Recovery in banking stocks and in index heavyweight Reliance Industries (RIL) led intraday recovery in key benchmark indices in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 93.32 points or 0.35% at 26,204.06. The market breadth indicating the overall health of the market was negative. Data showing muted growth in industrial production in August 2014 triggered worries about the economic rebound. Meanwhile, falling crude oil prices augur well for India. Foreign portfolio investors sold shares worth a net Rs 719.77 crore during the previous trading session on Friday, 10 October 2014, as per provisional data. Global stocks fell amid growing concern the global economy is slowing.
Infosys edged higher for the second day in a row after the company during the previous trading session on Friday, 10 October 2014, reported strong Q2 results and announced a liberal 1:1 bonus issue. Other IT pivotals were also higher. Lupin dropped amid volatility. Essar Shipping and Essar Ports jumped after the boards of these two companies approved delisting of shares from the stock exchanges. Suven Life Sciences jumped after securing two product patents, one each from USA and South Korea.
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, Asian stocks declined amid growing concern the global economy is slowing.
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 12:13 IST, the S&P BSE Sensex was down 93.32 points or 0.35% at 26,204.06. 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 index fell 20.81 points at the day's high of 26,276.57 in early trade.
The CNX Nifty was down 24.70 points or 0.31% at 7,835.25. The index hit a low of 7,796 in intraday trade, its lowest level since 18 August 2014. The index hit a high of 7,835.30 in intraday trade.
The BSE Mid-Cap index was off 13.86 points or 0.15% at 9,430.55. The BSE Small-Cap index was off 30.30 points or 0.29% at 10,580.70.
The market breadth indicating the overall health of the market was negative. On BSE, 1,461 shares declined and 1,065 shares gained. A total of 98 shares were unchanged.
Infosys edged higher for the second day in a row after the company during the previous trading session on Friday, 10 October 2014, reported strong Q2 results and announced a liberal 1:1 bonus issue. The stock was up 1.6% at Rs 3,951. The stock hit record high of Rs 3,958.90 in intraday trade. At the time of announcing the second quarter results, Infosys maintained its revenue growth guidance in dollar terms for the year ending 31 March 2015 (FY 2015) even as it raised its revenue growth guidance in rupee terms due to rupee depreciation. Infosys expects 7% to 9% growth in the company's revenue in dollar terms in FY 2015.
Among other IT stocks, MindTree (up 1.27%), TCS (up 1.23%), Tech Mahindra (up 1.12%), and HCL Technologies (up 1.26%) gained.
Wipro was off 0.5% at Rs 581.15. The stock was volatile. The scrip hit high of Rs 585 and low of Rs 566 so far during the day.
Lupin lost 0.03% at Rs 1,327.75. The stock was volatile. The stock hit a high of Rs 1,366.90 and a low of Rs 1,317.25 so far in the day. Foreign Investment Promotion Board (FIPB) will reportedly consider hike in Lupin's foreign portfolio investment limit on 21 October 2014.
Essar Shipping and Essar Ports jumped after the boards of these two companies approved delisting of shares from the stock exchanges. Essar Shipping was up 17.22% at Rs 23.15. Essar Ports was up 13.44% at Rs 103.80. Both companies will seek the consent of the shareholders for the delisting proposal through a postal ballot and e-voting.
Suven Life Sciences rose 4.08% at Rs 190.05 after the company said it has secured two product patents, one each from USA and South Korea corresponding to the new chemical entity (NCE) for the treatment of disorders associated with neurodegenerative diseases and these patents are valid through 2030. With these new patents, Suven has a total of nineteen granted patents from USA and fifteen granted patents from South Korea, the company said.
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.
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 61.265, 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 $1.15 a barrel at $89.06 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 $1.12 a barrel at $89.46 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.
Asian stocks dropped today, 13 October 2014, amid growing concern the global economy is slowing. Key benchmark indices in China, Singapore, Hong Kong, Taiwan, Indonesia and South Korea were off 0.65% to 2.84%.
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 61 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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