A slide during the latter part of the trading session pushed key benchmark indices lower. The barometer index, the S&P BSE Sensex, regained the psychological 28,000 level after falling below level in intraday trade. The Sensex and the 50-unit CNX Nifty, both, hit their lowest closing level in almost a week. The Sensex declined 130.44 points or 0.46% to settle at 28,032.85. The market breadth indicating the overall health of the market was weak.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 16.15 crore from secondary equity market yesterday, 18 November 2014. Reserve Bank of India Governor Raghuram Rajan yesterday, 18 November 2014, said that there is a lot of work to be done to get India back on a strong growth path. The Organisation for Economic Cooperation and Development (OECD) today, 19 November 2014, said the Indian economy is showing signs of a turnaround and that new reforms, some of which are included in the package presented by Prime Minister Narendra Modi, need to be implemented to put the country on a path to strong, sustainable and inclusive growth.
IT stocks advanced on weak rupee. Capital goods stocks edged lower. Bank stocks fell across the board. Metal and mining stocks declined. Cement stocks also edged lower.
After remaining range bound earlier during the day, key benchmark indices edged lower after a sudden slide in mid-afternoon trade. Earlier, the Sensex and the 50-unit CNX Nifty had pared gains after both these indices hit record high at the onset of trading session.
In overseas markets, European shares reversed initial losses ahead of the release of the minutes of the US Federal Reserve's October policy meeting later in the global day today, 19 November 2014. Asian stocks were mixed. US stocks edged higher yesterday, 18 November 2014, with the Dow Jones Industrial Average and the S&P 500, both, attaining record closing high as upbeat US housing data, as well as news of a snap election in Japan and better-than-expected data from Germany boosted investor sentiment.
In the foreign exchange market, the rupee edged lower against the dollar as key equity benchmark indices dropped.
Brent crude oil futures rose amid intraday volatility as OPEC producers appeared divided ahead of the oil cartel's meeting to discuss output next week.
The S&P BSE Sensex declined 130.44 points or 0.46% to settle at 28,032.85, its lowest closing level since 13 November 2014. The index fell 199.78 points at the day's low of 27,963.51 in late trade. The index jumped 130.72 points at the day's high of 28,294.01 at onset of the trading session, a record high for the index.
The CNX Nifty shed 43.60 points or 0.52% to settle at 8,382.30, its lowest closing level since 13 November 2014. The index hit a low of 8,360.50 in intraday trade. The index hit a high of 8,455.65 in intraday trade, a record high for the index.
The BSE Mid-Cap index declined 64.70 points or 0.63% to settle at 10,210.60. The BSE Small-Cap index shed 74.61 points or 0.65% to settle at 11,368.55. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,840 shares declined and 1,216 shares gained. A total of 95 shares were unchanged.
Among sectoral indices on BSE, the S&P BSE Auto index (down 0.64%), BSE Bankex index (down 0.65%), BSE Consumer Durables index (down 1.22%), BSE Metal index (down 2.14%), BSE Oil & Gas index (down 1.35%), BSE Power index (down 1.8%), and BSE Realty index (down 0.99%) underperformed the Sensex.
The BSE Capital Goods index (down 0.2%), BSE FMCG index (down 0.21%), BSE Healthcare index (up 0.07%), BSE IT index (up 0.21%), and BSE Teck index (up 0.12%) outperformed the Sensex.
IT stocks edged higher on weak rupee. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. MphasiS (up 0.94%), Mind Tree (up 3.19%), HCL Technologies (up 0.91%) and Tech Mahindra (up 1.09%) gained. TCS (down 0.38%) declined.
Wipro lost 0.19% at Rs 565.25. The stock hit a high of Rs 571.60 and a low of Rs 560.75. The company after market hours yesterday, 18 November 2014, in a clarification with regard to news item titled "Wipro wins $143-million deal from Levi Strauss" said that the company has won the deal from Levi Strauss, a customer. The deal size is $143 million over a five year period. Wipro added that the deal size is not material enough for making disclosure as per the Disclosure Policy approved by the Disclosure Committee of the company and hence this deal was not disclosed earlier.
