A bout of volatility was witnessed as key benchmark indices regained positive zone soon after slipping into the red from green for a brief period in early trade. The barometer index, the S&P BSE Sensex, was currently up 41.11 points or 0.14% at 28,603.93. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. Brent extended losses from a four-year low. Fall in global crude oil prices augur well for India as the nation imports about 80% of its crude oil requirements.
IT stocks edged lower as the rupee edged higher against the dollar. Steel Authority of India (Sail) dropped in volatile trade as bidding began for the sale of 5% stake of the government in the state-run steel major through the stock exchanges mechanism.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 474 crore yesterday, 4 December 2014, as per provisional data.
In overseas markets, Asian stocks were mixed. US stocks fell from record levels yesterday, 4 December 2014, as the European Central Bank (ECB) decided to hold off on additional stimulus after a monthly monetary policy review.
In the foreign exchange market, the rupee edged higher against the dollar on increased selling of the US currency by exporters and banks amid persistent foreign capital inflows.
Brent extended losses from a four-year low as Saudi Arabia offered customers in Asia record discounts on its crude, bolstering speculation the country is defending its market share. Deregulation of diesel price announced by the Indian government in October 2014 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.
At 10:15 IST, the S&P BSE Sensex was up 41.11 points or 0.14% at 28,603.93. The index gained 88.93 points at the day's high of 28,651.75 in early trade. The index fell 2.61 points at the day's low of 28,560.21 in morning trade.
The CNX Nifty was up 10.95 points or 0.13% at 8,575.35. The index hit a high of 8,588.35 in intraday trade. The index hit a low of 8,560.30 in intraday trade.
The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. 1,310 shares gained and 651 shares fell. A total of 71 shares were unchanged.
The BSE Mid-Cap index was up 64.48 points or 0.61% at 10,590.30. The BSE Small-Cap index was up 108.21 points or 0.94% at 11,579.46. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 764 crore by 10:15 IST compared to Rs 235 crore by 09:30 IST.
IT stocks edged lower as the rupee edged higher against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports. TCS (down 0.92%), Infosys (down 0.68%), Wipro (down 0.96%), HCL Technologies (down 1.13%), Oracle Financial Services Software (down 0.46%), Tech Mahindra (down 0.49%) declined.
Mahindra & Mahindra (M&M) rose 1.06%. With respect to media reports titled M&M Seen in Talks to Buy Saab Auto's Holding Co, M&M during market hours today, 5 December 2014, said that the company examines/pursues various opportunities in different areas from time to time on a continuing basis and it is not practicable to comment upon every opportunity at every stage. Given the policy of the company of not commenting on speculative news/reports, the management will not be able to comment on the same, M&M said.
Maruti Suzuki India rose 0.14%. The company during market hours today, 5 December 2014, said that production jumped 24.99% to 1.17 lakh units in November 2014 over November 2013.
Steel Authority of India (Sail) slipped 1.7% to Rs 83.90. The stock was volatile. The stock hit high of Rs 84.70 and low of Rs 83.50 so far during the day. As at 9:55 IST, bids were received for a total of 4.02 crore shares as bidding began for the sale of 5% stake of the government in the state-run steel major through the stock exchanges mechanism. The government has put on the block 20.65 crore shares of Sail representing a 5% stake. The live bidding data on BSE showed an indicative price of Rs 83.51. The floor price for the offer for sale (OFS) has been fixed at Rs 83 per share.
In the foreign exchange market, the rupee edged higher against the dollar on increased selling of the US currency by exporters and banks amid persistent foreign capital inflows. The partially convertible rupee was hovering at 61.8475, compared with its close of 61.935 during the previous trading session.
Brent extended losses from a four-year low as Saudi Arabia offered customers in Asia record discounts on its crude, bolstering speculation the country is defending its market share. Brent for January settlement was off 41 cents a barrel at $69.23 a barrel. The contract had lost 28 cents a barrel to settle at $69.64 yesterday, 4 December 2014, the lowest close since May 2010.
Saudi Arabia is the biggest and most influential member of the Organization of the Petroleum Exporting Countries (OPEC), which late last month decided to maintain output levels despite a global oversupply.
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.
Asian stocks were trading mixed today, 5 December 2014. Key benchmark indices in China, Japan, South Korea and Taiwan were off 0.03% to 0.63%. Key benchmark indices in Singapore, Hong Kong and Indonesia were up 0.22% to 0.73%.
Trading in US index futures indicated a flat opening of US stocks today, 5 December 2014. US stocks fell from record levels yesterday, 4 December 2014, as the European Central Bank (ECB) decided to hold off on additional stimulus after a monthly monetary policy review.
In economic news, US jobless claims in the week ended Nov. 29 fell by 17,000 to 297,000, the Labor Department said yesterday, 4 December 2014. US government's monthly nonfarm payrolls report for November will be out later in the global day today, 5 December 2014.
In Europe, European Central Bank (ECB) left its key interest rate unchanged at 0.05% after a monthly monetary policy review yesterday, 4 December 2014, and announced that it will wait until 2015 to consider additional market supportive measures, including buying European sovereign debt.
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