After witnessing high intraday volatility, key benchmark indices registered small losses. After staging a strong intraday rebound in mid-afternoon trade, benchmark indices once again slipped into the red in late trade as European stocks faltered after a key sentiment survey from Germany underscored fears about slowing growth in Europe's largest economy. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was provisionally down 24.55 points or 0.09% at 26,359.52. Foreign portfolio investors (FPIs) sold shares worth a net Rs 671.06 crore yesterday, 13 October 2014, as per provisional data.
Index heavyweight Reliance Industries (RIL) edged higher in volatile trade after reporting record quarterly profit. Sesa Sterlite edged lower in volatile trade on reports that the Supreme Court has reiterated a prior ruling that all iron ore mined in Goa before 2007 belonged to the state. Realty major DLF tumbled to record low after Securities and Exchange Board of India barred the company and its chairman K.P. Singh along with five other company executives from accessing India's capital markets for three years. Bajaj Finserv reversed gains after declaring Q2 earnings. Some FMCG stocks advanced in a weak market.
Key indices underwent volatility in intraday trade. Key benchmark indices reversed direction soon after a firm opening triggered by data released after trading hours yesterday, 13 October 2014, showing easing of consumer price inflation last month. Volatility ruled the roost in late trade as benchmark indices once again slipped into the red in late trade after staging a strong intraday rebound in mid-afternoon trade.
In overseas markets, European stocks fell after a key sentiment survey from Germany underscored fears about slowing growth in Europe's largest economy. Asian stocks were mixed. US index futures fluctuated after yesterday's sell-off for US stocks.
Brent crude oil prices dropped after the International Energy Agency cut its 2014 oil demand growth forecast to its weakest in five years
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade.
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As per provisional figures, the S&P BSE Sensex was down 24.55 points or 0.09% to 26,359.52. The index lost 172.06 points at the day's low of 26,212.01 in mid-morning trade. The index surged 166.72 points at the day's high of 26,550.79 at the onset of the trading session, its highest level since 10 October 2014.
The CNX Nifty was down 20.25 points or 0.26% at 7,864, as per provisional figures. The index hit a low of 7,825.45 in intraday trade. The index hit a high of 7,928 in intraday trade, its highest level since 9 October 2014.
The BSE Mid-Cap index was down 16.68 points or 0.18% at 9,473.08. The BSE Small-Cap index was down 15.22 points or 0.14% at 10,631.25.
The market breadth indicating the overall health of the market was negative. On BSE, 1,620 shares declined and 1,300 shares gained. A total of 109 shares were unchanged.
The total turnover on BSE amounted to Rs 3175 crore, higher than turnover of Rs 2426.68 crore on Monday, 13 October 2014.
Select FMCG stocks edged higher. Hindustan Unilever (up 1.54%), Marico (up 0.83%), and Colgate-Palmolive (India) (up 0.09%) gained.
RIL rose 0.33% at Rs 961 after consolidated net profit rose 1.7% to a record Rs 5972 crore in Q2 September 2014 over Q2 September 2013. Turnover declined 4.3% to Rs 113396 crore in Q2 September 2014 over Q2 September 2013. The stock was volatile. The stock hit a high of Rs 980 and a low of Rs 959.15. The result was announced after market hours yesterday, 13 October 2014.
RIL attributed the decline in turnover to lower crude prices and decline in volumes in the refining and oil & gas businesses. RIL's other income or non-operational income dropped 14.36% to Rs 2009 crore in Q2 September 2014 over Q2 September 2013. RIL said the decline in non-operational income was primarily on account of lower investible surplus.
RIL's gross refining margins (GRM) edged up to $8.3 a barrel in Q2 September 2014, from $7.7 a barrel in Q2 September 2013. The GRM was lower than $8.7 a barrel in Q1 June 2014.
Sesa Sterlite lost 1.08% at Rs 247.55. The stock saw high intraday volatility. The stock hit a high of Rs 254.20 and a low of Rs 219.25. High volumes accompanied the decline in the stock. On BSE, 29.24 lakh shares changed hands in the counter, compared with average daily volume of 5.52 lakh shares during the past one quarter. As per reports, the Supreme Court today, 14 October 2014, reiterated a prior ruling that all iron ore mined in Goa before 2007 belonged to the state. The court has ordered pre-2007 iron ore to be auctioned by a monitoring panel, according to reports. Sesa Sterlite was formed after Vedanta Resources Plc merged Sterlite Industries and Sesa Goa in 2013.
