Key benchmark indices alternately swung between positive and negative zone in early afternoon trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently down 8.76 points or 0.03% at 26,340.57. Global stocks were weak amid growing concerns over economic growth around the world. Foreign portfolio investors sold shares worth a net Rs 694.67 crore during the previous trading session on Tuesday, 14 October 2014, as per provisional data. Meanwhile, India's merchandise export registered a muted growth of 2.7% in September 2014, data released the government early this week showed.
Meanwhile, various exit polls released after assembly elections in Maharashtra and Haryana showed that the BJP is set to wrest power from the Congress party in Haryana and will emerge as the single largest party in Maharashtra. Polling was held yesterday, 15 October 2014, for assembly elections in Maharashtra and Haryana. The counting of votes for elections in both these states takes places on Sunday, 19 October 2014, and the results will be out on the same day. BJP's seat tally in Maharashtra, according to various exit polls, varied from just over 100 to 150-plus, the latter a clear majority mark in a 288-member assembly. In 90-seat Haryana, exit polls gave BJP between 37 and 50-plus seats; the latter a majority mark. BJP's strong showing in assembly elections in Maharashtra and Haryana could boost Prime Minister Narendra Modi's ability to carry forward legislative reforms.
Metal stocks declined on global growth worries. Pharma stocks advanced on weak rupee. MindTree declined after Q2 results. Tata Steel declined amid volatility after the company said it has signed a Memorandum of Understanding with Klesch Group to undertake detailed due diligence and negotiations for the potential sale of its long products Europe business and associated distribution activities.
Earlier, a high volatility was witnessed at the onset of the trading session as key indices staged a strong recovery after a weak opening.
In overseas markets, Asian stocks declined amid growing concerns over economic growth around the world. US index futures pointed to a recovery for US stocks after yesterday's decline.
Brent crude fell to near four-year lows amid growing concerns over the global economy.
In the foreign exchange market, the rupee edged lower against the dollar as India's trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013.
At 12:14 IST, the S&P BSE Sensex was off 8.76 points or 0.03% at 26,340.57. The index lost 100.86 points at the day's low of 26,248.47 at the onset of the trading session. The index jumped 112.75 points at the day's high of 26,462.08 in early trade.
The CNX Nifty was down 8.55 points or 0.11% at 7,855.45. The index hit a high of 7,893.90 in intraday trade. The index hit a low of 7,836.45 in intraday trade.
The BSE Mid-Cap index was off 13.31 points or 0.14% at 9,459.77. The BSE Small-Cap index was off 41.30 points or 0.39% at 10,589.95.
The market breadth indicating the overall health of the market was negative. On BSE, 1,419 shares declined while 1,043 shares gained. A total of 113 shares were unchanged.
Metal and mining stocks edged lower on global growth worries. Hindalco Industries (down 3.44%), Jindal Steel & Power (down 2.26%), Hindustan Zinc (down 0.31%), Steel Authority of India (down 0.52%), and JSW Steel (down 0.76%) declined.
Sesa Sterlite lost 3.07% at Rs 241.90. The company after market hours on Tuesday, 14 October 2014, in a clarification with regard to news item titled "Sesa Sterlite slumps on Supreme Court Order" said that the latest developments in Supreme Court does not relate to Sesa Sterlite. The written order of the Supreme Court is still awaited, the company said. As per the company's understanding, the situation, which is prevailing since 21 April 2014 judgment of Supreme Court, remains the same even today, Sesa Sterlite said.
Earlier, media reports indicated that the Supreme Court had on 14 October 2014 reiterated a prior ruling that all iron ore mined in Goa before 2007 belonged to the state. The court has ordered pre-2007 iron ore to be auctioned by a monitoring panel, reports stated.
Tata Steel declined 1.18% at Rs 450.75. The stock was volatile. Thes stock hit a high of Rs 468 and a low of Rs 449.55 so far in the day. The company before market hours today, 16 October 2014, announced the signing of a Memorandum of Understanding with Klesch Group to undertake detailed due diligence and negotiations for the potential sale of its long products Europe business and associated distribution activities. The memorandum covers several UK-based assets including Tata Steel's Scunthorpe steelworks, mills in Teesside, Dalzell and Clydebridge in Scotland, an engineering workshop in Workington and a rail consultancy in York, as well as other operations in France and Germany.
