Firmness continued on the bourses early afternoon trade. The barometer index, the S&P BSE Sensex, was currently above the psychological 27,000 mark, having alternately moved above and below that mark in intraday trade so far. The Sensex was currently up 169.01 points or 0.63% at 27,049.83. The market breadth indicating the overall health of the market was positive. Gains in world stocks boosted sentiment.
Cairn India rose as crude oil prices gained. Shares of PSU banks declined. Shares of pharma major Cipla scaled record high.
Earlier, the Sensex and the 50-unit CNX Nifty, both, had hit their highest level in more than five weeks in morning trade after opening higher.
In overseas markets, Asian stocks rose after US stocks surged overnight on optimism about earnings and economic data in the US. US stocks surged yesterday, 28 October 2014, with Standard & Poor's 500 Index settling near a record on speculation the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment.
Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected.
Indian stocks may remain volatile in near future as traders roll over positions in the futures & options (F&O) segment from the near month October 2014 series to November 2014 series. The near month October 2014 derivatives contract expire tomorrow, 30 October 2014.
At 12:17 IST, the S&P BSE Sensex was up 169.01 points or 0.63% at 27,049.83. The index jumped 181.30 points at the day's high of 27,062.12 in morning trade, its highest level since 23 September 2014. The index rose 90.34 points at the day's low of 26,971.16 in morning trade.
The CNX Nifty was up 43.60 points or 0.54% at 8,071.20. The index hit a high of 8,081.05 in intraday trade, its highest level since 23 September 2014. The index hit a low of 8,052.25 in intraday trade.
The BSE Mid-Cap index was up 60.39 points or 0.63% at 9,660.79, with the gains in the index matching the Sensex's gains in percentage terms. The BSE Small-Cap index was up 78.87 points or 0.74% at 10,802.93, outperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,506 shares rose while 1,021 shares declined. A total of 97 shares were unchanged.
Cairn India rose 1.83% as crude oil prices gained. Higher crude oil prices would result in higher realizations from crude sales for oil exploration firms such as Cairn India.
Shares of PSU banks declined. Dean Bank (down 0.56%), Oriental Bank of Commerce (down 0.36%), Union Bank of India (down 1.66%), Bank of Baroda (down 1.25%), Andhra Bank (down 1.48%), Syndicate Bank (down 0.09%), edged lower. Indian Bank (up 1.09%), Canara Bank (up 0.09%) and Bank of India (up 0.22%) gained.
Punjab National Bank declined 0.99%. The bank said after market hours on Tuesday, 28 October 2014, that K. R. Kamath, Chairman and Managing Director appointed in the bank with effect from 28 October 2009 has demitted the office of the Chairman and Managing Director of the bank with effect from 28 October 2014 on completion of his tenure of five years on 27 October 2014.
State Bank of India (SBI) fell 0.05% to Rs 2,655. The bank announced after market hours on Tuesday, 28 October 2014, that it has fixed 21 November 2014 as record date for 10-for-1 stock split. The stock hit high of Rs 2,678 and low of Rs 2,639 so far during the day.
Separately, SBI said during market hours it has decided to cut retail deposit rates below Rs 1 crore for deposit tenure of 7 days to 45 days to 5% from earlier 6% with effect from 1 November 2014. Deposit rates for rest of the tenures for that category will remain same as earlier.
Cipla rose 1.32% to Rs 654 after hitting record high of Rs 657.65 in intraday trade.
Jubilant Life Sciences slumped 9.86% after the company reported a consolidated net loss of Rs 94.11 crore in Q2 September 2014, higher than net loss of Rs 80.58 crore in Q2 September 2013. Jubilant Life Sciences' total income fell 3.03% to Rs 1397.52 crore in Q2 September 2014 over Q2 September 2013.
Nestle India rose 0.48% after net profit rose 9.2% to Rs 311.29 crore on 8.9% rise in net sales to Rs 2557.80 crore in Q3 September 2014 over Q3 September 2013. Nestle India said that net domestic sales in Q3 September 2014 grew by 9.9% mainly from better realisations while export sales declined by 3.9% due to lower coffee exports.
Nestle India said that while cost of materials consumed has increased mainly due to significantly higher cost of milk and its derivatives in India which was even higher than those in international markets, finance costs have reduced mainly due to repayment of External Commercial Borrowing (ECB). The operating margins have been stable, Nestle India said
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 61.31, compared with its close of 61.33 during the previous trading session.
Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected. Brent crude for December delivery was up 46 cents at $86.49 a barrel. The contract had gained 20 cents to settle at $86.03 a barrel during the previous trading session.
Meanwhile, according to a latest survey by Nielsen, India remained the most bullish consumer market, while Italy became the most pessimistic, according to reports. The Nielsen Global Consumer Confidence Index rose 1 point in the third quarter to 98, according to the survey conducted between 13 August and 5 September 2014. The index has been steadily rising since the first quarter of 2012 and the latest reading headed closer to the 100 mark that signals optimism among consumers.
Asian stocks rose today, 29 October 2014, after US stocks surged overnight on optimism about earnings and economic data in the US. Key benchmark indices in Indonesia, South Korea, Singapore, Japan, China, Hong Kong and Taiwan were up 0.33% to 1.84%.
China's focus on meeting short-term growth targets could hamper reform efforts it needs for sustain longer-term economic expansion, the World Bank said today, 29 October 2014, in its China Economic Update. The World Bank praised Beijing for tightening credit growth, reducing excess capacity and grappling with pollution, adding these necessary steps toward economic rebalancing had also contributed to slower growth this year. China's gross domestic product grew a year-on-year 7.4% over the January-September period.
Trading in US index futures indicated that the Dow could fall 6 points at the opening bell today, 29 October 2014. US stocks surged yesterday, 28 October 2014, with Standard & Poor's 500 Index settling near a record on speculation the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.
Among economic data, US consumer confidence hit its highest since 2007 in October. The report overshadowed a separate read that showed new orders for capital goods fell the most in eight months in September.
A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy review concludes today, 29 October 2014. The Fed is expected to announce the end of quantitative easing after the meeting. Investors will be looking to see if the Fed drops the "considerable period" for keeping rates low at the latest policy meeting. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.
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