Realty major DLF tumbled 28.43% at Rs 105. The stock hit a record low of Rs 102.70 in intraday. High volumes accompanied the decline in the stock. On BSE, 1.68 crore shares changed hands in the counter, compared with average daily volume of 11.14 lakh shares during the past one quarter. Market regulator Securities and Exchange Board of India (Sebi) on Monday, 13 October 2014, barred DLF and its chairman K.P. Singh along with five other company executives from accessing India's capital markets for three years. The order is related to lapses in disclosures made at time of the company's IPO in 2007.
DLF said before market hours today, 14 October 2014, that the order dated 10 October 2014 passed by the whole time member of Securities and Exchange Board of India (Sebi) has come to the notice of DLF only on 13 October 2014. The order is being reviewed by DLF and its legal advisors. DLF and its board wish to reassure its investors and all other stakeholders that it has not acted in contravention of law either during its initial public offer or otherwise, DLF said. DLF and its board were guided by and acted on the advise of eminent legal advisors, merchant bankers and audit firms while formulating its offer documents, the company said. DLF will defend itself to the fullest extent against any adverse findings and measures contained in the order passed by Sebi, DLF said. The realty major said it has full faith in the judicial process and is confident of vindication of its stand in the near future, the company added.
Bajaj Finserv lost 3.9% at Rs 1,070. The stock was volatile. The stock hit a high of Rs 1,140.15 and a low of Rs 1,066.40. The company's consolidated net profit rose 14.24% to Rs 315.93 crore on 25.89% growth in total income to Rs 1648.46 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours.
Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 13 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 671.06 crore on that day.
The stock market remains closed tomorrow, 15 October 2014, on account of assembly election in Maharashtra.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 61.305, compared with its close of 61.10 during the previous trading session.
Brent crude oil prices dropped after the International Energy Agency (IEA) cut its 2014 oil demand growth forecast to its weakest in five years. Brent for November settlement was off $1.07 at $87.82 a barrel. The contract had tumbled $1.32 to settle at $88.89 a barrel on Monday, 13 October 2014, its lowest closing level since 1 December 2010. Brent for December settlement was off $1.11 at $88.30 a barrel.
In its closely watched monthly oil market report, IEA cut its forecast for the amount it expects oil demand to increase this year by 200,000 barrels a day to just 700,000 barrels a day. However, the IEA said the weakness in demand growth may have reached its bottom. The organization sees demand picking up more next year, to increase by 1.1 million barrels a day.
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. However, the weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices.
The annual rate of inflation based on the Wholesale Price Index (WPI) eased to 2.38% in September 2014, from 3.74% in August 2014, data released by the government today, 14 October 2014, showed. Core WPI inflation which excludes volatile food and fuel prices eased to 2.8% in September 2014, from 3.5% in August 2014. Meanwhile, July WPI inflation rate was revised upwards to 5.41% from 5.19% reported earlier.
The WPI data comes after another data released by the government after trading hours yesterday, 13 October 2014, showed easing of consumer price inflation last month. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 6.46% in September 2014, from 7.73% in August 2014. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India eased to 7.67% in September 2014, from 9.35% in August 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 5.9% in September 2014, from 6.82% in August 2014.
European stocks fell today, 14 October 2014, after a key sentiment survey from Germany underscored fears about slowing growth in Europe's largest economy. Key benchmark indices in UK, France and Germany were off 0.88% to 1.35%.
The economic mood in Germany dropped in October, with the ZEW economic sentiment indicator sinking into negative territory for the first time since November 2012, data showed today, 14 October 2014. The index now stands at negative 3.6, down 10.5 points from September's level of 6.9.
French consumer prices fell further than expected in September, adding to concerns over persistently low inflation in the eurozone. Consumer prices in the eurozone's second-largest economy fell 0.4% in September from August and were 0.3% higher than in September last year.
Asian stocks were mixed today, 14 October 2014. Key indices in Taiwan, South Korea and Indonesia were up 0.11% to 0.65%. Key indices in China, Hong Kong, Singapore, and Japan were off 0.03% to 2.38%.
China's central bank cut the interest rate it pays lenders for 14-day repurchase agreements for the second time in a month. The People's Bank of China sold 20 billion yuan ($3.3 billion) of the contracts at 3.4% today, 14 October 2014, according to a statement on its website. That compares with 3.5% in a similar auction on 9 October 2014.
Trading in US index futures indicated that the Dow could fall 5 points at the opening bell today, 14 October 2014. The US stock market ended Monday's volatile session sharply lower as selling intensified at the last hour. Volatile trading came on the heels of last week's deep losses that had been triggered by global economic growth concerns.
Other Fed officials joined Vice Chairman Stanley Fischer in signaling that the threat posed by slowing global growth may cause US rate increases to be delayed. Chicago Fed President Charles Evans reiterated his concern yesterday that inflation may only quicken slowly toward the US central bank's 2% goal and said officials should be exceptionally patient in adjusting monetary policy.
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