Amid a mixed trend in various index components, key benchmark indices languished in red in afternoon trade. The losses were very small. The barometer index, the S&P BSE Sensex, was currently down 13.60 points or 0.05% at 27,852.23. The market breadth indicating the overall health of the market was positive. The BSE Small-Cap index was up 1.06%. A latest survey showed that manufacturing activity in India picked up modestly in October 2014 amid stronger output and new order flows, particularly from overseas clients. Asian stocks were mixed. Foreign portfolio investors (FPIs) bought shares worth massive Rs 1754.73 crore during the preceding trading session on Friday, 31 October 2014, as per provisional data.
PSU bank stocks rose. Bank of India rose on good Q2 results. Index heavyweight Reliance Industries (RIL) rose.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, scaled record high at the onset of the trading session after provisional data showed massive purchases of India stocks by FPIs during the preceding trading session on Friday, 31 October 2014.
In overseas markets, Asian stocks were mixed. US stocks jumped on Friday, 31 October 2014, sending the S&P 500 and Dow Jones Industrial Average into record territory, after a surprise stimulus plan from the Bank of Japan was announced.
In the foreign exchange market, the rupee edged lower against the dollar, tracking weakness in most Asian currencies against the dollar.
Brent crude oil prices edged lower as mixed Chinese data and a strong dollar pressured prices.
At 13:16 IST, the S&P BSE Sensex was down 13.60 points or 0.05% at 27,852.23. The index gained 103.99 points at the day's high of 27,969.82 at the onset of the trading session, a record high for the index. The index fell 76.43 points at the day's low of 27,789.40 in morning trade.
The CNX Nifty was down 5.30 points or 0.06% at 8,316.90. The index hit a high of 8,350.60 in intraday trade, a record high for the index. The index hit a low of 8,297.70 in intraday trade so far.
The market breadth indicating the overall health of the market was positive. On BSE, 1,630 shares gained and 1,100 shares fell. A total of 114 shares were unchanged.
The BSE Mid-Cap index was up 89.98 points or 0.91% at 9,924.58. The BSE Small-Cap index was up 115.94 points or 1.06% at 11,046.89. Both these indices outperformed the Sensex.
Index heavyweight Reliance Industries (RIL) rose 0.78% to Rs 1,007.40. The stock hit high of Rs 1,007.90 and low of Rs 990.55 so far during the day.
PSU bank stocks rose. State Bank of India (SBI) (up 1.14%), Canara Bank (up 2.37%), Punjab National Bank up 2.07%) Syndicate Bank (up 3.46%), Indian Overseas Bank (up 3.4%), Andhra Bank (up 4.41%), Oriental Bank of Commerce (up 1.25%), Dena Bank (up 1.96%), and Indian Bank (up 0.84%), gained. Union Bank of India fell 0.07%.
Bank of Baroda rose 1.88% after the bank after market hours on Friday, 31 October 2014, said it has revised the rates of interest payable on term deposits of below Rs 1 crore applicable to the renewal of existing deposits and fresh deposits, with effect from 1 November 2014. The interest rate on domestic term deposits & NRO deposits of below Rs 1 crore with a maturity period of 1 year and above upto 2 years was revised to 8.9% from earlier 9.05%. Interest rate on deposits with maturity of above 2 years and upto 3 years was revised to 8.9% from earlier 9.05%. The interest rate on 1,111 days maturity bucket (Baroda Maha Utsav Deposit Scheme) was revised to 8.75% from earlier 9.05%. Interest rates on the maturity buckets for above 3 years and upto 5 years, above 5 years and upto 8 years and above 8 years and upto 10 years were revised to 8.75% from earlier 9.05%.
Bank of India rose 0.93% on good Q2 results. The state-run bank during market hours reported 26.41% rise in net profit to Rs 786 crore on 17.02% growth in total income to Rs 12099.45 crore in Q2 September 2014 over Q2 September 2013.
Bank of India (BoI)'s ratio of gross non-performing assets (NPAs) to gross advances stood at 3.54% as on 30 September 2014 as against 3.28% as on 30 June 2014 and 2.93% as on 30 September 2013. The ratio of net NPAs to net advances stood at 2.32% as on 30 September 2014 as against 2.14% as on 30 June 2014 and 1.85% as on 30 September 2013.
Coal India declined 1.15%. The company said during market hours that the actual coal production of Coal India and its subsidiaries was 101% of targeted production at 40.20 million tonnes in October 2014. The coal offtake of Coal India and its subsidiaries was 96% of targeted offtake at 39.11 million tonnes in October 2014.
Lupin dropped 0.64%. Lupin announced during market hours that it has received final approval for its Celecoxib Capsules, 50 mg from the United States Food and Drugs Administration (FDA) to market a generic version of G.D. Searle LLC's Celebrex Capsules 50 mg. G.D. Searle LLC is a subsidiary of Pfizer Inc. Lupin also received tentative approvals for its Celecoxib capsules 100 mg, 200 mg and 400 mg strengths from the FDA.
Lupin's Celecoxib Capsules 50 mg, 100 mg, 200 mg and 400 mg are the AB-rated generic equivalents of G.D. Searle LLC 's Celebrex Capsules 50 mg, 100 mg, 200 mg and 400 mg and are indicated for Osteoarthritis, Rheumatoid Arthritis, Juvenile Rheumatoid Arthritis in patients 2 years and older; Ankylosing Spondylitis, and Acute Pain. Celebrex Capsules had annual US sales of $2.44 billion, as per IMS MAT June 2014 data.
