesterday, 4 November 2014, on account of Moharram.
Capital goods stocks gained. Thermax spurted on strong Q2 result. Crompton Greaves gained after the company said it signed a contract with the State Utility of Paraguay - Administracion Nacional de Electricidad (ANDE) for eight single and three phase transformers.
Meanwhile, as per media reports, security forces in Kolkata are on high alert following a central intelligence warning that the city's port may be the target of an attack by militants posing as fishermen.
Earlier, the Sensex and the 50-unit CNX Nifty had extended initial gains and struck record high.
In overseas markets, US index futures were in green after the results showed that the Republican Party recaptured control of the US Senate in Tuesday's midterm elections, notching victories in races around the country. Asian stocks declined after weak economic data from China.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude dropped as weak economic data from top energy consumer China stoked worries about demand in a market that is already battling a deepening global supply glut.
At 13:16 IST, the S&P BSE Sensex was up 15.05 points or 0.05% at 27,875.43. The index jumped 146.22 points at the day's high of 28,006.60 in morning trade, a record high for the index. The index fell 2.73 points at the day's low of 27,857.65 in afternoon trade.
The 50-unit CNX Nifty was up 1.90 points or 0.02% at 8,326.05. The index hit a high of 8,363.95 in intraday trade, a record high for the index. The index hit a low of 8,323.50 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,566 shares gained and 1,225 shares fell. A total of 131 shares were unchanged.
The BSE Mid-Cap index was up 33.75 points or 0.34% at 9,975.15. The BSE Small-Cap index was up 85.52 points or 0.77% at 11,162.64. Both these indices outperformed the Sensex.
Capital goods stocks gained. Siemens (up 0.4%), Lakshmi Machine Works (up 1.17%), and Bharat Heavy Electricals (Bhel) (up 0.85%) gained.
Larsen & Toubro (L&T) rose 0.34%. The company during market hours today, 5 November 2014, said that its construction division won orders worth Rs 1576 crore across various business segments in October 2014.
Thermax spurted 4.17% after net profit jumped 185% to Rs 86 crore on 14% growth in operating revenue to Rs 1191 crore in Q2 September 2014 over Q2 September 2013. Thermax's order inflow surged 42% to Rs 1089 crore in Q2 September 2014 over Q2 September 2013. Order booking has been helped by improvement in the demand for its standard products in the domestic market and also project orders from the international market. As on 30 September 2014, Thermax had an order backlog of Rs 5016 crore, against Rs 5308 crore as on 30 September 2013. Compared to last year's Rs 6128 crore, the group order backlog stands at Rs 6067 crore.
Crompton Greaves gained 0.36% after the company after market hours on Monday, 3 November 2014, said it has signed a contract with the State Utility of Paraguay - Administracion Nacional de Electricidad (ANDE) for eight single and three phase transformers totalling 420 MVA, for the expansion of the country's 220 kV and 66 kV Electricity Network. Crompton Greaves will manufacture the transformers in Mumbai and supply them in three lots. This contract represents the strengthening of approximately 15% of ANDE's current transformer capacity, the company said.
NTPC declined 1.1%. With respect to a news item captioned "NTPC planning to add 4,500 MW in the South", the company today, 5 November 2014, clarified that Kudgi Super Thermal Power Project-2400 megawatts (MW)-stage I in Karnataka for which investment approval has already been accorded by the board in its meeting held on 28 December 2014 and the disclosure about this was made on 29 December 2014. There is a provision for setting up Kudgi Super Thermal Power Project-1600 MW-stage II in Karnataka subject to its feasibility and availability of coal and various clearances. Unit 3 of Vallur Thermal Power Project of NTPC Tamil Nadu Energy Co, a JV of NTPC and TANGEDCO has been commissioned on 28 February 2014 and not yet declared commercial.
The stock market remains closed tomorrow, 6 November 2014, on account of Gurunanak Jayanti.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.415, compared with its close of 61.405 on Monday, 3 November 2014. The currency market was shut yesterday, 4 November 2014, on account of Moharram.
Brent crude dropped as weak economic data from top energy consumer China stoked worries about demand in a market that is already battling a deepening global supply glut. Brent crude for December delivery was off 91 cents at $81.92 a barrel. The contract had fallen $1.96 a barrel to settle at $82.82 a barrel yesterday, 4 November 2014, its lowest close since 21 October 2010, after Saudi Arabia cut oil prices for the US, in a move meant to remain competitive amid booming oil production in the US.
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.
The government is open to privatisation of certain loss-making public sector companies, Finance Minister Arun Jaitley reportedly said today, 5 November 2014, during an interaction at the World Economic Forum in New Delhi. Jaitley also reportedly said the government will soon unveil reforms for other natural resources sectors along the lines of coal block auctions.
Jaitley also reportedly said that the government intends to open railways further to private investment, review tough land purchase rules and relax labour laws, but added that the government needed to build support for some of these measures.
Meanwhile, a survey released today, 5 November 2014, showed that business activity at India's service sector stagnated last month. Adjusted for seasonal factors, the headline HSBC India Services PMI Business Activity Index -- a single question tracking changes in activity at Indian services companies on a month-by-month basis -- fell to 50 in October, from 51.6 in September. Despite rising for the sixth consecutive month, new work intakes in the Indian service sector increased at the weakest pace since May during October. Growth of employment in the Indian service sector also slowed in October. The services sector contributes about 60% to India's gross domestic product.
On the positive side, the latest data indicated that service sector firms in India remained highly optimistic regarding prospects for activity growth in the coming year. Business sentiment was the strongest in three months, with panellists commenting on anticipated improvements in demand and new marketing initiatives as key sources of optimism.
Asian stocks declined today, 5 November 2014, after weak economic data from China. Key benchmark indices in China, Indonesia, Taiwan, South Korea and Hong Kong were off 0.19% to 0.82%. Key benchmark indices in Japan and Singapore were up 0.18% to 0.44%.
The HSBC China services purchasing managers index edged down to 52.9 in October from 53.5 in September, but most major components of the index remain solid, HSBC Holdings PLC said today, 5 November 2014. A reading above 50 indicates month-on-month expansion while a level below that points to contraction.
Trading in US index futures indicated that the Dow could rise 62 points at the opening bell today, 5 November 2014. The latest results showed that the Republican Party recaptured control of the US Senate in Tuesday's midterm elections, notching victories in races around the country. Republicans also kept control of the House of Representatives on Tuesday, as was widely expected. By taking the Senate and keeping the House, the Republican Party takes control of Congress for the first time in eight years.
The US stock market finished Tuesday's choppy session mostly lower, as steep losses in energy companies' stocks weighed on the main benchmark. In economic news, US trade deficit jumped in September to the highest level since the late spring. The surprising spike in the trade deficit is likely to reduce third-quarter growth when the US government revises the report later this month.
St. Louis Fed President James Bullard yesterday, 4 November 2014, said that the US economy is on track to grow at a 3% annual rate over the next 14 months, which should allow the Federal Reserve to move ahead with plans to hike short-term interest rates.
In Europe, the European Commission yesterday, 4 November 2014, cut its forecast for growth domestic product for the 18-country eurozone region to 0.8% this year, from a previous forecast of 1.2%, in the spring. In 2015, the eurozone economy will likely grow 1.1%, also less than the 1.7% growth seen in the spring. In 2016, growth in the currency union will rise to 1.7%, the commission said.
The European Central Bank (ECB) and Bank of England (BoE) will make interest-rate decisions tomorrow, 6 November 2014.
Powered by Capital Market - Live News
