A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, was currently up 45.85 points or 0.16% at 27,920.58. The market breadth indicating the overall health of the market was positive. Global crude oil prices fell. Foreign portfolio investors (FPIs) bought shares worth a net Rs 355.30 crore yesterday, 10 November 2014, as per provisional data.
Capital goods stocks edged higher. Cement stocks advanced. Hindalco Industries edged higher in volatile trade after the company's US subsidiary Novelis Inc. announced Q2 results yesterday, 10 November 2014.
In overseas markets, Asian stocks rose after the S&P 500 index and Dow Jones Industrial Average hit record closing high yesterday, 10 November 2014.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude futures dropped, with a firm dollar and robust production from US shale oil fields offsetting a drop in output in Libya.
At 11:24 IST, the S&P BSE Sensex was up 45.85 points or 0.16% at 27,920.58. The index jumped 122.19 points at the day's high of 27,996.92 in morning trade. The index rose 18.15 points at the day's low of 27,892.88 in mid-morning trade.
The CNX Nifty was up 15.20 points or 0.18% at 8,359.45. The index hit a high of 8,378.70 in intraday trade. The index hit a low of 8,351.45 in intraday trade.
The BSE Mid-Cap index was up 46.35 points or 0.46% at 10,059.62. The BSE Small-Cap index was 24.52 points or 0.22% at 11,159.33. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,388 shares gained and 1,074 shares fell. A total of 89 shares were unchanged.
Capital goods stocks edged higher. Alstom India (up 6.14%), Crompton Greaves (up 1.79%), ABB (up 2.6%), Thermax (up 0.95%), Alstom T&D India (up 0.42%), and Siemens (up 0.08%) gained. Bharat Heavy Electricals (down 2.73%) declined.
Cement stocks gained. ACC (up 0.63%), Ambuja Cements (up 1.13%), and UltraTech Cement (up 2.76%) gained.
Grasim Industries rose 1.17% at Rs 3,623. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Hindalco Industries rose 0.56%. The stock hit a high of Rs 154.65 and a low of Rs 150.50. 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.
Tata Power Company lost 0.38% at Rs 92.80. The company during market hours today, 11 November 2014, said that Unit-1 of Maithon Power (MPL), a subsidiary of the company with Damodar Valley Corporation, tripped on Sunday evening due to failure of Y-Phase GT bushing. The porcelain portion ruptured due to the fault and the oil of the bushing caught fire. Mulsifier system (automatic water sprinkler) operated on auto supported by Fire control team of MPL extinguished the fire. No oil has spilled from the Transformer itself. As a precautionary measure all the drains near to GT were sealed with mud dumping, Tata Power said. The unit was shut down safely. No casualty or injury is reported. Damage assessment and repair thereof will be carried out by BHEL, it added.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.545, compared with its close of 61.505 during the previous trading session yesterday, 10 November 2014.
Brent crude futures dropped, with a firm dollar and robust production from US shale oil fields offsetting a drop in output in Libya. Brent for December delivery was off 29 cents at $82.05 a barrel. The contract touched a low of $81.87 a barrel in intraday trade, just above the $81.63 seen last week, which was the lowest since October 2010. The contract had fallen $1.05 a barrel to settle at $82.34 a barrel during the previous trading session on Monday, 10 November 2014, the lowest level since October 2010. Brent for January 2015 delivery was off 29 cents at $82.66 a barrel.
Indian government's decision last month to decontrol diesel prices and a sharp decline in global crude oil prices recently will help India in containing its fiscal deficit. The fall 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. A slump in Brent crude since the end of June contributed to consumer-price index slowing to 6.46% in September 2014, the least since 2012. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent.
Data this week is likely to show growth in industrial production remaining muted in September 2014 and inflation falling further in October 2014.
Industrial production is seen rising a muted 0.4% in September 2014, matching the growth in August 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for September 2014 tomorrow, 12 November 2014.
The rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen easing further to 5.7% in October 2014, from 6.46% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release consumer price inflation data for October 2014 tomorrow, 12 November 2014.
The rate of inflation based on wholesale price index (WPI) is seen easing further to 2.1% in October 2014, from 2.38% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI inflation data for October 2014 on Friday, 14 November 2014.
Asian stocks rose for second day today, 11 November 2014, after the S&P 500 index and Dow Jones Industrial Average hit record closing high yesterday, 10 November 2014. Key benchmark indices in Singapore, Japan, South Korea and Indonesia were up 0.07% to 2%. In Taiwan, the Taiwan Weighted index was off 0.18%.
Japan's current account balance remained in the black for a third straight month in September. The unadjusted current account surplus rose to 963 billion yen from a surplus of 287.1 billion yen in August, as income from investments overseas bolstered the balance of payments.
Key indices in China and Hong Kong were up 0.15% to 0.33%. China yesterday, 10 November 2014, said that the Stock Connect program, which allows individual investors outside of China to buy Shanghai-listed shares for the first time ever, will start on 17 November 2014.
Trading in US index futures indicated that the Dow could rise 39 points at the opening bell today 11 November 2014. US stocks finished a thinly-traded day with modest gains yesterday, 10 November 2014, that sent the S&P 500 and Dow Jones Industrial Average to close at record levels for the fourth straight session. The Nasdaq Composite index attained its highest closing level since March 2000. The index was helped by big gains in the biotech and internet stocks.
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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