Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon trade as European stocks edged higher in early trade there. The barometer index, the S&P BSE Sensex, was currently up 97.01 points or 0.34% at 28,435.06. The market breadth indicating the overall health of the market was positive. The BSE Small-Cap index was up 1.2%, outperforming the Sensex.
Brent crude oil futures edged lower. 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.
Cement stocks gained. Capital goods stocks also edged higher.
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 edged higher against the dollar.
Brent crude oil futures edged lower 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, European stocks rose as commodity producers and financial companies rose. Asian stocks edged higher after Chinese shares extended their rally as insurers led gains. 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 14:17 IST, the S&P BSE Sensex was up 97.01 points or 0.34% at 28,435.06. The index jumped 132.10 points at the day's high of 28,470.15, in mid-afternoon 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 24.70 points or 0.29% at 8,487.80. The index hit a high of 8,500.30 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, 1,680 shares gained and 1,128 shares fell. A total of 103 shares were unchanged.
The BSE Mid-Cap index was up 82.52 points or 0.82% at 10,139.93. The BSE Small-Cap index was up 133.01 points or 1.2% at 11,188.97. Both these indices outperformed the Sensex.
Cement stocks gained. ACC (up 1.83%), Ambuja Cements (up 0.68%), and UltraTech Cement (up 1.72%), gained. Shree Cement fell 0.28%.
Grasim Industries rose 1.27 %. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Capital goods stocks also gained. BEML (up 1.41%), Bharat Heavy Electricals (Bhel) (up 2.51%), Crompton Greaves (up 4.2%), Punj Lloyd (up 1.11%) and L&T (up 0.25%) gained.
Siemens rose 0.19%. The company's net profit jumped 192.77% to Rs 436.78 crore on 0.67% decline in total income to Rs 3250.29 crore in Q4 September 2014 over Q4 September 2013. The result was announced after market hours yesterday, 25 November 2014. Siemens' net profit rose 211% to Rs 603.18 crore on 5.45% decline in total income to Rs 10766.44 crore in the year ended September 2014 over the year ended September 2013.
For the financial year ended 30 September 2014 (FY 2014), Siemens registered new orders of Rs 10323.80 crore compared to Rs 10957.30 crore in the financial year ended 30 September 2013 (FY 2013). Sales stood at Rs 10448.30 crore in FY 2014, compared to Rs 111452 crore in FY 2013. Volumes registered a decline of 6% as infrastructure spending continued to be sluggish and high interest rates continued to impact fresh capital expenditure projects in the manufacturing sector.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.85, higher than its close of 61.87 during the previous trading session.
Brent crude oil futures edged lower 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 off 9 cents at $78.24 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.
Minister of State for Commerce & Industry (Independent Charge) Nirmala Sitharaman today, 26 November 2014, said in a written reply in Rajya Sabha that the government is continuously making efforts to boost industrial production in the country. For the creation of conductive business environment, the government is constantly simplifying and rationalizing the processes and procedures relating to boosting investor sentiment, and simplifying the foreign direct investment policy, she 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.
European stocks edged higher today, 26 November 2014, as commodity producers and financial companies rose. Key benchmark indices in France, Germany and UK were up 0.14% to 0.46%.
French consumer confidence rose in November, a survey from statistics agency Insee showed today, 26 November 2014. The monthly survey recorded a rise in consumer confidence to 87 in November from 85 in October. The reading is the survey's highest since March but well below the long-term average of 100. Consumers' assessment of their personal financial outlook rose as did their perception of their ability to make significant purchases. The survey also showed a strong rebound in French people's assessment of their quality of life in past months.
Asian stocks edged higher today, 26 November 2014, after Chinese shares extended their rally as insurers led gains. 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 were off 0.01% to 0.14%.
Trading in US index futures indicated that the Dow could gain 19 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.
Nigeria's central bank -- Central Bank of Nigeria -- yesterday, 25 November 2014, raised the country's interest rate to a record high, in a move aimed at curtailing speculation against its currency, which has been battered in recent months by the relentless slide in the price of oil. The central bank increased the benchmark interest rate to 13% from 12%, with 9 out of the 11 members voting for the move. It also widened the trading corridor for the nation's currency naira, allowing it to devalue to an official level of 168 versus the US dollar from about 155, and widened the trading corridor from plus or minus 3% to plus or minus 5%.
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