After witnessing immense volatility at the onset of the trading session, key indices moved in a narrow range near the flat line in morning trade. The barometer index, the S&P BSE Sensex, was currently up 21.71 points or 0.08% at 26,405.78. The market breadth indicating the overall health of the market was positive. Most Asian stocks were in green and US index futures pointed to a recovery of US stocks after yesterday's sell-off. Foreign portfolio investors (FPIs) sold shares worth a net Rs 671.06 crore yesterday, 13 October 2014, as per provisional data.
DLF tumbled to record low after Securities and Exchange Board of India (Sebi) on Monday, 13 October 2014, barred the company and its chairman K.P. Singh along with five other company executives from accessing India's capital markets for three years. Bank stocks gained after moderation in consumer price inflation in September 2014. Index heavyweight Reliance Industries (RIL) gained after the company reported quarterly profit.
Earlier, key indices had reversed direction after a firm opening triggered by data released after trading hours yesterday, 13 October 2014, showing easing of consumer price inflation last month.
In overseas markets, most Asian stocks rose. US index futures pointed to a recovery of US stocks after yesterday's sell-off.
Brent crude oil prices dropped as expectations faded that OPEC could cut output and shore up prices.
In the foreign exchange market, the rupee edged higher against the dollar after the latest data showed that India's consumer price inflation eased in September 2014.
At 10:11 IST, the S&P BSE Sensex was up 21.71 points or 0.08% at 26,405.78. The index surged 166.72 points at the day's high of 26,550.79 at the onset of the trading session, its highest level since 10 October 2014. The index lost 58.68 points at the day's low of 26,325.39 in early trade.
The CNX Nifty was down 0.80 point or 0.01% at 7,883.45. The index hit a high of 7,928 in intraday trade, its highest level since 9 October 2014. The index hit a low of 7,861.20 in intraday trade.
The BSE Mid-Cap index was up 60.26 points or 0.64% at 9,550.02. The BSE Small-Cap index was up 65.04 points or 0.61% at 10,711.51. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,179 shares gained and 807 shares declined. A total of 93 shares were unchanged.
DLF tumbled 21.64% at Rs 114.95. The stock hit a record low of Rs 111.25 in intraday. Market regulator Securities and Exchange Board of India (Sebi) on Monday, 13 October 2014, barred DLF and its chairman K.P. Singh along with five other company executives from accessing India's capital markets for three years. The order is related to lapses in disclosures made at time of the company's IPO in 2007.
DLF said before market hours today, 14 October 2014, that the order dated 10 October 2014 passed by the whole time member of Securities and Exchange Board of India (Sebi) has come to the notice of DLF only on 13 October 2014. The order is being reviewed by DLF and its legal advisors. DLF and its board wish to reassure its investors and all other stakeholders that it has not acted in contravention of law either during its initial public offer or otherwise, DLF said. DLF and its board were guided by and acted on the advise of eminent legal advisors, merchant bankers and audit firms while formulating its offer documents, the company said. DLF will defend itself to the fullest extent against any adverse findings and measures contained in the order passed by Sebi, DLF said. The realty major said it has full faith in the judicial process and is confident of vindication of its stand in the near future, the company added.
Bank stocks edged higher after moderation in consumer price inflation in September 2014. IndusInd Bank (up 2.09%), Bank of India (up 1.86%), Yes Bank (up 1.46%), Axis Bank (up 1.5%), State Bank of India (up 1.6%), Punjab National Bank (up 0.76%), and ICICI Bank (up 0.1%) gained.
RIL rose 1.32% at Rs 970.50 after consolidated net profit rose 1.7% to a record Rs 5972 crore in Q2 September 2014 over Q2 September 2013. Turnover declined 4.3% to Rs 113396 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 13 October 2014.
RIL attributed the decline in turnover to lower crude prices and decline in volumes in the refining and oil & gas businesses. RIL's other income or non-operational income dropped 14.36% to Rs 2009 crore in Q2 September 2014 over Q2 September 2013. RIL said the decline in non-operational income was primarily on account of lower investible surplus.
RIL's net profit rose 0.3% to a record Rs 5972 crore on 5.1% growth in turnover to Rs 113396 crore in Q2 September 2014 over Q1 June 2014. Other income rose 1.77% to Rs 2009 crore in Q2 September 2014 over Q1 June 2014.
RIL's gross refining margins (GRM) edged up to $8.3 a barrel in Q2 September 2014, from $7.7 a barrel in Q2 September 2013. The GRM was lower than $8.7 a barrel in Q1 June 2014.
The net addition to RIL's fixed assets for the half year ended 30 September 2014 was Rs 44895 crore, including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansion projects in the petrochemicals and refining business at Jamnagar, Dahej and Hazira, Broad band Access and US Shale gas projects, RIL said.
Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 13 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 671.06 crore on that day.
Meanwhile, the stock market will remain closed tomorrow, 15 October 2014, on account of assembly election in Maharashtra.
In the foreign exchange market, the rupee edged higher against the dollar after the latest data showed that India's consumer price inflation eased in September 2014. The partially convertible rupee was hovering at 61.01, compared with its close of 61.10 during the previous trading session.
Brent crude oil prices dropped as expectations faded that OPEC could cut output and shore up prices. Brent for November settlement was off 73 cents at $88.16 a barrel. The contract had tumbled $1.32 to settle at $88.89 a barrel on Monday, 13 October 2014, its lowest closing level since 1 December 2010. Brent for December settlement was off 72 cents at $88.69 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.
The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 6.46% in September 2014, from 7.73% in August 2014, data released by the government after trading hours yesterday, 13 October 2014, showed. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India eased to 7.67% in September 2014, from 9.35% in August 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 5.9% in September 2014, from 6.82% in August 2014.
The annual rate of inflation based on the Wholesale Price Index (WPI) is seen further decelerating to 3.3% in September 2014, from 3.74% in August 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the WPI inflation data at 12 noon today, 14 October 2014.
Asian stocks edged higher today, 14 October 2014. Key indices in Taiwan, Singapore, South Korea, and Indonesia were up 0.08% to 0.55%. In Japan, the Nikkei 225 was off 1.77%. In mainland China, the Shanghai Composite index was off 0.13%
Hong Kong's Hang Seng Index rose as police used chain saws to clear barricades along a road through the city's main protest zone. The Hang Seng was up 0.27%
Trading in US index futures indicated that the Dow could gain 76 points at the opening bell today, 14 October 2014. The US stock market ended Monday's volatile session sharply lower as selling intensified at the last hour. Volatile trading came on the heels of last week's deep losses that had been triggered by global economic growth concerns.
Other Fed officials joined Vice Chairman Stanley Fischer in signaling that the threat posed by slowing global growth may cause US rate increases to be delayed. Chicago Fed President Charles Evans reiterated his concern yesterday that inflation may only quicken slowly toward the US central bank's 2% goal and said officials should be exceptionally patient in adjusting monetary policy.
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