With a survey showing slowdown in growth in India's manufacturing sector in September 2014, key equity benchmark indices languished in negative terrain in early afternoon trade. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was currently down 44.99 points or 0.17% at 26,585.52. The BSE Small-Cap index slipped into the red from green. 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.
Capital goods stocks declined. PSU OMCs gained as crude oil prices slumped yesterday, 30 September 2014.
Meanwhile, a joint statement issued after Prime Minister Narendra Modi's first bilateral meeting with US President Barack Obama at the 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.
Key indices have languished in red for most of the trading session so far, having moved in a narrow range.
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 higher in choppy trade 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 12:15 IST, the S&P BSE Sensex was down 44.99 points or 0.17% at 26,585.52. The index lost 80.45 points at the day's low of 26,550.06 in mid-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 18.10 points or 0.23% at 7,946.70. The index hit a low of 7,941.25 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 turned negative from positive in early afternoon trade. On BSE, 1,316 shares fell and 1,139 shares rose. A total of 98 shares were unchanged.
The BSE Mid-Cap index was up 7.22 points or 0.08% at 9,537.57, outperforming the Sensex. The BSE Small-Cap index was down 0.56 points or 0.01% at 10,680.90.
Capital goods stocks declined. Bharat Heavy Electricals (Bhel) (down 0.27%), L&T (down 0.44%), Thermax (down 1.77%) and Siemens (down 0.05%) declined.
ABB India rose 0.27% after the company after trading hours yesterday, 30 September 2014, announced winning an order worth around Rs 55 crore from Tamil Nadu state government entity Tamil Nadu Transmission Corporation to build a new substation in downtown Chennai. The project is scheduled to be completed in 2015.
PSU OMCs gained as crude oil prices slumped yesterday, 30 September 2014. HPCL (up 1.2%), BPCL (up 0.57%) and Indian Oil Corporation (IOCL) (up 1.58%) edged higher.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Indian Oil Corporation on 30 September 2014, cut retail selling price of petrol at Delhi by Rs 0.65/litre (including VAT), with corresponding decrease in other states. Meanwhile, the government has reportedly put off revision in diesel price until the return of Prime Minister Narendra Modi from the US.
In the foreign exchange market, the rupee edged higher in choppy trade against the dollar. The partially convertible rupee was hovering at 61.745, 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 41 cents at $95.08 a barrel. The contract had fallen $2.53 or 2.6% to settle at $94.67 a barrel yesterday, 30 September 2014.
Meanwhile, the results of a survey showed that growth in the Indian manufacturing sector slowed in September 2014 to slowest since December 2013. Adjusted for seasonal factors, the headline HSBC India Purchasing Managers' Index dropped from 52.4 in August to 51 in September. Manufacturing output and new orders grow at weaker rates, the survey showed. On the flip side, Indian manufacturers saw robust expansion in new export business during the month. Inflationary pressures from both inputs and outputs eased further in September.
Data released by the government after trading hours on Tuesday, 30 September 2014, showed that 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. 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, Japan and Singapore were off 0.11% to 1.41%. Taiwan's Taiwan weighted rose 0.26%. 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 3 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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