The government's announcement of a hike in excise duty on petrol and diesel pulled key benchmark indices lower. Immense volatility was witnessed during the latter part of the trading session after news of the hike in excise duty on the two transportation fuels hit the market in mid-afternoon trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, fell below the psychological 28,000 level. The Sensex had settled above the psychological 28,000 level yesterday, 12 November 2014, for the first time in its history. The Sensex was provisionally off 60.71 points or 0.22% to 27,948.19.
Consumer price inflation dropped further last month, data released by the government after trading hours yesterday, 12 November 2014, showed. Industrial production growth improved to 2.5% in September 2014, from a revised 0.5% growth in August 2014, another data released by the government after trading hours yesterday, 12 November 2014, showed. Meanwhile, Minister of State for Commerce and Industry Nirmala Sitharaman today, 13 November 2014, said that India and the US have successfully resolved their differences relating to the issue of public stockholding for food security purposes in the World Trade Organization (WTO) and this will end the impasse at the WTO and also open the way for implementation of the Trade Facilitation Agreement.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 459.47 crore yesterday, 12 November 2014, as per provisional data.
Shares of PSU OMCs dropped after the government raised excise duty on petrol and diesel by Rs 1.50 per litre each. Mangalore Refinery & Petrochemicals dropped after reporting reverse turnaround in Q2. Hindalco Industries edged higher in volatile trade after reporting strong Q2 results. Sesa Sterlite dropped in volatile trade after the company's board of directors approved development of Gamsberg-Skorpion integrated zinc project in South Africa and Namibia. Tata Steel advanced after strong Q2 earnings.
Earlier, benchmark indices had reversed initial gains after a sudden slide in morning trade.
In overseas markets, European stocks edged higher as shares of Bayer AG and KBC Groep NV climbed. Asian stocks were mixed after the latest data showed China's industrial output growth slowed last month. US stocks ended choppy session essentially unchanged yesterday, 12 November 2014, as the main indexes struggled to stay in record territory.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged lower amid signs that OPEC remains unwilling to reduce output to ease concern of a global supply glut.
As per provisional closing, the S&P BSE Sensex was down 60.71 points or 0.22% to 27,948.19. The index lost 186.20 points at the day's low of 27,822.70 in mid-afternoon trade, its lowest level since 11 November 2014. The index gained 89.84 points at the day's high of 28,098.74 in early trade.
The CNX Nifty was down 25.45 points or 0.3% at 8,357.85, as per provisional closing. The index hit a low of 8,320.35 in intraday trade, its lowest level since 10 November 2014. The index hit a high of 8,408 in intraday trade.
The BSE Mid-Cap index was off 31.10 points or 0.31% at 10,102.17, underperforming the Sensex. The Small-Cap index was off 24.81 points or 0.22% at 11,159.54, matching the Sensex's fall in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,732 shares declined and 1,314 shares advanced. A total of 107 shares were unchanged.
The total turnover on BSE amounted to Rs 3516 crore, lower than Rs 3653.52 crore yesterday, 12 November 2014.
PSU OMCs dropped after the government hiked the excise duty on petrol and diesel by Rs 1.50 per litre each.
Indian Oil Corporation tumbled 4.62% at Rs 345.60. The company reported a net loss of Rs 898.46 crore in Q2 September 2014 compared to net profit of Rs 1683.92 crore in Q2 September 2013. Total income rose 1.14% to Rs 112121.01 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 13 November 2014.
BPCL tumbled 5% at Rs 725.10. The company's net profit fell 50.14% to Rs 464.20 crore on 0.06% growth in total income to Rs 62280.28 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 12 November 2014. BPCL's gross refining margin or GRM fell sharply to $1.5 a barrel in Q2 September 2014, from $4.7 a barrel in Q2 September 2013. The GRM also fell on sequential basis from $3.4 a barrel in Q1 June 2014.
HPCL lost 6.58% at Rs 539.10. The company announces Q2 results today, 13 November 2014.
