A close above 8380 will lead to a further rally.
Today after opening with a gap up, the benchmarks moved higher, however its effort to reach yesterday’s high failed and was the indices subsequently moved lower, giving up all the intra-day gains. Although the indices could managed to stay above Monday’s low, the indices struggled to stay in the green. On the positive side, the indices are making higher lows.
S&P BSE Sensex opened at 27,911 while CNX Nifty opened at 8,354. Both the benchmarks hit highs, at 27,997 and 8,379 respectively. For an hour when the indices traded clearly in the red, they hit their lows at 27,790 and 8,322. This was followed by the benchmarks trading near yesterday’s close and ultimately closing marginally higher today. The Sensex closed at 27,910 (up 35 points or 0.13%), while Nifty closed at 8,363 (up 18 points or 0.22%). NSE recorded a volume of 95.01 crore shares. India VIX rose 6.24% to close at 14.8000.
The Ministry of Civil Aviation released the Draft Civil Aviation Policy after trading hours on Monday. The Draft notes that, airports are to be designed as integrated multi-modal hubs so that they provide the best possible service levels, as well as potential for growth. The six metropolitan airports at Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad would be developed as major international hubs and would be the main access points for international travel to and from India in the future. The Draft Civil Aviation Policy emphasised on rationalizing the cost of aviation turbine fuel.
Ministry of Road Transport & Highways and the Ministry of Railways signed a Memorandum of Understanding (MoU) on policy related to constructions of Road Over/Under Bridges (ROBs/RUBs) on National Highway corridors. As a result of this MoU, there will be speedy clearances for various designs for construction of ROBs/RUBs on National Highway Corridors and clearly defined responsibility for construction of ROB/RUB on National Highway Corridors, the Ministry of Railways said in a statement.
On Monday, the RBI issued the revised Regulatory Framework for Non-banking Finance Companies, with a view to streamlining the regulations for the sector. It also revoked, with immediate effect, its temporary suspension on issuance of certificates of registration to companies proposing to conduct business as non-banking financial institutions.
Amtek Auto (17.12%) was the top gainer in the ‘A’ group on BSE. The stock rose on the news that its subsidiary Amtek Global Technologies is set to raise 235 million euros from global investment firm Kohlberg Kravis Roberts (KKR). Funds raised will be used to meet its long-term financing needs and consolidate its entire debt with a single entity.
SREI Infrastructure (4.68%) was among the top three losers in the ‘A’ group on the BSE. Although its standalone results showed an improvement in its top line and net profits, its consolidated net profit fell to Rs 28.07 crore for the September 2014 quarter, when compared to Rs 41.24 crore for the September 2013 quarter.
Mahindra & Mahindra (2.35%) was the top gainer among the Sensex 30 stocks. Its farm equipment division has increased the prices of its tractors in the range of Rs 6,000 to Rs 10,000 with effect from November 2014. This step is expected to pass on the increase in the commodity prices and conversion costs.
Infosys (1.09%) which had hit its 52-week high on Friday was among the top four losers among Sensex 30 stocks.
US indices closed in the positive on Monday.
President of the Federal Reserve Bank of Boston, Eric Rosengren said yesterday that, the US central bank should refrain from raising short-term term interest rates until there is “stronger evidence” that price pressures are beginning to rise.
Asian indices showed a mixed performance. Nikkei 225 (2.05%) was the top gainer while Straits Times (0.27%) was the top loser.
Regulators said that the Stock Connect program, which allows individual investors outside of China to buy Shanghai-listed shares for the first time ever, will start on 17 November 2014.
European indices were trading in the green. US Futures too were trading higher.
Without strong news flows, Nifty will struggle to rally higher
In Friday’s closing report, we had mentioned that it is most likely that the Indian indices may give up some gains. We had also mentioned that if the NSE’s CNX Nifty closes above 8,365, the short-term rally would continue for some more days. After a gap up opening on Monday, the index immediately rose to a new life time high, however, unable to sustain at that level it slid down in to the negative. The index traded in the negative upto 2.00pm after which it managed to rebound in the green territory.
S&P BSE Sensex opened at 27,919 and moved from the new life time high of 28,028 to the low of 27,765 and closed at 27,875 (up 6 points or 0.02%). Nifty opened at 8,338 and hit a high at 8,383. After reaching to the level of 8,304 the index closed at 8,344 (up 7 points or 0.09%). NSE recorded a volume of 90.81 crore shares. INDIA VIX fell 1.27% to close at 13.9300.
The much-awaited cabinet reshuffle ended with four ministers being allotted cabinet rank, whereas three taking charge as Ministers of State (independent charge) and remaining 14 took oath as MoS. The Modi cabinet now has 66 ministers.
The government will unveil industrial production data for September 2014 on Wednesday.
BEML (6.98%) was among the top two gainers in the ‘A’ group on the BSE. Buying interest in railway stocks was boosted with the appointment of Suresh Prabhu as the new Railways Minister. Market anticipates that he will carry reforms and bring investments into the sector.
Engineers India (12.32%) was the top loser in ‘A’ group on the BSE. It posted weak September 2014 quarter result after-market hours on Friday. It posted a net profit of Rs58.78 crore for the September 2014 quarter as compared to Rs111.86 crore for the September 2013 quarter. Revenue fell from Rs465.18 crore to Rs390.64 crore for the relevant quarter.
Strong second quarter result posted by Taro (subsidiary of Sun Pharma) helped Sun Pharma (2.09%) to be among the top two gainers in the Sensex 30 pack. It also hit its 52-week high today.
ONGC (3.59%) was the top loser in the Sensex 30 stock. Directorate General of Hydrocarbons has approved commerciality of the oil and gas discoveries in the northern area of state-owned ONGC's prolific KG-D5 block in Bay of Bengal.
US indices closed Friday flat.
The Bureau of Labor Statistics report showed the US created 214,000 jobs in October, nudging the unemployment rate down a notch to 5.8%, as many companies added workers to gear up for the holiday season. The economy has now added 200,000 workers or more for nine straight months, a feat last accomplished in 1994.
Except for Jakarta Composite (0.44%) and Nikkei 225 (0.59%) all the other Asian indices closed in the green today. Shanghai Composite (2.30%) was the top gainer.
China's consumer price inflation remained at a near five-year low last month, easing concerns of deflation risks. But the wholesale sector stayed entrenched in a deflationary spiral with the producer price index falling by a worse-than-expected 2.2% on year, data released by National Bureau of Statistics of China today showed.
China's exports jumped 11.6% in October 2014 from a year earlier, according to Chinese customs data released on Saturday. China's imports rose 4.6% in October 2014.
European indices were trading in the green. US indices too were trading little higher.
During October, Indian companies garnered Rs38,399 crore from debt on a private placement basis, lower than Rs58,578 crore raked up in September
Fund mobilisation by Indian companies through private placement of corporate debt securities or bonds plunged by 34% to just over Rs38,000 crore in October 2014.
In debt private placements, companies issue debt securities or bonds to institutional investors to raise capital.
According to the data available with the Securities and Exchange Board of India (SEBI), companies garnered a total of Rs38,399 crore during October from debt on a private placement basis, lower than Rs58,578 crore raked up in September.
Besides, the number of issuances fell to 279 in October from 312 in the preceding month.
Fund raising through private placement has been lately subdued owing to a robust performance of the stock market. Moreover, companies are opting for initial public offer (IPO), qualified institutional placement (QIP) and rights issue route to mop up funds.
With the latest fund mobilisation, overall capital raised through private placement of debt securities, so far, reached Rs1.84 crore in the current financial year as against Rs2.76 lakh crore mobilised during the entire 2013-14.