Infosys rose 0.07% at Rs 4,179.75. Infosys after market hours yesterday, 18 November 2014, announced that its BPO unit Infosys BPO has appointed Anup Uppadhayay as Chief Executive Officer and Managing Director of the company. The board of directors of Infosys BPO also appointed Deepak Bhalla as Chief Financial Officer of the company. The board of Infosys BPO also announced the separation of Abraham Mathews, its Chief Financial Officer from the services of the company for not complying with its code of conduct. This departure is in keeping with the company's goal of setting the highest standards of corporate governance and adhering to the letter and spirit of the company's code of conduct, Infosys said in a statement. Gautam Thakkar, the current Chief Executive Officer has submitted his resignation to the company effective 30 November 2014, taking responsibility on moral grounds and will be assisting Uppadhayay in this transition, Infosys said.
Banks fell across the board. Among public sector banks, Bank of India (down 0.96%), Canara Bank (down 2.76%), Union Bank of India (down 2.6%), IDBI Bank (down 2.03%), Punjab National Bank (down 2.15%), Bank of Baroda (down 1.45%) and State Bank of India (down 2.98%), edged lower.
Among private sector banks, Yes Bank (down 1.8%), Kotak Mahindra Bank (down 0.61%), IndusInd Bank (down 0.96%), HDFC Bank (down 0.6%), and Federal Bank (down 0.38%) declined. ICICI Bank (up 0.07%) gained.
Axis Bank fell 0.87% at Rs 469.85. The stock hit a high of Rs 475.85 and a low of Rs 467.10. The bank after market hours yesterday, 18 November 2014, said it priced $500 million 3.250% senior unsecured notes due 2020 (the Notes). The Notes are issued by Axis Bank's DIFC branch, Dubai and are rated Baa2 by Moody's, BBB- by S&P and BBB- by Fitch. The notes will be denominated in US dollars, and will bear fixed interest of 3.250% per annum, with interest payable semi-annually in arrears, Axis Bank said. The bank will apply the net proceeds of the issue to meet the funding requirement of its foreign branches and for general corporate purposes, Axis Bank said.
Metal and mining shares reversed initial gains. Hindalco Industries (down 0.35%), NMDC (down 1.29%), Hindustan Zinc (down 2.28%) and Sesa Sterlite (down 2.75%) edged lower.
Steel stocks declined. Tata Steel (down 3.08%), JSW Steel (down 2.75%), Steel Authority of India (down 2.52%) and Jindal Steel & Power (down 3.03%) edged lower.
Capital goods stocks edged lower. Thermax (down 4.65%), Punj Lloyd (down 3.24%), Alstom T&D India (down 2.15%), Bharat Heavy Electricals (down 1.99%), Siemens (down 1.61%), and ABB (down 1.53%) declined. L&T (up 0.58% at Rs 1,654.20) gained.
Crompton Greaves fell 3.38% at Rs 196. The company announced during trading hours today, 19 Novemebr 2014, that it will be opening a new facility in Grenoble in France to produce, test and calibrate over 2 million ZIV smart meters per year. Crompton Greaves said it has chosen Grenoble to open this new facility, so as to cover the demand for Linky meters in France, and thereby provide local support to ERDF. The company recently won an order from ERDF to participate in the supply of three million Linky smart meters, in the first phase of its 35 million unit rollout plan for 2021. The facility will house the Centre of Excellence for G3-PLC technology, be fully equipped to manufacture ZIV single and three phase Linky G1 and G3 meters, and will be ready to produce the first units by the second quarter of 2015, the company said in a statement.
