Volatility continued as key benchmark indices continued to swing alternately between positive and negative terrain in morning trade. The barometer index, the S&P BSE Sensex, was currently down 38.15 points or 0.14% at 26,592.35. The market breadth indicating the overall health of the market was positive. Most Asian stocks were in red. Foreign portfolio investors (FPIs) sold shares worth a net Rs 485.93 crore yesterday, 30 September 2014, as per provisional data.
Meanwhile, a joint statement issued after Prime Minister Narendra Modi's first bilateral meeting with US President Barack Obama at White House yesterday, 30 September 2014, stated that the two leaders have pledged to establish an Infrastructure Collaboration Platform convened by the Ministry of Finance and the Department of Commerce to enhance participation of US companies in infrastructure projects in India. The two countries plan to work expeditiously through several joint initiatives to facilitate greater confidence in cross-border trade and investment.
On the macro front, data released after trading hours yesterday, 30 September 2014, showed that the combined growth in production of the eight core industries accelerated to 5.8% in August 2014. Another data released after trading hours yesterday, 30 September 2014, showed that the fiscal deficit during the first five month of the current fiscal year was 74.9% as a proportion of Budget Estimate (BE) for the full year, same as 74.6% in the same period last year.
Bajaj Auto rose after the company reported decent sales in September. IT stocks gained on weak rupee.
In overseas markets, Asian stocks fell after consumer confidence in the US unexpectedly declined and Hong Kong braced for bigger protests as Chinese holidays started. US stocks declined yesterday, 29 September 2014, as energy producers sank with the price of oil.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil prices edged higher as a positive Chinese economic survey helped the crude benchmark start October firmer after it fell to its weakest level since 2012 in the previous session.
At 10:15 IST, the S&P BSE Sensex was down 38.15 points or 0.14% at 26,592.35. The index lost 49.68 points at the day's low of 26,580.83 in morning trade. The index rose 53.19 points at the day's high of 26,683.70 in early trade.
The CNX Nifty was down 13.50 points or 0.17% at 7,951.30. The index hit a low of 7,951.15 in intraday trade. The index hit a high of 7,977.50 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,037 shares rose and 864 shares fell. A total of 63 shares were unchanged.
The BSE Mid-Cap index was up 19.52 points or 0.2% at 9,549.87. The BSE Small-Cap index was up 23.21 points or 0.22% at 10,704.67. Both these indices outperformed the Sensex.
IT stocks rose on weak rupee. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. Wipro (up 3.12%), Tech Mahindra (up 1.5%), TCS (up 1.46%) and HCL Technologies (up 2.02%) gained.
Infosys rose 0.96% after the company before market hours today, 1 October 2014, announced that it is extending its relationship with Oracle to enhance support for a range of innovative solutions and services on new technology platforms. These platforms will enable enterprises to use Oracle products to reshape their business and create new innovative ecosystems, Infosys said in a statement.
Bajaj Auto rose 0.41% after the company said during market hours its total sales rose 9% to 3.99 lakh units in September 2014 over September 2013. Motorcycles sales rose 7% to 3.47 lakh units in September 2014 over September 2013. Commercial vehicles sales rose 19% to 52,440 units in September 2014 over September 2013. Exports rose 19% to 1.74 lakh units in September 2014 over September 2013.
In the foreign exchange market, the rupee edged lower against the dollar as traders unwound positions ahead of holidays and at a time when the greenback is gaining globally. The partially convertible rupee was hovering at 61.81, compared with its close of 61.76 during the previous trading session.
Brent crude oil prices edged higher as a positive Chinese economic survey helped the crude benchmark start October firmer after it fell to its weakest level since 2012 in the previous session. Brent for November settlement was up 32 cents at $94.99 a barrel. The contract had fallen $2.53 or 2.6% to settle at $94.67 a barrel yesterday, 30 September 2014.
The eight core industries, comprising nearly 38% of the weight of items included in the index of industrial production (IIP), grew 5.8% in August 2014 up from 2.7% growth posted in July 2014, data showed on Tuesday, 30 September 2014. Meanwhile, the growth figure for August 2013 has been revised upwards to 4.7% from 3.8% reported earlier.
The fiscal deficit in April-August for the fiscal year ending 31 March 2015 (FY 2015) stood at Rs 397929 crore, which was 74.9% as a proportion of Budget Estimate (BE) same as 74.6% in the same period last year. The Budget has set the fiscal deficit target at 4.1% of GDP for fiscal 2015, down from 4.6% the previous fiscal.
Meanwhile, a joint statement issued after Prime Minister Narendra Modi's first bilateral meeting with US President Barack Obama at White House yesterday, 30 September 2014, stated that the two leaders have pledged to establish an Infrastructure Collaboration Platform convened by the Ministry of Finance and the Department of Commerce to enhance participation of US companies in infrastructure projects in India. The two countries plan to work expeditiously through several joint initiatives to facilitate greater confidence in cross-border trade and investment. Noting that two-way trade has increased five-fold since 2001 to nearly $100 billion, the two leaders committed to facilitate the actions necessary to increase trade another five fold. In order to raise investment by institutional investors and corporate entities, the leaders pledged to establish an Indo-US Investment Initiative led by the Ministry of Finance and the Department of Treasury, with special focus on capital market development and financing of infrastructure.
Indian financial markets remain closed tomorrow, 2 October 2014, on account of Mahatma Gandhi Jayanthi and again on Friday, 3 October 2014, on account of Dussehra.
Asian stocks declined today, 1 October 2014, after consumer confidence in the US unexpectedly declined and Hong Kong braced for bigger protests as Chinese holidays started. Key benchmark indices in Indonesia, South Korea and Singapore were off 0.21% to 1.04%. Key benchmark indices in Taiwan and Japan were up 0.12% to 0.19%. Hong Kong is closed today and tomorrow for holidays, while mainland China's markets are shut through 7 October 2014.
Hong Kong's Chief Executive Leung Chun-ying faces a deadline to respond to demands for his resignation and for free elections in the city as pro-democracy protests entered a sixth day.
Growth in China's manufacturing sector held up in September as large state factories benefitted from steady domestic demand, welcome news for investors a day after China cut mortgage rates for the first time since 2008 to lift its flagging economy. The official Purchasing Managers' Index (PMI) hovered at 51.1, the National Bureau of Statistics said today, 1 October 2014. A PMI reading above 50 indicates growth on a monthly basis, and a reading below that points to contraction.
Property restrictions in China were eased for the first time since the global financial crisis yesterday, 30 September 2014.
Trading in US index futures indicated that the Dow could fall 12 points at the opening bell on Wednesday, 1 October 2014. US stocks declined on Tuesday, 30 September 2014, as energy producers sank with the price of oil.
Confidence among US consumers fell to a four-month low in September as Americans' views of the labor market deteriorated. The Conference Board's index decreased to 86 last month. A separate report indicated home prices in 20 US cities rose in the year ended in July at the slowest pace in almost two years.
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