Gains in world stocks aided rally on the domestic bourses as the barometer index, the S&P BSE Sensex, pierced the psychological 27,000 mark. Benchmark indices extended gains in late trade. The Sensex and 50-unit CNX Nifty, both, hit their highest closing level in more than five weeks. The Sensex rose 217.35 points or 0.81% to settle at 27,098.17. The market breadth indicating the overall health of the market was positive. Stocks rose across the globe on speculation the US Federal Reserve will signal at the end of a monetary policy review today, 29 October 2014, that US interest rates will stay low.
Auto stocks rose on buzz of strong sales during the Diwali festive season, with Maruti Suzuki India and Bajaj Auto hitting record high. IT stocks were in demand. Grasim Industries edged higher in volatile trade after announcing Q2 results. Realty stocks rose on reports the Union Cabinet is likely to consider today, 29 October 2014, a proposal to liberalise foreign direct investment in construction sector. Sesa Sterlite rose after announcing Q2 results.
In overseas markets, Europeans stocks rose as investors weighed company earnings and awaited the Federal Reserve's monetary-policy decision. Asian stocks rose after US stocks surged overnight on optimism about earnings and economic data in the US. US stocks surged yesterday, 28 October 2014, with Standard & Poor's 500 Index settling near a record on speculation the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.
In the foreign exchange market, the rupee edged higher against the dollar in volatile trade as key equity benchmark indices gained.
Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected.
Indian stocks may remain volatile tomorrow, 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 tomorrow, 30 October 2014.
The S&P BSE Sensex rose 217.35 points or 0.81% to settle at 27,098.17, its highest closing level since 22 September 2014. The index jumped 245.48 points at the day's high of 27,126.30 in late trade. The index rose 90.34 points at the day's low of 26,971.16 in morning trade.
The CNX Nifty rose 62.85 points or 0.78% to settle at 8,090.45, its highest closing level since 22 September 2014. The index hit a high of 8,097.95 in intraday trade. The index hit a low of 8,052.25 in intraday trade.
The BSE Mid-Cap index rose 49.89 points or 0.52% to settle at 9,650.29. The BSE Small-Cap index rose 66.40 points or 0.62% to settle at 10,790.46. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,610 shares rose while 1,355 shares declined. A total of 109 shares were unchanged.
The total turnover on BSE amounted to Rs 2856 crore, higher than turnover of Rs 2763.91 crore on Tuesday, 28 October 2014.
The S&P BSE Realty index (up 2.97%), the S&P BSE Metal index (up 2.63%), the S&P BSE Auto index (up 1.79%), the S&P BSE IT index (up 1.47%), the S&P BSE Teck index (up 1.31%), the S&P BSE FMCG index (up 1.23%), the S&P BSE Oil & Gas index (up 1.19%) and the S&P BSE Consumer Durables index (up 1.03%) outperformed the Sensex.
The S&P BSE Healthcare index (down 0.29%) and the S&P BSE Bankex (down 0.23%), the S&P BSE Power index (up 0.01%) and the S&P BSE Capital Goods index (up 0.27%) underperformed the Sensex.
Among the 30 Sensex shares, 21 rose and 9 declined.
Cipla rose 1.57% to Rs 655.60 after hitting record high of Rs 657.65 in intraday trade.
Bajaj Auto rose 1.88% to Rs 2,549.85 after hitting record high of Rs 2,559 in intraday trade.
Maruti Suzuki India gained 1.74% to Rs 3,205.45 after hitting record high of Rs 3,217.60 in intraday trade.
Dr Reddy's Laboratories (DRL) lost 1.11% to Rs 3,046.35 after consolidated net profit fell 17% to Rs 574.10 crore on 7% growth in revenue to Rs 3587.90 crore in Q2 September 2014 over Q2 September 2013. The stock was volatile. The stock hit high of Rs 3,117.30 and low of Rs 2,996. The Q2 result was announced during market hours today, 29 October 2014.
At the time of announcement of the second quarter results, DRL said that the company recently entered into an asset purchase agreement with Novartis Consumer Health Inc. to acquire the title and rights to Habltrol franchise (an over the counter nicotine replacement therapy transdermal path) and to market the product in the US territory.
