Amid divergent trend in various index constituents, key benchmark indices eked out small gains. While banking stocks, PSU OMCs, and pharma stocks rose, metal & mining and cement stocks dropped. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high on intraday basis as well as on closing basis. The Sensex failed to retain the psychological 28,000 level which it had pierced for the first time in its history earlier during the trading session. The Sensex rose 55.50 points or 0.2% to settle at 27,915.88. The market breadth indicating the overall health of the market was positive.
Brent crude declined to its lowest in four years amid speculation OPEC will refrain from paring a global surplus. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement. Meanwhile, a survey released today, 5 November 2014, showed that business activity at India's service sector stagnated last month.
Foreign portfolio investors bought shares worth a net Rs 1459.30 crore from the secondary equity during the previous trading session on Monday, 3 November 2014. The stock market was closed yesterday, 4 November 2014, on account of Moharram.
Dr Reddy's Laboratories rose after a foreign brokerage upgraded the stock to "overweight" from "equal-weight". Among private sector banking stocks Axis Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank and HDFC Bank scaled record high. PSU Bank stocks were mostly higher. Capital goods stocks gained. IT stocks edge higher on renewed buying. Metal and mining stocks edged lower after weak Chinese economic data. Shares of public sector oil marketing companies rose on fall in crude oil prices.
Meanwhile, as per media reports, security forces in Kolkata are on high alert following a central intelligence warning that the city's port may be the target of an attack by militants posing as fishermen.
In overseas markets, US index futures were in green after the results showed that the Republican Party recaptured control of the US Senate in Tuesday's midterm elections, notching victories in races around the country. European stocks rose as better-than-estimated earnings offset investor concern about the health of the region's economy. Asian stocks declined after weak economic data from China.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains for the dollar after victory for the Republican Party in US mid-term elections.
Brent crude declined to its lowest in four years amid speculation OPEC will refrain from paring a global surplus.
The S&P BSE Sensex rose 55.50 points or 0.2% to settle at 27,915.88, a record closing high for the index. The index jumped 150.01 points at the day's high of 28,010.39 in late trade, a lifetime high for the index. The index fell 2.73 points at the day's low of 27,857.65 in afternoon trade.
The 50-unit CNX Nifty gained 14.15 points or 0.17% to settle at 8,338.30, a record closing high for the index. The index hit a high of 8,365.55 in intraday trade, a lifetime high for the index. The index hit a low of 8,323.50 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,634 shares gained and 1,382 shares fell. A total of 109 shares were unchanged.
The BSE Mid-Cap index rose 23.21 points or 0.23% to settle at 9,964.61. The BSE Small-Cap index gained 83.86 points or 0.76% to settle at 11,160.98. Both these indices outperformed the Sensex.
The S&P BSE Healthcare index (up 1.01%), the S&P BSE IT index (up 0.73%), the S&P BSE Teck index (up 0.3%), the S&P BSE Bankex (up 1.41%) and the S&P BSE Capital Goods index (up 0.57%) outperformed the Sensex. The S&P BSE Oil & Gas index (down 0.66%), the S&P BSE Realty index (down 0.38%), the S&P BSE Power index (down 0.91%), the S&P BSE Consumer Durables index (down 0.16%), the S&P BSE Auto index (up 0.05%), and the S&P BSE Metal index (down 3.03%) underperformed the Sensex.
The total turnover on BSE amounted to Rs 4392 crore, higher than Rs 3506.62 crore on Monday, 3 November 2014. The stock market was shut yesterday, 4 November 2014, on account of Moharram.
Cement stocks dropped. Shree Cement (down 0.68%), ACC (down 0.35%), Ambuja Cements (down 2.02%), and UltraTech Cement (down 0.98%), declined.
Grasim Industries rose 0.83%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Capital goods stocks gained. Siemens (up 0.42%), Lakshmi Machine Works (up 0.06%), and Bharat Heavy Electricals (Bhel) (up 1.72%) gained.
Larsen & Toubro (L&T) rose 0.52%. The company during market hours today, 5 November 2014, said that its construction division won orders worth Rs 1576 crore across various business segments in October 2014.
