After moving in a very narrow range in positive zone in mid-morning trade, key benchmark indices slipped into the red in early afternoon in trade. The losses for the benchmark indices were very small. The barometer index, the S&P BSE Sensex, was currently off 10.48 points or 0.04% at 28,152.81. The market breadth indicating the overall health of the market was positive. Metal shares were in demand. Paint makers edged higher. Shares of state-run oil refining-cum-market firm HPCL rose following reports after a brokerage upgrade.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 101.98 crore yesterday, 18 November 2014, as per provisional data. 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.
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, 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.
Brent crude oil futures were steady after data showed Saudi Arabia increased crude exports in September despite signs of an oversupplied market.
At 12:23 IST, the S&P BSE Sensex was down 10.48 points, or 0.04% at 28,152.81. 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 index fell 31.07 points at the day's low of 28,132.22 in morning trade.
The CNX Nifty was down 7.10 points or 0.08% at 8,418.80. The index hit a high of 8,455.65 in intraday trade, its record high level. The index hit a low of 8,412.30 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,521 shares gained and 1,197 shares fell. A total of 113 shares were unchanged.
The BSE Mid-Cap index was up 64.29 points or 0.63% at 10,339.59. The BSE Small-Cap index was up 83.20 points or 0.73% at 11,526.36. Both these indices outperformed the Sensex.
Metal shares were in demand. Hindalco Industries (up 2.61%), Jindal Steel & Power (up 1.28%), Sesa Sterlite (up 0.85%), NMDC (up 0.46%), Tata Steel (up 0.42%), JSW Steel (up 0.21%), Hindustan Zinc (up 0.18%) and Bhushan Steel (up 0.10%), edged higher. Steel Authority of India (Sail) was off 0.29%.
Paint makers edged higher. Shalimar Paints (up 2.61%), Akzo Nobel India (up 0.36%), Berger Paints (India) (up 0.21%) and Kansai Nerolac Paints (up 0.02%), edged higher. Asian Paints was off 0.49%.
Shares of state-run oil refining-cum-market firm HPCL rose following reports after a brokerage upgrade. The stock was up 1.84%. The brokerage cited sharp decline in crude oil prices and diesel deregulation as key reason for the upgrade. LPG subsidies too should structurally decline, the brokerage reportely said.
Info Edge (India) advanced 2.71% 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.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.8225, compared with its close of 61.745 during the previous trading session.
Brent crude oil futures were steady after data showed Saudi Arabia increased crude exports in September despite signs of an oversupplied market. Brent for January settlement was up 8 cents to $78.55 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.
Asian stocks were mixed today, 19 November 2014. Key benchmark indices in Indonesia, Singapore and Taiwan were up 0.42% to 1.18%. Key benchmark indices in China, Hong Kong and South Korea were off 0.01% to 0.49%.
In Japan, the Nikkei 225 Average was off 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.
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