Grasim Industries rose after announcing Q2 results. The stock rose 1.73% to Rs 3,438.25. The stock was volatile. The stock hit high of Rs 3,449.95 and low of Rs 3,335. The company's consolidated net profit fell 7.55% to Rs 416 crore on 16% rise in revenue to Rs 7945 crore in Q2 September 2014 over Q2 September 2013. The merger of Gujarat cement units of Jaypee Cement Corporation (JCCL) with UltraTech Cement (UltraTech), a subsidiary of Grasim, became effective from 12 June 2014 and the financial results of the acquired units have been included with the UltraTech's financial results with effect from 12 June 2014. As a result, figures for the quarter and six months ended 30 September 2014 are strictly not comparable with previous periods, Grasim said.
With regard to future business outlook of the VSF business, Grasim said that profit margins in the VSF sector are likely to remain under pressure in the near term due to the overcapacity in China. Sharply declining cotton and polyester prices is a major challenge and may impact the growth of VSF consumption, Grasim said. The slowdown in new capacity additions in China should lead to an improvement in industry utilization which augurs well for the company, Grasim said.
With additional capacity coming on stream in both cement and VSF businesses, the company will further consolidate its leadership position and is well-poised to benefit from the expected upturn in the economy, Grasim said.
Sesa Sterlite rose 2.12% to Rs 255.55. The stock was volatile. The stock hit high of Rs 256.80 and low of Rs 247.55. The company's consolidated net profit before exceptional items rose 15% to Rs 1658 crore on 8% rise in net sales/income from operations to Rs 19448 crore in Q2 September 2014 over Q2 September 2013. The Sesa Sterlite merger and the Vedanta Group consolidation was completed in August 2013, hence Q2 and H1 FY 2015 performance is compared with the adjusted proforma numbers of respective period, which are more representative of the performance during the period, Sesa Sterlite said in a press release. The result was announced at the fag end of session.
Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 8% to Rs 6381 crore in Q2 September 2014 over Q2 September 2013. The company said margins were lower primarily due to Oil & Gas given the weaker crude oil prices. Better price in zinc and aluminium were offset by higher costs due to lower volumes (per mine plan) in Zinc-India and higher coal/input costs in aluminium. The revenue growth of 8% did not translate into EBITDA growth of same proportion due to the lower volumes in higher margin businesses like zinc-India, Oil & Gas marginally offset by higher volumes/revenue in custom refining business. Also, the increase in royalty rates from 1 September 2014 impacted cost at Zinc India, Sesa Sterlite said.
IT stocks were in demand. MindTree (up 3.09%), Oracle Financial Services Software (up 2.30%), Infosys (up 2.25%), CMC (up 1.82%), MphasiS (up 1.68%), Hexaware Technologies (up 1.44%), HCL Technologies (up 0.74%) and Wipro (up 0.48%) edged higher.
TCS rose 0.99%. The stock turned ex-dividend today, 29 October 2014, for an interim dividend of Rs 5 per share for the year ending March 2015.
Tech Mahindra gained 1.16%. On a consolidated basis, Tech Mahindra's net profit rose 14.1% to Rs 720 crore on 7.2% increase in revenue to Rs 5488 crore in Q2 September 2014 over Q1 June 2014. Operating profit jumped 18.2% to Rs 1097 crore in Q2 September 2014 over Q1 June 2014. The result was announced after market hours today, 29 October 2014.
Realty stocks rose on reports the Union Cabinet is likely to consider today, 29 October 2014, a proposal to liberalise foreign direct investment (FDI) in construction sector. Among realty stocks, Sobha Developers (up 6.52%), DLF (up 6.15%), D B Realty (up 4.08%), Indiabulls Real Estate (up 3.35%), Unitech (up 3.19%), Peninsula Land (up 2.11%), Housing Development & Infrastructure (HDIL) (up 1.66%), Godrej Properties (up 1.65%), Phoenix Mills (up 1.65%), Anant Raj (up 0.87%), Parsvnath Developers (up 0.50%), Oberoi Realty (up 0.48%) and Prestige Estates (up 0.25%), edged higher.
As per reports, the Department of Industrial Policy and Promotion (DIPP) has proposed substantial easing of norms for affordable housing and the 100 smart cities envisaged by the new government that took charge in May. Under current rules, 100% FDI is allowed through the automatic route in development of townships, housing and built-up infrastructure, subject to stringent conditions and a three-year lock-in. DIPP, the nodal agency for FDI, has reportedly proposed relaxation in norms related to built-up area, capitalisation and lock-in period. It has proposed that the minimum built-up area be cut to 20,000 sq metres from 50,000 sq metres and the minimum capitalisation be halved to $5 million from $10 million and from $5 million to $2.5 million for joint ventures with Indian partners, reports suggest. Minimum built-up area in case of serviced housing plots is proposed to be cut to 5 hectares from 10 hectares and the minimum lock-in period of three years after the completion of the project is proposed to be dropped, according to reports.