ONGC lost 1.74% at Rs 386.60. The company in a clarification during market hours with regard to news item titled "ONGC to sell unit stake worth $1 bn said that no proposal for sale of ONGC's stake in ONGC Petro-additions (OPal), ONGC Mangalore Petrochemicals (OMPL) and ONGC Tripura Power Company (OTPC) has come to the board of directors of the company for its consideration. Further, ONGC has not issued any such statement/press release on the above subject.
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 result was announced before market hours today, 13 November 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.
Mangalore Refinery & Petrochemicals lost 5.24% at Rs 58.75. The company reported a net loss of Rs 951 crore in Q2 September 2014 compared with net profit of Rs 236 crore in Q2 September 2013. Total turnover declined 14.23% to Rs 16770 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 13 November 2014.
MRPL posted net loss in Q2 September 2014 mainly due to higher fuel consumption on account of stabilization of newly added units and also higher inventory loss, the company said in a statement. The company posted a negative gross refining margin (GRM) of $4.04 per barrel in Q2 September 2014 as against positive GRM of $5.04 per barrel in Q2 September 2013.
Realty stocks tumbled. Housing Development & Infrastructure (down 3.95%), Godrej Properties (down 2.7%), DLF (down 1.07%), Indiabulls Real Estate (down 2.13%) and D B Realty (down 0.07%) declined.
Unitech lost 5.46% at Rs 19.90 after the company reported net loss of Rs 14.70 crore in Q2 September 2014 as against net profit of Rs 25.57 crore in Q2 September 2013. Unitech's net sales declined 35.59% to Rs 383.73 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 12 November 2014.
Sobha Developers rose 1.81% at Rs 484 after the company reported 5.12% rise in consolidated net profit to Rs 59.50 crore on 24.29% rise in total income to Rs 676.80 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 12 November 2014.
Hindalco Industries rose 0.23% at Rs 152. The stock hit a high of Rs 154.50 and a low of Rs 149.60. The company's net profit declined 77.94% to Rs 78.77 crore on 33.3% growth in total income to Rs 8777.66 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 13 November 2014. Hindalco said that its bottom line was adversely impacted by non-recurring expenses of Rs 431 crore (net) in Q2 September 2014. Profit before tax and exceptional items jumped 22% to Rs 539 crore in Q2 September 2014 over Q2 September 2013.
With additional capacity coming on stream in aluminium business, the company will further consolidate its leadership position and is well-poised to benefit from the expected upturn in the economy, Hindalco said.
Sesa Sterlite lost 2.5% at Rs 235.80. The stock hit a high of Rs 245 and a low of Rs 234.60. The company during market hours today, 13 November 2014, said that its board of directors approved development of Gamsberg-Skorpion integrated zinc project in South Africa and Namibia for $782 million to be invested over a 3 year period, to develop an open pit zinc mine in Gamsberg, South Africa, as well as the conversion of the Skorpion Zinc Refinery in neighbouring Namibia. The majority of the investment, approximately $630 million, will go towards developing an open-pit zinc mine, concentrator plant and associated infrastructure at Gamsberg, one of world's largest undeveloped zinc Deposits, Sesa Sterlite said. The balance of the investment will be used to convert the refinery at the Skorpion Mine in Rosh Pinah, Namibia thereby enabling it to refine zinc concentrates from the Gamsberg mine into special high grade zinc metal, the company said in a statement.
Tata Steel rose 0.36% at Rs 470. The stock hit a high of Rs 474.90 and a low of Rs 462.45. 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 yesterday, 12 November 2014.
Mr T V Narendran, Managing Director of Tata Steel India and South East Asia said that he is hopeful that the stable political climate in India will trigger a steel-intensive economic revival in India and that Tata Steel is well positioned to take advantage of any improvement in the steel demand in the country. Tata Steel said that its South East Asian operations were under pressure during the quarter to a surge in low priced imports and a decline in the rebar-scrap spread.
