After seeing a rally in early trade, key benchmark indices trimmed gains in morning trade. While the barometer index, the BSE Sensex, was currently showing modest gains, the 50-unit CNX Nifty showed miniscule gains. The Sensex was up 103.28 points or 0.36% at 28,545.99. The Nifty was up just 6.70 points or 0.08% at 8,544.35. The market breadth indicating the overall health of the market was positive. The finance ministry after trading hours yesterday, 3 December 2014, announced the setting up of a High Level Committee (HLC) to interact with trade and industry on tax laws.
Index heavyweight and cigarette major ITC jumped on reports that the government has indicated that it is in favour of wider consultations before bringing any amendments to the existing laws to restrict the sale of loose cigarettes. Steel Authority of India (Sail) dropped after the government announced that it will sell 5% stake in the company through offer for sale tomorrow, 5 December 2014. ICICI Bank and HDFC Bank, both, edged higher on reports that the two private sector banks have cut retail term deposit rates in select slabs.
Earlier, the 50-unit CNX Nifty had surged to record high in early trade on firm Asian stocks.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 391.07 crore yesterday, 3 December 2014, as per provisional data.
In overseas markets, Asian stocks edged higher amid fresh signs of resilience in the US economy, the world's biggest economy. In the US yesterday, 3 December 2014, big gains in energy, materials and industrials sectors helped propel the S&P 500 and Dow Jones Industrial Average to record levels.
In the foreign exchange market, the rupee was currently almost unchanged against the dollar.
Brent crude oil futures rose after a US government-supply report yesterday, 3 December 2014, showed an unexpected decline in crude inventories last week.
At 10:18 IST, the S&P BSE Sensex was up 103.28 points or 0.36% at 28,545.99. The index jumped 366.07 points at the day's high of 28,808.78 at onset of the day's trading session, its highest level since 1 December 2014. The index gained 51.27 points at the day's low of 28,493.98 in morning trade.
The CNX Nifty was up 6.70 points or 0.08% at 8,544.35. The index hit a high of 8,626.95 in intraday trade, a record high for the index. The index hit a low of 8,531.70 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,177 shares gained and 905 shares fell. A total of 90 shares were unchanged.
The BSE Mid-Cap index was up 14.08 points or 0.13% at 10,513.94. The BSE Small-Cap index was up 36.30 points or 0.32% at 11,472.18. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 975 crore by 10:15 IST compared to Rs 222 crore by 09:25 IST.
Index heavyweight and cigarette major ITC jumped 4.27% to Rs 378.45. The stock hit high of Rs 383.60 and low of Rs 373 so far during the day. As per reports, the government has indicated that it is in favour of wider consultations before bringing any amendments to the existing laws to restrict the sale of loose cigarettes. As per reports, objections by some MPs, including some Union ministers, and farmers associations may put the health ministry's proposal to ban sale of loose cigarettes on hold. It may be recalled that the health ministry had last month accepted a panel's proposal to ban loose cigarettes to deter smoking.
ICICI Bank was up 0.89% to Rs 361.80. The stock hit a high of Rs 366.30 and low of Rs 360.05 so far during the day. The stock turned ex-split today, 4 December 2014, for 5 for 1 stock split. ICICI Bank has reportedly reduced the interest rate on retail term deposit, with maturity between 390 days and two years by 25 basis points to 8.75%. The new rate is effective from 28 November 2014. Following this revision, the bank now offers a maximum of 8.75% interest on term deposits of up to Rs 1 crore, from 9% earlier.
HDFC Bank rose 0.6%. HDFC Bank has reportedly lowered its retail term deposit rates by 25-50 basis points on various maturities. The rate cut is effective from 1 December 2014 and is applicable on retail term deposits with maturity between 46 days and one year.
Steel Authority of India (Sail) dropped 2.98% to Rs 83.10. The government after trading hours yesterday, 3 December 2014, announced an offer for sale (OFS) of upto 20.65 crore equity shares, or 5% stake in Sail through a sale on the separate window provided by the BSE and NSE tomorrow, 5 December 2014. As much as 10% of the offered shares have been reserved for retail investors, who can buy shares worth up to Rs 2 lakh in the share sale. Retail investors will be allocated shares at a discount of 5% to the bid price entered by them. The floor price for the OFS would be determined after market hours today, 4 December 2014. Shares of Sail had settled 4.67% lower at Rs 85.65 on BSE yesterday, 3 December 2014.
In the foreign exchange market, the rupee was almost currently unchanged against the dollar. The partially convertible rupee was hovering at 61.915, compared with its close of 61.91 during the previous trading session.
Brent crude oil futures rose after a US government-supply report yesterday, 3 December 2014, showed an unexpected decline in crude inventories last week. Brent for January settlement was up 44 cents a barrel at $70.36 a barrel. The contract had slipped 62 cents a barrel to settle at $69.92 yesterday, 3 December 2014.
The finance ministry after trading hours yesterday, 3 December 2014, announced the setting up of a High Level Committee (HLC) to interact with trade and industry on tax laws. The HLC will interact with trade and industry on regular basis and ascertain areas where clarity in tax laws is required. The HLC will give recommendations to the CBDT/CBEC for issuance of appropriate clarifications by way of circulars, instructions etc. on tax issues. The CBDT/CBEC will issue the required clarifications, circulars, instructions etc. within a period of 2 months from the date of receipt of recommendations of the HLC, the finance ministry said in a statement. The term of the committee shall be for one year from the date of its constitution, subject to further extensions, as may be considered appropriate by the Department of Revenue, Ministry of Finance.
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 edged higher today, 4 December 2014, amid fresh signs of resilience in the US economy, the world's biggest economy. Key benchmark indices in China, Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea rose by 0.01% to 1.62%.
Japanese Prime Minister Shinzo Abe 's ruling Liberal Democratic Party is poised for a landslide victory in Dec. 14 parliamentary elections, polls by Japanese news organizations said today, 4 December 2014, a result that would give Abe a mandate to pursue policies such as opening Japan's agricultural markets. The poll results come despite some disappointing economic news recently for Abe and his pro-growth Abenomics platform built on measures such as monetary easing and measures such as labor-market liberalization.
All the polls cautioned that many voters have yet to make up their minds, meaning the final outcome could change. All the polls predicted that the Japan Communist Party, which currently has eight seats, would make gains.
Trading in US index futures indicated that the Dow could rise 11 points at the opening bell today, 4 December 2014. Big gains in energy, materials and industrials sectors, following a rebound in oil and gold prices, helped propel the S&P 500 and Dow Jones Industrial Average to record levels yesterday, 3 December 2014.
In economic data, a reading of private sector employment released yesterday, 3 December 2014, showed that hiring slowed in November, though employers added more than 200,000 jobs in seven of the past eight months. The productivity for the third quarter was revised upwards, however, labor costs fell, pointing at lagging wages.
Meanwhile, US services companies reported that growth ramped up in November, with a gauge of activity rising to 59.3% in November from 57.1% in October, according to a survey of senior executives released yesterday, 3 December 2014 by the Institute for Supply Management.
The Federal Reserve's Beige Book business survey, which is based on reports gathered on or before 24 November 2014, was released yesterday, 3 December 2014 and indicated that there was widespread hiring across districts as the US economy continued to expand. The report offers Fed policy makers, who meet Dec. 16-17, anecdotal evidence about improvements in the job market as they consider when to raise interest rates for the first time since 2006.
US government's monthly nonfarm payrolls report for November will be out tomorrow, 5 December 2014.
The European Central Bank (ECB) reviews interest rates today, 4 December 2014, amid speculation policy makers will add to stimulus measures to ward off deflation.
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