After overnight sharp losses for Brent crude futures, key equity benchmark indices in India eked out small gains. Benchmark indices saw high intraday volatility. The barometer index, the S&P BSE Sensex, garnered 48.14 points or 0.17% to settle at 28,386.19. The market breadth indicating the overall health of the market was positive. The BSE Small-Cap index garnered 1.12%, outperforming the Sensex.
Indian government's decision last month to decontrol diesel prices 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.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1168.94 crore yesterday, 25 November 2014, as per provisional data.
Index heavyweight and cigarette maker ITC rose on bargain hunting after yesterday's slide. Delhi focused realty majors DLF and Unitech, both, rose after Urban Development Minister M.Venkaiah Naidu approved enhancement of Ground Coverage and FAR (Floor Area Ratio) in Delhi. Shares of other realty companies also gained.
Commerce Secretary Rajeev Kher today, 26 November 2014, said the ensuing Foreign Trade Policy will address the exporters' concerns of slowdown in several key markets like European Union and Japan and a lot of policy developments and diversification measures are being worked out to deal with the unveiling challenges of merchandise exports.
Key indices saw high intraday volatility. After seeing a strong intraday rebound in mid-afternoon trade, the Sensex slipped into the red for a brief period in late trade. Earlier, key indices alternately swung between positive and negative zone in morning trade. Before that, key indices had dropped amid initial volatility.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged higher amid intraday volatility as markets brace for the highly anticipated meeting of the Organization of the Petroleum Exporting Countries (OPEC) tomorrow, 27 November 2014.
In overseas markets, European stocks edged higher after the latest data showed French consumer confidence rose in November. Asian stocks edged higher after Chinese shares extended their rally as insurers led gains. US stocks ended marginally lower yesterday, 25 November 2014, snapping a three-day run on the S&P 500 and Dow Jones Industrial Average as a drop in consumer confidence offset faster economic expansion.
Indian stocks may remain volatile tomorrow, 27 November 2014, as traders roll over positions in the futures & options (F&O) segment from November 2014 series to December 2014 series. The November 2014 derivatives contracts expire tomorrow, 27 November 2014.
The S&P BSE Sensex garnered 48.14 points or 0.17% to settle at 28,386.19, its highest closing level since 24 November 2014. The index jumped 132.10 points at the day's high of 28,470.15, in mid-afternoon trade. The index fell 76.74 points at the day's low of 28,261.31 in early afternoon trade.
The CNX Nifty rose 12.65 points or 0.15% to settle at 8,475.75, its highest closing level since 24 November 2014. The index hit a high of 8,500.30 in intraday trade. The index hit a low of 8,438.65 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,661 shares gained and 1,239 shares fell. A total of 124 shares were unchanged.
The BSE Mid-Cap index rose 62.54 points or 0.62% to settle at 10,119.95. The BSE Small-Cap index rose 124.28 points or 1.12% to settle at 11,180.24. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2902 crore, lower than Rs 7291.25 crore on Tuesday, 25 November 2014.
The S&P BSE Realty index (up 4.03%), the S&P BSE Power index (up 1.13%), the S&P BSE Metal index (up 1.08%), the S&P BSE FMCG index (up 1.07%), the S&P BSE Consumer Durables index (up 0.35%), the S&P BSE Auto index (up 0.27%) and the S&P BSE Capital Goods index (up 0.26%) outperformed the Sensex.
The S&P BSE Oil & Gas index (up 0.16%), the S&P BSE IT index (down 0.16%), the S&P BSE Bankex (down 0.3%), the S&P BSE Healthcare index (down 0.34%) and the S&P BSE Teck index (down 0.41%) underperformed the Sensex.
Index heavyweight and cigarette maker ITC rose 2.14% to Rs 363.30 on bargain hunting after slumping 4.99% yesterday, 25 November 2014. The stock hit high of Rs 366 and low of Rs 357.60 in intraday trade. Health Minister J P Nadda stated in a written reply in the Rajya Sabha on Tuesday, 25 November 2014, that the Ministry of Health & Family Welfare has accepted recommendations of a committee that has suggested prohibition on sale of loose or single stick of cigarettes, increasing the minimum legal age for sale of tobacco products, increasing the fine or penalty amounts for violation of certain provisions of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA), as well as making such offences cognizable. In this regard, a draft note for Cabinet has been circulated for Inter-Ministerial consultation.
Bajaj Auto declined 0.9% and Bharti Airtel fell 2.43% after Nigeria's central bank devalued its currency naira and raised interest rates sharply yesterday, 25 November 2014.
As per reports, nearly 12% of Bajaj Auto's revenues come from Nigeria. A foreign brokerage has reportedly downgraded Bajaj Auto to "sell" from "neutral", saying falling emerging market currencies would impact margins.
Nigeria is Bharti Airtel's biggest market in Africa. Bharti Airtel entered Africa in 2010 by acquiring loss-making telecom operations for $9 billion, funded by debt.