FMCG stocks were in demand. Marico (up 4.90%), Procter & Gamble Hygiene & Health Care (up 4.06%), Godrej Consumer Products (up 1.61%), Bata India (up 1.60%), GlaxoSmithKline Consumer Healthcare (up 1.60%), Britannia Industries (up 1.17%), ITC (up 1.16%), Hindustan Unilever (up 0.94%) and Tata Global Beverages (up 0.51%), edged higher.
Dabur India rose 2.18% after the company issued clarification with regard to media news reports. The stock exchanges had sought clarification from the company regarding media reports naming Mr. Pradip Burman, one of the promoter family members, as holding a black money account in foreign country. Dabur India clarified after market hours on Tuesday, 28 October 2014, that this account was opened when he was an non-resident India (NRI), and was legally allowed to open this account. The complete details regarding the account have been voluntarily, and as per law, filed with the Income Tax Department, and appropriate taxes paid, wherever applicable, the company said.
Nestle India rose 2.50% after net profit rose 9.2% to Rs 311.29 crore on 8.9% rise in net sales to Rs 2557.80 crore in Q3 September 2014 over Q3 September 2013. Nestle India said that net domestic sales in Q3 September 2014 grew by 9.9% mainly from better realisations while export sales declined by 3.9% due to lower coffee exports.
Nestle India said that while cost of materials consumed has increased mainly due to significantly higher cost of milk and its derivatives in India which was even higher than those in international markets, finance costs have reduced mainly due to repayment of External Commercial Borrowing (ECB). The operating margins have been stable, Nestle India said.
Jindal Steel & Power (JSPL) rose 3.98%. With reference to the media reports, "CBI begins on Investigation against Jindal Steel and Power for mining in Saranda Forests," Jindal Steel & Power clarified during trading hours today, 29 October 2014, that it has not received any communication from Central Bureau of Investigation (CBI) or any other government agency regarding the media report about registration of preliminetary enquiry with regard to the grant of 'In Principle' Forest Clearance (FC Stage-I) for Jeraldaburu Iron Ore Mine in Saranda Forests, which was allotted for steel project of the company in Jharkhand. The 'In Principle' Forest Clearance (FC Stage-1) was accorded by the Ministry of Environment & Forests (MoEF) after it was duly approved by Forest Advisory Committee (FAC), which is a statutory authority under FC Act, JSPL said.
Media reports had stated recently that the CBI has begun a probe into how JSPL got permission from the environment ministry under Jayanti Natarajan in 2013 to mine iron ore in Asia's largest sal forest in the Naxal-affected Saranda area of Jharkhand.
Bank stocks were mostly lower. Among private sector banks, Kotak Mahindra Bank (down 0.33%), Yes Bank (down 0.41%), HDFC Bank (down 0.42%) and Federal Bank (down 0.61%) edged lower. Axis Bank (up 0.45%) and ICICI Bank (up 0.17%), edged higher. However,
Shares of PSU banks declined. Oriental Bank of Commerce (down 4.3%), Union Bank of India (down 2.91%), Indian Overseas Bank (down 1.97%), Bank of Baroda (down 1.63%), Andhra Bank (down 1.61%), State Bank of Mysore (down 1.41%), Jammu and Kashmir Bank (down 1.39%), UCO Bank (down 1.08%), Dena Bank (down 1.03%), Punjab and Sind Bank (down 0.95%), Allahabad Bank (down 0.93%), IDBI Bank (down 0.51%), Syndicate Bank (down 0.26%) and Vijaya Bank (down 0.21%), edged lower.
Punjab National Bank declined 1.79%. The bank said after market hours on Tuesday, 28 October 2014, that K. R. Kamath, Chairman and Managing Director appointed in the bank with effect from 28 October 2009 has demitted the office of the Chairman and Managing Director of the bank with effect from 28 October 2014 on completion of his tenure of five years on 27 October 2014.
