A range bound movement was witnessed as key benchmark indices alternately swung between positive and negative zone near the flat line in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently off 13.92 points or 0.05% at 26,335.41. The market breadth indicating the overall health of the market was negative. Global stocks were weak amid growing concerns over economic growth around the world. Foreign portfolio investors sold shares worth a net Rs 694.67 crore during the previous trading session on Tuesday, 14 October 2014, as per provisional data. Meanwhile, India's merchandise export registered a muted growth of 2.7% in September 2014, data released the government early this week showed.
Meanwhile, various exit polls released after assembly elections in Maharashtra and Haryana showed that the BJP is set to wrest power from the Congress party in Haryana and will emerge as the single largest party in Maharashtra. Polling was held yesterday, 15 October 2014, for assembly elections in Maharashtra and Haryana. The counting of votes for elections in both these states takes places on Sunday, 19 October 2014, and the results will be out on the same day. BJP's seat tally in Maharashtra, according to various exit polls, varied from just over 100 to 150-plus, the latter a clear majority mark in a 288-member assembly. In 90-seat Haryana, exit polls gave BJP between 37 and 50-plus seats; the latter a majority mark. BJP's strong showing in assembly elections in Maharashtra and Haryana could boost Prime Minister Narendra Modi's ability to carry forward legislative reforms.
Capital goods stocks edged lower. Ashok Leyland edged higher after receipt of a new order. Ranbaxy Laboratories advanced after the company said it has settled the litigation concerning its participation in the Texas Medicaid Program. Shares of DLF recovered after Tuesday's steep slide. Sesa Sterlite declined after clarification with regard to a news item.
Earlier, a high volatility was witnessed at the onset of the trading session as key indices staged a strong recovery after a weak opening.
In overseas markets, Asian stocks declined amid growing concerns over economic growth around the world. US index futures pointed to a recovery for US stocks after yesterday's decline.
Brent crude fell to near four-year lows amid growing concerns over the global economy.
In the foreign exchange market, the rupee edged lower against the dollar as India's trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013.
At 11:22 IST, the S&P BSE Sensex was down 13.92 points or 0.05% at 26,335.41. The index lost 100.86 points at the day's low of 26,248.47 at the onset of the trading session. The index jumped 112.75 points at the day's high of 26,462.08 in early trade
The CNX Nifty was down 11.05 points or 0.14% at 7,852.95. The index hit a high of 7,893.90 in intraday trade. The index hit a low of 7,836.45 in intraday trade.
The BSE Mid-Cap index was down 16.34 points or 0.17% at 9,456.74. The BSE Small-Cap index was down 36.18 points or 0.34% at 10,595.07.
The market breadth indicating the overall health of the market was negative. On BSE, 1,320 shares declined while 996 shares gained. A total of 111 shares were unchanged.
Capital goods stocks edged lower. Bharat Heavy Electricals (down 1.37%), Crompton Greaves (down 0.88%), L&T (down 0.41%), Siemens (down 0.44%), and Alstom T&D India (down 0.26%) declined.
Ashok Leyland rose 0.22% at Rs 44.70. The company during market hours said that the company through its joint venture in Sri Lanka has received an order for 630 buses worth $17 million from private bus operators - backed by the Government of Sri Lanka. Coming on the heels of the order for 2,200 buses, Ashok Leyland further consolidates its position as the market leader in the Sri Lankan market, the company said.
Ranbaxy Laboratories rose 0.64% at Rs 601.90. The company during market hours said that it has settled the litigation concerning its participation in the Texas Medicaid Program. Under the settlement agreement, Ranbaxy will make payments to the State of Texas totaling $39.75 million in a series of tranches through August 2015. The claims at issue related exclusively to the manner in which the Ranbaxy has historically reported pricing data to Texas Medicaid for certain of its drugs, the company said. As has been widely reported, the State of Texas has brought nearly identical claims against virtually every other major pharmaceutical manufacturer in the United States, Ranbaxy said. Ranbaxy believes that it fully complied with all relevant laws, however the company settled the matter to avoid any further distraction and uncertainty of continued litigation with the State of Texas, Ranbaxy Laboratories said.
