A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was currently down 113.63 points or 0.43% at 26,270.44. Foreign portfolio investors (FPIs) sold shares worth a net Rs 671.06 crore yesterday, 13 October 2014, as per provisional data. Most Asian stocks were in green and US index futures pointed to a recovery of US stocks after yesterday's sell-off.
DLF tumbled to record low after Securities and Exchange Board of India (Sebi) on Monday, 13 October 2014, barred the company and its chairman K.P. Singh along with five other company executives from accessing India's capital markets for three years. Metal stocks dropped. PSU OMCs decilned. Shares of upstream state-run oil and gas firms also dropped. Tata Steel dropped after reporting production data for Q2 September 2014. Bosch dropped amid volatility after the company said that the Karnataka state government has prohibited strike by the company's employees at its Bangalore plant with immediate effect. Bajaj Auto advanced ahead of its Q2 September 2014 results.
Earlier, key indices had reversed direction after a firm opening triggered by data released after trading hours yesterday, 13 October 2014, showing easing of consumer price inflation last month.
In overseas markets, most Asian stocks rose. US index futures pointed to a recovery of US stocks after yesterday's sell-off.
Brent crude oil prices dropped as expectations faded that OPEC could cut output and shore up prices.
In the foreign exchange market, the rupee reversed initial gains against the dollar as key equity benchmark indices dropped.
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At 11:19 IST, the S&P BSE Sensex was down 113.63 points or 0.43% at 26,270.44. 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 43.35 points or 0.55% at 7,840.90. 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 up 11.60 points or 0.12% at 9,501.36. The BSE Small-Cap index was up 16.53 points or 0.16% at 10,663. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market turned negative from positive in mid-morning trade. On BSE, 1,180 shares declined and 1,073 shares gained. A total of 80 shares were unchanged.
Metal stocks declined. Sesa Sterlite (down 5.69%), Jindal Steel & Power (down 3.4%), NMDC (down 2.57%), Hindalco Industries (down 1.36%), Hindustan Zinc (down 0.38%), JSW Steel (down 1.67%). Steel Authority of India (up 0.07%) gained.
Tata Steel lost 2.51% at Rs 446.30. The company after trading hours yesterday, 13 October 2014, said that its saleable steel production rose 0.31% to 2.21 million tonnes in Q2 September 2014 over Q2 September 2013. The company's hot metal production rose 4.78% to 2.58 million tones in Q2 September 2014 over Q2 September 2013. Crude steel production declined 0.91% to 2.26 million tones in Q2 September 2014 over Q2 September 2013. Tata Steel's steel deliveries rose 3.53% to 2.11 million tones in Q2 September 2014 over Q2 September 2013.
PSU OMCs declined. BPCL (down 1.54%), HPCL (down 1.03%) and Indian Oil Corporation (down 2.03%) edged lower.
Shares of upstream state-run oil and gas firms also dropped. Oil India (down 0.5%) and ONGC (down 0.79%) declined. GAIL (India) (up 0.34%) gained.
Bosch dropped amid volatility after the company said that the Karnataka state government has prohibited strike by the company's employees at its Bangalore plant with immediate effect. The stock was off 0.08% at Rs 14,549.95. The stock was volatile. The stock hit a high of Rs 14,655 and a low of Rs 14,500 so far in the day. Bosch said it will continue to adopt a fair but firm approach and urges its workmen union to call off the indefinite illegal strike, report to work and restore normalcy. The management is continuing to take necessary measures taking into account overall customer requirements, Bosch said during trading hours.
Bajaj Auto rose 2.47% at Rs 2.409.30 ahead of its Q2 September 2014 earnings today, 14 October 2014.
Bajaj Finserv rose 0.05% at Rs 1,114 ahead of its Q2 September 2014 earnings today, 14 October 2014.
Bajaj Finance rose 2.69% at Rs 2,755.40 ahead of its Q2 September 2014 earnings today, 14 October 2014.
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.
Meanwhile, the stock market will remain closed tomorrow, 15 October 2014, on account of assembly election in Maharashtra.
In the foreign exchange market, the rupee reversed initial gains against the dollar as key equity benchmark indices dropped. The partially convertible rupee was hovering at 61.1375, compared with its close of 61.10 during the previous trading session.
Brent crude oil prices dropped as expectations faded that OPEC could cut output and shore up prices. Brent for November settlement was off 68 cents at $88.21 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 67 cents at $88.74 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.
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, data released by the government after trading hours yesterday, 13 October 2014, showed. 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.
The annual rate of inflation based on the Wholesale Price Index (WPI) is seen further decelerating to 3.3% in September 2014, from 3.74% in August 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the WPI inflation data at 12 noon today, 14 October 2014.
Asian stocks edged higher today, 14 October 2014. Key indices in Taiwan, Singapore, South Korea, and Indonesia were up 0.06% to 0.65%. In Japan, the Nikkei 225 was off 2.36%. In mainland China, the Shanghai Composite index was off 0.09%.
Hong Kong's Hang Seng Index rose as police used chain saws to clear barricades along a road through the city's main protest zone. The Hang Seng was up 0.27%.
Trading in US index futures indicated that the Dow could gain 49 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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