Dr Karl-Ulrich Kler, MD & CEO of Tata Steel in Europe said that there are headwinds constraining steel demand growth globally. There are concerns about the impact of rising imports on steelmakers in European Union countries, particularly from China, he said. Mr Koushik Chatterjee, Group Executive Director (Finance and Corporate), Tata Steel said that while the Tata Steel group across geographical entities continues to focus on internal improvement initiatives, there are several external factors that continue to put challenges to the business, especially the declining spreads in Europe and South East Asia due to Chinese exports and lower commodity prices and the uncertainty created on the renewal of the mines in India due to various hurdles that has the potential to impact the company if not resolved urgently.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.56, compared with its closing of 61.5225 during the previous trading session.
Brent crude oil futures edged lower amid signs that OPEC remains unwilling to reduce output to ease concern of a global supply glut. Brent for December settlement, which expires today, 13 November 2014, was off 64 cents at $79.74 a barrel. The contract had lost $1.29 a barrel to settle at $80.38 a barrel yesterday, 12 November 2014, its lowest close since September 2010. Brent for January delivery was off 71 cents at $80.41 a barrel.
The government today, 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 hike in excise duty comes at a time when global crude oil prices have witnessed a sharp slide.
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.
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 after trading hours yesterday, 12 November 2014, showed. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India eased to 5.59% in October 2014, from 7.67% in September 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 5.86% in October 2014, from 5.9% in September 2014.
The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016.
Industrial production growth improved to 2.5% in September 2014, from a revised 0.5% growth in August 2014, data released by the government after trading hours yesterday, 12 November 2014, showed. The manufacturing sector's output growth rebounded to 2.5% in September 2014, snapping decline for last two sequential months mainly contributing to the improvement in industrial production growth. However, the mining sector as well as electricity generation growth decelerated to 0.7% and 3.9%, respectively in September 2014.
The rate of inflation based on wholesale price index (WPI) 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 government will unveil WPI inflation data for October 2014 at 12:00 noon tomorrow, 14 November 2014.
Meanwhile, Minister of State for Commerce and Industry Nirmala Sitharaman today, 13 November 2014, said that India and the US have successfully resolved their differences relating to the issue of public stockholding for food security purposes in the World Trade Organization (WTO) and this will end the impasse at the WTO and also open the way for implementation of the Trade Facilitation Agreement. India is a strong supporter of the multilateral trading system and is committed to strengthening it and ensuring that the WTO remains a key pillar of the global economic edifice, she said in statement.
European stocks edged higher today, 13 November 2014, as shares of Bayer AG and KBC Groep NV climbed. Key indices in Germany, UK, and France were up 0.31% to 1.12%.
Germany's inflation rate was confirmed flat at 0.7% in October. The final figure for Germany's CPI comes a day ahead of the eurozone's third-quarter gross domestic product announcement tomorrow, 14 November 2014.
Asian stocks were mixed today, 13 November 2014, after the latest data showed China's industrial output growth slowed last month. Key indices in Japan, Taiwan, Hong Kong and Singapore were up 0.34% to 1.14%. Key indices in China, Indonesia, and South Korea were off 0.02% to 0.31%.
China's industrial output growth in October unexpectedly dropped, reflecting the continued headwinds faced by the Chinese economy, official data showed today, 13 November 2014. Value-added industrial output in China rose 7.7% in October from a year earlier, slowing from an 8% on-year increase in September, the National Bureau of Statistics said. Industrial production increased 0.52% in October from September. In September, it had climbed 0.91% from the preceding month.
Fixed-asset investment in non-rural areas rose 15.9% in the January-October period compared with the same period a year earlier, slower than the 16.1% increase recorded in the January-September period. China's retail sales rose 11.5% in October from a year earlier, slowing slightly from a 11.6% on-year increase in September. Retail sales increased 0.98% in October from September. In September, retail sales had risen 0.86% from the preceding month.
Trading in US index futures indicated that the Dow could gain 43 points at the opening bell today 13 November 2014. US stocks ended choppy session essentially unchanged yesterday, 12 November 2014, as the main indexes struggled to stay in record territory. The S&P 500 and Dow Jones Industrial Average snapped a five-day streak closing at a new high, as falling oil prices and heightened geopolitical risks turned investors cautious.
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