Info Edge (India) advanced 0.85% at Rs 955.95 after the company said it has committed to make an additional investment of an amount of about Rs 185 crore in the shares of Zomato Media which owns and operates an online food guide portal www.zomato.com. Info Edge (India) would be investing along with two other investors in this round of funding, which aggregates to Rs 370 crore and includes purchase of shares from certain existing shareholders, Info Edge (India) said.
The shareholding of Info Edge (India) in Zomato Media, post aforesaid aggregate fund raise of Rs 370 crore, will be maintained at 50.1% on a fully converted and diluted basis. Zomato Media is raising funds at a pre-money company valuation of about Rs 3700 crore approximately.
Shares of companies catering to the defense sector declined. Dynamatic Technologies (down 1.31%), Astra Microwave Products (down 3.19%), Bharat Electronics (down 0.68%), Walchandnagar Industries (down 3.2%), and Pipavav Defence & Offshore Engineering Company (down 0.67%) declined. BEML (up 0.49%) gained.
Apar Industries lost 2.83% at Rs 437.70. The stock hit a high of Rs 468.15 and a low of Rs 430. The company after market hours yesterday, 18 November 2014, said that its wholly owned subsidiary, Petroleum Specialities Pte., Singapore, is in the process of setting up a facility in United Arab Emirates.
IL&FS Engineering and Construction Company jumped 10.87% at Rs 67.80 after the company scheduled a meeting of the Board of Directors on 28 November 2014 to consider additional fund raising options for the company. The announcement was made after market hours yesterday, 18 November 2014.
Cement shares dropped. ACC (down 1.57%) and UltraTech Cement (down 1.43%), edged lower.
Grasim Industries lost 1.52% at Rs 3,543.25. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Jaiprakash Associates (down 2.76%) and Shree Cement (down 1.82%) edged lower. The Competition Commission of India (CCI) has approved Jaiprakash Associates' proposed sale of its cement grinding unit in Haryana to Shree Cement, saying the deal will not raise anti-competition concerns in the country.
Ranbaxy Laboratories dropped 4.5% to Rs 600. Ranbaxy Laboratories announced during trading hours today, 19 November 2014, that in response to the revocation of Ranbaxy's tentative approvals for its Abbreviated New Drug Applications (ANDAs) for esomeprazole magnesium delayed-release capsules and valganciclovir hydrochloride tablets, Ranbaxy has filed a complaint against the US Food and Drug Administration (USFDA) in D.C. federal court and has also asked the court for a temporary restraining order to prevent any further action by the USFDA until Ranbaxy's case is decided.
The Sensex has lost 145.03 points or 0.51% in two trading sessions from a record closing high of 28,177.88 on 17 November 2014. The Sensex has gained 167.02 points or 0.59% in this month so far (till 19 November 2014). The Sensex has gained 6,862.17 points or 32.41% in calendar year 2014 so far (till 19 November 2014). From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 8,069.73 points or 40.42%.
In the foreign exchange market, the rupee edged lower against the dollar as key equity benchmark indices dropped. The partially convertible rupee was hovering at 61.955, compared with its close of 61.745 during the previous trading session.
Brent crude oil futures rose amid intraday volatility as OPEC producers appeared divided ahead of the oil cartel's meeting to discuss output next week. Brent for January settlement was currently up 30 cents at $78.77 a barrel. The contract had lost 84 cents to settle at $78.47 a barrel yesterday, 18 November 2014.
Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet in Vienna on 27 November 2014 to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015.
Reserve Bank of India Governor Raghuram Rajan yesterday, 18 November 2014, said that there is a lot of work to be done to get India back on a strong growth path. India will focus on sustainable economic growth and developed economies should do the same, Rajan told reporters in Mauritius yesterday, 18 November 2014, according to reports. "Lots of work to do to get India back on a strong growth path. The government has been putting together a series of reforms which I think cumulatively amount to big reforms. The central bank is putting together reforms. My sense is we will do what it takes," Rajan said.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 2 December 2014. The central bank aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India eased to 5.52% in October 2014 from 6.46% in September 2014, data released by the government on 12 November 2014 showed.
