After hovering in green with small gains, key benchmark indices slipped into the red in early afternoon trade as European stocks trimmed initial gains. The market breadth indicating the overall health of the market was weak. The barometer index, the S&P BSE Sensex, was currently down 33.63 points or 0.13% at 26,315.70. Asian stocks were weak amid growing concerns over economic growth around the world. Foreign portfolio investors sold shares worth a net Rs 694.67 crore during the previous trading session on Tuesday, 14 October 2014, as per provisional data. Meanwhile, India's merchandise export registered a muted growth of 2.7% in September 2014, data released the government early this week showed.
Meanwhile, various exit polls released after assembly elections in Maharashtra and Haryana showed that the BJP is set to wrest power from the Congress party in Haryana and will emerge as the single largest party in Maharashtra. Polling was held yesterday, 15 October 2014, for assembly elections in Maharashtra and Haryana. The counting of votes for elections in both these states takes places on Sunday, 19 October 2014, and the results will be out on the same day. BJP's seat tally in Maharashtra, according to various exit polls, varied from just over 100 to 150-plus, the latter a clear majority mark in a 288-member assembly. In 90-seat Haryana, exit polls gave BJP between 37 and 50-plus seats; the latter a majority mark. BJP's strong showing in assembly elections in Maharashtra and Haryana could boost Prime Minister Narendra Modi's ability to carry forward legislative reforms.
Bank stocks edged higher. IndusInd Bank scaled record high, with the stock extending its recent gains triggered by the bank's strong Q2 results. UltraTech Cement and Grasim Industries dropped on reports that UltraTech Cement is eyeing the assets being divested by Lafarge and Holcim in Europe and Brazil as part of their merger plans. Cairn India dropped to 52-week low as crude oil prices edged lower. Tyre stocks edged higher on renewed buying, with CEAT hitting record high. D B Corp scaled record high.
Earlier, a high volatility was witnessed at the onset of the trading session as key indices staged a strong recovery after a weak opening.
In overseas markets, European stocks trimmed initial gains. Asian stocks declined amid growing concerns over economic growth around the world. US index futures fluctuated after yesterday's decline for US stocks.
Brent crude fell to near four-year lows amid growing concerns over the global economy.
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In the foreign exchange market, the rupee edged lower against the dollar as India's trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013.
At 13:15 IST, the S&P BSE Sensex was off 33.63 points or 0.13% at 26,315.70. The index lost 100.86 points at the day's low of 26,248.47 at the onset of the trading session. The index jumped 112.75 points at the day's high of 26,462.08 in early trade.
The CNX Nifty was down 19.90 points or 0.25% at 7,844.10. The index hit a high of 7,893.90 in intraday trade. The index hit a low of 7,836.45 in intraday trade.
The BSE Mid-Cap index was off 35.84 points or 0.38% at 9,437.24. The BSE Small-Cap index was off 53.89 points or 0.51% at 10,577.36.
The market breadth indicating the overall health of the market was weak. On BSE, 1,625 shares declined while 1,061 shares gained. A total of 107 shares were unchanged.
The total turnover on BSE amounted to Rs 1809 crore by 13:15 IST.
Bank stocks edged higher. Among private bank stocks, Axis Bank (up 1.11%), ICICI Bank (up 0.61%), HDFC Bank (up 0.06%) and Yes Bank (up 2.13%) gained. Kotak Mahindra Bank fell 0.95%.
IndusInd Bank rose 1.18% after scaling a record high of Rs 657.90 in intraday trade. The stock extended its recent gains triggered by the bank's strong Q2 results. IndusInd Bank's net profit rose 30.27% to Rs 430.20 crore on 20.60% increase in total income to Rs 2937.03 crore in Q2 September 2014 over Q2 September 2013. The result was announced during trading hours on 13 October 2014.
Among PSU bank stocks, State Bank of India (SBI) (up 0.14%), Punjab National Bank (up 0.67%), Bank of Baroda (up 1.43%), Bank of India (up 1.43%) and Union Bank of India (up 1.08%) gained.
Scheduled commercial banks' (SCBs) credit growth has shown a pick-up to 11% at Rs 62690.07 crore as on 03 October 2014 from single digit level of 9.7%, a five-year low, in the previous fortnight.
