After seeing initial volatility, key benchmark indices edged higher in morning trade. Realty shares jumped after the government after trading hours yesterday, 29 October 2014, announced relaxation of rules for foreign investment in property development and construction. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in more than five weeks. The Sensex was currently up 69.48 points or 0.26% at 27,167.65. 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.
Cement shares edged higher on expectations of increase in foreign investment in property development and construction sector after the government eased norms for foreign investment in property development and construction sector. IDFC declined ahead of its Q2 results today, 30 October 2014.
In overseas markets, Asian stocks were mixed 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.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar as the US Federal Reserve statement at the conclusion of its meeting was seen as showcasing more confidence about the US economy prospects.
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.
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 10:17 IST, the S&P BSE Sensex was up 69.48 points or 0.26% at 27,167.65. The index rose 88.51 points at the day's high of 27,186.68 in morning trade, its highest level since 23 September 2014. The index fell 9.52 points at the day's low of 27,088.65 in early trade.
The CNX Nifty was up 20.35 points or 0.25% at 8,110.80. The index hit a high of 8,121.95 in intraday trade, its highest level since 23 September 2014. The index hit a low of 8,085.20 in intraday trade.
The BSE Mid-Cap index was up 12.49 points or 0.13% at 9,662.78, underperforming the Sensex. The BSE Small-Cap index was up 39.45 points or 0.37% at 10,829.91, outperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,077 shares rose while 775 shares declined. A total of 75 shares were unchanged.
Cement shares edged higher on expectations of increase in foreign investment in property development and construction sector after the government eased norms for foreign investment in property development and construction sector. UltraTech Cement gained 1.32%.
ACC rose 1.26% ahead of its Q3 results today, 30 October 2014.
Ambuja Cements gained 0.84% ahead of its Q3 results today, 30 October 2014.
Grasim Industries rose 1%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Shree Cement shed 0.22%.
IDFC declined 0.69% ahead of its Q2 results today, 30 October 2014.
Raymond lost 4.6% after consolidated net profit declined 26% to Rs 68 crore on 19% growth in revenue to Rs 1471 crore in Q2 September 2014 over Q2 September 2013. Raymond's EBITDA fell 11% to Rs 183 crore in Q2 September 2014 over Q2 September 2013.
Container Corporation of India declined 1.55% after net profit fell 20.9% to Rs 191.88 crore on 8.6% growth in total income to Rs 1446.83 crore in Q2 September 2014 over Q2 September 2013.
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 broad gains in dollar as the US Federal Reserve statement at the conclusion of its meeting was seen as showcasing more confidence about the US economy prospects. The partially convertible rupee was hovering at 61.42, 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 15 cents at $86.97 a barrel. The contract had gained $1.09 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 were mixed 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, South Korea, Hong Kong and Taiwan were off 0.42% to 0.59%. Key benchmark indices in Singapore, Japan and China were up 0.07% to 0.78%.
Trading in US index futures indicated that the Dow could gain 4 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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