Key benchmark indices were a tad higher for the day after seeing intraday volatility within an overall narrow range in mid-morning trade. The barometer index, the S&P BSE Sensex, retained the psychological 27,000 level. The Sensex was currently up 32.09 points or 0.12% at 27,027.96. The market breadth indicating the overall health of the market was strong. Sun Pharmaceutical Industries and Ranbaxy Laboratories extended previous day's losses triggered by reports that Sun Pharma's manufacturing facility in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration (USFDA). Data due after trading hours today, 12 September 2014, is likely to show easing of consumer price inflation in August 2014 and a muted growth in industrial production in July 2014.
In overseas markets, Asian stocks edged higher after the latest data showed credit growth of Chinese financial institutions surged last month.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged lower amid signs that crude supply will continue to rise even as global demand weakens.
At 10:18 IST, the S&P BSE Sensex was up 32.09 points or 0.12% at 27,027.96. The index gained 69.15 points at the day's high of 27,065.02 in early trade. The index rose 1.46 points at the day's low of 26,997.33 in morning trade.
The CNX Nifty was up 3.45 points or 0.04% at 8,089.15. The index hit a high of 8,102.95 in intraday trade. The index hit a low of 8,080.20 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,393 shares gained and 891 shares fell. A total of 78 shares were unchanged.
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The BSE Mid-Cap index was up 25 points or 0.25% at 9,988.51. The BSE Small-Cap index was up 46.36 points or 0.42% at 11,157.28. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 861 crore by 10:15 IST, compared to a turnover of Rs 310 crore by 09:25 IST.
Among the 30-share Sensex pack, 20 stocks gained and rest of them declined.
Larsen & Toubro (L&T) shed 0.23% to Rs 1,592.30. The stock was volatile. The stock hit high of Rs 1,607 and low of Rs 1,589 so far during the day. L&T during market hours said that the company through its joint venture firm, L&T-MHPS Boilers, has secured an order worth Rs 1885 crore from NTPC. The contract includes setting up of two units of 660 megawatt each supercritical steam generators for Tanda Thermal Power Plant Stage-II on an engineering, procurement and construction (EPC) basis. The project is scheduled to be completed in 46 and 52 months for the respective units, L&T said.
Sun Pharmaceutical Industries lost 3.46%. Ranbaxy Laboratories declined 3.47%. Both these stocks extended Thursday's slide triggered by the reports that Sun Pharma's manufacturing facility in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration (USFDA). The Halol plant reportedly contributes to around 40% of US sales and around 25% of consolidated profit of the company.
In April 2014, Sun Pharmaceutical Industries acquired Ranbaxy Laboratories in a $4 billion landmark transaction.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 11 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 433.55 crore on that day.
Brent crude oil futures edged lower amid signs that crude supply will continue to rise even as global demand weakens. Brent for October settlement was down 27 cents at $97.81 a barrel. The contract rose 4 cents to settle at $98.08 a barrel yesterday, 11 September 2014, bouncing back from a 2-year low after Russia warned the US that air strikes in Syria against Islamist militants would be an act of aggression without a UN security mandate. The more active contract Brent for November settlement was off 22 cents at $98.64 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.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.98, compared with its close of 60.93 during the previous trading session.
Data due after trading hours today, 12 September 2014, is likely to show easing of consumer price inflation in August 2014 and a muted growth in industrial production in July 2014. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen decelerating to 7.8% in August 2014, from 7.96% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the CPI data for August 2014 at 17:30 IST today, 12 September 2014. The Reserve Bank of India (RBI) is targeting CPI inflation at 8% by January 2015 and 6% by January 2016.
Meanwhile, the growth in industrial production is seen decelerating to 1.9% in July 2014, from 3.4% in June 2014, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production growth had eased to 3.4% in June 2014, from 5% increase recorded in May 2014. The government will release the industrial production data for July 2014 at 17:30 IST today, 12 September 2014.
The annual rate of inflation based on the monthly Wholesale Price Index (WPI) is seen decelerating to 4.43% in August 2014, from 5.19% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the WPI data for August 2014 at 12 noon on Monday, 15 September 2014.
Monsoon rainfall between 1 June 2014 and 10 September 2014 was 11% below average, an India Meteorological Department (IMD) report dated 11 September 2014 showed. India's farming sector accounts for around 14% of the economy, but two-thirds of the nation's 1.2 billion people depend on farming for a livelihood and more than half of its arable land needs the summer rains.
Asian stocks edged higher today, 12 September 2014, after the latest data showed credit growth of Chinese financial institutions surged last month. Key benchmark indices in Japan, Indonesia, South Korea, China and Singapore were up 0.1% to 0.41%. Key benchmark indices in Taiwan and Hong Kong were off 0.38% to 0.94%.
Chinese banks stepped up lending in August after a big fall a month earlier, data from the central bank showed today, 12 September 2014. Chinese financial institutions issued 702.5 billion yuan ($114.6 billion) in new yuan loans in August, up sharply from 385.2 billion yuan in July. Total social financing--a broader measurement of credit in the economy--was 957.4 billion yuan in August, up from 273.1 billion yuan in July.
Trading in US index futures indicated a flat opening of US stocks on today, 12 September 2014. US stocks eked out small gains on Thursday, 11 September 2014, as an unexpected increase in weekly jobless claims and falling commodities prices encouraged investors to remain cautious. The main benchmarks finished in positive territory after trading in a tight range and spending much of the session in the red. The number of people who applied for jobless benefits last week unexpectedly rose, reaching the highest level since late June.
Investors will look to next week's Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. At the end of a two-day meeting on 16-17 September 2014, the FOMC is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
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