Range bound movement continued for key benchmark indices in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently above the psychological 28,000 level, having alternately moved above and below that level in intraday trade so far. The BSE Sensex was currently up 65.90 points or 0.24% at 28,006.54. The market breadth indicating the overall health of the market was positive. Data due at about 12:00 noon today, 14 November 2014, is expected to show a further easing of inflation based on wholesale price index (WPI).
Foreign portfolio investors bought shares worth a net Rs 690.61 crore yesterday, 13 November 2014, as per provisional data.
PSU OMCs edged higher on decline in crude oil prices. GAIL (India) advanced after the company said it along with state gas companies of Turkmenistan, Afghanistan and Pakistan have established a company that will build, own and operate the planned 1,800-kilometer Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline. ONGC rose ahead of Q2 results. Cipla dropped after weak Q2 results.
In overseas markets, Asian stocks were mixed. US stocks eked out small gains yesterday, 13 November 2014.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude futures edged higher after a sharp slide during the previous trading session.
At 11:15 IST, the S&P BSE Sensex was up 65.90 points or 0.24% at 28,006.54. The index gained 88.10 points at the day's high of 28,028.74 in mid-morning trade. The index lost 27.74 points at the day's low of 27,912.90 in early trade.
The CNX Nifty was up 20.30 points or 0.24% at 8,378.15. The index hit a high of 8,382.25 in intraday trade. The index hit a low of 8,346.80 in intraday trade.
The BSE Mid-Cap index was up 77.41 points or 0.77% at 10,179.58. The BSE Small-Cap index was up 78.36 points or 0.7% at 11,237.90. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,431 shares gained and 997 shares fell. A total of 80 shares were unchanged.
PSU OMCs rose on decline in crude oil prices. BPCL (up 0.95%) and Indian Oil Corporation (up 2.57%) gained. Lower crude oil prices will reduce under recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government had already deregulated pricing of petrol and diesel.
The government yesterday, 13 November 2014, announced increase in excise duty on petrol and diesel by Rs 1.50 per litre each.
HPCL rose 4.06% at Rs 563.80. The company reported 166.59% surge in net profit to Rs 850.21 crore on 0.35% fall in total income to Rs 51964 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 13 November 2014.
GAIL (India) rose 2.67% at Rs 489.90. The company during market hours today, 14 November 2014, said that the company along with state gas companies of Turkmenistan, Afghanistan and Pakistan have established a company that will build, own and operate the planned 1,800-kilometer Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline. State concern Turkmengas, Afghan Gas Enterprise, Inter State Gas Systems and GAIL will own equal shares of the company, TAPI Pipeline Company (TPCL), GAIL (India) said in a statement. TPCL has been incorporated as a special purpose vehicle (SPV) in the Isle of Man, a British Crown dependency, located in the Irish Sea. This SPV would be responsible for finance, design, construction, operation and maintenance of the TAPI pipeline, GAIL (India) said in a statement.
The TAPI pipeline will export up to 33 billion cubic meters of natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India over 30 years. Turkmenistan has the world's fourth-largest proven gas reserves, and the pipeline will allow the landlocked country to diversify its gas export markets to the southeast. Turkmen gas in turn will provide a key new source of fuel for Afghanistan, Pakistan, and India.
ONGC rose 2.04% at Rs 393.30 ahead of Q2 September 2014 results today, 14 November 2014. ONGC's overseas subsidiary ONGC Videsh's net profit rose 9.65% to Rs 2068 crore on 12.94% growth in gross revenue from operations to Rs 11362 crore in the first half of FY 2015 over the first half of FY 2014. The net profit was higher mainly due to higher sales revenue partly offset by higher charge of depreciation, depletion & amortization, ONGC said. Gross revenue increased mainly due to increase in sales quantities in BC-10, Brazil and Block A1 and A3, Myanmar. The result was announced before market hours yesterday, 13 November 2014.
