A bout of volatility was witnessed as the barometer index, the S&P BSE Sensex, trimmed gains soon after surging to a record high in afternoon trade. Key indices trimmed gains soon after extending gains as index heavyweight ICICI Bank reversed direction after hitting record high after announcing second quarter results. The Sensex was currently up 211.14 points or 0.78% at 27,309.31. 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.
ACC rose after announcing Q3 results. ICICI Bank reversed direction after hitting record high as the bank's non-performing assets rose. Yes Bank and Allahabad Bank rose after reporting Q2 results. Tea stocks were in demand.
In overseas markets, Asian stocks dropped 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.
A sustained rise during the trading session took the Sensex to a record high and the 50-unit CNX Nifty to its highest level in more than 7 weeks in afternoon trade as investors cheered the government's decision announcing relaxation of foreign direct investment (FDI) in property development and construction sector. The decision to relax norms on FDI in the in property development and construction sector comes close on the heels of the government's announcement of deregulation of diesel prices on 18 October 2014.
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 13:15 IST, the S&P BSE Sensex was up 211.14 points or 0.78% at 27,309.31. The index jumped 260.68 points at the day's high of 27358.85 in afternoon trade, its record high level. The index fell 9.52 points at the day's low of 27,088.65 in early trade.
The CNX Nifty was up 63.85 points or 0.79% at 8,154.30. The index hit a high of 8,167.20 in intraday trade, its highest level since 9 September 2014. The index hit a low of 8,085.20 in intraday trade.
The BSE Mid-Cap index was up 27.02 points or 0.28% at 9,677.31. The BSE Small-Cap index was up 47.44 points or 0.44% at 10,837.90. Both these indcies underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,438 shares rose while 1,216 shares declined. A total of 100 shares were unchanged.
Among the 30 Sensex shares, 18 rose and the remaining shares fell. TCS (up 2.70%), Infosys (up 2.47%), Reliance Industries (up 1.82%), GAIL (India) (up 1.39%), Dr Reddy's Laboratories (up 1.33%), Larsen & Toubro (up 1.18%), HDFC (up 1.06%), Wipro (up 0.96%) and Coal India (up 0.94%) edged higher from the Sensex pack.
Mahindra & Mahindra (down 0.94%), Tata Power (down 0.94%), Bharat Heavy Electricals (down 0.69%), Sesa Sterlite (down 0.59%), Maruti Suzuki India (down 0.35%), State Bank of India (down 0.33%), Cipla (down 0.32%), Tata Motors (down 0.32%) and Bajaj Auto (down 0.3%), edged lower from the Sensex pack.
ACC rose 1.13% to Rs 1501 after consolidated net profit jumped 61.98% to Rs 192.60 crore on 9.26% increase in total income to Rs 2847.23 crore in Q3 September 2014 over Q3 September 2013. The result was announced during trading hours today, 30 October 2014.
ICICI Bank reversed direction after hitting record high as the bank's non-performing assets rose. The stock was off 1.1% at Rs 1,586.25. The stock hit record high of Rs 1,619.70. The scrip hit low of Rs 1,584.70 so far during the day. ICICI Bank's net profit rose 15.18% to Rs 2709.01 crore on 14.71% growth in total income to Rs 14888.95 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours today, 30 October 2014.
ICICI Bank's net non-performing assets stood at Rs 3997 crore as on 30 September 2014, higher than Rs 3474 crore as on 30 June 2014 and Rs 2707 crore as on 30 September 2013. The net non-performing asset ratio was 0.96% as on 30 September 2014, higher than 0.87% as on 30 June 2014 and 0.73% as on 30 September 2013. The bank's provision coverage ratio, computed in accordance with RBI guidelines, was 65.9% at end September 2014. Net loans to companies whose facilities have been restructured stood at Rs 11020 crore as on 30 September 2014, lower than Rs 11265 crore as on 30 June 2014, but sharply higher than Rs 6826 crore as on 30 September 2013.
On a consolidated basis, ICICI Bank's net profit rose 13.61% to Rs 3064.62 crore on 16.49% growth in total income to Rs 22150.39 crore in Q2 September 2014 over Q2 September 2013.
Yes Bank rose 1.88% to Rs 650.50 after net profit surged 30.01% to Rs 482.54 crore on 13.25% growth in total income to Rs 3337.97 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours today, 30 October 2014.
Tea stocks were in demand. Harrisons Malayalam (up 4.73%), Diana Tea (up 4.62%), Warren Tea (up 2.41%), Goodricke Group (up 2.16%), Jay Shree Tea & Industries (up 1.14%), Assam Company (up 0.68%), Tata Global Beverages (up 0.41%), Mcleod Russel (India) (up 0.39%) and Asian Tea Exports (up 0.35%), edged higher.
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 61.445, 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 18 cents at $86.94 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 declined 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, Singapore, South Korea, Hong Kong and Taiwan were off 0.09% to 0.78%. Key benchmark indices in Japan and China were up 0.67% to 0.76%.
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 21 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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