A bout of volatility was witnessed as key benchmark indices recovered from lower level soon after giving away most of the intraday gains in afternoon 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 Sensex was currently up 59.46 points or 0.21% at 28,000.10. The market breadth indicating the overall health of the market was positive.
Global crude oil prices extended yesterday's slide. Indian 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.
Foreign portfolio investors bought shares worth a net Rs 690.61 crore yesterday, 13 November 2014, as per provisional data.
State Bank of India (SBI) rose in volatile trade after announcing strong Q2 September 2014 result. Shares of state-run power equipment major Bharat Heavy Electricals (Bhel) dropped in volatile trade after reporting weak Q2 September 2014 result. Steel stocks led gains in metal stocks.
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 lower amid concerns over excess supply.
At 13:16 IST, the S&P BSE Sensex was up 59.46 points or 0.21% at 28,000.10. The index jumped 104.17 points at the day's high of 28,044.81 in early afternoon trade. The index lost 27.74 points at the day's low of 27,912.90 in early trade.
The CNX Nifty was up 19.20 points or 0.23% at 8,377.05. The index hit a high of 8,389.70 in intraday trade. The index hit a low of 8,346.80 in intraday trade.
The BSE Mid-Cap index was up 63.66 points or 0.63% at 10,165.83. The BSE Small-Cap index was up 76.27 points or 0.68% at 11,235.81. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,510 shares gained and 1,292 shares fell. A total of 98 shares were unchanged.
The total turnover on BSE amounted to Rs 2062 crore by 13:15 IST.
State Bank of India (SBI) was up 1.69% at Rs 2,765. The stock was volatile. The stock hit high of Rs 2,789.50 and low of Rs 2,721.40 so far during the day. SBI's net profit rose 30.54% to Rs 3100.41 crore on 12.46% increase in total income to Rs 41833.36 crore in Q2 September 2014 over Q2 September 2013. The bank announced Q2 September 2014 results during trading hours today, 14 November 2014.
SBI's ratio of net non-performing assets (NPAs) to net advances stood at 2.73% as on 30 September 2014, compared with 2.66% as on 30 June 2014 and 2.91% as on 30 September 2013. The bank's ratio of gross NPAs to gross advances stood at 4.89% as on 30 September 2014, compared with 4.90% as on 30 June 2014 and 5.64% as on 30 September 2013.
The provisioning coverage ratio as on 30 September 2014 stood at 63.18%.
On consolidated basis, SBI's net profit rose 30.95% to Rs 4023.84 crore on 15.02% increase in total income to Rs 61098.67 crore in Q2 September 2014 over Q2 September 2013.
Bharat Heavy Electricals (Bhel) was off 1.8% at Rs 242.45. The stock was volatile. The stock hit high of Rs 248.70 and low of Rs 236.25 so far during the day. Bhel reported 72.61% drop in net profit to Rs 124.84 crore on 33.13% fall in total income to Rs 6340.14 crore in Q2 September 2014 over Q2 September 2013. The company announced Q2 results during market hours today, 14 November 2014. Bhel's order book stood at about Rs 1.03 lakh crore as on 30 September 2014.
Voltas advanced 4.32% after the company reported 19.04% rise in consolidated net profit to Rs 50 crore on 10.02% fall in consolidated sales to Rs 969 crore in Q2 September 2014 over Q2 September 2013. The company announced Q2 results after market hours on Thursday, 13 November 2014.
Steel stocks led gains in metal stocks. Among steel stocks, JSW Steel (up 2.8%), Jindal Steel & Power (up 2.79%) and Bhushan Steel (up 0.06%) edged higher.
Steel Authority of India jumped 6.97% at Rs 85.90. The stock was highly volatile. The stock hit a high of Rs 86.75 and a low of Rs 79.05 so far during the day. The company's net profit declined 44.97% to Rs 649.49 crore on 1.3% growth in total income to Rs 11840.64 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 13 November 2014.
Tata Steel rose 1.89%. The stock extended Thursday's 0.43% gains. The company's consolidated net profit rose 36.82% to Rs 1254.33 crore on 2.03% fall in total income to Rs 36098.63 crore in Q2 September 2014 over Q2 September 2013. The bottom line was boosted by profit of Rs 1146.86 crore on sale of land at Borivali in Mumbai. The result was announced after market hours on Wednesday, 12 November 2014.
Among other metal stocks, Sesa Sterlite (up 1.95%), NMDC (up 1.68%), Hindustan Zinc (up 0.06%) and Hindalco Industries (up 2.17%) gained.
Hindustan Copper lost 1.55% after net profit fell 72.24% to Rs 17.21 crore on 33.2% decline in total income to Rs 237.62 crore in Q2 September 2014 over Q2 September 2013. The company announced Q2 results after market hours yesterday, 13 November 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.645, compared with its closing of 61.57 during the previous trading session.
Brent crude futures edged lower amid concerns over excess supply. Brent for January settlement was off 64 cents at $76.85 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 annual rate of inflation based on wholesale price index (WPI) eased to 1.77% in October from 2.38% in September 2014, data released from the government today, 14 November 2014, showed. Meanwhile, the rate of WPI inflation for August 2014 was revised upwards to 3.85% from 3.74% reported earlier.
The easing of WPI inflation comes close on the heels of another data which showed easing of consumer price inflation. 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. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band.
Asian stocks were mixed today, 14 November 2014. Key indices in Hong Kong, Japan, Taiwan and Singapore were up 0.02% to 0.56%. Key indices in China, South Korea and Indonesia were off 0.07% to 0.78%.
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 34 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, the two largest economies returned to growth in the third quarter, signaling that a slow recovery has taken hold in the region. German gross domestic product rose 0.1% in the three month through September after shrinking a revised 0.1% in the second quarter, the Federal Statistics Office in Wiesbaden said today, 14 November 2014. The French economy grew 0.3% after contracting 0.1% in the April-June period.
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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