Exports focused IT and pharma stocks led decline as key indices once again slipped into the red from green in early afternoon trade. The barometer index, the S&P BSE Sensex, hit its lowest level in more than seven weeks. The market breadth indicating the overall health of the market turned negative from positive in early afternoon trade. The Sensex was currently down 74.88 points or 0.29% at 26,197.09. Asian stocks dropped, extending a global selloff. Crude oil prices slumped which augurs well for India. Meanwhile, tension continues on the Indo-Pak border.
PSU OMCs gained as crude oil prices dropped sharply. Shares of state-run upstream oil and gas companies edged higher on hopes of lower subsidy sharing burden. Banks stocks were in demand on renewed buying.
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 edged lower against the dollar.
More From This Section
Brent crude oil prices dropped sharply after the International Monetary Fund (IMF) yesterday, 7 October 2014, cut its outlook for global growth in 2015.
At 12:15 IST, the S&P BSE Sensex was down 74.88 points or 0.29% at 26,197.09. The index fell 90.74 points at the day's low of 26,181.23 in early afternoon 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 17.95 points or 0.23% at 7,834.45. 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 turned negative from positive in early afternoon trade. On BSE, 1,318 shares declined and 1,205 shares gained. A total of 106 shares were unchanged.
The BSE Mid-Cap index was off 32 points or 0.34% at 9393.39. The BSE Small-Cap index was off 35.52 points or 0.34% at 10,522.44. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 1418 crore by 12:20 IST, compared to Rs 1106 crore by 11:20 IST.
PSU OMCs gained as crude oil prices dropped sharply today, 8 October 2014. HPCL (up 4.37%), BPCL (up 3.08%) and Indian Oil Corporation (IOCL) (up 3.46%) edged higher.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Shares of state-run upstream oil and gas companies edged higher on hopes of lower subsidy sharing burden. ONGC (up 1.62%) and Oil India (up 0.03%) rose. GAIL (India) fell 0.56%.
State run upstream companies share a part of the under recoveries of state-run oil marketing companies (PSU OMCs) arising from the government-imposed price caps on fuel sales.
Banks stocks were in demand on renewed buying. Among private bank stocks, HDFC Bank (up 0.09%), IndusInd Bank (up 2.13%), Kotak Mahindra Bank (up 0.08%), Axis Bank (up 0.67%), Yes Bank (up 0.09%) and ICICI Bank (up 1.08%) gained.
Among PSU bank stocks, Punjab National Bank (up 0.48%), Bank of India (up 1.21%) and Union Bank of India (up 1.61%) gained. Bank of Baroda shed 0.12%.
State Bank of India rose 1.23% on buzz that a foreign brokerage has maintained buy rating on the stock citing the bank's strong deposit franchise, well capitalised balance sheet and focus on profitability.
KEC International rose 1.33% after the company said it has secured new orders worth Rs 1029 crore in its transmission & distribution, cables and renewables businesses. The new orders were announced during market hours today, 8 October 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.48, 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 $1.13 a barrel at $90.98 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.
Meanwhile, India's international border with Pakistan remains tense. As per reports, two people have lost their lives in fresh firing that took place in Samba along the International Border today, 8 October 2014, taking the death toll in ceasefire violations up to seven. Six others including a Border Security Force personnel have also been injured in the firing, according to reports.
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 0.35% to 1.04%. China's Shanghai Composite index was up 0.55%.
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 13 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.
Powered by Capital Market - Live News