An extremely range bound movement was witnessed as key benchmark indices languished in red in early afternoon trade. The losses for the benchmark indices were small. The barometer index, the S&P BSE Sensex, was currently below the psychological 28,000 level, having alternately moved above and below that level in intraday trade so far. The market breadth indicating the overall health of the market was negative. The Sensex was currently was off 26.84 points or 0.1% at 27,982.06. Global crude oil prices edged lower. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.
Consumer price inflation dropped further last month, data released by the government after trading hours yesterday, 12 November 2014, showed. Industrial production growth improved to 2.5% in September 2014, from a revised 0.5% growth in August 2014, another data released by the government after trading hours yesterday, 12 November 2014, showed. Asian stocks were mixed today, 13 November 2014. Meanwhile, Minister of State (I/C) for Commerce and Industry Nirmala Sitharaman today, 13 November 2014, said that India and the US have successfully resolved their differences relating to the issue of public stockholding for food security purposes in the World Trade Organization (WTO) and this will end the impasse at the WTO and also open the way for implementation of the Trade Facilitation Agreement.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 459.47 crore yesterday, 12 November 2014, as per provisional data.
Sugar stocks rallied. Max India slumped after reporting reverse turnaround in Q2. ICRA tanked after poor Q2 earnings. National Aluminium Company jumped after strong Q2 results.
In overseas markets, Asian stocks were mixed after the latest data showed China's industrial output growth slowed last month. US stocks ended choppy session essentially unchanged yesterday, 12 November 2014, as the main indexes struggled to stay in record territory. In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged lower amid signs that OPEC remains unwilling to reduce output to ease concern of a global supply glut.
At 12:15 IST, the S&P BSE Sensex was down 26.84 points or 0.1% at 27,982.06. The index lost 97.73 points at the day's low of 27,911.17 in morning trade, its lowest level since 11 November 2014. The index gained 89.84 points at the day's high of 28,098.74 in early trade.
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The CNX Nifty was off 10 points or 0.12% at 8,373.30. The index hit a low of 8,345.60 in intraday trade, its lowest level since 11 November 2014. The index hit a high of 8,408 in intraday trade.
The BSE Mid-Cap index was up 32.91 points or 0.32% at 10,166.18. The BSE Small-Cap index was up 44.46 points or 0.4% at 11,228.81. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,341 shares declined and 1,286 shares advanced. A total of 109 shares were unchanged.
Sugar stocks rallied. Upper Ganges Sugar & Industries (up 10.65%), Oudh Sugar Mills (up 10.29%), Balrampur Chini Mills (up 12.43%), Triveni Engineering & Industries (up 10.27%), Dwarikesh Sugar Industries (up 11.06%), Rana Sugars (up 8.26%), Bajaj Hindusthan (up 9.02%), EID Parry (India) (up 2.62%), and DCM Shriram Industries (up 0.47%) gained.
Shares of Shree Renuka Sugars were up 5.68% at Rs 18.60. The company reported a net loss of Rs 129.10 crore in Q2 September 2014, higher than net loss of Rs 120.30 crore in Q2 September 2013. Net sales rose 6.1% to Rs 1628.90 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 12 November 2014.
Max India slumped 4.9% at Rs 415.50 after the company reported net loss of Rs 11.30 core in Q2 September 2014, as compared to net profit of Rs 1.99 crore in Q2 September 2013. Total income dropped 93.04% to Rs 14.90 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 12 November 2014.
ICRA tanked 4.29% at Rs 2,625 after consolidated net profit declined 81.72% to Rs 2.84 crore on 12.77% growth in total income to Rs 84.59 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 12 November 2014.
National Aluminium Company surged 5.54% at Rs 61.90 after net profit jumped 90.61% to Rs 341.52 crore on 16.28% growth in total income to Rs 2164.13 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 12 November 2014.
MRF rose 0.27% at Rs 32,330. The stock turned ex-dividend today, 13 November 2014, for second interim dividend of Rs 3 per share for the year ending 30 September 2014.
