With the government announcing relaxation of foreign direct investment in property development and construction sector, key benchmark indices extended initial gains and hit fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their fresh highest level in more than five weeks. The Sensex was currently up 125.26 points or 0.46% at 27,223.43. The market breadth indicating the overall health of the market was positive. Foreign portfolio investors (FPIs) bought shares worth a net Rs 785.61 crore yesterday, 29 October 2014, as per provisional data.
Realty shares jumped after the government after trading hours yesterday, 29 October 2014, announced relaxation of rules for foreign investment in property development and construction sector. Construction stocks were mixed.
In overseas markets, Asian stocks were mixed after the US Federal Reserve after a monetary policy review yesterday, 29 October 2014, announced its decision to end the last round of its recession-era bond buying program.
In the foreign exchange market, the rupee edged lower against the dollar on speculation fund flows to emerging markets will slow as the US Federal Reserve moves closer to raising interest rates after ending its asset-purchase program.
Brent crude oil prices edged lower after previous day's sharp rise triggered by weekly data showing that US crude stockpiles rose less than expected last week.
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Indian stocks may remain volatile today, 30 October 2014, as traders roll over positions in the futures & options (F&O) segment from the near month October 2014 series to November 2014 series. The near month October 2014 derivatives contracts expire today, 30 October 2014.
At 11:18 IST, the S&P BSE Sensex was up 125.26 points or 0.46% at 27,223.43. The index jumped 129.25 points at the day's high of 27,227.42 in mid-morning trade, its highest level since 23 September 2014. The index fell 9.52 points at the day's low of 27,088.65 in early trade.
The CNX Nifty was up 35.75 points or 0.44% at 8,126.20. The index hit a high of 8,131.05 in intraday trade, its highest level since 23 September 2014. The index hit a low of 8,085.20 in intraday trade.
The BSE Mid-Cap index was up 23.96 points or 0.25% at 9,640.96. The BSE Small-Cap index was up 33.16 points or 0.31% at 10,823.62. Both these indcies underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,294 shares rose while 1,057 shares declined. A total of 86 shares were unchanged.
Realty shares jumped after the government after trading hours yesterday, 29 October 2014, announced relaxation of rules for foreign investment in property development and construction sector. Sobha (up 4.93%), DLF (up 5.54%), D B Realty (up 3.2%), Unitech (up 4.21%), Housing Development & Infrastructure (HDIL) (up 3.52%), Godrej Properties (up 1.73%), Phoenix Mills (up 1.31%), Anant Raj (up 2.01%), Parsvnath Developers (up 4.76%), Oberoi Realty (up 1.68%) and Prestige Estates (up 2.16%), edged higher.
Among construction stocks, Hindustan Construction Company (up 0.83%), L&T (up 0.46%), and IVRCL (up 3.01%), rose. Gammon India (down 0.15%), Jaiprakash Associates (down 0.33%), and IRB Infrastructure & Developers (down 1.26%) and NCC (down 3.76%) declined.
The Union Cabinet yesterday, 29 October 2014, announced relaxation of rules for foreign investment in property development and construction. 100 percent 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.
State Bank of Bikaner & Jaipur tumbled 5.96% after net profit declined 23.24% to Rs 118.64 crore on 14.12% growth in total income to Rs 2410.69 crore in Q2 September 2014 over Q2 September 2013. State Bank of Bikaner & Jaipur (SBBJ)'s ratio of gross non-performing assets (NPAs) to gross advances stood at 4.24% as on 30 September 2014, up from 3.6% as on 30 June 2014 and 3.8% as on 30 September 2013. The ratio of net NPAs to net advances stood at 2.49% as on 30 September 2014, up from 2.14% as on 30 June 2014 and 2.47% as on 30 September 2013.
Emami rose 3.11% after consolidated net profit rose 16% to Rs 92.76 crore on 18.6% increase in total income to Rs 501.83 crore in Q2 September 2014 over Q2 September 2013.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Wednesday, 29 October 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 785.61 crore on that day.
In the foreign exchange market, the rupee edged lower against the dollar on speculation fund flows to emerging markets will slow as the US Federal Reserve moves closer to raising interest rates after ending its asset-purchase program. The partially convertible rupee was hovering at 61.435, compared with its close of 61.36 during the previous trading session.
Brent crude oil prices edged lower after previous day's sharp rise triggered by weekly data showing that US crude stockpiles rose less than expected last week. Brent crude for December delivery was off 23 cents at $86.89 a barrel. The contract had gained $1.09 a barrel to settle at $87.12 a barrel during the previous trading session.
The Union Cabinet yesterday, 29 October 2014, announced relaxation of rules for foreign investment in property development and construction. 100 percent 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.
Asian stocks were mixed today, 30 October 2014, after the US Federal Reserve after a monetary policy review yesterday, 29 October 2014, announced its decision to end the last round of its recession-era stimulus program. Key benchmark indices in Indonesia, South Korea, Hong Kong and Taiwan were off 0.33% to 0.66%. Key benchmark indices in Singapore, Japan and China were up 0.04% to 0.81%.
China's international payments were largely balanced in the third quarter with a surplus in the current account offsetting a deficit in the capital account, the latest data showed. China's current-account surplus in the three months ended September rose to $81.5 billion, compared with a revised surplus of $73.4 billion in the second quarter, the country's foreign-exchange regulator said. The nation had a capital and financial account deficit of $81.6 billion in the third quarter, indicating net outflows of investment funds, the State Administration of Foreign Exchange said. The latest data are initial estimates and will likely be revised later.
Trading in US index futures indicated that the Dow could gain 5 points at the opening bell today, 30 October 2014. US stocks closed with slight losses on Wednesday, 29 October 2014, after the Federal Reserve ended its stimulative monthly bond-buying program and expressed confidence in US economic prospects.
The Federal Reserve on Wednesday, 29 October 2014, ended its monthly bond purchase program and signaled confidence the US economic recovery would remain on track despite signs of a slowdown in many parts of the global economy. "The Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability," the central bank's policy committee said in a statement following a two-day meeting. The timing and pace of rate hikes would depend on incoming economic data, the Fed said.
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