Amid positive cues from European stocks, key equity benchmark indices in India remained firm in mid-afternoon trade. The barometer index, the S&P BSE Sensex, retained the psychological 26,000 mark which it had regained earlier during the day. The barometer index, the S&P BSE Sensex, was currently up 147.24 points or 0.57% at 26,146.58. The Small-Cap index recouped almost entire intraday losses. The market breadth indicating the overall health of the market was negative.
FMCG stocks advanced. Telecom stocks also edged higher. Index heavyweight Reliance Industries edged higher in volatile trade. Edelweiss Financial Services surged on strong Q2 earnings. Sasken Communication Technologies slumped on turning ex-dividend.
Earlier, key indices had drifted lower in mid-morning trade after a range bound movement in morning trade. Before that, key indices had bounces back after a weak opening.
In overseas markets, European stocks edged higher as an ailing euro-area economy increases pressure on policy makers to provide more stimulus measures. Asian stocks were mixed. Trading in US index futures indicated a rally for US stocks at the opening bell later in the global day today, 17 October 2014. US stocks recovered from early losses yesterday, 16 October 2014, as St. Louis Federal Reserve Bank President James Bullard said policy makers should consider delaying the end of bond purchases to halt the decline in inflation expectations.
Brent crude oil prices climbed from the lowest level in almost four years on speculation prices decreased more than justified.
In the foreign exchange market, the rupee edged higher against the dollar, tracking stronger Asian currencies.
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At 14:14 IST, the S&P BSE Sensex was up 147.24 points or 0.57% at 26,146.58. The index jumped 169.22 points at the day's high of 26,168.56 in mid-afternoon trade. The index lost 88.57 points at the day's low of 25,910.77 in mid-morning trade, its lowest level since 13 August 2014.
The CNX Nifty was up 42.05 points or 0.54% at 7,790.25. The index hit a high of 7,799 in intraday trade. The index hit a low of 7,723.85 in intraday trade, its lowest level since 13 August 2014.
The BSE Mid-Cap index was up 37.67 points or 0.41% at 9,281.62. The BSE Small-Cap index was off 9.74 points or 0.09% at 10,333.35. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,398 shares dropped while 1,259 shares rose. A total of 109 shares were unchanged.
FMCG stocks gained. Nestle India (up 0.86%), Marico (up 0.35%), Hindustan Unilever (up 0.03%) and Godrej Consumer Products (up 2.77%) gained. Dabur India (down 0.65%) and Colgate-Palmolive (India) (down 0.33%) declined.
Telecom stocks advanced. Idea Cellular (up 4.52%), Bharti Airtel (up 2.38%), and Reliance Communications (up 1.11%) gained. Tata Teleservices (Maharashtra) was flat at Rs 9.14. Telecom Regulatory Authority of India (Trai) on 15 October 2014 set the starting prices for a coming auction of frequencies to cellphone companies whose permits are set to expire later this year. The Trai suggested that the Department of Telecommunications auction frequencies in the 900-megahertz band with a starting price of Rs 3004 crore per unit and in the 1800-megahertz band at Rs 2138 crore.
The auctions are crucial to top four cellphone operators viz. Bharti Airtel, the local unit of Vodafone Group PLC., Idea Cellular and Reliance Communications, whose permits in some of the service areas are set to expire in the next two years. These operators use frequencies in both bandwidths to provide cellphone services. Auctions won't be held for the 900-megahertz band in four service areas, and in two service areas for the 1800-megahertz band as frequencies aren't available in those areas, the regulator said.
Reliance Industries (RIL) rose 0.61% at Rs 938.05. The stock hit a high of Rs 939.10 and a low of Rs 925.60 so far in the day. Reliance Industries' 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. RIL attributed the decline in turnover to lower crude prices and decline in volumes in the refining and oil & gas businesses. RIL announced the results early this week.
Edelweiss Financial Services spurted 5.71% at Rs 48.10 after consolidated net profit jumped 71.96% to Rs 79.24 crore on 56.62% rise in total income to Rs 909.51 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours.
Sasken Communication Technologies tumbled 8.62% at Rs 247 as the stock turned ex-dividend today, 17 October 2014 for a special dividend of Rs 20 per share for the year ending 31 March 2015.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 16 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1128.37 crore on that day.
In the foreign exchange market, the rupee edged higher against the dollar, tracking stronger Asian currencies. The partially convertible rupee was hovering at 61.535, compared with its close of 61.84 during the previous trading session.
Reserve Bank of India (RBI) Governor Raghuram Rajan said in Hyderabad yesterday, 16 October 2014, that the drop in bond yields is partly signaling RBI's success in controlling inflation. The RBI is targeting consumer price inflation of 8% by January 2015 and 6% by January 2016.
Brent crude oil prices climbed from the lowest level in almost four years on speculation prices decreased more than justified. Brent for December settlement rose 27 cents at $86.09 a barrel. The contract had risen $1.70 a barrel to settle at $85.82 a barrel yesterday, 16 October 2014.
Crude prices have witnessed a steep slide recently. 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 climbed today, 17 October 2014, as an ailing euro-area economy increases pressure on policy makers to provide more stimulus measures. Key benchmark indices in UK, France and Germany were up 0.86% to 1.44%.
German Chancellor Angela Merkel told lawmakers in Berlin yesterday, 16 October 2014, that existing economic aid had been underused and now wasn't the moment to ease up on the fiscal discipline she credits with bringing stability to the continent.
Asian stocks were mixed today, 17 October 2014. Key indices in Japan, China, Taiwan, and South Korea were off 0.65% to 1.4%. Key indices in Hong Kong, Singapore and Indonesia were up 0.35% to 1.77%.
China is expected to release third-quarter economic growth figures on Tuesday, 21 October 2014.
The MNI China Business Indicator fell to a eight-month low of 51.7 in October, the latest data showed today, 17 October 2014. It was down from September's reading of 52.2. While the indicator remains above the breakeven 50 line that separates expansion from contraction, the trend weakened further, with business sentiment below the average of 54 seen over the past 12 months.
Trading in US index futures indicated that the Dow could gain 169 points at the opening bell today, 17 October 2014. US stocks ended little changed yesterday, 16 October 2014, with the Dow industrials recouping much of a 206-point deficit, as investors balanced worries about global growth against mostly better-than-expected US earnings and economic reports.
The National Association of Home Builders (NAHB)/Wells Fargo housing market index fell unexpectedly last month, official data showed on Thursday, 16 October 2014. In a report, NAHB said that NAHB Housing Market Index fell to 54, from 59 in the preceding month.
The Federal Reserve may want to extend its bond-buying program beyond October to keep its policy options open given falling US inflation expectations, Federal Reserve Bank of St. Louis President James Bullard said yesterday, 16 October 2014.
The Federal Open Market Committee (FOMC) next undertakes a monetary policy review at a two-day meeting on 28-29 October 2014.
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