As key benchmark indices in Asia trimmed losses and as trading in US equity index futures indicated a recovery in US stocks later in the global day, key equity benchmark indices in India trimmed losses in afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 183.48 points or 0.66% at 27,647.62. The market breadth indicating the overall health of the market was weak.
Housing finance stocks were in demand on renewed buying with shares of Gruh Finance scaling record high. Realty stocks edged lower. Among side counters, Bharti Infratel scaled record high. Wockhardt hit 52-week high.
Foreign portfolio investors bought shares worth a net Rs 5.39 crore yesterday, 10 December 2014, as per provisional data.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit their lowest level in almost 6 weeks in early trade on weak cues from global markets.
Meanwhile, Sergey Aksyonov, the leader of Crimea, the former Ukrainian territory annexed by Russia, arrived for unofficial talks in New Delhi today, 11 December 2014, according to reports. The informal meeting may prove an irritant for India before US President Barack Obama's visit to India in January 2015.
Russian President Vladimir Putin arrived in New Delhi yesterday, 10 December 2014, for annual summit talks with India's Prime Minister Narendra Modi.
In overseas markets, Asian stocks edged lower after Wall Street finished sharply lower overnight on the back of further oil price declines, while a worse-than-expected machinery orders report from Japan accelerated the market's slide. US stocks suffered their worst declines in about two months yesterday, 10 December 2014, as a renewed slump in oil prices slammed energy companies while investors fretted that a stunning drop in oil prices signals a more worrisome global-economic slowdown.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment.
Brent crude futures slumped yesterday, 10 December 2014, on data showing a surprise increase in weekly US oil inventory. Deregulation of diesel price announced by the Indian government in October 2014 and a sharp decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide 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. A weak rupee raises the cost of imports.
At 13:15 IST, the S&P BSE Sensex was off 183.48 points or 0.66% at 27,647.62. The index lost 291.63 points at the day's low of 27,539.47 in early afternoon trade, its lowest level since 31 October 2014. The index lost 34.76 points at the day's high of 27,796.34 in opening trade.
The CNX Nifty was off 49.40 points or 0.59% at 8,306.25. The index hit a low of 8,272.40 in intraday trade, its lowest level since 31 October 2014. The index hit a high of 8,348.30 in intraday trade.
The BSE Mid-Cap index was off 30.11 points or 0.29% at 10,271.24. The BSE Small-Cap index was off 66.51 points or 0.59% at 11,246.03. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 1,632 shares declined and 959 shares gained. A total of 86 shares were unchanged.
The total turnover on BSE amounted to Rs 1911 crore by 13:15 IST.
Housing finance stocks were in demand on renewed buying. Dewan Housing Finance Corporation (up 2.28%) and Can Fin Homes (up 2.04%) gained. LIC Housing Finance fell 2.09%.
HDFC was up 0.64%. Gruh Finance gained 3.53% to Rs 262.45 after scaling a record high of Rs 267.50 in intraday trade. Gruh Finance is a subsidiary of housing finance major HDFC.
Tata Power Company fell 0.69%. Tata Power Company during market hours today, 11 December 2014, said that the estimated cost of acquisition and the period of completion for acquisition of 100% shareholding in Ideal Energy Projects (IEPL) is subject to adjustments and conditions precedent and, hence, the final consideration will be known only at a later date. The nature of consideration is cash and the acquisition is not a related party transaction, Tata Power Company said. It may be recalled that Tata Power had during market hours yesterday, 10 December 2014, announced that the company has signed a share purchase agreement (SPA) for acquisition of 100% shareholding in Ideal Energy Projects (IEPL). IEPL owns a 540 MW coal based thermal power project near village Bela in the Nagpur district of Maharashtra. Half the power plant's capacity was commissioned in May 2013 and is based on domestic coal.
Pharma major Lupin rose 0.25%. Lupin announced today, 11 December 2014, that its US subsidiary, Lupin Pharmaceuticals Inc. has launched the authorized generic for G.D. Searle LLC's (a subsidiary of Pfizer Inc.) Celebrex Capsules (Celebrex) 50 mg, 100 mg, 200 mg and 400 mg strengths. Lupin had earlier signed a licensing agreement with Pfizer Inc. regarding Celebrex. Celebrex Capsules had annual US sales of $2.54 billion (IMS MAT September, 2014). The announcement was made during market hours today, 11 December 2014.
Realty stocks edged lower. DLF (down 0.78%), Indiabulls Real Estate (down 2.76%), Housing Development and Infrastructure (down 5.3%), D B Realty (down 1.67%), Unitech (down 1.93%), Godrej Properties (down 0.47%), Oberoi Realty (down 1.14%) and Parsvnath Developers (down 0.55%) declined.
Bharti Infratel jumped 6.6% to Rs 352.25 after scaling a record high of Rs 371.75 in intraday trade.
Wockhardt gained 3.36% to Rs 1,043 after hitting a 52-week high of Rs 1,047.95 in intraday trade.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment. The partially convertible rupee was hovering at 62.24, compared with its close of 62.02 during the previous trading session.
