After remaining firm in mid-morning trade, key benchmark indices trimmed gains in early afternoon trade. Benchmark indices trimmed gains after a survey showed that business activity at India's service sector stagnated last month. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 28,000 level, after piercing that level for the first time in its history earlier during the trading session. The Sensex was currently up 53.75 points or 0.19% at 27,914.13. The market breadth indicating the overall health of the market was positive. Global crude oil prices extended previous day's slide. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
Foreign portfolio investors bought shares worth a net Rs 1413.34 crore during the previous trading session on Monday, 3 November 2014, as per provisional data released by the stock exchanges. The stock market was closed yesterday, 4 November 2014, on account of Moharram.
IT stocks edge higher on renewed buying. Private sector bank stocks gained with shares of ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, HDFC Bank and Axis Bank scaling record high. Pharmaceutical shares rose on renewed buying.
Earlier, the Sensex and the 50-unit CNX Nifty had extended initial gains and struck record high.
In overseas markets, US index futures were in green after the results showed that the Republican Party recaptured control of the US Senate in Tuesday's midterm elections, notching victories in races around the country. Asian stocks declined after weak economic data from China.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude dropped as weak economic data from top energy consumer China stoked worries about demand in a market that is already battling a deepening global supply glut.
At 12:15 IST, the S&P BSE Sensex was up 53.75 points or 0.19% at 27,914.13. The index jumped 146.22 points at the day's high of 28,006.60 in morning trade, a record high for the index. The index rose 24.68 points at the day's low of 27,885.06 in early afternoon trade.
The 50-unit CNX Nifty was up 17.75 points or 0.21% at 8,341.90. The index hit a high of 8,363.95 in intraday trade, a record high for the index. The index hit a low of 8,326.10 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,576 shares gained and 1,113 shares fell. A total of 119 shares were unchanged.
The BSE Mid-Cap index was up 54.73 points or 0.55% at 9,996.13. The BSE Small-Cap index was up 92.30 points or 0.83% at 11,169.42. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2202 crore by 12:15 IST, compared with turnover of Rs 1645 crore by 11:15 IST.
Index heavyweight Reliance Industries shed 0.72% to Rs 994. The stock high a high of Rs 1,008 and low of Rs 991.50 so far during the day. Pioneer Natural Resources Company yesterday, 4 November 2014, announced that the company is pursuing the divestment of its 50.1% share of the Eagle Ford Shale Midstream business (EFS Midstream). Reliance Holding USA, Inc. owns the remaining 49.9% of the EFS Midstream business and also plans to pursue the divestment of its share in a joint process with Pioneer. Reliance Holding USA Inc. is a subsidiary of Reliance Industries. Reliance Holding USA Inc. had acquired 49.9% stake in EFS Midstream in June 2010. Pioneer is the operator of the business.
Pioneer said that the EFS Midstream business was formed in 2010 to construct facilities to provide gathering and handling services for condensate and natural gas produced from wells on dedicated acreage in the Eagle Ford Shale. These services are provided for the Eagle Ford Shale upstream joint venture operated by Pioneer (Pioneer 46%, Reliance 45% and Newpek LLC 9%) and for various third parties. The EFS Midstream system consists of 10 central gathering plants (CGPs) and approximately 460 miles of pipelines. The system gathers and separates produced condensate from produced gas. It also stabilizes the condensate, where necessary, and treats the gas.
IT stocks edge higher on renewed buying. Infosys (up 0.11%), HCL Technologies (up 0.86%), TCS (up 0.18%), Oracle Financial Services Software (up 0.16%) and MphasiS (up 0.25%) edged higher. Wipro fell 0.88%
Tech Mahindra advanced 1.97% to Rs 2,631.45 after scaling a record high of Rs 2,647.40 in intraday trade.
Hexaware Technologies spurted 6.1% after consolidated net profit rose 12.3% to Rs 86 crore on 9.9% growth in revenue to Rs 671 crore in Q3 September 2014 over Q2 June 2014. The Q3 result was announced before market hours today, 5 November 2014. Hexaware Technologies (Hexaware) said that the revenue growth during Q3 September 2014 was broad-based. Europe led the geographic growth while BFSI and Emerging segments led growth among verticals. Business Intelligence & Business Analytics and Infrastructure Management Services led the growth among service lines, Hexaware said in a statement.
Private sector bank stocks gained. Yes Bank rose 0.66%.
ICICI Bank rose 1.04% to Rs 1,659.05 after scaling a record high of Rs 1,663.70 in intraday trade.
IndusInd Bank advanced 1.76% to Rs 720.50 after scaling a record high of Rs 726 in intraday trade.
Kotak Mahindra Bank rose 0.46% to Rs 1,116.50 after scaling a record high of Rs 1,127.50 in intraday trade.
HDFC Bank rose 0.92% to Rs 918.85 after scaling a record high of Rs 920 in intraday trade.