Pharma stocks rose on weak rupee. Wockhardt (up 1.24%), Biocon (up 0.81%), Glenmark Pharmaceuticals (up 0.14%), Sun Pharmaceutical Industries (up 0.7%), Lupin (up 0.26%), Dr Reddy's Laboratories (up 0.04%), and Cipla (up 0.56%) gained.
Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.
Ranbaxy Laboratories rose 0.82% at Rs 602.95. The company during market hours said that it has settled the litigation concerning its participation in the Texas Medicaid Program. Under the settlement agreement, Ranbaxy will make payments to the State of Texas totaling $39.75 million in a series of tranches through August 2015. The claims at issue related exclusively to the manner in which the Ranbaxy has historically reported pricing data to Texas Medicaid for certain of its drugs, the company said. As has been widely reported, the State of Texas has brought nearly identical claims against virtually every other major pharmaceutical manufacturer in the United States, Ranbaxy said. Ranbaxy believes that it fully complied with all relevant laws, however the company settled the matter to avoid any further distraction and uncertainty of continued litigation with the State of Texas, Ranbaxy Laboratories said.
Separately, Ranbaxy Laboratories during market hours said it has notified the Bank of New York Mellon (hereinafter "The Bank") to terminate the Deposit Agreements dated 7 July 1994 (under which the Rule 144A Global Depositary Shares/Regulation S Global Depositary Shares have been issued) and underlying GDR programme. The Bank has on 15 October 2014 issued the notice of termination of GDR Programme to the GDR holders and accordingly the bank will complete the process of termination of GDR programme as per the terms of such notice of termination, Ranbaxy said.
MindTree lost 2.42% at Rs 1,010.05. The company's net profit rose 6.2% to Rs 137.4 crore on 5.3% rise in revenue to Rs 888.60 crore in Q2 September 2014 over Q1 June 2014. The company announced Q2 results on 15 October 2014, when stocks markets were closed on account of assembly elections in Maharashtra.
In dollar terms, MindTree's net profit rose 4.9% to $2.27 million on 4.1% rise in revenue to $14.70 in Q2 September 2014 over Q1 June 2014.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Tuesday, 14 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 694.67 crore on that day. The stock market was closed yesterday, 15 October 2014, on account of assembly election in Maharashtra.
In the foreign exchange market, the rupee edged lower against the dollar as India's trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013. The partially convertible rupee was hovering at 61.4775, compared with its close of 61.42 during the previous trading session.
India's merchandise export rose 2.7% to $28.90 billion in September 2014, data released after market hours on Tuesday, 14 October 2014 showed. Exports of engineering goods exports jumped 20.2%, exports of gems & jewellery rose 11.1%, exports of readymade garments rose 15.9%, rice exports rose 17.7% and exports of organic and inorganic chemicals rose 7.1%. The merchandise imports surged at more than two-and-half year pace of 26% to $43.15 billion in September 2014. Thus, the trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013, while also galloped from $10.84 billion in August 2014.
Brent crude fell to near four-year lows amid growing concerns over the global economy. Brent for November settlement was off 77 cents at $83.01 a barrel. The contract expires today, 16 October 2014. Brent for December settlement was off 87 cents at $83.25 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.
Mounting anxiety over global growth and the spread of Ebola dragged Asian bourses lower today, 16 October 2014. Key indices in Hong Kong, Singapore, Japan, South Korea, Indonesia and Taiwan were off 0.12% to 2.22%. In China, the Shanghai Composite was up 0.16%.
China attracted $9.0 billion of foreign direct investment in September, up 1.9% from a year earlier, the Ministry of Commerce said in a statement today, 16 October 2014. The figure was up from August's $7.2 billion, which was down 14% from a year earlier and the lowest level since July 2010.
Trading in US index futures indicated that the Dow could gain 39 points at the opening bell today, 16 October 2014. US stocks closed lower on Wednesday, 15 October 2014, but retraced some lost ground in late trading from historic intraday losses, as disappointing economic data fueled growth fears, which were compounded by the spread of Ebola after a second case was reported in the US. Data yesterday, 15 October 2014, showed that US retail sales fell 0.3% last month on a broad pullback in consumer spending in the world's largest economy.
According to the Fed's Beige Book of economic conditions data released yesterday, 15 October 2014, officials there see the economy moving at a modest-to-moderate pace, with consumer spending gaining at a slight-to-moderate pace.
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