Intraday recovery witnessed in early afternoon trade gathered steam in afternoon trade as key benchmark indices erased almost entire intraday losses. Bank stocks led the recovery. The barometer index, the S&P BSE Sensex, was currently down 5.87 points or 0.02% at 26,291.51. The market breadth indicating the overall health of the market was negative. Meanwhile, falling crude oil prices augur well for India. In overseas markets, stocks bounced back in Hong Kong and US index futures trimmed losses. European stocks dropped in early trade there.
Index heavyweight Reliance Industries (RIL) recovered in volatile trade ahead of its Q2 September 2014 results today, 13 October 2014. Jindal Steel & Power reversed direction after hitting 52-week low in intraday trade. Shares of personal care products maker Emami scaled record high.
Industrial production growth remained subdued at 0.5% in August 2014, compared with a revised 0.4% growth in July 2014, data released by the government after trading hours on Friday, 10 October 2014, showed.
Amid weak cues from global markets, key indices had hit 8-week low in morning trade.
In overseas markets, European stocks declined in early trade there amid concern the global economic recovery is faltering. Asian stocks were mostly in red even as stocks bounced back in Hong Kong. US index futures trimmed initial losses.
Brent crude oil prices edged lower after Saudi Arabia and Kuwait signalled ample supplies and their willingness to bear lower prices to defend market share.
In the foreign exchange market, the rupee edged higher against the dollar on broad weakness of the dollar.
At 13:15 IST, the S&P BSE Sensex was down 5.87 points or 0.02% at 26,291.51. The index fell 4.29 points at the day's high of 26,293.09 in afternoon trade. The index lost 204.69 points at the day's low of 26,092.69 in morning trade, its lowest level since 18 August 2014.
The CNX Nifty was down 7.90 points or 0.1% at 7,852.05. The index hit a high of 7,857.55 in intraday trade. The index hit a low of 7,796 in intraday trade, its lowest level since 18 August 2014.
The BSE Mid-Cap index was off 6.07 points or 0.06% at 9,438.34. The BSE Small-Cap index was off 16.07 points or 0.15% at 10,594.93.
The market breadth indicating the overall health of the market was negative. On BSE, 1,498 shares declined and 1,197 shares gained. A total of 101 shares were unchanged.
The total turnover on BSE amounted to Rs 1229 crore by 13:15 IST.
Reliance Industries (RIL) was off 0.3% at Rs 957.45. The stock was volatile. The stock hit high of Rs 964 and low of Rs 948.80 so far during the day. The company announces its Q2 September 2014 results today, 13 October 2014. RIL said on Saturday, 11 October 2014, said two of chairman Mukesh Ambani's children had been appointed to the boards of the company's telecoms and retail businesses. At the board meetings held on 11 October 2014, Reliance Jio Infocomm and Reliance Retail Ventures approved the appointment of Isha Ambani and Akash Ambani as directors on their boards.
Shares of private sector banks were mixed. Among private bank stocks, HDFC Bank (down 0.22%), Kotak Mahindra Bank (down 0.61%), and ICICI Bank (down 0.53%) declined.
Axis Bank (up 0.94%) and Yes Bank (up 0.86%) rose.
IndusInd Bank rose 1.68% ahead of its Q2 September 2014 earnings today, 13 October 2014.
PSU bank stocks gained. State Bank of India (SBI) (up 0.27%), Punjab National Bank (up 1.68%), Bank of Baroda (up 0.38%), Andhra Bank (up 1.24%), Allahabad Bank (up 1.9%), Bank of India (up 1.99%) and Union Bank of India (up 2.69%) gained.
Emami gained 3.13% to Rs 719 after scaling a record high of Rs 734.75 in intraday trade.
Jindal Steel & Power gained 3.08% to Rs 160.70. The stock reversed direction after hitting 52-week low of Rs 153.35 in intraday trade. The stock hit a high of Rs 161.65 so far during the day.
