In a sudden reversal, key benchmark indices staged a sharp recovery in late trade led by gains in IT shares and recovery in select bank shares. The S&P BSE Sensex regained the 28,000 mark after falling below that level in afternoon trade. The Sensex provisionally ended up 44.37 points or 0.16% to 28,077.22. The market breadth indicating the overall health of the market was negative. Drug maker Cipla jumped Cipla Europe NV signed a distribution agreement with Serum Institute of India (SII). IT stocks gained as rupee declined against the dollar today, 20 November 2014. Banks stocks were mixed.
The provisional data released by the stock exchanges after trading hours yesterday, 19 November 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 71.80 crore on that day.
In the global market, European shares declined on Thursday, hit by disappointing economic data in the Eurozone. Asian stocks were mixed as China's manufacturing weakened and the latest Fed minutes reminded investors that US interest rates are likely to rise next year.
In the foreign exchange market, the rupee edged lower against the dollar, tracking the dollar's strength against major currencies.
Brent crude held above $78 a barrel as the market waited for news on possible cuts in oil output ahead of next week's OPEC meeting.
As per provisional closing, the S&P BSE Sensex rose 44.37 points or 0.16% to 28,077.22. The index fell 117.62 points at the day's low of 27,915.23 in afternoon trade, its lowest level since 14 November 2014. The index rose 85.68 points at the day's high of 28,118.53, at onset of the trading session.
The CNX Nifty rose 19.60 points or 0.23% at 8,401.90, as per provisional closing. The index hit a low of 8,353.15 in intraday trade, its lowest level since 17 November 2014. The index hit a high of 8,410.10 in intraday trade.
The BSE Mid-Cap index was down 11.27 points or 0.11% at 10,199.33. The BSE Small-Cap index was down 31.39 points or 0.28% at 11,337.16. Both theses indices underpeformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,631 shares fell and 1,373 shares gained. A total of 117 shares were unchanged.
The total turnover on BSE amounted to Rs 3067 crore, lower than Rs 3848.52 crore yesterday, 19 November 2014.
Among the 30 Sensex shares, 16 fell and the remaining shares rose.
Drug maker Cipla rose 4.13% at Rs 624. The company announced during market hours today, 20 November 2014 that Cipla Europe NV signed a distribution agreement with Serum Institute of India (SII). Under the agreement, SII will develop and manufacture paediatric vaccines, Cipla will seek European Medicines Agency approval and market the products in Europe, Cipla said in a statement. This collaboration with SII enables Cipla to enter into the vaccines segment, continuing its commitment to inclusive healthcare for the world, Cipla said. The vaccines will be manufactured in Serum's world class production facilities approved by WHO, the company said.
IT stocks gained as rupee declined against the dollar today, 20 November 2014. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
TCS (1.02%) and Wipro (1.55%), edged higher. Infosys was up 0.72% after the company announced after market hours on Wednesday, 19 November 2014, that it will collaborate with Stanford Graduate School of Business (GSB) to create a comprehensive executive education program.
Banks stocks were mixed. Among private sector banks, City Union Bank (down 1.41%), IndusInd Bank (down 1.37%), HDFC Bank (down 1.03%), Axis Bank (down 0.82%), Yes Bank (down 0.57%) and Federal Bank (down 0.45%), edged lower.
However, ICICI Bank was up 0.41% at Rs 1,689.10. It recovered from the day's low of Rs 1,676.
Shares of ING Vysya Bank and Kotak Mahindra Bank advanced on reports that Kotak Mahindra Bank is in final stages to buy ING Vysya Bank.
Shares of ING Vysya Bank (up 7.63%) and Kotak Mahindra Bank (up 7.66%) gained.
Kotak Mahindra Bank is reportedly in final stages to buy ING Vysya Bank in ratio of 2:2.5 (two shares of Kotak Mahindra Bank for 2.5 shares of ING Vysya Bank). The deal values ING Vysya Bank at Rs 16500 crore, reports added. As per reports, acquiring ING Vysya Bank may strategically fill many gaps for Kotak Mahindra Bank. Both banks have low geographical overlap, similar liability mix and adding it will provide Kotak with an (small and medium enterprises) SME banking platform, reports added. Potential acquisition will also help Kotak comply with the Reserve Bank of India's (RBIs) deadline on reducing promoter stake, reports further informed.
However, Kotak Mahindra Bank during market hours today, 20 November 2014 clarified that no decision has been made by the bank in relation to any merger or acquisition transaction. Also ING Vysya Bank during market hours today, 20 November 2014 clarified that the bank is aware of disclosure obligations of the Listing Agreement and will abide by its obligations to make appropriate disclosures as and when such disclosures are necessitated by decisions taken by it.
ING Vysya Bank is a leading private sector bank with retail, private and wholesale banking platforms.
