Weakness continued on the domestic bourses in mid-morning trade. The barometer index, the S&P BSE Sensex, was down 115.75 points or 0.54%, up about 30 points from the day's low and off close to 60 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Weakness in Asian stocks hit sentiment on the domestic bourses adversely. In the foreign exchange market, the rupee edged lower against the dollar.
Index heavyweight and cigarette maker ITC rose in choppy trade. Realty stocks edged lower. IT stocks also dropped. Suzlon Energy rose after the company said its wholly-owned subsidiary, REpower Systems SE, won orders to deliver 103 wind turbines in Germany.
Asian stocks edged lower on Wednesday, 11 December 2013, on speculation a US budget agreement will boost prospects of tapering the Federal Reserve's stimulus program. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
The market edged lower in early trade on weak Asian stocks. A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. Weakness continued on the bourses in mid-morning trade.
At 11:20 IST, the S&P BSE Sensex was down 115.75 points or 0.54% to 21,139.51. The index fell 144.30 points at the day's low of 21,110.96 in morning trade, its lowest level since 6 December 2013. The index declined 54.75 points at the day's high of 21,200.51 in early trade.
The CNX Nifty was down 34.95 points or 0.55% to 6,297.90. The index hit a low of 6,286.70 in intraday trade, its lowest level since 6 December 2013. The index hit a high of 6,313.25 in intraday trade.
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The market breadth, indicating the overall health of the market, was negative. On BSE, 1,093 shares fell and 863 shares rose. A total of 148 shares were unchanged.
From the 30-share Sensex pack, 19 stocks fell and rest rose. Tata Motors (down 2.75%), Bhel (down 2.11%) and ONGC (down 2.06%) edged lower from the Sensex pack.
Index heavyweight and cigarette maker ITC rose 0.85% to Rs 320.45. The stock hit high of Rs 321.20 and low of Rs 317.55.
Realty stocks edged lower. DLF (down 2.03%), HDIL (down 1%), D B Realty (down 0.42%), and Unitech (down 0.95%) declined.
IT stocks dropped. Infosys (down 0.54%), TCS (down 0.92%) and Wipro (down 0.57%) declined.
Suzlon Energy rose 3.07% after the company said its wholly-owned subsidiary, REpower Systems SE, won orders to deliver 103 wind turbines in Germany. The announcement was made during trading hours today, 11 December 2013. Financial details of the deal were not disclosed.
REpower Systems SE, a wholly-owned subsidiary of the Suzlon Group, has signed contracts to deliver 103 wind turbines with a total capacity of over 266 megawatts (MW) for 24 community wind farm projects in the Schleswig-Holstein region of Germany. The contracts were concluded with different contractors who were previously represented by a purchasing association, Suzlon Energy said in a statement.
REpower signed a primary memorandum with the purchasing association, "Schleswig Holstein GmbH Wind", in December 2012. This memorandum assured the participants from 52 projects in Schleswig-Holstein binding conditions in a model contract. The participants could choose the appropriate offer from the final negotiated contracts of four different manufacturers for their own location. REpower has won 55% of all potential wind turbines for itself in this process, the company said.
The projects will employ various types of turbines from the MM82 with 59 metres hub height, to the 3.2M114 with a hub height of 93 metres. 11 wind turbines of the signed projects are already in the implementation phase and are to be commissioned quickly. The other projects will be completed by 2015, it added.
Andreas Nauer CEO of REpower Systems SE: "With these contracts, we are significantly expanding our position in Northern Germany. This is only possible because we have a suitable turbine for each individual site in our product portfolio, from Lubke-Koog in the far north, to near Fehmarn in the east of Schleswig-Holstein, and also because we have the ability to implement the interests of customers optimally with our staff on site."
In the foreign exchange market, the rupee edged lower against the dollar on speculation a US budget agreement will boost prospects of tapering the Federal Reserve's stimulus program. The partially convertible rupee was hovering at 61.305, compared with its close of 61.04/05 on Tuesday, 10 December 2013.
On macro front, the government will unveil industrial production data for October 2013 after trading hours tomorrow, 12 December 2013. Industrial output is estimated to fall 1.5% in October 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production rose 2% in September 2013, showing increase in growth from 0.4% growth recorded in August 2013.
Data on inflation based on the general consumer price index (CPI) for November 2013 will also be unveiled after trading hours tomorrow, 12 December 2013. CPI (combined) for November 2013 is estimated at 10% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. The CPI inflation (combined) for October 2013 stood at 10.09% (y-o-y), higher than 9.84% (y-o-y) seen in September 2013.
The government will unveil data on inflation based on the wholesale price index (WPI) for November 2013 on 16 December 2013. WPI is seen easing a bit at 6.9% in November 2013, from 7% in October 2013, as per the median estimate of a poll of economists carried out by Capital Market.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
The Asian Development Bank (ADB) on Wednesday kept its growth forecast for India at 4.7% for this year, and sees the country growing at 5.7% in 2014. The Manila-based bank slightly raised its forecast for China this year and the next, aided by the impact of government reforms and better prospects for key trading partners. The bank lifted its 2013 forecast for China to 7.7%, from 7.6% in October. It now sees 2014 growth at 7.5% rather than 7.4%. However, the ADB lowered estimates for Southeast Asia this year and in 2014, in the wake of a strong typhoon in the Philippines and political uncertainties in Thailand. The bank kept its growth forecast for developing Asia at 6% this year and 6.2% next year.
Asian stocks edged lower on Wednesday, 11 December 2013, on speculation a US budget agreement will boost prospects of tapering the Federal Reserve's stimulus program. Key benchmark indices in Taiwan, South Korea, Indoensia, Singapore, China, Japan and Hong Kong were off 0.46% to 1.37%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
Trading in US index futures indicated that the Dow could gain 7 points at the opening bell on Wednesday, 11 December 2013. US stocks fell on Tuesday as investors weighed federal budget negotiations and better-than-estimated economic data to gauge the timing of any Federal Reserve stimulus cuts. The US budget deal, worked out between chief negotiators Senator Patty Murray and Representative Paul Ryan, would set spending at about $1.01 trillion in 2014, higher than the $967 billion required in a 2011 budget accord. A partial shutdown in October lasted for 16 days because lawmakers couldn't agree on how to fund the government.
Meanwhile, the latest data showed job openings in the US climbed to a five-year high in October, indicating employers were confident about demand even as Washington's budget impasse shuttered parts of the federal government. Another report showed wholesale trade sales and inventories increased more than economists forecast.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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