After hitting fresh intraday low in mid-morning trade, key benchmark trimmed losses in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 106.20 points or 0.4% at 26,461.79. The market breadth indicating the overall health of the market was negative. Tension at the Indo-Pak border weighed on sentiment. Asian stocks were mixed. Most auto stocks gained. Ashok Leyland scaled record high after the company reported strong sales in September 2014. Apollo Tyres surged after the central bank allowed foreign investors to buy up to 45% of the paid-up equity capital of the company.
The stand-off between India and Pakistan is continuing to intensify in Jammu and Kashmir as Pakistani forces continue to target several Indian posts along the Line of Control. Three persons were injured as Pakistan rangers today, 7 October 2014, targeted 40 BSF posts along the International Border in Jammu and Samba districts of Jammu and Kashmir, according to reports.
In overseas markets, Asian stocks were trading mixed. US stocks edged lower in volatile trade yesterday, 6 October 2014, as investors resorted to profit taking after last week's rally.
Earlier, key indices had lost ground after initial volatility.
In the foreign exchange market, the rupee edged higher against the dollar amid optimism the falling oil price will help narrow the nation's trade deficit.
Brent crude oil prices edged lower as concerns about abundant supply offset the positive boost to prices from the dollar's recent weakness.
At 12:15 IST, the S&P BSE Sensex was down 106.20 points or 0.4% at 26,461.79. The index lost 191.03 points at the day's low of 26,376.96 in mid-morning trade, its lowest level since 26 September 2014. The index rose 2.39 points at the day's high of 26,570.38 in early trade.
The CNX Nifty was down 36.25 points or 0.46% at 7,909.30. The index hit a low of 7,883.35 in intraday trade, its lowest level since 26 September 2014. The index hit a high of 7,943.05 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,330 shares declined and 1,177 shares gained. A total of 113 shares were unchanged.
The BSE Mid-Cap index was down 1.62 points or 0.02% at 9,509.79. The BSE Small-Cap index was up 9.34 points or 0.09% at 10,651.16. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1509 crore by 12:20 IST, compared to Rs 1236 crore by 11:20 IST.
Among the 30-share Sensex pack, 17 stocks declined and rest of them gained.
Most auto stocks gained. Bajaj Auto rose 0.38%. Hero MotoCorp fell 1.04%.
Tata Motors gained 2.14%. Tata Motors after market hours on Wednesday, 1 October 2014, said that its total sales (including exports) of Tata commercial and passenger vehicles declined 8% to 46,118 units in September 2014 over September 2013. Domestic sales of Tata commercial and passenger vehicles declined 11% to 40,874 units in September 2014 over September 2013. Exports rose 18% to 5,244 units in September 2014 over September 2013.
Maruti Suzuki India rose 0.54%. Maruti Suzuki India on Monday, 6 October 2014, announced the global launch of its mid-size premium sedan Ciaz. Ciaz's petrol variants are priced from Rs 6.99 lakhs to Rs 9.34 lakhs while diesel variants are priced from Rs 8.04 lakhs to Rs 9.80 lakhs, ex-showroom Delhi.
Ashok Leyland rose 3.33% to Rs 43.40 after scaling a record high of Rs 44 in intraday trade. The company's total sales surged 27% to 9,193 units in September 2014 over September 2013. The sales numbers were announced on Saturday, 4 October 2014.
Mahindra & Mahindra (M&M) dropped 1.94%. M&M before market hours today, 7 October 2014, said that Mahindra Two Wheelers (MTWL), an unlisted subsidiary of the company has made a binding offer to acquire a 51% stake in Peugeot Motocycles (PMTC), part of PSA Group based in France. PMTC (a.k.a. Peugeot Scooters), a key player in urban mobility in Europe for 116 years, is the oldest motorized two-wheeler manufacturer in the world. The transaction between MTWL and PSA, subject to Works Council consultation, as part of the employee dialogue process and anti-trust law, would involve infusion of Euro 15 million into PMTC to finance projects implemented through the strategic partnership, and further sale of shares by PSA which would allow MTWL to take a 51% stake in PMTC, M&M said.
TVS Motor Company rose 1.4% after the company said its total sales rose 27% to 2.50 lakh units in September 2014 over September 2013. The sales numbers were announced after market hours on Wednesday, 1 October 2014.