State Bank of India (SBI) fell 0.52%. The bank announced after market hours on Tuesday, 28 October 2014, that it has fixed 21 November 2014 as record date for 10-for-1 stock split. The stock hit high of Rs 2,678 and low of Rs 2,639 so far during the day.
Separately, SBI said during market hours it has decided to cut retail deposit rates below Rs 1 crore for deposit tenure of 7 days to 45 days to 5% from earlier 6% with effect from 1 November 2014. Deposit rates for rest of the tenures for that category will remain same as earlier.
Bharti Infratel clocked a highest turnover of Rs 76.33 crore on BSE. SRF (Rs 61.11 crore), State Bank of India (Rs 59.01 crore), DLF (Rs 44.54 crore) and Tata Steel (Rs 42.93 crore), were the other turnover toppers on BSE in that order.
VKS Projects reported highest volumes of 2.19 crore shares on BSE. Southern Ispat (97.45 shares), Suzlon Energy (65.05 shares), Saint-Gobain Sekurit India (55.56 shares) and Rasoya Proteins (46.62 shares), were the other volume toppers on BSE in that order.
The Sensex and Nifty gained for the second day in a row today, 29 October 2014. The Sensex has risen 345.27 points or 1.29% in two sessions from a recent low of 26,752.90 on Monday, 27 October 2014. The Sensex has risen 467.66 points or 1.76% in this month so far (till 29 October 2014). The Sensex has gained 5,927.49 points or 28% in calendar year 2014 so far (till 29 October 2014). From a record high of 27,354.99 on 8 September 2014, the Sensex has declined 256.82 points or 0.94%. From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 7,135.05 points or 35.74%.
In the foreign exchange market, the rupee edged higher against the dollar in volatile trade as key equity benchmark indices gained. The partially convertible rupee was hovering at 61.32, compared with its close of 61.33 during the previous trading session.
Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected. Brent crude for December delivery was up 92 cents at $86.95 a barrel. The contract had gained 20 cents to settle at $86.03 a barrel during the previous trading session.
Meanwhile, according to a latest survey by Nielsen, India remained the most bullish consumer market, while Italy became the most pessimistic, according to reports. The Nielsen Global Consumer Confidence Index rose 1 point in the third quarter to 98, according to the survey conducted between 13 August and 5 September 2014. The index has been steadily rising since the first quarter of 2012 and the latest reading headed closer to the 100 mark that signals optimism among consumers.
European stocks climbed today, 29 October 2014, before the Federal Reserve reviews monetary policy later in the global day. Key benchmark indices in France, Germany and UK rose 0.10% to 0.65%.
French consumer confidence stagnated at a low level in October, statistics agency Insee said today, 29 October 2014. Consumer confidence in the eurozone's second-largest economy stood at 85 in October, unchanged from September and well below the long-term average of 100, Insee said. Consumers' assessments of their financial strength and their ability to make savings were little changed from September. French households became less optimistic about living standards, but concerns over rising unemployment declined, Insee said.
Asian stocks rose today, 29 October 2014, after US stocks surged overnight on optimism about earnings and economic data in the US. Key benchmark indices in Indonesia, South Korea, Singapore, Japan, China, Hong Kong and Taiwan were up 0.39% to 1.84%.
The latest data showed a sharp rebound in Japanese industrial output last month. Industrial production in Japan rose 2.7% in September from the previous month, the latest data showed. Industrial output had contracted 1.9% in August.
China's focus on meeting short-term growth targets could hamper reform efforts it needs for sustain longer-term economic expansion, the World Bank said today, 29 October 2014, in its China Economic Update. The World Bank praised Beijing for tightening credit growth, reducing excess capacity and grappling with pollution, adding these necessary steps toward economic rebalancing had also contributed to slower growth this year. China's gross domestic product grew a year-on-year 7.4% over the January-September period.
Trading in US index futures indicated that the Dow could fall 8 points at the opening bell today, 29 October 2014. US stocks surged yesterday, 28 October 2014, with Standard & Poor's 500 Index settling near a record on speculation the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.
Among economic data, US consumer confidence hit its highest since 2007 in October. The report overshadowed a separate read that showed new orders for capital goods fell the most in eight months in September.
A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy review concludes today, 29 October 2014. The Fed is expected to announce the end of quantitative easing after the meeting. Investors will be looking to see if the Fed drops the "considerable period" for keeping rates low at the latest policy meeting. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.
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