A range bound movement was witnessed as key benchmark indices alternately swung between positive and negative zone near the flat line. 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 market breadth indicating the overall health of the market was negative. The Sensex was currently up 8 points or 0.03% at 28,016.90. Global crude oil prices edged lower. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
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. Asian stocks were mixed today, 13 November 2014. Meanwhile, a news agency quoted Minister of State (I/C) for Commerce and Industry Nirmala Sitharaman as saying that India and the United States have resolved their differences on public stockholding of food and this opens the way for implementation of the WTO trade facilitation deal.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 459.47 crore yesterday, 12 November 2014, as per provisional data.
Bank stocks reversed initial gains. ONGC dropped amid volatiltiy after the company's overseas subsidiary ONGC Videsh declared its results for half year ended 30 September 2014. Jaiprakash Associates tumbled after reporting reverse turnaround in Q2 September 2014. BPCL declined after weak Q2 earnings. Reliance Infrastructure declined amid volatility after the company reported muted growth in Q2 net profit.
In overseas markets, 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.
At 11:17 IST, the S&P BSE Sensex was up 8 points or 0.03% at 28,016.90. The index gained 89.84 points at the day's high of 28,098.74 in early trade. The index lost 97.73 points at the day's low of 27,911.17 in morning trade, its lowest level since 11 November 2014.
The CNX Nifty was off 3.40 points or 0.04% at 8,379.90. The index hit a low of 8,345.60 in intraday trade, its lowest level since 11 November 2014. The index hit a high of 8,408 in intraday trade.
The BSE Mid-Cap index was up 31.10 points or 0.31% at 10,164.37. The BSE Small-Cap index was up 28.25 points or 0.25% at 11,212.60. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,257 shares declined and 1,204 shares advanced. A total of 108 shares were unchanged.
Bank stocks reversed initial gains. Bank of Baroda (down 1.06%), Bank of India (down 1.09%), Punjab National Bank (down 0.76%), Kotak Mahindra Bank (down 0.83%), State Bank of India (down 0.81%), ICICI Bank (down 0.61%), Axis Bank (down 0.52%), HDFC Bank (down 0.29%), Federal Bank (down 0.48%), and Canara Bank (down 0.49%) declined. IndusInd Bank (up 0.71%) and Yes Bank (up 0.33%) gained.
ONGC fell 0.01% at Rs 393.40. The stock hit a high of Rs 397.25 and a low of Rs 391.50. The company'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.
Jaiprakash Associates declined 5% at Rs 31.40. The company reported net loss of Rs 106.48 crore in Q2 September 2014 compared with net profit of Rs 67.67 crore in Q2 September 2013. Total income fell 17.06% to Rs 2736.91 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 12 November 2014.
BPCL lost 2.57% at Rs 743.65. 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.
Reliance Infrastructure declined 1.1% at Rs 629.95. The stock hit a high of Rs 644.35 and a low of Rs 627.35. The company's consolidated net profit rose 1.07% to Rs 431.19 crore on 14.91% decline in total income to Rs 4487.08 crore in Q2 September 2014 over Q2 September 2013. Towards the end of the Q2 September 2013, the Parent company had diluted its holding in SU Toll Road, TD Toll Road and TK Toll Road each from 100% to 49% and in the two joint ventures, BSES Rajdhani Power and BSES Yamuna Power from 49% to 28.82%. In view of above dilution, the figures of the quarter ended 30 September 2014 and half year ended 30 September 2014 are not comparable with the figures for the corresponding quarter and half year respectively, Reliance Infrastructure said.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.535, 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 47 cents at $79.91 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 31 cents at $80.81 a barrel.
Indian government's decision last 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. 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, a news agency quoted Minister of State (I/C) for Commerce and Industry Nirmala Sitharaman as saying that India and the United States have resolved their differences on public stockholding of food and this opens the way for implementation of the WTO trade facilitation deal. The proposals will be reviewed by the World Trade Organization's (WTO) General Council, she added, expressing the hope that approval would clear the way for India to sign a protocol enabling implementation of the trade accord.
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 0.21% to 1.11%. Key indices in China, Indonesia, and South Korea were off 0.25% to 0.56%.
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 3 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.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said yesterday, 12 November 2014, financial markets could face less than placid waters in coming years. In his formal remarks, Mr. Kocherlakota repeated his belief that a US central bank rate increase next year would be a mistake. Inflation is unlikely to reach the Fed's 2% target until 2018, and because of this outlook, "it would be inappropriate for the [Federal Open Market Committee] to raise the target range for the fed funds rate at any such meeting" occurring in 2015, he said.
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