Thermax spurted 3.62% after net profit jumped 185% to Rs 86 crore on 14% growth in operating revenue to Rs 1191 crore in Q2 September 2014 over Q2 September 2013. Thermax's order inflow surged 42% to Rs 1089 crore in Q2 September 2014 over Q2 September 2013. Order booking has been helped by improvement in the demand for its standard products in the domestic market and also project orders from the international market. As on 30 September 2014, Thermax had an order backlog of Rs 5016 crore, against Rs 5308 crore as on 30 September 2013. Compared to last year's Rs 6128 crore, the group order backlog stands at Rs 6067 crore.
Crompton Greaves fell 0.44%. The company after market hours on Monday, 3 November 2014, said it has signed a contract with the State Utility of Paraguay - Administracion Nacional de Electricidad (ANDE) for eight single and three phase transformers totalling 420 MVA, for the expansion of the country's 220 kV and 66 kV Electricity Network. Crompton Greaves will manufacture the transformers in Mumbai and supply them in three lots. This contract represents the strengthening of approximately 15% of ANDE's current transformer capacity, the company said.
NTPC declined 1.76%. With respect to a news item captioned "NTPC planning to add 4,500 MW in the South", the company today, 5 November 2014, clarified that Kudgi Super Thermal Power Project-2400 megawatts (MW)-stage I in Karnataka for which investment approval has already been accorded by the board in its meeting held on 28 December 2014 and the disclosure about this was made on 29 December 2014. There is a provision for setting up Kudgi Super Thermal Power Project-1600 MW-stage II in Karnataka subject to its feasibility and availability of coal and various clearances. Unit 3 of Vallur Thermal Power Project of NTPC Tamil Nadu Energy Co, a JV of NTPC and TANGEDCO has been commissioned on 28 February 2014 and not yet declared commercial.
Index heavyweight Reliance Industries shed 0.98% to Rs 991.35. The stock high a high of Rs 1,008 and low of Rs 988. Pioneer Natural Resources Company yesterday, 4 November 2014, announced that the company is pursuing the divestment of its 50.1% share of the Eagle Ford Shale Midstream business (EFS Midstream). Reliance Holding USA, Inc. owns the remaining 49.9% of the EFS Midstream business and also plans to pursue the divestment of its share in a joint process with Pioneer. Pioneer is the operator of the business. Reliance Holding USA Inc. is a subsidiary of Reliance Industries. Reliance Holding USA Inc. had acquired 49.9% stake in EFS Midstream in June 2010.
Pioneer said that the EFS Midstream business was formed in 2010 to construct facilities to provide gathering and handling services for condensate and natural gas produced from wells on dedicated acreage in the Eagle Ford Shale. These services are provided for the Eagle Ford Shale upstream joint venture operated by Pioneer (Pioneer 46%, Reliance 45% and Newpek LLC 9%) and for various third parties. The EFS Midstream system consists of 10 central gathering plants (CGPs) and approximately 460 miles of pipelines. The system gathers and separates produced condensate from produced gas. It also stabilizes the condensate, where necessary, and treats the gas.
IT stocks edge higher on renewed buying. HCL Technologies (up 2.09%), and TCS (up 0.45%) edged higher. Wipro fell 0.9%
Infosys rose 1.02%. Infosys yesterday, 4 November 2014, announced that it is helping Fayetteville Public Works Commission (FPWC) become more customer centric, operationally efficient, agile and smart grid ready. The two-year transformation program saw Infosys overhauling FPWC's core ERP business processes and implementing Oracle software platforms along with the Infosys Customer Self-Service Energy Manager (CSEM) solution.
Tech Mahindra advanced 1.24% to Rs 2,612.40 after scaling a record high of Rs 2,647.40 in intraday trade.
Hexaware Technologies spurted 9.89% after consolidated net profit rose 12.3% to Rs 86 crore on 9.9% growth in revenue to Rs 671 crore in Q3 September 2014 over Q2 June 2014. The Q3 result was announced before market hours today, 5 November 2014. Hexaware Technologies (Hexaware) said that the revenue growth during Q3 September 2014 was broad-based. Europe led the geographic growth while BFSI and Emerging segments led growth among verticals. Business Intelligence & Business Analytics and Infrastructure Management Services led the growth among service lines, Hexaware said in a statement.