Among public sector banks, Indian Bank (down 3.35%), Bank of India (down 2.89%), Canara Bank (down 2.72%), Andhra Bank (down 2.67%), Union Bank of India (down 2.53%), UCO Bank (down 2.45%), United Bank of India (down 2.09%), Vijaya Bank (down 1.96%), Syndicate Bank (down 1.77%), IDBI Bank (down 1.31%), Bank of Baroda (down 1.26%), Bank of Maha (down 1.22%), Punjab National Bank (down 1.08%), Jammu & Kashmir Bank (down 0.97%), Central Bank (down 0.92%), Allahabad Bank (down 0.51%) and Corporation Bank (down 0.11%), edged lower
However, State Bank of Bikaner (up 7.16%), State Bank of Mysore (up 1.65%), Dena Bank (up 0.84%) and Punjab & Sind Bank (up 0.53%), edged higher.
State Bank of India was up 2.05% at Rs 297.10. It recovered from the day's low of Rs 291.05.
Idea Cellular rose 2.87% to Rs 172. With respect to the news media report titled, "Ericsson bags two Mega Network Deals from Idea", Idea Cellular clarified that while it is policy of the company not to comment on media reports, it clarifies that the news item is relating to purchase of telecom equipments in the regular course of business and is not anything extra-ordinary that would trigger any reporting requirement. The clarification was issued during trading hours today, 20 November 2014.
In the foreign exchange market, the rupee edged lower against the dollar, tracking the dollar's strength against major currencies. The partially convertible rupee was hovering at 62.0250, compared with its close of 61.96 during the previous trading session.
Brent crude held above $78 a barrel as the market waited for news on possible cuts in oil output ahead of next week's OPEC meeting. Brent for January settlement was currently up 8 cents at $78.18 a barrel. The contract had lost 37 cents to finish at $78.10 a barrel yesterday, 19 November 2014.
Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet in Vienna on 27 November 2014 to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015.
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 shares declined on Thursday, hit by disappointing economic data in the Eurozone. Key benchmark indices in UK, France and Germany were down by 0.44% to 0.74%.
Eurozone economic growth has slipped to a 16-month low in November, hit by deteriorating conditions in its two largest economies. France was a key area of weakness and there is stagnation in German manufacturing activity, according to Markit's Flash Eurozone purchasing managers' index (PMI) report
Its overall flash composite index gave a reading of 51.4, down from 52.1 in October. The Services sector index hit an 11-month low of 51.3, while manufacturing read 50.4, with 50.0 representing the dividing line between a contraction and expansion of activity.
France's manufacturing PMI survey missed expectations, although data for the services sector came in slightly ahead of forecasts. The preliminary Markit France Manufacturing purchasing managers' index (PMI) for November fell to 47.6 - a three-month low - down from 48.5 in October. The Services sector gave a slightly better reading than expected - 48.8, up from 48.3 in October and this helped to lift the overall composite PMI to 48.4 from 48.2 last month.
Germany's private sector has grown at the slowest rate in 16 months in November as manufacturing stagnates and services lose momentum, a survey showed on Thursday, signalling a weak fourth quarter for Europe's largest economy. Markit's flash composite Purchasing Managers' Index (PMI), which tracks growth in the manufacturing and services sectors that account for more than two-thirds of the economy, fell to 52.1 in November from 53.9 in October, marking a 16-month low.
Asian stocks were mixed as China's manufacturing weakened and the latest Fed minutes reminded investors that U.S. interest rates are likely to rise next year. Key benchmark indices in Japan and Taiwan were up 0.07% to 1.29%. Key benchmark indices in Indonesia, Hong Kong, Singapore and South Korea were off 0.10% 0.67%.
China's Shanghai Composite was up 0.07%. The China flash HSBC/Markit manufacturing purchasing managers' index published on Thursday showed factory output contracted in the world's third-biggest economy for the first time in six months. The preliminary HSBC China Manufacturing Purchasing Managers Index fell to 50.0 in November, compared with a final reading of 50.4 in October, HSBC Holdings PLC said Thursday. A reading above 50 indicates expansion from the previous month, while a reading below 50 indicates contraction.
Trading in US index futures indicated that the Dow could fall 51 points at the opening bell today, 20 November 2014. US stocks edged lower on Wednesday, 19 November 2014, as minutes from the most recent Federal Reserve meeting gave investors few new clues as to when US interest rates may rise. The S&P 500 snapped a four-day run of gains and a two-day streak of record closing highs. Minutes of the US central bank's October 28-29 meeting, where policymakers decided to finally end their bond-buying stimulus, indicated a debate among policymakers over the outlook for inflation and the economy.
Following the release of the minutes, US short-term interest-rate futures traders were still betting on a first Fed rate hike by September next year. Tech names were among the biggest drags on the market, with the Nasdaq underperforming both the Dow and S&P 500.
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