Key benchmark indices moved in an extremely narrow range in positive zone in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently above the psychological 27,000 level, having alternately moved above and below that level in intraday trade. The Sensex was currently up 32.09 points or 0.12% at 27,027.96. The market breadth indicating the overall health of the market was positive. Shares of biscuits major Britannia Industries scaled record high. Shares of Snowman Logistics were trading with steep premium on its debut today, 12 September 2014. Data due after trading hours today, 12 September 2014, is likely to show easing of consumer price inflation in August 2014 and a muted growth in industrial production in July 2014.
Meanwhile, Transport Minister Nitin Gadkari reportedly said at an industry event today, 12 September 2014, that the government plans to launch Rs 2 lakh crore worth of infrastructure projects this year.
In overseas markets, Asian stocks edged higher after the latest data showed credit growth of Chinese financial institutions surged last month.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade.
Brent crude oil futures edged lower amid signs that crude supply will continue to rise even as global demand weakens.
At 12:15 IST, the S&P BSE Sensex was up 32.09 points or 0.12% at 27,027.96. The index gained 69.15 points at the day's high of 27,065.02 in early trade. The index fell 28.91 points at the day's low of 26,966.96 in mid-morning trade.
The CNX Nifty was up 2.75 points or 0.03% at 8,088.45. The index hit a high of 8,102.95 in intraday trade. The index hit a low of 8,072.75 in intraday trade.
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The market breadth indicating the overall health of the market was positive. On BSE, 1,536 shares gained and 1,204 shares fell. A total of 92 shares were unchanged.
The BSE Mid-Cap index was up 23.29 points or 0.23% at 9,986.80. The BSE Small-Cap index was up 63.05 points or 0.57% at 11,173.97. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1804 crore by 12:15 IST, compared to a turnover of Rs 1398 crore by 11:15 IST.
Among the 30-share Sensex pack, 16 stocks declined and rest of them gained.
Cipla (up 2.33%), Bharti Airtel (up 1.32%) and ITC (up 1.31%) edged higher from the Sensex pack.
State Bank of India (SBI) fell 0.32%. In response to media reports captioned "Indian bank branches face closure amid UK crackdown", State Bank of India during market hours said that the Prudential Regulatory Authority's (PRA) final Supervisory Statement on international banks operating in the UK jurisdiction is not expected to have any material impact on SBI. SBI said that while SBI UK operations undertake retail banking activities above the prescribed de-minimis levels, PRA is expected to take a position with regard to each non-EEA (European Economic Area) branch only after evaluating the Home State Supervisory equivalence, resolvability etc. SBI UK operations will decide on their future banking model (branch or subsidiary) on receipt of the final evaluation from PRA, SBI said.
Steel major Steel Authority of India (Sail) rose 0.51%. Sail reportedly said on Thursday, 11 September 2014 that, it has sufficient iron ore stocks to sustain operations and there is no cause for worry even as Jharkhand has slapped closure notice on its four mines having 11 million tonne capacity.
Britannia Industries gained 2.11% to Rs 1,372.35 after scaling record high of Rs 1,379.90 in intraday trade.
Shares of Snowman Logistics were trading at Rs 78.75, a premium of 67.55% over the initial public offer price of Rs 47. The stock debuted at Rs 75, a premium of 59.57% to the initial public offer (IPO) price. So far the stock hit a high of Rs 78.75 and low of Rs 75. On BSE, 9.40 lakh shares were traded on the counter.
Jaiprakash Associates lost 2.46% to Rs 35.65, with the stock sliding on profit booking after recent rally. A foreign brokerage has reportedly downgraded the stock to "neutral" from "buy" and removed the stock from its Asia Pacific buy list, citing uncertainty after one of its promoters sold 1.45% stake recently. Uncertainty on Supreme Court ruling on coal allocations has also been cited as a key reason for downgrade, according to reports.
NCC lost 3.04% to Rs 67 after Mauritius-based investment holding firm Warhol sold a total of about 79.86 lakh shares of the company in bulk deals on BSE and NSE at an average price of Rs 69.07 per share on Thursday, 11 September 2014.
C Mahendra Exports was locked at 5% upper circuit at Rs 30.80 on bargain hunting after the stock slumped 85.89% in the preceding 29 sessions to Rs 29.35 on 11 September 2014, from a recent high of Rs 208 on 30 July 2014.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 11 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 433.55 crore on that day.
Brent crude oil futures edged lower amid signs that crude supply will continue to rise even as global demand weakens. Brent for October settlement was off 16 cents at $97.92 a barrel. The contract rose 4 cents to settle at $98.08 a barrel yesterday, 11 September 2014, bouncing back from a 2-year low after Russia warned the US that air strikes in Syria against Islamist militants would be an act of aggression without a UN security mandate. The more active contract Brent for November settlement was off 22 cents at $98.64 a barrel.
Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 60.84, compared with its close of 60.93 during the previous trading session.
Data due after trading hours today, 12 September 2014, is likely to show easing of consumer price inflation in August 2014 and a muted growth in industrial production in July 2014. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen decelerating to 7.8% in August 2014, from 7.96% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the CPI data for August 2014 at 17:30 IST today, 12 September 2014. The Reserve Bank of India (RBI) is targeting CPI inflation at 8% by January 2015 and 6% by January 2016.
Meanwhile, the growth in industrial production is seen decelerating to 1.9% in July 2014, from 3.4% in June 2014, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production growth had eased to 3.4% in June 2014, from 5% increase recorded in May 2014. The government will release the industrial production data for July 2014 at 17:30 IST today, 12 September 2014.
The annual rate of inflation based on the monthly Wholesale Price Index (WPI) is seen decelerating to 4.43% in August 2014, from 5.19% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the WPI data for August 2014 at 12 noon on Monday, 15 September 2014.
Monsoon rainfall between 1 June 2014 and 10 September 2014 was 11% below average, an India Meteorological Department (IMD) report dated 11 September 2014 showed. India's farming sector accounts for around 14% of the economy, but two-thirds of the nation's 1.2 billion people depend on farming for a livelihood and more than half of its arable land needs the summer rains.
Asian stocks edged higher today, 12 September 2014, after the latest data showed credit growth of Chinese financial institutions surged last month. Key benchmark indices in Japan, Indonesia, South Korea, China and Singapore were up 0.06% to 0.6%. Key benchmark indices in Taiwan and Hong Kong were off 0.04% to 1.07%.
Chinese banks stepped up lending in August after a big fall a month earlier, data from the central bank showed today, 12 September 2014. Chinese financial institutions issued 702.5 billion yuan ($114.6 billion) in new yuan loans in August, up sharply from 385.2 billion yuan in July. Total social financing--a broader measurement of credit in the economy--was 957.4 billion yuan in August, up from 273.1 billion yuan in July.
The Bank of Korea held its policy interest rate at 2.25% today, 12 September 2014, as widely expected after it cut the benchmark by a quarter-point at its previous meeting.
Trading in US index futures indicated a flat opening of US stocks on today, 12 September 2014. US stocks eked out small gains on Thursday, 11 September 2014, as an unexpected increase in weekly jobless claims and falling commodities prices encouraged investors to remain cautious. The main benchmarks finished in positive territory after trading in a tight range and spending much of the session in the red. The number of people who applied for jobless benefits last week unexpectedly rose, reaching the highest level since late June.
Investors will look to next week's Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. At the end of a two-day meeting on 16-17 September 2014, the FOMC is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
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