Bulls were in command as key equity benchmark indices further strengthened and hit fresh record high in early afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit fresh record high. Gains in world stocks, fall in crude oil prices and provisional data showing substantial buying of Indian stocks by foreign portfolio investors yesterday, 30 October 2014, aided the latest rally on the domestic bourses. The Sensex was currently up 394.27 points or 1.44% at 27,740.60. The market breadth indicating the overall health of the market was strong, with almost two gainers for every loser on BSE. The BSE Mid-Cap index was up 1.29%. The BSE Small-Cap index was up 1.16%.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore yesterday, 30 October 2014, as per provisional data. Brent crude oil prices declined. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
Realty shares extended Thursday's gains triggered by the government announcing relaxation of rules for foreign investment in property development and construction sector.
In overseas markets, Japanese stocks led gains in Asian stocks after the Bank of Japan (BOJ) after a monetary policy review today, 31 October 2014, unexpectedly boosted its unprecedented monetary easing. US stocks edged higher yesterday, 30 October 2014, as a report showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment.
Brent crude oil prices edged lower as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012.
At 12:17 IST, the S&P BSE Sensex was up 394.27 points or 1.44% at 27,740.60. The index surged 412.68 points at the day's high of 27,759.01 in early afternoon trade, a lifetime high for the index. The index rose 91.95 points at the day's low of 27,438.28 in early trade.
The CNX Nifty was up 119.60 points or 1.46% at 8,288.80. The index hit a high of 8,291.65 in intraday trade, a lifetime high for the index. The index hit a low of 8,198.05 in intraday trade.
The BSE Mid-Cap index was up 125.03 points or 1.29% at 9,839.46. The BSE Small-Cap index was up 125.13 points or 1.16% at 10,952.59. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was strong, with almost two gainers for every loser on BSE. On BSE, 1,730 shares rose while 884 shares declined. A total of 111 shares were unchanged.
Realty shares extended Thursday's gains triggered by the government announcing relaxation of rules for foreign investment in property development and construction sector. Unitech (up 6.74%), Housing Development & Infrastructure (HDIL) (up 2.77%), DLF (up 0.85%), D B Realty (up 3.37%), Prestige Estates (up 0.72%), Parsvnath Developers (up 1.97%), Anant Raj (up 1.88%), Phoenix Mills (up 1.23%), Oberoi Realty (up 3.26%), Godrej Properties (up 1.84%) and Sunteck Realty (up 0.33%), edged higher. Sobha Developers fell 0.22%.
The Union Cabinet on Wednesday, 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.
OnMobile Global spurted 7.77% after the company reported a consolidated net loss of Rs 1.20 crore in Q2 September 2014, lower than net loss of Rs 23.90 crore in Q1 June 2014. OnMobile Global's revenue adjusted for the sale of Voxmobili rose 13% to Rs 207.50 crore in Q2 September 2014 over Q1 June 2014. The current quarter (Q2 September 2014) included profit on sale of Voxmobili for Rs 6.70 crore and forex gain of Rs 3 crore.
Thermax rose 3.27% after the company said that the company has bagged an order worth approximately Rs 321 crore to build and commission a captive power plant in Africa. The scope of work includes system design, manufacture, supply and supervision of erection and commissioning of the plant. The power plant is to be commissioned within a time frame of 15-16 months, Thermax said.
Titan Company slumped 4.7% after announcing Q2 results. The company's net profit rose 28.6% to Rs 239.98 crore on 55.7% growth in income from operations to Rs 3564.67 crore in Q2 September 2014 over Q2 September 2013. The result was announced after trading hours yesterday, 30 October 2014.
JK Lakshmi Cement gained 4.82% after net profit surged 197.18% to Rs 30.61 crore on 25.43% increase in total income to Rs 573.77 crore in Q2 September 2014 over Q2 September 2013.
Bliss GVS Pharma lost 3.26% after net profit fell 8.3% to Rs 21.57 crore on 9.9% decline in net sales to Rs 87.56 crore in Q2 September 2014 over Q2 September 2013.
Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 30 October 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore on that day.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 61.4175, compared with its close of 61.455 during the previous trading session.
Brent crude oil prices edged lower as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012. Brent crude for December delivery was off 5 cents at $86.19 a barrel. The contract had fallen 88 cents to settle at $86.24 a barrel during the previous trading session.
The government's decision this 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% last month, the least since 2012.
Finance Minister Arun Jaitley yesterday, 30 October 2014, asked the senior officers of the Central Board of Direct Taxes (CBDT) not to lose sight of domestic black money keeping in view its much higher magnitude. He asked the senior officers of the Income Tax Department to make their best efforts to chase those sectors where the domestic black money is most prevalent. He said that the recovery of black money and taxes due thereon will also help the Department in achieving its tax collection targets. The Finance Minister was speaking at a Review Meeting of Principal Chief Commissioners, Principal Directors General, Chief Commissioners and Directors General of Income Tax in order to assess and analyse the achievements of the Budget Targets for Revenue Collections for Financial Year 2014-15. He asked the tax officials to widen the tax base in order to bring more and more people within tax domain.
Japanese stocks led gains in Asian stocks today, 31 October 2014, after the Bank of Japan (BOJ) after a monetary policy review today, 31 October 2014, unexpectedly boosted its unprecedented monetary easing. Key benchmark indices in Indonesia, South Korea, Hong Kong, Taiwan, Singapore, and China were up 0.28% to 1.13%.
Japan's Nikkei Avergae jumped 4.56%. In an unexpected move, the Bank of Japan's policy board today, 31 October 2014, voted by a 5-to-4 margin to expand the pace of its quantitative easing. The central bank expanded the size of its Japanese Government Bond (JGBs) purchases to the equivalent of about 80 trillion yen ($727 billion) a year, an increase of 30 trillion yen from the previous pace. It said it would also buy longer-dated JGBs, seeking an average remaining maturity of 7-10 years. The central bank also said it would triple its purchases of exchange-traded funds and real-estate investment trusts. It also added that the so-called "quantitative and qualitative easing" program would continue "as long as it is necessary". Earlier in the day, data showed that Japan's inflation rate in September had hit its lowest level in almost a year.
Trading in US index futures indicated that the Dow could jump 199 points at the opening bell today, 31 October 2014. US stocks edged higher yesterday, 30 October 2014, as a report showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.
The American economy expanded at a more-than-estimated annualized rate of 3.5% last quarter, capping its strongest six months in a decade, while other data showed fewer Americans filed applications for unemployment benefits over the past month than at any time in more than 14 years.
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