Axis Bank rose 2.37% to Rs 455.20 after scaling a record high of Rs 456.25 in intraday trade.
Pharmaceutical shares rose on renewed buying. Cadila Healthcare (up 2.48%), Dr Reddy's Laboratories (up 0.24%), Lupin (up 0.89%), Ranbaxy Laboratories (up 1.81%), Sun Pharmaceutical Industries (up 2.21%) gained. Cipla shed 0.82%.
Wockhardt lost 1.51% after consolidated net profit fell 98% to Rs 3 crore on 14% decline in sales to Rs 1029 crore in Q2 September 2014 over Q2 September 2013. Wockhardt's operating profit declined 16% to Rs 165 crore in Q2 September 2014 over Q2 September 2013. Operating profit margin declined to 16% in Q2 September 2014, from 16.4% in Q2 September 2013. The Q2 result was announced after market hours on Monday, 3 November 2014.
AstraZeneca Pharma India lost 4.29% after the company reported a net loss of Rs 27.96 crore in Q2 September 2014, higher than net loss of Rs 1.23 crore in Q2 September 2013. The Q2 result was announced after market hours on Monday, 3 November 2014.
The stock market remains closed tomorrow, 6 November 2014, on account of Gurunanak Jayanti.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.385, compared with its close of 61.405 on Monday, 3 November 2014. The currency market was shut yesterday, 4 November 2014, on account of Moharram.
Brent crude dropped as weak economic data from top energy consumer China stoked worries about demand in a market that is already battling a deepening global supply glut. Brent crude for December delivery was off 43 cents at $82.39 a barrel. The contract had fallen $1.96 a barrel to settle at $82.82 a barrel yesterday, 4 November 2014, its lowest close since 21 October 2010, after Saudi Arabia cut oil prices for the US, in a move meant to remain competitive amid booming oil production in the US.
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.
The government is open to privatisation of certain loss-making public sector companies, Finance Minister Arun Jaitley reportedly said today, 5 November 2014, during an interaction at the World Economic Forum in New Delhi. Jaitley also reportedly said the government will soon unveil reforms for other natural resources sectors along the lines of coal block auctions.
Jaitley also reportedly said that the government intends to open railways further to private investment, review tough land purchase rules and relax labour laws, but added that the government needed to build support for some of these measures.
Meanwhile, a survey showed that business activity at India's service sector stagnated last month. Adjusted for seasonal factors, the headline HSBC India Services PMI Business Activity Index -- a single question tracking changes in activity at Indian services companies on a month-by-month basis -- fell to 50 in October, from 51.6 in September. Despite rising for the sixth consecutive month, new work intakes in the Indian service sector increased at the weakest pace since May during October. Growth of employment in the Indian service sector also slowed in October. The services sector contributes about 60% to India's gross domestic product.
On the positive side, the latest data indicated that service sector firms in India remained highly optimistic regarding prospects for activity growth in the coming year. Business sentiment was the strongest in three months, with panellists commenting on anticipated improvements in demand and new marketing initiatives as key sources of optimism.
Asian stocks declined today, 5 November 2014, after weak economic data from China. Key benchmark indices in China, Taiwan, South Korea and Hong Kong were off 0.19% to 0.57%. Key benchmark indices in Japan, Singapore and Indonesia were up 0.1% to 0.44%.
The HSBC China services purchasing managers index edged down to 52.9 in October from 53.5 in September, but most major components of the index remain solid, HSBC Holdings PLC said today, 5 November 2014. A reading above 50 indicates month-on-month expansion while a level below that points to contraction.
Trading in US index futures indicated that the Dow could rise 75 points at the opening bell today, 5 November 2014. The latest results showed that the Republican Party recaptured control of the US Senate in Tuesday's midterm elections, notching victories in races around the country. Republicans also kept control of the House of Representatives on Tuesday, as was widely expected. By taking the Senate and keeping the House, the Republican Party takes control of Congress for the first time in eight years.
The US stock market finished Tuesday's choppy session mostly lower, as steep losses in energy companies' stocks weighed on the main benchmark. In economic news, US trade deficit jumped in September to the highest level since the late spring. The surprising spike in the trade deficit is likely to reduce third-quarter growth when the US government revises the report later this month.
St. Louis Fed President James Bullard yesterday, 4 November 2014, said that the US economy is on track to grow at a 3% annual rate over the next 14 months, which should allow the Federal Reserve to move ahead with plans to hike short-term interest rates.
In Europe, the European Commission yesterday, 4 November 2014, cut its forecast for growth domestic product for the 18-country eurozone region to 0.8% this year, from a previous forecast of 1.2%, in the spring. In 2015, the eurozone economy will likely grow 1.1%, also less than the 1.7% growth seen in the spring. In 2016, growth in the currency union will rise to 1.7%, the commission said.
The European Central Bank (ECB) and Bank of England (BoE) will make interest-rate decisions tomorrow, 6 November 2014.
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