In the foreign exchange market, the rupee edged lower against the dollar, tracking weakness in most Asian currencies against the dollar. The partially convertible rupee was hovering at 61.4075, compared with its close of 61.36 during the previous trading session on Friday, 31 October 2014.
Brent crude oil prices edged lower as mixed Chinese data and a strong dollar pressured prices. Brent crude for December delivery was off 24 cents at $85.62 a barrel. The contract had fallen 38 cents to settle at $85.86 a barrel during the previous trading session on Friday, 31 October 2014.
The 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.
Adjusted for seasonal influences, the headline HSBC India Purchasing Managers' Index - a composite indicator designed to give a single-figure snapshot of manufacturing operating conditions - rebounded from September's nine-month low of 51 to 51.6 in October. The latest reading was consistent with a moderate improvement in business conditions during the month, the survey showed. Manufacturing activity picked up modestly amid stronger output and new order flows, particularly from overseas clients. However, firms continued to trim purchases and refrained from aggressive inventory accumulation, according to the survey.
The growth rate of India's eight core industries, which have a combined weight of 37.9% in the Index of Industrial Production (IIP), slowed down to 1.9% in September 2014 due to fall in output of crude oil, natural gas, refinery products and fertiliser, data released by government on Friday, 31 October 2014 showed. The core sector had grown by 9% in September 2013.
Congress party's Rajya Sabha member Abhishek Manu Singhvi said in an interview to a news agency today, 3 November 2014, that that the Congress party will conditionally support measures to pass a goods and services tax, allow more foreign investment in insurance and allocate coal mines transparently. "We will give constructive support in principle, but with the very specific caveat that both god and the devil lie in the details. These are bills which we have moved, and we are not hypocritical", Singhvi said.
Opposition support is crucial to Narendra Modi government's efforts to revive the economy after winning the biggest Indian election mandate in 30 years. While his BJP controls the lower house of parliament, it holds less than a fifth of seats in the 245-member upper house. During the last parliamentary session in August, opposition lawmakers blocked the government's attempt to pass a bill that would raise the foreign ownership cap in the insurance sector to 49% from 26%. Bowing to opposition pressure, the government had in August agreed to refer the Insurance Bill to the 15-member Select Committee. The committee is expected to submit its report by the third week of November.
Finance Minster Arun Jaitley on Friday, 31 October 2014, said that major priorities of the government will be to revive and sustain higher GDP growth, increase savings, fiscal consolidation, keeping the current account deficit (CAD) at moderate level, reviving investment cycle, encouraging growth in manufacturing sector, augmenting supply response to contain inflation especially food inflation, boosting infrastructure sector and exports, rationalize subsidies and reforms in direct and indirect taxes among others. The Finance Minister was speaking at the first meeting of the Consultative Committee attached to the Ministry of Finance on the subject "Sustaining Growth Momentum - The Road Ahead". Jaitley said that the major priority of the government is to bring back growth momentum into country's economy. He said that the Indian economy has potential for achieving and sustaining higher growth. For 2014-15 the Finance Minster expects GDP growth in the range of 5.5% to 5.9%. He said the recent decline in international oil prices and prices of domestic food items point towards lower inflation in the coming months. The Finance Minister informed that the capital flows to finance the CAD is adequate and further moderation in CAD can be expected in 2014-15 due to lower oil prices.
Trading for this week will be truncated as the stock market remains shut tomorrow, 4 November 2014, on account of Muharram. Stock market also remains closed on Thursday, 6 November 2014, on account of Gurunanak Jayanti.
Asian stocks were mixed today, 3 November 2014. Key benchmark indices in China, Singapore and Taiwan were up 0.34% to 0.41%. Key benchmark indices in Hong Kong, South Korea and Indonesia were off 0.3% to 0.58%. Stock market in Japan was closed for holiday.
The HSBC China Manufacturing Purchasing Managers' Index, a gauge of nationwide manufacturing activity, rose to a final reading of 50.4 in October from 50.2 in September, HSBC Holdings PLC said today, 3 November 2014. The final reading was unchanged from HSBC's preliminary 50.4 for October, announced on 23 October 2014. A reading below 50 indicates a contraction in manufacturing activity from the previous month, whereas a reading above indicates expansion.
The official manufacturing Purchasing Managers' Index was 50.8 in October, lower that September's reading was 51.1, Chinese government data showed on Saturday, 1 November 2014.
A gauge of China's services industry fell to a nine-month low in October, joining manufacturing in signaling a broadening economic slowdown. The government's non-manufacturing Purchasing Managers' Index fell to 53.8 last month from 54 in September.
Trading in US index futures indicated that the Dow could fall 29 points at the opening bell today, 3 November 2014. US stocks jumped on Friday, 31 October 2014, sending the S&P 500 and Dow Jones Industrial Average into record territory, after a surprise stimulus plan from the Bank of Japan was announced.
Data on Friday, 31 October 2014, showed consumer spending in the US unexpectedly dropped in September as incomes rose at the slowest pace of the year. The Institute for Supply Management-Chicago Inc.'s business barometer rose to 66.2 in October from 60.5 in the prior month. A reading less than 50 signals contraction.
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