The Organisation for Economic Cooperation and Development (OECD) today, 19 November 2014, said the Indian economy is showing signs of a turnaround. New reforms, some of which are included in the package presented by Prime Minister Narendra Modi, need to be implemented to put the country on a path to strong, sustainable and inclusive growth, according to the latest OECD Economic Survey of India. According to the survey, India's GDP should grow by more than 6.5% annually in the coming years.
Investment and exports are driving the rebound, but growth will be sustained at a stronger pace if further steps are taken, the OECD said. In the near term, stable and lower inflation and smaller deficits are needed, it said. Structural improvements to the business climate are crucial for medium term growth, and in the longer-term, health improvements and increased female participation in the labour market will sustain strong and inclusive growth, the OCED said.
The OECD said that India should formally adopt a flexible inflation-targeting framework, which will help contain inflation expectations and provide support for saving and investment. It also suggested implementing a broad national value-added tax goods and services tax (GST) and cutting energy subsidies, as part of wider efforts to put public finances on a stronger footing. Reducing barriers to manufacturing growth, which has contributed relatively little to growth of GDP or exports, will be critical, the OECD said.
India's reform agenda should also seek to increase women's economic participation rates, which are often drastically below those of men. Over a long-term, more and better jobs for women would raise equity and boost growth by over 2 percentage points annually, the OECD said.
European shares reversed initial losses today, 19 November 2014, ahead of the release of the minutes of the US Federal Reserve's October policy meeting later in the global day today, 19 November 2014. Key benchmark indices in France and Germany were up 0.09% to 0.32%. In UK, the FTSE 100 was off 0.17%.
The Bank of England's (BOE) Monetary Policy Committee voted 7-2 at its November meeting to keep rates on hold, according to minutes released today, 19 November 2014. The minutes from the meeting on 5 and 6 November 2014 show seven members were in favor of leaving the key interest rate at a record low of 0.5%, where it has stood since March 2009. The minutes record that dissenting members Martin Weale and Ian McCafferty voted for a rise in the BOE's benchmark rate -- known as Bank Rate -- to 0.75% from a low of 0.5%, as they did at the August and September gatherings. All members voted in favor of keeping the 375 billion-pound ($585 billion) asset-purchase program unchanged.
Asian stocks were mixed today, 19 November 2014. Key benchmark indices in Indonesia, Singapore and Taiwan were up 0.50% to 1.18%. Key benchmark indices in China, Hong Kong and South Korea were off 0.01% to 0.66%.
In Japan, the Nikkei 225 Average lost 0.32%. The Bank of Japan (BOJ) after a monetary policy review today, 19 November 2014, decided to maintain its large-scale easing policy and stick to its upbeat assessment of the economy despite dismal growth figures released earlier this week that prompted Prime Minister Shinzo Abe to delay a tax increase and call early elections. While government data released early this showed the world's third-biggest economy unexpectedly fell into a recession, the BOJ maintained the view that a moderate recovery trend has taken hold, suggesting that the downturn sparked by a tax increase earlier in the year will be short-lived.
The relatively optimistic view contrasts with the judgment by Mr. Abe that the economy isn't strong enough to go ahead with a second increase in the sales tax planned for next year. The prime minister said yesterday, 18 November 2014, that the rise in the tax rate would be delayed by 18 months and that he would seek a popular mandate for the postponement and his economic policy platform known as Abenomics in an election next month.
Trading in US index futures indicated that the Dow could fall 10 points at the opening bell today, 19 November 2014. US stocks edged higher yesterday, 18 November 2014, with the Dow Jones Industrial Average and the S&P 500, both, attaining record closing high as upbeat US housing data, as well as news of a snap election in Japan and better-than-expected data from Germany boosted investor sentiment.
The US Federal Reserve will release the minutes of its policy meeting held on 28-29 October 2014 later in the global day today, 19 November 2014. The US central bank ended its bond-buying program last month amid an improving labor market.
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