Pharmaceutical shares rose on renewed buying. Cadila Healthcare (up 1.58%), Lupin (up 0.89%), Ranbaxy Laboratories (up 1.68%), Sun Pharmaceutical Industries (up 2.1%) gained. Cipla shed 0.73%.
Ranbaxy Laboratories rose 2.03%. Ranbaxy Laboratories today, 5 November 2014, said that the company has received approval from the US Food and Drug Administration to manufacture and market Fenofibrate Capsules USP, 43 mg and 130 mg. Total market sales for Fenofibrate Capsules USP, 43 mg and 130 mg stood at $56 million in the United States (IMS - MAT: September 2014).
Dr Reddy's Laboratories rose 2.24% to Rs 3,252 after a foreign brokerage reportedly upgraded the stock to "overweight" from "equal-weight". According to the foreign brokerage, the drugmaker's US pipeline outlook has strengthened and the stock's valuations appears to be reasonable.
Wockhardt lost 2.36% after consolidated net profit fell 98% to Rs 3 crore on 14% decline in sales to Rs 1029 crore in Q2 September 2014 over Q2 September 2013. Wockhardt's operating profit declined 16% to Rs 165 crore in Q2 September 2014 over Q2 September 2013. Operating profit margin declined to 16% in Q2 September 2014, from 16.4% in Q2 September 2013. The Q2 result was announced after market hours on Monday, 3 November 2014.
AstraZeneca Pharma India lost 4.46% after the company reported a net loss of Rs 27.96 crore in Q2 September 2014, higher than net loss of Rs 1.23 crore in Q2 September 2013. The Q2 result was announced after market hours on Monday, 3 November 2014.
GlaxoSmithkline Consumer Healthcare fell 1.93%. The company's net profit rose 9.09% to Rs 160.29 crore on 11.15% growth in total income to Rs 1175.46 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 5 November 2014.
Metal and mining stocks edged lower after weak Chinese economic data. China is the world's largest consumer of steel, copper and aluminum. JSW Steel (down 1.82%), Sesa Sterlite (down 3.79%), Hindustan Zinc (down 0.88%), Tata Steel (down 2.29%), Hindalco Industries (down 4.1%) and Steel Authority of India (Sail) (down 2.54%) declined. Hindustan Copper gained 2.06%.
NMDC lost 3.83%. The state-run miner has slashed price of iron ore lumps by Rs 200 per tonne for November 2014, the first time it has opted for a rate cut in four months. However, the company has decided to roll over the last month's price for iron ore fines. After the latest rate cut, the price of lump ore, used mainly by domestic steel makers, now stands at Rs 4400 a tonne from Rs 4600 earlier. The price of fines, however, remains unchanged at Rs 3160 a tonne.
NMDC, which reviews prices every month going by domestic demand, had not changed rates in the last four months, since July 2014.
Meanwhile, NMDC said that its total iron ore production rose 13.06% to 16.71 million tonne in the 7-months period ended October 2014 over the 7-months period ended October 2013. Total iron ore sales rose 10.11% to 17.65 million tonne in the 7-months period ended October 2014 over the 7-months period ended October 2013.
Jindal Steel & Power (JSPL) fell 4.55% after consolidated net profit fell 2.26% to Rs 441.83 crore on 7.15% rise in total income to Rs 5183.18 crore in Q2 September 2014 over Q2 September 2013. The result was announced on Tuesday, 4 November 2014.
JSPL, notwithstanding several unfavourable developments during Q2 September 2014, including de-allocation of its coal mines, reduced demand for steel due to monsoon season and major difficulties encountered in importing raw material due to heavy congestion in ports and non - availability of rail transport out of ports. Earnings before interest, taxes, depreciation and amortization (EBITDA) in percentage terms increased to 32% in Q2 September 2014 from 30% in Q2 September 2013. However, due to 53% increase in burden of interest and depreciation, the profit after tax (PAT) for Q2 September 2014 was lower by 12%. The company's cash profit rose 44% to Rs 1308 crore in Q2 September 2014 over Q2 September 2013.