Bank stocks were mixed. Among private sector banks, ICICI Bank (down 1.45%), Federal Bank (down 0.42%), HDFC Bank (down 0.2%), Kotak Mahindra Bank (down 0.1%) and Axis Bank (down 0.07%), edged lower. IndusInd Bank (up 0.97%), Yes Bank (up 0.7%), City Union Bank (up 0.32%) and ING Vysya Bank (up 0.32%), edged higher.
Among public sector banks, UCO Bank (up 1.03%), Bank of India (up 0.7%), Andhra Bank (up 0.69%), Punjab National Bank (up 0.66%), Dena Bank (up 0.6%), Allahabad Bank (up 0.53%), State Bank of India (up 0.41%), Bank of Maharashtra (up 0.24%) and Corporation Bank (up 0.22%), edged higher. Bank of Baroda fell 0.12%.
Delhi focused realty majors DLF and Unitech, both, rose after Urban Development Minister M.Venkaiah Naidu approved enhancement of Ground Coverage and FAR (Floor Area Ratio) in Delhi. Shares of other realty companies also gained. DLF jumped 7.2% and Unitech rose 4.41%. FAR in respect of plots of 750 - 1000 sq.mt size has been enhanced from the present 150% to 200% while the same has been increased from 120% to 200% for plots of 1000 sq.mt and above. While the Ground Coverage for plots of 750 - 1000 sq.mt will remain at 50%, the same has been increased from 40% to 50% for plots of 1000 sq.mt and above. Naidu approved the proposal of Delhi Development Authority (DDA) in this regard on Monday, 24 November 2014. DDA has proposed an amendment to this effect to Master Plan Delhi - 2021 and firmed up the same after inviting objections and suggestions from the public.
Among other realty stocks, Anant Raj (up 9.71%), Oberoi Realty (up 7.16%), Housing Development and Infrastructure (HDIL) (up 3.65%), D B Realty (up 3.43%), Indiabulls Real Estate (up 1.92%), Prestige Estates (up 1.82%), Godrej Properties (up 1.78%), Peninsula Land (up 1.35%) and Sobha (up 0.97%), edged higher.
Aurobindo Pharma declined 2.63% after the company's board of directors at its meeting held yesterday, 25 November 2014, inter alia, approved raising of the funds by the company through issue of securities upto an amount of $350 million or rupee equivalent thereof through follow on offer, qualified institutions placement, further public offer and/or private placement or by such other method subject to approval of the shareholders. The announcement was made after market hours yesterday, 25 November 2014.
MRF rose 4.14% after the company's net profit jumped 72.14% to Rs 316.91 crore on 7.15% rise in total income to Rs 3386 crore in Q4 September 2014 over Q4 September 2013. The result was announced during market hours.
Jindal Steel & Power fell 2.15%. With respect to the news media report titled, "JSPL scraps $10 billion CTL project in Odisha", the company clarified that it planned to implement Coal to Liquid (CTL) project to produce crude using environment friendly Indirect Coal Liquification under the technology developed in Germany for which Ramchandi Promotional Coal Block in Orissa was allotted to the company by Government of India in 2009. Since the coal block has been de-allocated as per the recent Supreme Court verdict, this project, as planned, will not proceed, the company said. The clarification was issued after market hours today, 26 November 2014.
Siemens fell 1.19%. The company's net profit jumped 192.77% to Rs 436.78 crore on 0.67% decline in total income to Rs 3250.29 crore in Q4 September 2014 over Q4 September 2013. The result was announced after market hours yesterday, 25 November 2014. Siemens' net profit rose 211% to Rs 603.18 crore on 5.45% decline in total income to Rs 10766.44 crore in the year ended September 2014 over the year ended September 2013.
For the financial year ended 30 September 2014 (FY 2014), Siemens registered new orders of Rs 10323.80 crore compared to Rs 10957.30 crore in the financial year ended 30 September 2013 (FY 2013). Sales stood at Rs 10448.30 crore in FY 2014, compared to Rs 111452 crore in FY 2013. Volumes registered a decline of 6% as infrastructure spending continued to be sluggish and high interest rates continued to impact fresh capital expenditure projects in the manufacturing sector.
Reliance Capital reported highest turnover of Rs 55.70 crore on BSE. State Bank of India (Rs 51.66 crore), DLF (Rs 50.20 crore), ICICI Bank (Rs 46.58 crore) and Gujarat Gas Company (Rs 39.67 crore), were the other turnover toppers on BSE in that order.
Unitech clocked highest volumes of 75.92 lakh shares on BSE. DLF (33.96 lakh shares), Jaiprakash Associates (29.05 lakh shares), Kailash Auto Finance (27.90 lakh shares) and Housing Development and Infrastructure (HDIL) (20.92 lakh shares), were the other volume toppers on BSE in that order.
The Sensex has risen 520.36 points or 1.87% in this month so far (till 26 November 2014). The Sensex has gained 7,215.51 points or 34.08% in calendar year 2014 so far (till 26 November 2014). From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 8,423.07 points or 42.19%. From a record high of 28,541.96 struck on 24 November 2014, the Sensex has fallen 155.77 points or 0.55%.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.845, compared with its close of 61.87 during the previous trading session.
