Key benchmark indices edged higher in early trade tracking positive sentiment in other Asian bourses. The barometer index, the S&P BSE Sensex was currently up 50.60 points or 0.18% at 27,925.33. The market breadth indicating the overall health of the market was strong with more than two gainers for every loser BSE.
Hindalco Industries dropped in early trade after the company's US subsidiary Novelis Inc. yesterday, 10 November 2014 reported Q2 earnings, Aviation firms were mixed after the Ministry of Civil Aviation after trading hours yesterday, 10 November 2014, released the Draft Civil Aviation Policy.
Asian equity markets were higher today, 11 November 2014 following another record close on Wall Street yesterday, 10 November 2014.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 355.30 crore yesterday, 10 November 2014, provisional data released by the stock exchanges showed.
At 9:20 IST, the S&P BSE Sensex was up 50.60 points or 0.18% at 27,925.33. The index gained 97.84 points at the day's high of 27,972.57 in early trade. The index rose 34.89 points at the day's low of 27,909.62 in early trade.
The CNX Nifty was up 28.45 points or 0.34% at 8,372.70. The index hit a high of 8,373.25 in intraday trade. The index hit a low of 8,353.25 in intraday trade.
The BSE Mid-Cap index was up 44.55 points or 0.44% at 10,057.82. The BSE Small-Cap index was up 36.35 points or 0.33% at 11,171.16. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong with more than two gainers for every loser on BSE. On BSE, 970 shares gained and 386 shares fell. A total of 38 shares were unchanged.
Hindalco Industries lost 0.26% at Rs 151.95. Hindalco's US subsidiary Novelis Inc. yesterday, 10 November 2014, said its consolidated net profit jumped 65% to $38 million on 17% increase in net sales to $2.8 billion in Q2 September 2014 over Q2 September 2013. Novelis said its net profit excluding certain tax-effected items rose 14% to $42 million in Q2 September 2014 over Q2 September 2013. Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) rose 1% to $230 million in Q2 September 2014 over Q2 September 2013. The increase was primarily driven by higher shipments and cost benefits from using recycled metal inputs. These favorable drivers were partially offset by continued pricing pressures in the Asian markets, a higher fixed cost base due to expansions ahead of revenue generation, and unfavorable currency fluctuations late in the second quarter. "It's an exciting time at Novelis as we continue to transform our business with a more sustainable focus on growing high recycled content premium products," said Phil Martens, President and Chief Executive Officer for Novelis.
Shares of aviation firms were mixed. Jet Airways (India) (down 0.47%) declined and SpiceJet (up 1.08%) gained. The Ministry of Civil Aviation after trading hours yesterday, 10 November 2014, released the Draft Civil Aviation Policy. The Draft Civil Aviation Policy notes that airports are to be designed as integrated multi-modal hubs, so that they provide the best possible service levels as well as potential for growth. Secretary, Ministry of Civil Aviation, V. Somasundaran said that an integrated multi-modal hub should include rail, metro, bus and truck connectivity as well as accommodation and other services. While developing airports, it is equally essential to ensure that related sectors such as access to manufacture, business, tourism and pilgrim centres are developed, the Ministry of Civil Aviation said in a statement.
The six metropolitan airports at Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad would be developed as major international hubs and would in future be the main access points for international travel to and from India. In future a hub-and-spoke model would be followed, which would also facilitate the development of regional networks and air connectivity as a whole, the Ministry of Civil Aviation said. The Draft Civil Aviation Policy puts emphasis on rationalizing the cost of Aviation Turbine Fuel (ATF). Due to high rates of taxes, the cost of ATF in India is 40 to 45% higher than the international costs. Steps will be taken in association with the Ministry of Finance and state governments to rationalize the rate of taxes so that the costs for Indian carriers are competitive, the Ministry of Civil Aviation said.
The government's objective will be to provide optimum air connectivity to all regions, subject to commercial viability. A special package will be developed for the North-Eastern Region to improve air connectivity and provide linkages to remote locations. The 5/20 guidelines will be reviewed with a view to encouraging the entry of new Indian carriers.
For development of the civil aviation sector, provision of Air Navigation Services (ANS) of international standards is essential. The Airports Authority of India has taken several initiatives in this direction. These would be intensified with the objective of reducing flying time, elimination of crowding at airports, direct routing of aircrafts from destination to destination and enhancing communication and navigation services to international standards.
Regarding development of the cargo sector, the government proposes to substantially develop the transport of cargo by air for which there is considerable potential. To achieve the objective, the six metro airports will be developed as regional cargo hubs, integrating multi-modal transport facilities, cold chains and other commodity specific requirements. The turnaround time for cargo will be upgraded to international standards. Air Freight Stations will be developed in different parts of the country to streamline customs clearance and to reduce congestion in the airports.
The Draft Civil Aviation Policy has been released for consultation with public and stakeholders within three weeks, after which six to seven groups of experts would be constituted to interact with stakeholders and review the inputs received during the process. Civil Aviation Minister Ashok Gajapathi Raju Pusapati said that the new Civil Aviation Policy is expected to be in place by January 2015.
The Reserve Bank of India (RBI) yesterday, 10 November 2014, issued the revised Regulatory Framework for Non-banking Finance Companies (NBFCs), with a view to streamlining the regulations for the sector. It also revoked, with immediate effect, its temporary suspension on issuance of Certificate of Registration (CoR) to companies proposing to conduct business of non-banking financial institution (NBFI). Explaining the rationale behind the revised framework, the Reserve Bank stated, a lighter regulatory framework has been placed on NBFCs other than for those with large asset sizes and deposit accepting. For NBFCs with large asset sizes, and for all deposit accepting NBFCs, regulations have been harmonised across NBFCs, and to some extent, with banks. The intent is to create a level playing field that does not unduly favour or disfavour any institution.. RBI further stated that in limited areas where harmonisation has resulted in strengthening the regulations, generally adequate time has been given to manage the transition. The regulator will then focus on the most important and systemic risks, it added.
The government will unveil industrial production data for September 2014 tomorrow, 12 November 2014. Growth of industrial output remained subdued at 0.4% in August 2014 compared with 0.4% (revised) increase in July 2014.
The government will release annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India for October 2014 tomorrow, 12 November 2014. CPI for urban and rural India eased to 6.46% in September 2014, from 7.73% in August 2014.
The government will release the inflation data based on wholesale price index (WPI) for October 2014 on Friday, 14 November 2014. WPI eased to 2.38% in September 2014, from 3.74% in August 2014.
Asian equity markets were higher today, 11 November 2014 following another record close on Wall Street yesterday, 10 November 2014. Key indices in China, Hong Kong, Japan, Singapore, South Korea, and Indonesia were up 0.05 % to 1.42%. In Taiwan, the Taiwan Weighted index was off 0.15%.
US stocks stepped modestly higher yesterday, 10 November 2014, with health-care companies leading the charge that again lifted benchmarks to records, as investors tracked corporate results as the earnings season starts to wind down.
Federal Reserve Bank of Boston President Eric Rosengren said yesterday, 10 November 2014, the US central bank should refrain from raising short-term term interest rates until there is stronger evidence price pressures are beginning to rise. Monetary policymakers should remain patient about removing accommodation until it is clear that we are on the path to achieving both our 2% inflation target and maximum sustainable employment, Mr. Rosengren said.
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