Volatility continued as the key benchmark indices alternately swung between positive and negative zone in morning trade. The barometer index, the S&P BSE Sensex, was currently down 7.84 points or 0.03% at 26,264.13. Asian stocks dropped, extending a global selloff. Brent crude was hovering near a two-year low. Meanwhile, India's international border with Pakistan remains tense as firing continued in 7 sectors of Jammu and Kashmir, according to reprots. The market breadth indicating the overall health of the market was positive. Pharmaceutical shares declined. L&T advanced after its owned subsidiary L&T Technology Services announced the intent to acquire the asset of US based Dell Product and Process Innovation Services.
The International Monetary Fund yesterday, 7 October 2014, raised its growth forecast for India to 5.6% for FY 2015 from 5.4% predicted earlier. It has forecast 6.4% growth for India for FY 2016.
In overseas markets, Asian stocks declined, extending a global selloff, amid concern that the global economic outlook is worsening. US stocks tumbled on Tuesday, 7 October 2014, as weak data out of Germany raised concerns about the strength of global growth ahead of the start of earnings season.
Earlier, high volatility was witnessed as key indices had bounced back after an initial slide took the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty to their lowest level in more than 7 weeks.
In the foreign exchange market, the rupee was almost unchanged against the dollar.
Brent crude oil prices dropped sharply after the International Monetary Fund (IMF) yesterday, 7 October 2014, cut its outlook for global growth in 2015.
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At 10:15 IST, the S&P BSE Sensex was down 7.84 points or 0.03% at 26,264.13. The index fell 84.16 points at the day's low of 26,187.81 in early trade, its lowest level since 18 August 2014. The index gained 62.38 points at the day's high of 26,334.35 in morning trade.
The CNX Nifty was down 8.05 points or 0.1% at 7,844.35. The index hit a low of 7,826.70 in intraday trade, its lowest level since 18 August 2014. The index hit a high of 7,869.90 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 995 shares gained and 897 shares fell. A total of 88 shares were unchanged.
The BSE Mid-Cap index was down 10.35 points or 0.11% at 9,415.04, underperforming the Sensex. The BSE Small-Cap index was up 0.50 points at 10558.46, outperforming the Sensex.
The total turnover on BSE amounted to Rs 782 crore by 10:20 IST compared to Rs 185 crore by 09:30 IST.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.
Pharmaceutical shares declined. Cadila Healthcare (down 0.59%), Cipla (down 2.59%), Dr Reddy's Laboratories (down 2.55%), Glenmark Pharmaceuticals (down 0.06%), Lupin (down 1.11%), Ranbaxy Laboratories (down 1.48%), Sun Pharmaceutical Industries (down 1.66%) declined.
Larsen & Turbo (L&T) advanced 1.76%. L&T Technology Services, the wholly owned subsidiary of L&T, today, 8 October 2014, announced the intent to acquire the asset of US based Dell Product and Process Innovation Services, the engineering services division of Dell. The Competition Commission of India (CCI) has approved the proposed transaction. The company is awaiting US regulatory approvals which are expected shortly, L&T said. The proposed transaction will significantly drive forward L&T Technology Services' position as a premier engineering services provider by adding local delivery centers in North America, L&T said. The proposed acquisition enables L&T Technology Services to consolidate its position as preferred vendor in the $4 billion Transportation Engineering Research & Development (RR&D) market.
In the foreign exchange market, the rupee was almost unchanged against the dollar. The partially convertible rupee was hovering at 61.42, compared with its close of 61.425 during the previous trading session.
Brent crude oil prices dropped sharply after the International Monetary Fund (IMF) cut its outlook for global growth. Brent for November settlement was off $1.05 at $91.06 a barrel. The contract had declined 68 cents to settle at $92.11 a barrel yesterday, 7 October 2014, the lowest settlement price since June 2012.
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.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 7 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 332.84 crore on that day.
The International Monetary Fund (IMF) yesterday, 7 October 2014, cut its outlook for global growth in 2015 and warned about the risks of rising geopolitical tensions and a financial-market correction as stocks reach frothy levels. The world economy will grow 3.8% next year, compared with a July forecast for 4%, after a 3.3% expansion this year, the Washington-based IMF said. Some financial markets may be overheating after a sustained period of near-zero rates, according to the report.
Asian stocks declined today, 8 October 2014, after the International Monetary Fund (IMF) cut its outlook for global growth in 2015. Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea were off 0.16% to 1.35%. China's Shanghai Composite index was up 0.3%.
The HSBC China services Purchasing Managers Index edged down to 53.5 in September, after recording a 17-month high of 54.1 in August, HSBC Holdings PLC today, 8 October said. A reading above 50 indicates a month-on-month expansion while below points to contraction.
Trading in US index futures indicated that the Dow could rise 18 points at the opening bell today, 8 October 2014. US stocks ended sharply lower on Tuesday, 7 October 2014, as weak data out of Germany raised concerns about the strength of global growth ahead of the start of earnings season.
The US Federal Reserve will today, 8 October 2014, release the minutes of its Sept. 16-17 meeting at which it had decided to cut its monthly bond purchases to $15 billion. Policy makers next begin their two-day meeting on 28 October 2014.
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