Brent crude oil futures edged higher amid intraday volatility as markets brace for the highly anticipated meeting of the Organization of the Petroleum Exporting Countries (OPEC) tomorrow, 27 November 2014. Brent crude for January settlement was up 37 cents at $78.70 a barrel. The contract had fallen $1.35 a barrel to finish at $78.33 a barrel during the previous trading session.
Oil ministers from the OPEC are scheduled to meet in Vienna tomorrow, 27 November 2014, to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015. OPEC, which pumps about 40% of the world's crude, has maintained its official quota at 30 million barrels a day since January 2012.
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.
Commerce Secretary Rajeev Kher today, 26 November 2014, said the ensuing Foreign Trade Policy will address the exporters' concerns of slowdown in several key markets like European Union and Japan and a lot of policy developments and diversification measures are being worked out to deal with the unveiling challenges of merchandise exports. He said the government is aware of the challenges being faced by the exporters in the backdrop of slowdown in EU, Japan and China, but the policy measures would target new markets like Africa, South East Asia and CIS countries. Kher emphasised on the value chain movement by exporters for staying competitive in the global markets. In this context, the liberalisation in the FDI policies underway would help exporters move up the value chain and help them gain scaling essential for the international markets, Kher said.
Minister of State for Commerce & Industry (Independent Charge) Nirmala Sitharaman today, 26 November 2014, said in a written reply in Rajya Sabha that the government is continuously making efforts to boost industrial production in the country. For the creation of conductive business environment, the government is constantly simplifying and rationalizing the processes and procedures relating to boosting investor sentiment, and simplifying the foreign direct investment policy, she said.
The government will announce data on gross domestic product (GDP) for Q2 September 2014 at 17:30 IST on Friday, 28 November 2014. India's GDP grew 5.7% in Q1 June 2014 over the corresponding period of the previous year.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 2 December 2014. The central bank aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India eased to 5.52% in October 2014 from 6.46% in September 2014, data released by the government on 12 November 2014 showed.
European stocks edged higher today, 26 November 2014, after a top official said the European Central Bank could start full-blown quantitative easing early next year, the comments coming as the eurozone struggles with low inflation and sluggish growth. Key benchmark indices in Germany and UK were up 0.21% to 0.57%. France's CAC 40 was off 0.01%
At a conference in London, ECB Vice President Vitor Constancio said the bank is prepared to buy government bonds early next year if it decides there is a need to ramp up stimulus measures. We have, of course, to closely monitor if the pace of its evolution is in line with that expectation. In particular, during the first quarter of next year we will be able to gauge better if that is the case, he said.
Separately, European Commission President Jean-Claude Juncker unveiled a five-year, 315 billion private-public investment plan. The plan aims to encourage economic growth by funding infrastructure projects throughout the European Union.
Meanwhile, French consumer confidence rose in November, a survey from statistics agency Insee showed today, 26 November 2014. The monthly survey recorded a rise in consumer confidence to 87 in November from 85 in October. The reading is the survey's highest since March but well below the long-term average of 100. Consumers' assessment of their personal financial outlook rose as did their perception of their ability to make significant purchases. The survey also showed a strong rebound in French people's assessment of their quality of life in past months.
Consumer spending accelerated at the fastest quarterly pace in more than four years and drove the expansion of the UK economy during the third quarter, official figures showed. The second estimate of gross domestic product, released today, 26 November 2014, by the Office for National Statistics, confirmed the British economy expanded by 0.7% on a quarterly basis or at an annualized rate of 2.8% in the three months to September. The economy was 3% larger than a year earlier.
Asian stocks edged higher today, 26 November 2014, after Chinese shares extended their rally as insurers led gains. Key benchmark indices in China, Singapore, South Korea, Hong Kong, Indonesia and Taiwan were up 0.03% to 1.43%. Japan's Nikkei Average fell 0.14%.
Trading in US index futures indicated that the Dow could gain 15 points at the opening bell today, 26 November 2014. US stocks broke a three-session streak of record highs yesterday, 25 November 2014, as a renewed slide in oil prices dragged down energy shares.
Economic data was mixed. The Commerce Department reported the US economy grew at its fastest pace in more than a decade during the spring and summer. But readings on consumer confidence and central-Atlantic manufacturing missed forecasts. The US government upgraded its reading on third quarter gross domestic product to 3.9% from 3.5% reported last month. The Conference Board said that consumer confidence fell to 88.7 in November, and a measure of manufacturing activity in the central Atlantic region came in below market expectations.
Nigeria's central bank -- Central Bank of Nigeria -- yesterday, 25 November 2014, raised the country's interest rate to a record high, in a move aimed at curtailing speculation against its currency, which has been battered in recent months by the relentless slide in the price of oil. The central bank increased the benchmark interest rate to 13% from 12%, with 9 out of the 11 members voting for the move. It also widened the trading corridor for the nation's currency naira, allowing it to devalue to an official level of 168 versus the US dollar from about 155, and widened the trading corridor from plus or minus 3% to plus or minus 5%.
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