Brent crude futures edged higher after a steep slide during the preceding trading session triggered by data showing a surprise increase in weekly US oil inventory. Brent for January settlement was up 27 cents a barrel at $64.51 a barrel. The contract had lost $2.60 a barrel to settle at $64.24 during the previous trading session.
The Indian government plans to introduce the Coal Mines (Special Provisions) Bill, 2014 to replace the Coal Mines (Special Provisions) Ordinance, 2014 in Lok Sabha this week. The government is also likely to introduce the constitutional amendment bill for the goods & services tax during the ongoing winter session of parliament. The government also plans to bring the MMDR Amendment Bill, 2014 during the ongoing session of parliament.
The government also intends to get the Insurance Laws Amendment Bill that seeks to enhance foreign investment limit in capital starved insurance sector passed during the ongoing winter session of parliament.
Minister of State for Finance, Jayant Sinha yesterday, 10 December 2014, said India needs to develop alternative model of economic growth based on mix of policies including market driven entrepreneurship innovations, scope for larger private investment and free market economy in democratic polity among others. He was delivering the Inaugural Address after inaugurating the two day Delhi Economic Conclave 2014. The theme of the two day Conclave is Structural Reforms and Growth in India. Stressing on the non-inflationary, inclusive and sustainable growth, Sinha said that structural reforms shall keep taking place at gradual intervals as being done by the present government so that as overall net result, these gradual reforms lead to transformation of India into an economy with a sustainable growth of 7-8% and inflation in the range of 4-6%. Delivering the Key Note Address on this occasion, Tharman Shanmugaratnam, Deputy Prime Minister and Finance Minister, Singapore said that India does not have time on its side and will have to race against competitive countries, intelligent machines among others. He said that India has very highly talented people including scientists, IT experts, academicians, entrepreneurs, but there is a gap at the middle and lower level in comparison with other competitive countries like China.
Piyush Goyal, Minister of State (IC), Power, Coal and NRE, said that there is need for change of mind set of policy makers, policy implementers, stakeholders including private entrepreneurs among others to achieve the goal of high and sustainable growth. He said that the present government is focusing on bringing transparency and honesty in allocation of natural resources including coal blocks, iron ore and other minerals as well in time to come. Goyal specifically mentioned about e-auction of coal blocks which will bring more transparency, competitiveness and efficiency in the system.
The Ministry of Consumer Affairs, Food & Public Distribution yesterday, 10 December 2014, said that the Centre has asked state government to expedite implementation of National Food Security Act. They have been urged to complete all the preparatory work by March next year so that the Act can be roll-out all over the country in April 2015, the Ministry of Consumer Affairs, Food & Public Distribution said in a statement. Addressing the Conference of State Food Secretaries, Minister of Consumer Affairs, Food & Public Distribution Ram Vilas Paswan said that the time-limit of one year provided in the National Food Security Act for identification of eligible households had to be extended twice as several state governments were unable to do so in the prescribed time limit.
On the domestic macro front, inflation is seen easing further in November 2014 and growth in industrial production is seen improving a bit in October 2014. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen easing further to 4.4% in November 2014, from 5.52% in October 2014, as per the median estimate of a poll of economist carried out by Capital Market. The government will release the data on CPI inflation for November 2014 after trading hours tomorrow, 12 December 2014.
The annual rate of inflation based on the wholesale price index (WPI) is seen easing further to 1.2% in November 2014, from 1.77% in October 2014, as per the median estimate of a poll of economist carried out by Capital Market. The government will release the inflation data based on wholesale price index (WPI) for November 2014 at 12.15 noon on 15 December 2014.
Growth in industrial production is seen inching up to 2.7% in October 2014, from 2.5% in September 2014, as per the median estimate of a poll of economist carried out by Capital Market. The government will unveil industrial production data for October 2014 after trading hours tomorrow, 12 December 2014. Industrial production growth improved to 2.5% in September 2014, from 0.5% in August 2014.
Asian bourses were lower today, 11 December 2014, after Wall Street finished sharply lower overnight on the back of further oil price declines, while a worse-than-expected machinery orders report from Japan accelerated the market's slide. Key indices in China, Hong Kong, Japan, Singapore, Indonesia, Taiwan, and South Korea were off 0.21% to 1.49%.
Japan's core machinery orders, a leading indicator of capital spending, snapped a four-month rising streak in October, data released yesterday, 10 December 2014 showed. Core machinery orders fell 6.4% on month, On year-on-year, machinery orders fell 4.9% in October.
Trading in US index futures indicated that the Dow could gain 40 points at the opening bell today, 11 December 2014. US stocks closed sharply lower yesterday, 10 December 2014, furthering the week's losses, as the price of crude fell to a new five-year low and the Organization of Petroleum Exporting Countries cut its demand outlook for next year.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 16-17 December 2014. The policy meeting will be keenly watched for any hints on the timing of interest rate increases in the world's biggest economy.
In Europe, the latest data showed that consumer price inflation in Germany remained unchanged last month. In a report, Federal Statistical Office Germany said that German CPI remained unchanged at a seasonally adjusted 0% in November, from 0% in October.
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