Marico rose 0.69% at Rs 330.40. The stock turned ex-dividend today, 13 November 2014, for first interim dividend of Rs 1 per share for the year ending 31 March 2015.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.555, compared with its closing of 61.5225 during the previous trading session.
Brent crude oil futures edged lower amid signs that OPEC remains unwilling to reduce output to ease concern of a global supply glut. Brent for December settlement, which expires today, 13 November 2014, was off 47 cents at $79.91 a barrel. The contract had lost $1.29 a barrel to settle at $80.38 a barrel yesterday, 12 November 2014, its lowest close since September 2010. Brent for January delivery was off 14 cents at $80.98 a barrel.
Indian government's decision last month to decontrol diesel prices and a sharp decline in global crude oil prices recently will help India in containing its fiscal deficit. The fall in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent.
The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 5.52% in October 2014, from 6.46% in September 2014, data released by the government after trading hours yesterday, 12 November 2014, showed. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India eased to 5.59% in October 2014, from 7.67% in September 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 5.86% in October 2014, from 5.9% in September 2014.
The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016.
Industrial production growth improved to 2.5% in September 2014, from a revised 0.5% growth in August 2014, data released by the government after trading hours yesterday, 12 November 2014, showed. The manufacturing sector's output growth rebounded to 2.5% in September 2014, snapping decline for last two sequential months mainly contributing to the improvement in industrial production growth. However, the mining sector as well as electricity generation growth decelerated to 0.7% and 3.9%, respectively in September 2014.
The rate of inflation based on wholesale price index (WPI) is seen easing further to 2.1% in October 2014, from 2.38% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI inflation data for October 2014 at 12:00 noon tomorrow, 14 November 2014.
Meanwhile, Minister of State (I/C) for Commerce and Industry Nirmala Sitharaman today, 13 November 2014, said that India and the US have successfully resolved their differences relating to the issue of public stockholding for food security purposes in the World Trade Organization (WTO) and this will end the impasse at the WTO and also open the way for implementation of the Trade Facilitation Agreement. India is a strong supporter of the multilateral trading system and is committed to strengthening it and ensuring that the WTO remains a key pillar of the global economic edifice, she said in statement.
Asian stocks were mixed today, 13 November 2014, after the latest data showed China's industrial output growth slowed last month. Key indices in Japan, Taiwan, Hong Kong and Singapore were up 0.53% to 1.14%. Key indices in China, Indonesia, and South Korea were off 0.07% to 0.51%.
China's industrial output growth in October unexpectedly dropped, reflecting the continued headwinds faced by the Chinese economy, official data showed today, 13 November 2014. Value-added industrial output in China rose 7.7% in October from a year earlier, slowing from an 8% on-year increase in September, the National Bureau of Statistics said. Industrial production increased 0.52% in October from September. In September, it had climbed 0.91% from the preceding month.
Fixed-asset investment in non-rural areas rose 15.9% in the January-October period compared with the same period a year earlier, slower than the 16.1% increase recorded in the January-September period. China's retail sales rose 11.5% in October from a year earlier, slowing slightly from a 11.6% on-year increase in September. Retail sales increased 0.98% in October from September. In September, retail sales had risen 0.86% from the preceding month.
Trading in US index futures indicated that the Dow could gain 25 points at the opening bell today 13 November 2014. US stocks ended choppy session essentially unchanged yesterday, 12 November 2014, as the main indexes struggled to stay in record territory. The S&P 500 and Dow Jones Industrial Average snapped a five-day streak closing at a new high, as falling oil prices and heightened geopolitical risks turned investors cautious.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said yesterday, 12 November 2014, financial markets could face less than placid waters in coming years. In his formal remarks, Mr. Kocherlakota repeated his belief that a US central bank rate increase next year would be a mistake. Inflation is unlikely to reach the Fed's 2% target until 2018, and because of this outlook, "it would be inappropriate for the [Federal Open Market Committee] to raise the target range for the fed funds rate at any such meeting" occurring in 2015, he said.
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