Key benchmark indices remained firm in afternoon trade as firmness in global stocks boosted sentiment. The barometer index, the S&P BSE Sensex was currently up 297.37 points or 1.13% at 26,544.16. The market breadth indicating the overall health of the market was strong with over two gainers for every loser. IT stocks gained. PSU OMCs fell as crude oil prices recovered after recent fall.
In overseas markets, European and Asian stocks rose today, 9 October 2014 as US Federal Reserve concerns over a global economic slowdown spurred bets that US interest rates will remain low. US stocks scored their biggest one-day gains of the year yesterday, 8 October 2014 after minutes of September Federal Open Market Committee meeting reaffirmed the central bank's intent to be prudent in raising interest rates.
Key indices held firm after opening with an upward gap mirroring positive Asian stocks. The barometer index, the S&P BSE Sensex, hit over one week high.
In the foreign exchange market, the rupee edged higher against the dollar on sustained selling of the US currency by exporters and banks.
Brent crude futures held steady above $91 a barrel today, 9 October 2014 after rebounding from a 27-month low hit in the previous session as the US dollar weakened.
At 13:15 IST, the S&P BSE Sensex was up 297.37 points or 1.13% at 26,544.16. The index jumped 324.87 points at the day's high of 26,571.66 in mid-morning trade, its highest level since 1 October 2014. The index gained 147.42 points at the day's low of 26,394.21 in early trade.
The CNX Nifty was up 81.70 points or 1.04% at 7,924.40. The index hit a high of 7,940.70 in intraday trade, its highest level since 7 October 2014. The index hit a low of 7,886.50 in intraday trade.
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The market breadth indicating the overall health of the market was strong with over two gainers for every loser. On BSE, 1,835 shares gained and 820 shares fell. A total of 103 shares were unchanged.
The BSE Mid-Cap index was up 139.87 points or 1.49% at 9,543.70. The BSE Small-Cap index was up 137.40 points or 1.3% at 10,701.54. Both these indices outperformed the Sensex.
UltraTech Cement rose 0.61%. With respect to news article titled "Ultratech eyes Jaypee's 3 Cement Plants in MP" the company has clarified that the news item is speculative in nature and the company would not like to comment on the same. The company would, as in the past, promptly inform of any event or information that may have a bearing on the performance / operations of the company.
IT stocks gained. TCS (up 0.81%), HCL Technologies (up 0.94%) and Wipro (up 0.18%) gained. Tech Mahindra declined 1.46%.
Infosys rose 0.5% ahead of its Q2 results tomorrow, 10 October 2014. Investors will keenly watch Infosys' commentary regarding changes in its strategy under the new CEO, Dr. Vishal Sikka, when the company unveils its Q2 September 2014 results tomorrow, 10 October 2014. At the time of announcing Q1 June 2014 results in July 2014, Infosys had forecast 7% to 9% growth in the company's revenue in dollar terms for the year ending 31 March 2015 (FY 2015). At that time, the company had forecast 5.6% to 7.6% growth in revenue in rupee terms for FY 2015. The guidance was based on rupee dollar exchange rate of 60. With deprecation of rupee against the dollar since that time, there is a room for upward revision in revenue guidance in rupee terms.
PSU OMCs fell as crude oil prices recovered after recent fall. HPCL (down 0.03%), BPCL (down 0.29%) and Indian Oil Corporation (IOCL) (down 0.8%) edged lower.
Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
The government will unveil industrial production data for August 2014 tomorrow, 10 October 2014. India's index of industrial production (IIP) growth moderated to 0.5% in July 2014, showing moderation in the pace of growth from 3.9% (revised) increase recorded in the previous month of June 2014.
In the foreign exchange market, the rupee edged higher against the dollar on sustained selling of the US currency by exporters and banks. The partially convertible rupee was hovering at 60.95, compared with its close of 61.4 during the previous trading session.
Brent crude futures held steady above $91 a barrel today, 9 October 2014 after rebounding from a 27-month low hit in the previous session as the US dollar weakened. Brent for November settlement was up 35 cents at $91.73 a barrel. The contract had declined 73 cents to settle at $91.38 a barrel yesterday, 8 October 2014. It had dropped to $90.57 yesterday, the lowest since June 2012.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 8 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1440.99 crore on that day.
European stocks rallied today, 9 October 2014, rebounding from a two-month low, on speculation that the Federal Reserve will keep interest rates near zero amid concerns about slower global growth. Key benchmark indices in France, Germany and UK rose 0.88 % to 1%.
The Bank of England (BOE) will announce its latest policy decision today, 9 October 2014. Reports indicated that interest rates are expected to remain on hold today, 9 October 2014 as signs of slowing economic growth and a cooling housing market ease pressure on the Bank of England for an imminent hike. The BOE has held the main rate at a historic low of 0.5% since March 2009.
Asian stocks rose today, 9 October 2014 as US Federal Reserve concerns over a global economic slowdown spurred bets that US interest rates will remain low. Key benchmark indices in Singapore, Taiwan, China, Hong Kong and Indonesia rose by 0.13% to 1.08%. Japan's Nikkei 225 index shed 0.75% Markets in South Korea were closed for holiday.
Japanese core machinery orders rose for the third straight month in August, the government said today, 9 October 2014. The 4.7% rise in August follows monthly gains of 3.5% in July and 8.8% in June, after a record 19.5% drop in May.
Trading in US index futures indicated that the Dow could fall 7 points at the opening bell on Thursday, 9 October 2014. US stocks scored their biggest one-day gains of the year yesterday, 8 October 2014 after minutes of September Federal Open Market Committee meeting reaffirmed the central bank's intent to be prudent in raising interest rates.
Slowing global growth and a stronger dollar pose potential risks to the US outlook, Fed policy makers said at their Sept. 16-17 meeting, according to the minutes released yesterday, 8 October 2014.
The Federal Open Market Committee (FOMC) last month retained a pledge to keep interest rates near zero for a considerable time after it concludes an asset purchase program that's due to end after its October meeting. Policy makers next begin their two-day meeting on 28 October 2014.
The influential US monthly non-farms payroll data is due tomorrow, 10 October 2014. The data pertains to September 2014.
Meanwhile, finance ministers and central bankers from the Group of 20 nations are scheduled to meet today, 9 October 2014 and tomorrow, 10 October 2014 in Washington will discuss the outlook for inflation and the economy.
The IMF and World Bank begin their annual meetings in Washington tomorrow, 10 October 2014 as finance ministers and central bankers from around the world discuss ways to bolster the global economic recovery, weather the latest bout of geopolitical instability and lift incomes in poor countries.
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