UltraTech Cement dropped 4.64%. As per reports, UltraTech Cement is eyeing the assets being divested by Lafarge and Holcim in Europe and Brazil as part of their merger plans. Lafarge and Holcim have put a few assets on the block globally to reduce their dominance in a particular region, reports indicated. Both the companies have placed a proposal before the Brazilian competition authority to sell three integrated cement plants and two grinding stations with annual capacity of 3.6 million tonne and a ready-mix plant all located in the south-eastern Brazil, reports added.
Grasim Industries declined 3.03%. Grasim Industries has exposure to the cement sector through its subsidiary UltraTech Cement.
Cairn India dropped 3.08% to Rs 275.35 as crude oil prices edged lower. The stock hit 52-week low of Rs 274 in intraday trade. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.
Tyre stocks gained on renewed buying. Goodyear India (up 2.39%), JK Tyre & Industries (up 1.77%), MRF (up 0.16%) and TVS Srichakra (up 4.61%) gained.
CEAT jumped 7.04% to Rs 846.55 after scaling a record high of Rs 863.75 in intraday trade.
Apollo Tyres shed 0.16%.
D B Corp gained 4.49% to Rs 368.05 after scaling a record high of Rs 393.25 in intraday trade.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Tuesday, 14 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 694.67 crore on that day. The stock market was closed yesterday, 15 October 2014, on account of assembly election in Maharashtra.
In the foreign exchange market, the rupee edged lower against the dollar as India's trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013. The partially convertible rupee was hovering at 61.58, compared with its close of 61.42 during the previous trading session.
India's merchandise export rose 2.7% to $28.90 billion in September 2014, data released after market hours on Tuesday, 14 October 2014 showed. Exports of engineering goods exports jumped 20.2%, exports of gems & jewellery rose 11.1%, exports of readymade garments rose 15.9%, rice exports rose 17.7% and exports of organic and inorganic chemicals rose 7.1%. The merchandise imports surged at more than two-and-half year pace of 26% to $43.15 billion in September 2014. Thus, the trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013, while also galloped from $10.84 billion in August 2014.
Brent crude fell to near four-year lows amid growing concerns over the global economy. Brent for November settlement was off 85 cents at $82.93 a barrel. The contract expires today, 16 October 2014. Brent for December settlement was off 57 cents at $83.55 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.
European stocks trimmed their initial gains today, 16 October 2014. Key benchmark indices in UK and Germany were up 0.06% to 0.32%. In France, the CAC 40 Index was off 0.16%.
The European Union has reportedly started a two-week probe of euro-area governments' draft budgets. As yields on 10-year securities from Europe's most-indebted nations surged yesterday, 15 October 2014, led by Greece and sweeping up Portugal, Ireland and Italy, the European Commission started a process of picking apart nations' 2015 spending plans, seeking to defuse potential fiscal time bombs.
Mounting anxiety over global growth and the spread of Ebola dragged Asian bourses lower today, 16 October 2014. Key indices in China, Hong Kong, Singapore, Japan, South Korea, Indonesia and Taiwan were off 0.25% to 2.22%. In Indonesia, the Jakarta Composite index rose 0.07%.
China attracted $9 billion of foreign direct investment in September, up 1.9% from a year earlier, the Ministry of Commerce said in a statement today, 16 October 2014. The figure was up from August's $7.2 billion, which was down 14% from a year earlier and the lowest level since July 2010.
Trading in US index futures indicated that the Dow could gain 32 points at the opening bell today, 16 October 2014. US stocks closed lower on Wednesday, 15 October 2014, but retraced some lost ground in late trading from historic intraday losses, as disappointing economic data fueled growth fears, which were compounded by the spread of Ebola after a second case was reported in the US. Data yesterday, 15 October 2014, showed that US retail sales fell 0.3% last month on a broad pullback in consumer spending in the world's largest economy.
According to the Fed's Beige Book of economic conditions data released yesterday, 15 October 2014, officials there see the economy moving at a modest-to-moderate pace, with consumer spending gaining at a slight-to-moderate pace.
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