Key benchmark indices hovered near the flat line in early afternoon trade after moving in narrow range. The barometer index, the S&P BSE Sensex, was currently off 2.63 points or 0.01% at 27,865.83. The market breadth indicating the overall health of the market was positive. The BSE Small-Cap index was more than 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.
Realty shares extended recent gains triggered by the government announcing relaxation of rules for foreign investment in property development and construction sector. Aviation stocks gained after jet fuel rates were reduced by a steep 7.3% on Saturday, 1 November 2014, on back of falling international oil rates. Bank of India rose after declaring good Q2 result.
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 12:15 IST, the S&P BSE Sensex was down 2.63 points or 0.01% at 27,865.83. 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 4.05 points or 0.05% at 8,318.15. 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, 1,591 shares gained and 1,081 shares fell. A total of 115 shares were unchanged.
The BSE Mid-Cap index was up 93.03 points or 0.95% at 9,927.63. The BSE Small-Cap index was up 116.29 points or 1.06% at 11,047.24. Both these indices outperformed the Sensex.
Realty shares extended recent gains triggered by the government announcing relaxation of rules for foreign investment in property development and construction sector. Unitech (up 4.65%), Housing Development & Infrastructure (HDIL) (up 2.88%), Indiabulls Real Estate (up 4.64%), Oberoi Realty (up 0.72%) and Godrej Properties (up 2.32%) edged higher.
DLF rose 1.69% to Rs 126.60. The stock was volatile. The stock hit high of Rs 126.80 and low of Rs 120.20 so far during the day.
The Union Cabinet on 29 October 2014 announced relaxation of rules for foreign investment in property development and construction. 100% foreign direct investment (FDI) under automatic route will be permitted in the construction development sector. In case of development of serviced plots, there is no condition of minimum land. In case of construction-development projects, a minimum floor area will be 20,000 sq. meters. The investee company will be required to bring minimum FDI of $5 million within six months of commencement of the project. Subsequent tranches of FDI can be brought till the period of ten years from the commencement of the project or before the completion of the project, whichever expires earlier. The investor will be permitted to exit on completion of the project or after three years from the date of final investment, subject to development of trunk infrastructure.
Aviation stocks gained after jet fuel rates were reduced by a steep 7.3% on Saturday, 1 November 2014, on back of falling international oil rates. Jet Airways (India) (up 4.97%) and SpiceJet (up 7.32%) edged higher.
Aviation turbine fuel (ATF), or jet fuel, rates were on Saturday, 1 November 2014, cut by a steep 7.3%, the fourth straight reduction in prices since August 2014 on back of falling international oil rates. The price of ATF at Delhi was cut by Rs 4,987.70 per kilolitre, or 7.3%, to Rs 62,537.93 per kl.
Prices of ATF constitutes approximately 50% of operating expenses of Indian airlines.
Bank of India rose 0.68%. 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.
Tata Communications rose 3.85% after consolidated net profit rose 14.97% to Rs 92.39 crore on 4.87% growth in total income to Rs 5235.06 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced on Saturday, 1 November 2014.
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 61.40, 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 23 cents at $85.63 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.
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 0.06% to 0.34%. Key benchmark indices in Hong Kong, South Korea and Indonesia were off 0.28% 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 25 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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