After languishing in red in early afternoon trade, key benchmark indices reversed direction in afternoon trade. The gains for the benchmark indices were miniscule. The barometer index, the S&P BSE Sensex, was currently up 13.15 points or 0.05% at 28,351.20. The market breadth indicating the overall health of the market was positive. The BSE Small-Cap index was up more than 1%, outperforming the Sensex.
Brent crude oil futures edged higher in volatile trade after sharp overnight losses. Indian government's decision last month to decontrol diesel prices and a sharp decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide 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.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1168.94 crore yesterday, 25 November 2014, as per provisional data.
Reliance Capital gained after the company said that Japan's Nippon Life Insurance has agreed to increase its stake in its mutual fund unit Reliance Capital Asset Management (RCAM). Shares of companies catering to the Indian railways edged higher. Shares of gas distribution companies were in demand.
Commerce Secretary Rajeev Kher today, 26 November 2014, said the ensuing Foreign Trade Policy will address the exporters' concerns of slowdown in several key markets like European Union and Japan and a lot of policy developments and diversification measures are being worked out to deal with the unveiling challenges of merchandise exports.
Earlier, high volatility was witnessed as key indices alternately swung between positive and negative zone in morning trade. Before that, key indices had dropped amid initial volatility.
In the foreign exchange market, the rupee was currently unchanged against the dollar.
Brent crude oil futures edged higher amid intraday volatility as markets brace for the highly anticipated meeting of the Organization of the Petroleum Exporting Countries (OPEC) tomorrow, 27 November 2014.
In overseas markets, Asian stocks rose as materials and health-care shares advanced. US stocks ended marginally lower yesterday, 25 November 2014, snapping a three-day run on the S&P 500 and Dow Jones Industrial Average as a drop in consumer confidence offset faster economic expansion.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from November 2014 series to December 2014 series. The November 2014 derivatives contracts expire tomorrow, 27 November 2014.
At 13:17 IST, the S&P BSE Sensex was up 13.15 points or 0.05% at 28,351.20. The index rose 41.22 points at the day's high of 28,379.27, in morning trade. The index fell 76.74 points at the day's low of 28,261.31 in early afternoon trade.
The CNX Nifty was up 2.90 points or 0.03% at 8,466. The index hit a high of 8,469.75 in intraday trade. The index hit a low of 8,438.65 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,575 shares gained and 1,100 shares fell. A total of 92 shares were unchanged.
The BSE Mid-Cap index was up 71.51 points or 0.71% at 10,128.92. The BSE Small-Cap index was up 115 points or 1.04% at 11,170.96. Both these indices outperformed the Sensex.
Reliance Capital rose 2.04%. Nippon Life Insurance (NLI), the seventh largest life insurer in the world, has agreed to increase its stake in Reliance Capital Asset Management (RCAM), a part of Reliance Capital. NLI will be increasing its stake in Reliance Capital Asset Management from the existing 26% to 49% in two or more tranches. Reliance Capital made the announcement during trading hours today, 26 November 2014.
The Japanese company will be investing an aggregate value of Rs 657 crore ($108 million) to acquire an additional stake of 9% in RCAM in the first tranche, to reach a 35% stake. The transaction pegs Reliance Capital Asset Management's valuation at Rs 7300 crore ($1.2 billion), the highest valuation till date for any asset management company in the country. This transaction is expected to be completed within the current financial year, subject to receipt of regulatory approvals. Subsequently, Nippon Life Insurance will have an option to increase its stake further by an additional 14%, to reach 49% in tranches.
Shares of companies catering to the Indian railways edged higher. Hind Rectifiers (up 3.61%), Texmaco Rail and Engineering (up 3.48%), Kalindee Rail Nirman (Engineers) (up 2.29%), BEML (up 1.44%), Bharat Heavy Electricals (up 1.43%), Transformers & Rectifiers (India) (up 1.38%), Titagarh Wagons (up 1.31%), Zicom Electronic Security Systems (up 0.87%), Stone India (up 0.83%), NELCO (up 0.74%) and Container Corporation of India (up 0.02%) edged higher.
Shares of gas distribution companies were in demand. Gujarat Gas Company (up 11.06%), Petronet LNG (up 3.77%), Indraprastha Gas (up 3.32%), GAIL (India) (up 3.12%) and Gujarat State Petronet (up 2.79%), edged higher.
In the foreign exchange market, the rupee was currently unchanged against the dollar. The partially convertible rupee was hovering at 61.87, unchanged from its close during the previous trading session.
Brent crude oil futures edged higher amid intraday volatility as markets brace for the highly anticipated meeting of the Organization of the Petroleum Exporting Countries (OPEC) tomorrow, 27 November 2014. Brent crude for January settlement was up 9 cents at $78.42 a barrel. The contract had fallen $1.35 a barrel to finish at $78.33 a barrel during the previous trading session.
Oil ministers from the OPEC are scheduled to meet in Vienna tomorrow, 27 November 2014, to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015. OPEC, which pumps about 40% of the world's crude, has maintained its official quota at 30 million barrels a day since January 2012.
The Indian government intends to get the Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector passed during the winter session of parliament which began on 24 November 2014. The government is also likely to introduce the constitutional amendment bill for the goods & services tax in the winter session of parliament.
Commerce Secretary Rajeev Kher today, 26 November 2014, said the ensuing Foreign Trade Policy will address the exporters' concerns of slowdown in several key markets like European Union and Japan and a lot of policy developments and diversification measures are being worked out to deal with the unveiling challenges of merchandise exports. He said the government is aware of the challenges being faced by the exporters in the backdrop of slowdown in EU, Japan and China, but the policy measures would target new markets like Africa, South East Asia and CIS countries. Kher emphasised on the value chain movement by exporters for staying competitive in the global markets. In this context, the liberalisation in the FDI policies underway would help exporters move up the value chain and help them gain scaling essential for the international markets, Kher said.
The government will announce data on gross domestic product (GDP) for Q2 September 2014 at 17:30 IST on Friday, 28 November 2014. India's GDP grew 5.7% in Q1 June 2014 over the corresponding period of the previous year.
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, 26 November 2014, as materials and health-care shares advanced. Key benchmark indices in China, South Korea, Hong Kong, Indonesia and Taiwan were up 0.03% to 1.43%. Key benchmark indices in Singapore and Japan fell 0.01% to 0.14%.
As per reports, police took their strongest action in weeks against pro-democracy protesters in Hong Kong, making dozens of arrests and driving activists from a portion of the most volatile of the three Hong Kong sites that have been occupied for nearly two months.
Trading in US index futures indicated that the Dow could gain 23 points at the opening bell today, 26 November 2014. US stocks broke a three-session streak of record highs yesterday, 25 November 2014, as a renewed slide in oil prices dragged down energy shares.
Economic data was mixed. The Commerce Department reported the US economy grew at its fastest pace in more than a decade during the spring and summer. But readings on consumer confidence and central-Atlantic manufacturing missed forecasts. The US government upgraded its reading on third quarter gross domestic product to 3.9% from 3.5% reported last month. The Conference Board said that consumer confidence fell to 88.7 in November, and a measure of manufacturing activity in the central Atlantic region came in below market expectations.
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