A range bound movement was witnessed as key benchmark indices continued to languish in red. The barometer index, the S&P BSE Sensex, was currently down 134.20 points or 0.51% at 26,163.18. 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. 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 concern global growth is slowing.
Reliance Power edged higher after the company dismissed media reports that the company may lose one Sasan coal block. PSU OMCs edged lower. Shares of upstream state-run oil and gas firms also dropped. Reliance Industrial Infrastructure edged higher after Q2 results.
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 and US index futures declined on global growth worries.
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 11:17 IST, the S&P BSE Sensex was down 134.20 points or 0.51% at 26,163.18. 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 42.90 points or 0.55% at 7,817.05. The index hit a low of 7,796.60 in intraday trade, its lowest level since 18 August 2014. The index hit a high of 7,835.10 in intraday trade.
The BSE Mid-Cap index was off 29.37 points or 0.31% at 9,415.04. The BSE Small-Cap index was off 38.91 points or 0.37% at 10,572.09.
The market breadth indicating the overall health of the market was negative. On BSE, 1,395 shares declined and 1,015 shares gained. A total of 106 shares were unchanged.
PSU OMCs declined. BPCL (down 0.8%), HPCL (down 1.29%) and Indian Oil Corporation (down 1.65%) edged lower.
Shares of upstream state-run oil and gas firms also dropped. GAIL (India) (down 0.62%), Oil India (down 1.16%), ONGC (down 1.04%) declined.
NTPC lost 1.56% at Rs 139. With respect to news article titled "NTPC eyes $5bn power assets," NTPC during market hours on Friday, 10 October 2014, clarified that the company has nothing to comment on the news story as it is factually incorrect. Media reports had stated recently that NTPC is evaluating a proposal to buy stranded power assets worth $5 billion, or Rs 31000 crore. The reports had further stated that NTPC had received responses from 34 private sector power plants across the country and has shortlisted eight of them so far for acquisitions.
Reliance Power (RPower) rose 0.14% at Rs 71.15. The company during market hours in a clarification with regard to news item titled "RPower may lose one Sasan coal Block" said that the news article is speculative.
Reliance Industrial Infrastructure rose 0.15% at Rs 491.35. The stock was volatile. The stock hit a high of Rs 494.55 and a low of Rs 485.50 so far in the day. The company's net profit fell 8% to Rs 5.43 crore on 18.3 % rise in total revenue to Rs 25.95 crore in Q2 September 2014 over Q2 September 2013. The result was announced 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.
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 61.255, 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 which I hope will strengthen over time."
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 $1.23 a barrel at $88.98 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 $1.18 a barrel at $89.40 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, as worries about global economic growth sapped confidence. 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.
Trading in US index futures indicated that the Dow could fall 72 points at the opening bell today, 13 October 2014.
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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