Mumbai: A range bound movement was witnessed as key benchmark indices retained positive zone in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently above the psychological 27,000 mark, having alternately moved above and below that mark in intraday trade so far. The Sensex was currently up 152.27 points or 0.57% at 27,033.09. The market breadth indicating the overall health of the market was positive. Gains in world stocks boosted sentiment.
Grasim Industries edged higher in volatile trade after announcing Q2 results. Realty and construction 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.
Earlier, the Sensex and the 50-unit CNX Nifty, both, had hit their highest level in more than five weeks in morning trade after opening higher.
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 was currently unchanged against the dollar.
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 in near future 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 contract expire tomorrow, 30 October 2014.
At 14:17 IST, the S&P BSE Sensex was up 152.27 points or 0.57% at 27,033.09. The index jumped 181.30 points at the day's high of 27,062.12 in morning trade, its highest level since 23 September 2014. The index rose 90.34 points at the day's low of 26,971.16 in morning trade.
The CNX Nifty was up 42.40 points or 0.53% at 8,070. The index hit a high of 8,081.05 in intraday trade, its highest level since 23 September 2014. The index hit a low of 8,052.25 in intraday trade.
The BSE Mid-Cap index was up 48.36 points or 0.5% at 9,648.76, underperforming the Sensex. The BSE Small-Cap index was up 83.20 points or 0.78% at 10,807.26, outperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,525 shares rose while 1,263 shares declined. A total of 110 shares were unchanged.
Realty and construction 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, D B Realty (up 4%), DLF (up 5.08%), Housing Development & Infrastructure (HDIL) (up 0.93%), Sobha (up 5.4%) and Unitech (up 1.45%) gained.
Among construction stocks, Jaiprakash Associates (up 0.67%), Hindustan Construction Company (up 0.17%), NCC (up 7.46%), IVRCL (up 2.17%), Unity Infraprojects (up 1.45%), and IRB Infrastructure & Developers (up 1.09%) rose.
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.
L&T fell 0.39% to Rs 1571.50. The stock was volatile. The stock hit high of Rs 1589 and low of Rs 1567.25 so far during the day. The company's wholly owned IT subsidiary -- L&T Infotech -- after trading hours yesterday, 28 October 2014, said it has completed the acquisition of Pune based Information Systems Resource Centre Pvt. Ltd. (ISRC). ISRC was a subsidiary of Otis Elevator Co., which is apart of UTC Building & Industrial Systems, a unit of United Technologies Corp. L&T Infotech plans to leverage the technology capability and experience of ISRC in order to enhance its value-add to UTC.
Grasim Industries rose after announcing Q2 results. The stock rose 1.36% to Rs 3425.25. The stock was volatile. The stock hit high of Rs 3449 and low of Rs 3335 so far during the day. 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.
Oriental Bank of Commerce lost 4.97% as the bank's gross NPAs surged to Rs 6643.80 crore as on 30 September 2014, from Rs 5982.85 crore as on 30 June 2014 and from Rs 4887.12 crore as on 30 September 2013. Oriental Bank of Commerce (OBC)'s ratio of gross non-performing assets (NPAs) to gross advances stood at 4.74% as on 30 September 2014, up from 4.33% as on 30 June 2014 and 3.77% as on 30 September 2013. The ratio of net NPAs to net advances stood at 3.29% as on 30 September 2014, up from 3.11% as on 30 June 2014 and 2.69% as on 30 September 2013. OBC's net profit rose 15.91% to Rs 291.42 crore on 6.83% growth in total income to Rs 5328.58 crore in Q2 September 2014 over Q2 September 2013.
ING Vysya Bank fell 1.05% after the bank's net profit rose 2.2% to Rs 180.13 crore on 10.8% growth in total income to Rs 1664.03 crore in Q2 September 2014 over Q2 September 2013. ING Vysya Bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 1.59% as on 30 September 2014 as against 2.39% as on 30 June 2014 and 1.72% as on 30 September 2013. The ratio of net NPAs to net advances stood at 0.42% as on 30 September 2014 as against 0.87% as on 30 June 2014 and 0.19% as on 30 September 2013.
IL&FS Engineering and Construction Company jumped 8.47% after the company announced that it received a letter of award (LOA) from IL&FS Maritime Infrastructure Company (IMICL) on behalf of Dighi Port for a total value of Rs 179.84 crore for engineering, procurement, and construction (EPC) contract for development of Multipurpose Berth, Backup Yard Development and Utilities of Multipurpose Terminal Berth 5 on North Side of Dighi Port, Agardanda in the state of Maharashtra. The project completion period is 545 days from the date of Notice to Proceed (NTP).
In the foreign exchange market, the rupee was currently unchanged against the dollar. The partially convertible rupee was hovering at 61.33, same as 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 43 cents at $86.46 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 0.35% to 0.81%.
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 0.32% 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 rise 15 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.