Separately, Ranbaxy Laboratories during market hours said it has notified the Bank of New York Mellon (hereinafter "The Bank") to terminate the Deposit Agreements dated 7 July 1994 (under which the Rule 144A Global Depositary Shares/Regulation S Global Depositary Shares have been issued) and underlying GDR programme. The Bank has on 15 October 2014 issued the notice of termination of GDR Programme to the GDR holders and accordingly the bank will complete the process of termination of GDR programme as per the terms of such notice of termination, Ranbaxy said.
DLF rose 6.43% at Rs 111.70, with the stock recovering after Tuesday's steep slide. The stock was volatile. The stock hit a high of Rs 115.85 and a low of Rs 100 so far in the day. Thes tock had tumbled 28.45% to settle at Rs 104.95 during the previous trading session on Tuesday, 14 October 2014, after stock market regulator Securities and Exchange Board of India (Sebi) issued an order on Monday, 13 October 2014, barring 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 has decided to contest the Sebi order.
Sesa Sterlite lost 3.11% at Rs 241.80. The company after market hours on Tuesday, 14 October 2014, in a clarification with regard to news item titled "Sesa Sterlite slumps on Supreme Court Order" said that the latest developments in Supreme Court does not relate to Sesa Sterlite. The written order of the Supreme Court is still awaited, the company said. As per the company's understanding, the situation, which is prevailing since 21 April 2014 judgment of Supreme Court, remains the same even today, Sesa Sterlite said.
Earlier, media reports indicated that the Supreme Court had on 14 October 2014 reiterated a prior ruling that all iron ore mined in Goa before 2007 belonged to the state. The court has ordered pre-2007 iron ore to be auctioned by a monitoring panel, reports stated.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Tuesday, 14 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 694.67 crore on that day. The stock market was closed yesterday, 15 October 2014, on account of assembly election in Maharashtra.
In the foreign exchange market, the rupee edged lower against the dollar as India's trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013. The partially convertible rupee was hovering at 61.50, compared with its close of 61.42 during the previous trading session.
India's merchandise export rose 2.7% to $28.90 billion in September 2014, data released after market hours on Tuesday, 14 October 2014 showed. Exports of engineering goods exports jumped 20.2%, exports of gems & jewellery rose 11.1%, exports of readymade garments rose 15.9%, rice exports rose 17.7% and exports of organic and inorganic chemicals rose 7.1%. The merchandise imports surged at more than two-and-half year pace of 26% to $43.15 billion in September 2014. Thus, the trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013, while also galloped from $10.84 billion in August 2014.
Brent crude fell to near four-year lows amid growing concerns over the global economy. Brent for November settlement was off 80 cents at $82.98 a barrel. The contract expires today, 16 October 2014. Brent for December settlement was off 70 cents at $83.42 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.
Mounting anxiety over global growth and the spread of Ebola dragged Asian bourses lower today, 16 October 2014. Key indices in Hong Kong, Singapore, Japan, South Korea, Indonesia and Taiwan were off 0.05% to 2.54%. In China, the Shanghai Composite was up 0.19%.
China attracted $9.0 billion of foreign direct investment in September, up 1.9% from a year earlier, the Ministry of Commerce said in a statement today, 16 October 2014. The figure was up from August's $7.2 billion, which was down 14% from a year earlier and the lowest level since July 2010.
Trading in US index futures indicated that the Dow could gain 37 points at the opening bell today, 16 October 2014. US stocks closed lower on Wednesday, 15 October 2014, but retraced some lost ground in late trading from historic intraday losses, as disappointing economic data fueled growth fears, which were compounded by the spread of Ebola after a second case was reported in the US. Data yesterday, 15 October 2014, showed that US retail sales fell 0.3% last month on a broad pullback in consumer spending in the world's largest economy.
According to the Fed's Beige Book of economic conditions data released yesterday, 15 October 2014, officials there see the economy moving at a modest-to-moderate pace, with consumer spending gaining at a slight-to-moderate pace.
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