Cipla lost 1.67% at Rs 613.75 after consolidated net profit declined 16.48% to Rs 299 crore on 5.9% growth in net sales to Rs 2630 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 13 November 2014.
Cipla's EBITDA declined 1.58% to Rs 558 crore in Q2 September 2014 over Q2 September 2013. The company's domestic sales rose 20.5% to Rs 1251 crore in Q2 September 2014 over Q2 September 2013. The growth in domestic sales was largely on account of growth in Pediatrics, Respiratory, Spectracare, and Urology therapies, Cipla said in a statement.
Cipla's exports of formulations rose 0.4% to Rs 1243 crore in Q2 September 2014 over Q2 September 2013. Exports of APIs declined 33.98% to RS 136 crore in Q2 September 2014 over Q2 September 2013.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.65, compared with its closing of 61.57 during the previous trading session.
Brent crude futures edged higher after a sharp slide during the previous trading session. Brent for January settlement was up 36 cents at $77.85 a barrel. The contract had lost $3.63 a barrel to settle at $77.49 a barrel yesterday, 13 November 2014.
The government yesterday, 13 November 2014, announced increase in excise duty on petrol and diesel by Rs 1.50 per litre each. The hike in excise duty on the two transportation fuels will help boost government's revenue. The government's decision last month to decontrol diesel prices and a sharp decline in global crude oil prices recently would 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. India imports 80% of its crude oil requirement. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
The government is set to announce data on inflation based on wholesale price index (WPI) for October 2014 at 12:00 noon today, 14 November 2014. The rate of inflation based on wholesale price index 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 annual rate of inflation based on the combined consumer price indices (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. The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016.
Asian stocks were mixed today, 14 November 2014. Key indices in Japan, Hong Kong, Taiwan, and Singapore were up 0.02% to 0.25%. Key indices in China, South Korea, and Indonesia were off 0.09% to 0.98%.
China's industrial output growth in October unexpectedly dropped, reflecting the continued headwinds faced by the Chinese economy, official data showed yesterday 13 November 2014.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell today 14 November 2014. US stocks eked out small gains yesterday, 13 November 2014. The Dow Jones Industrial Average gyrated between gains and losses, but ended the session at a fresh record high -- recording its 25th record closing high this year.
In US, more workers quit their jobs in September as hires reached their highest level in nearly seven years, the Labor Department said yesterday, 13 November 2014. Hires increased to a seasonally adjusted 5 million, a level last seen in December 2007. Quits rose to a seasonally adjusted 2.8 million in September from 2.5 million in the previous month, data showed.
Federal Reserve Chair Janet Yellen yesterday, 13 November 2014, said that the growing globalization of financial markets requires the Federal Reserve to understand how economic developments in other nations may affect the US economy. Yellen said the Fed needs better insights into things such as global capital flows to achieve its domestic objectives of maximum employment and price stability. Yellen's remarks came at the start of a two-day conference sponsored by the Fed, the European Central Bank and the Federal Reserve Bank of New York.
In Europe, according to survey of economic forecasters released yesterday, 13 November 2014, by the European Central Bank (ECB), inflation in the eurozone is expected to remain super low for the remainder of this year and accelerate only gradually in the next two years, according to a survey of economic forecasters. According to the quarterly survey, consumer prices are expected to grow just 0.5% this year, down from the August forecast of a 0.7% rise. Next year, the inflation rate is expected to come in at 1% followed by 1.4% in 2016. These rates are far below the ECB's inflation target of just below 2% over the medium term. Over a longer five-year horizon, the inflation rate is expected to be closer to the ECB's objective, at 1.8%. That compares with a 1.9% rate forecast in the previous survey.
Forecasters surveyed by the ECB also marked down their projections for economic growth over the next two years. Economists expect gross domestic product growth of 0.8% this year, down from 1% in the August round of forecasts. GDP is expected to expand 1.2% next year and 1.5% in 2016, which were also below the August projections.
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