Apollo Tyres rose 7.41%. The Reserve Bank of India (RBI) on 1 October 2014, notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs), through primary market and stock exchanges, can now purchase up to 45% of the paid up capital of Apollo Tyres under the Portfolio Investment Scheme (PIS). Apollo Tyres has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit from 40% to 45% for the purchase of its equity shares and convertible debentures by FIIs/RFPIs, RBI said.
In the foreign exchange market, the rupee edged higher against the dollar amid optimism the falling oil price will help narrow the nation's trade deficit. The partially convertible rupee was hovering at 61.3325, compared with its close of 61.61 during the previous trading session on Wednesday, 1 October 2014. The foreign exchange market was closed from Thursday, 2 October 2014, to Monday, 6 October 2014 for local holidays.
Brent crude oil prices edged lower as concerns about abundant supply offset the positive boost to prices from the dollar's recent weakness. Brent for November settlement was off 12 cents at $92.67 a barrel. The contract had risen 48 cents to settle at $92.79 a barrel yesterday, 6 October 2014.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Wednesday, 1 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 63.24 crore on that day. Indian financial markets were closed from Thursday, 2 October 2014, till Monday, 6 October 2014, for local holidays.
There was a moderate improvement in India's service sector activity during September, as per a latest survey. The headline seasonally adjusted HSBC India Services Business edged up to 51.6 in September from 50.6 in August. A figure above 50 indicates expansion while one below points to a contraction.
The Indian economy is set to grow by 6.4% in fiscal year (FY) 2015/16 after 5.6% growth in FY2014/15, a World Bank report said. India is benefiting from a "Modi dividend", the report said, with economic activity buoyed by expectations from the newly elected government of Prime Minister Narendra Modi. Over the next year or so economic growth should be supported by the recovering US economy that would provide a market for Indian merchandise and service exports, the report said. Private investment is expected to pick up thanks to the government's business orientation, and declining oil prices should boost private sector competitiveness, the report said. But economic reforms will be needed for India to achieve its full long-term growth potential, the report argued.
Meanwhile, indicating a sharp improvement for the second consecutive quarter, the CII Business Confidence Index (CII-BCI) for July-September quarter shot up to 57.4, up from 53.7 in April-June quarter and 49.9 in January-March quarter this year. During the same quarter last fiscal, the index had touched the all-time low value of 45.7. The number 50 is the dividing line on the index between positive and weak business confidence. The result of the 88th Business Outlook Survey based on responses from over 150 industry members was declared on Monday, 6 October 2014.
Cumulative rainfall during this year's monsoon from 1 June 2014 up to 30 September 2014 was 12% below the Long Period Average (LPA), India Meteorological Department said on 1 October 2014. India's farming sector accounts for around 14% of the economy, but two-thirds of the nation's 1.2 billion people depend on farming for a livelihood and more than half of its arable land needs the summer rains.
Asian stocks were trading mixed today, 7 October 2014. Key benchmark indices in Hong Kong, Indonesia and South Korea were up 0.23% to 0.53%. Key benchmark indices in Japan, Taiwan and Singapore were off 0.25% to 0.67%. China's Shanghai Composite was closed for holiday.
The Bank of Japan today, 7 October 2014, kept its policy unchanged as widely expected, adding no new easing. In his remarks to the parliament, the central bank's governor, Haruhiko Kuroda voiced approval of the yen's relatively weak level and said Japan remained on track to reach its goal of sustained 2% consumer inflation.
Trading in US index futures indicated that the Dow could fall 28 points at the opening bell on Tuesday, 7 October 2014. US stocks edged lower in volatile trade on yesterday, 6 October 2014, as investors resorted to profit taking after last week's rally.
The US Federal Reserve will tomorrow, 8 October 2014, release the minutes of its Sept. 16-17 meeting at which it had decided to cut its monthly bond purchases to $15 billion. Policy makers next begin their two-day meeting on 28 October 2014.
In Europe, the latest data showed that industrial output in Germany declined sharply in August, marking the second consecutive day of rough economic numbers for Europe's largest economy. In adjusted terms, factory output was down 4% in August. Meanwhile, July's figure was downwardly revised to growth of 1.6% from the 1.9% gain originally reported.
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