Shares of public sector oil marketing companies rose on fall in crude oil prices. BPCL (up 2.12%), Indian Oil Corporation (up 0.97%) and HPCL (up 1.87%) edged higher. Lower crude oil prices will reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Cairn India dropped 4.94% as crude oil prices declined. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.
Hero MotoCorp (HMCL) shed 0.7%. Hero MotoCorp on Tuesday, 4 November 2014, announced its plans to enter the European markets by the end of 2015. The company made this announcement at "the biggest event in the world dedicated to two-wheelers," organised by EICMA at Milan in Italy. EICMA is the marketing body of Italy's National Association of Bicycles, Motorcycles and Accessories (ANCMA)
In the first phase of its foray into Europe, Hero MotoCorp aims to launch its products in Italy, Spain and France; followed by the UK and Germany in the next phase of expansion. To begin with, the company will launch its first serial-hybrid scooter "Leap" in these markets, and subsequently bring more models including scooters and motorcycles.
Bank stocks were in demand. Among private sector bank stocks, ICICI Bank rose 2.27% to Rs 1,679.40 after scaling a record high of Rs 1,679.70 in intraday trade.
IndusInd Bank advanced 2.11% to Rs 723 after scaling a record high of Rs 726 in intraday trade.
Kotak Mahindra Bank rose 1.22% to Rs 1,125 after scaling a record high of Rs 1,138.75 in intraday trade.
HDFC Bank rose 0.16% to Rs 911.90 after scaling a record high of Rs 920 in intraday trade.
Axis Bank rose 3.49% to Rs 460.15 after scaling a record high of Rs 460.25 in intraday trade.
Yes Bank fell 1.28%. Federal Bank rose 1.73%.
Most PSU bank stocks rose. State Bank of India (SBI) (up 2.18%), Canara Bank (up 0.12%), Bank of Baroda (up 0.12%), Bank of India (up 0.33%) gained. Union Bank of India (down 2.06%), Indian Overseas Bank (down 3.49%) and Andhra Bank (down 2.79%) declined.
Punjab National Bank shed 0.31%. The bank during market hours today, 5 November 2014, said it has decided to realign the interest rates in case of single domestic and NRE term deposits with effect from 4 November 2014. The interest rate on domestic term deposits of below Rs 1 crore with a maturity period above 3 year to 10 years has been cut to 8.75% from 9%. Interest rate on domestic term deposit of Rs 1 crore to Rs 10 crore with maturity of 1 year and upto 3 years has been cut to 8.75% from earlier 9%. The interest rate on domestic term deposit of Rs 1 crore to Rs 10 crore with maturity above 3 years to 5 years has been cut to 8.5% from earlier 8.75%.
GAIL (India) shed 0.23%. The company today, 5 November 2014, clarified that allegations made by a section of people on cut in APM gas supplies are not true and there has not been any arbitrary or selective reduction in allocations to small industrial customers in South Gujarat. In fact, special emphasis is being given to protect the interest of small customers (those presently having allocation of domestic gas up to 50,000 SCMD). Under these guidelines, present level of supply upto a maximum of 5,000 SCMD is reserved for small customers and kept out from the purview of the pro-rata cut, GAIL (India) said. This allays any concerns of the small customers, including glass units in South Gujarat, the company said.
Tyre stocks rose on renewed buying. CEAT (up 0.79%), TVS Srichakra (up 1.6%), MRF (up 1.87%), JK Tyre & Industries (up 1%), edged higher. Goodyear India lost 1.78%.
Apollo Tyres gained 2.41% to Rs 235.40 after scaling a record high of Rs 236.80 in intraday trade.
The Sensex has risen 50.05 points or 0.17% in the first two trading sessions of November 2014 so far. The Sensex has gained 6,745.20 points or 31.86% in calendar year 2014 so far (till 5 November 2014). From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 7,952.76 points or 39.83%.
The stock market remains closed tomorrow, 6 November 2014, on account of Gurunanak Jayanti.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains for the dollar after victory for the Republican Party in US mid-term elections. The partially convertible rupee was hovering at 61.45, compared with its close of 61.405 on Monday, 3 November 2014. The currency market was shut yesterday, 4 November 2014, on account of Moharram.