Vascon Engineers jumped 13.4% after the company said that a meeting of the board of directors of the company will be held on 20 October 2014 to consider rights issue of shares. The company made the announcement after market hours on Friday, 10 October 2014,
Meanwhile, the provisional data released by the stock exchanges after trading hours on Friday, 10 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 719.77 crore on that day.
Meanwhile, the stock market will remain closed on Wednesday, 15 October 2014, on account of assembly election in Maharashtra, BSE said in a circular.
In the foreign exchange market, the rupee edged higher against the dollar on broad weakness of the dollar. The partially convertible rupee was hovering at 61.205, compared with its close of 61.35 during the previous trading session.
Reserve Bank of India Governor Raghuram Rajan reportedly said at an event on Saturday, 11 October 2014, that the Indian rupee was not overvalued at this point in time and that the Indian economy was in the beginning phases of a recovery.
Brent crude oil prices edged lower after Saudi Arabia and Kuwait signalled ample supplies and their willingness to bear lower prices to defend market share. Brent for November settlement was off $1.67 a barrel at $88.54 a barrel. The contract briefly touched its lowest since December 2010 at $87.74 in early trade. The contract had risen 16 cents to settle at $90.21 a barrel on Friday, 10 October 2014. Brent for December settlement was off $1.72 a barrel at $88.86 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.
India's Index of industrial production (IIP) growth remained subdued at 0.5% in August 2014, from 0.4% (revised) increase in July 2014, data released by the government after trading hours on Friday, 10 October 2014, showed. The manufacturing sector's output declined for second straight month at 1.4%, mainly contributing to the subdued IIP growth in August 2014. However, mining sector output increased 2.6%, while electricity generation posted a double-digit growth for the third straight month, at 12.9%, in August 2014.
The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen further decelerating to 7.2% in September 2014, from 7.8% in August 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the CPI data for September 2014 at 17:30 IST today, 13 October 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 tomorrow, 14 October 2014.
European stocks declined today, 13 October 2014, amid concern the global economic recovery is faltering. Key benchmark indices in UK, France and Germany were off 0.46% to 0.63%.
IMF meetings in Washington this weekend showed differing opinions over how much more stimulus the euro-area economy needs from the European Central Bank (ECB). While ECB President Mario Draghi repeated he's ready to expand the central bank's balance sheet by as much as 1 trillion euros ($1.3 trillion), Bundesbank head Jens Weidmann said a target value isn't set in stone.
Asian stocks dropped today, 13 October 2014, amid growing concern the global economy is slowing. Key benchmark indices in China, Singapore, Taiwan, Indonesia and South Korea were off 0.36% to 2.84%. Hong Kong's Hang Seng index rose 0.48%. Japanese markets were closed for holiday.
China's exports and imports rose faster than expected in September, data today, 13 October 2014, showed. Exports rose 15.3% in September from a year earlier, according to data from the General Administration of Customs. September's export growth exceeded August's 9.4% growth. Imports in September rose 7% from a year earlier, following a 2.4% decline in August. Increased imports saw China's trade surplus narrow in September to $31 billion from $49.8 billion in August. After the latest data, China's customs agency said it expects stronger exports and imports to continue in the fourth quarter.
In Hong Kong, police removed some barricades on the periphery of the main pro-democracy site in the city's business district, while hundreds of men attempted to remove more barriers.
Trading in US index futures indicated that the Dow could fall 37 points at the opening bell today, 13 October 2014.
US interest rate increases could be delayed by slowdowns elsewhere, Federal Reserve Vice Chairman Stanley Fischer said at the weekend, and Fed Governor Daniel Tarullo said he's worried about the world's economic expansion.
Meanwhile, a health-care worker in Dallas was confirmed at the weekend to have contracted Ebola after being in contact with an infected patient there, raising the possibility other caregivers could have been exposed to the disease.
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