Brent crude declined to its lowest in four years amid speculation OPEC will refrain from paring a global surplus. Brent crude for December delivery was off 74 cents at $82.08 a barrel. The contract slid as much as $1.19 to $81.63 a barrel, the lowest since 21 October 2010.
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. A slump in Brent crude since the end of June contributed to consumer-price index slowing to 6.46% in September 2014, the least since 2012. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent.
The government is open to privatisation of certain loss-making public sector companies, Finance Minister Arun Jaitley reportedly said today, 5 November 2014, during an interaction at the World Economic Forum in New Delhi. Jaitley also reportedly said the government will soon unveil reforms for other natural resources sectors along the lines of coal block auctions.
Jaitley also reportedly said that the government intends to open railways further to private investment, review tough land purchase rules and relax labour laws, but added that the government needed to build support for some of these measures. Jaitley said he hoped a long-delayed bill to allow up to 49% foreign investment in the insurance sector would be passed by parliament within weeks.
Meanwhile, a survey released today, 5 November 2014, showed that business activity at India's service sector stagnated last month. Adjusted for seasonal factors, the headline HSBC India Services PMI Business Activity Index -- a single question tracking changes in activity at Indian services companies on a month-by-month basis -- fell to 50 in October, from 51.6 in September. Despite rising for the sixth consecutive month, new work intakes in the Indian service sector increased at the weakest pace since May during October. Growth of employment in the Indian service sector also slowed in October. The services sector contributes about 60% to India's gross domestic product.
On the positive side, the latest data indicated that service sector firms in India remained highly optimistic regarding prospects for activity growth in the coming year. Business sentiment was the strongest in three months, with panellists commenting on anticipated improvements in demand and new marketing initiatives as key sources of optimism.
European stocks edged higher today, 5 November 2014, as better-than-estimated earnings offset investor concern about the health of the region's economy. Key benchmark indices in UK, France and Germany were up 0.88% to 1.21%.
The European Commission yesterday, 4 November 2014, cut its forecast for growth domestic product for the 18-country eurozone region to 0.8% this year, from a previous forecast of 1.2%, in the spring. In 2015, the eurozone economy will likely grow 1.1%, also less than the 1.7% growth seen in the spring. In 2016, growth in the currency union will rise to 1.7%, the commission said.
Investors are awaiting policy decisions by the European Central Bank (ECB) after a monetary policy review tomorrow, 6 November 2014. Investors will weigh ECB President Mario Draghi's speech for hints of further stimulus, including the purchase of government bonds. The ECB began buying covered bonds last month as part of a strategy to revive prices, boost lending and spur growth.
The Bank of England (BoE) also undertakes a monthly monetary policy review tomorrow, 6 November 2014.
Asian stocks declined today, 5 November 2014, after weak economic data from China. Key benchmark indices in China, Indonesia, Taiwan, South Korea and Hong Kong were off 0.08% to 0.63%. Key benchmark indices in Japan and Singapore were up 0.18% to 0.44%.
The HSBC China services purchasing managers index edged down to 52.9 in October from 53.5 in September, but most major components of the index remain solid, HSBC Holdings PLC said today, 5 November 2014. A reading above 50 indicates month-on-month expansion while a level below that points to contraction.
Trading in US index futures indicated that the Dow could rise 61 points at the opening bell today, 5 November 2014. The latest results showed that the Republican Party recaptured control of the US Senate in Tuesday's midterm elections, notching victories in races around the country. Republicans also kept control of the House of Representatives on Tuesday, as was widely expected. By taking the Senate and keeping the House, the Republican Party takes control of Congress for the first time in eight years. Republicans are expected to be tougher on the Federal Reserve and so-called loose monetary policies.
The US stock market finished Tuesday's choppy session mostly lower, as steep losses in energy companies' stocks weighed on the main benchmark. In economic news, US trade deficit jumped in September to the highest level since the late spring. The surprising spike in the trade deficit is likely to reduce third-quarter growth when the US government revises the report later this month.
St. Louis Fed President James Bullard yesterday, 4 November 2014, said that the US economy is on track to grow at a 3% annual rate over the next 14 months, which should allow the Federal Reserve to move ahead with plans to hike short-term interest rates.
Powered by Capital Market - Live News
