Amid a largely range bound movement, key benchmark indices extended losses in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex, was off 108.19 points or 0.4% at 26,795.92. The 50-unit CNX Nifty was off 27.05 points or 0.33% at 8,116.55. The market breadth indicating the overall health of the market was positive. On BSE, 1,225 shares rose and 921 shares declined. A total of 83 shares were unchanged. The BSE Mid-Cap index was up 0.06%. The BSE Small-Cap index was up 0.35%. Both these indices outperformed the Sensex.
In overseas stock markets, stocks in Indonesia and Japan led losses for Asian markets after weak Chinese trade data for September 2015. China's imports and exports fell in September, in a sign of continued headwinds for the world's second-largest economy. US stocks eked out small gains yesterday, 12 October 2015, amid caution ahead of the earnings season.
Metal and mining stocks edged lower after disappointing trade data from China for September 2015. Vedanta (down 3.47%), Hindalco Industries (down 4.17%), Tata Steel (down 2.45%), National Aluminium Company (down 2.26%), JSW Steel (down 0.28%) and Steel Authority of India (down 0.53%) edged lower. NMDC (up 0.35%), Jindal Steel & Power (up 0.55%) and Hindustan Zinc (up 2.47%) edged higher. China is the world's largest consumer of steel, copper and aluminum.
China's September exports continued to struggle against weak global demand. Exports fell 3.7% in September 2015 from a year earlier in US dollar terms following a 5.5% drop in August 2015. Imports fell 20.4% in September 2015 compared with a 13.8% decrease in August 2015.
Shares of state-run coal mining giant Coal India were up 1.05% at Rs 338.
IT stocks declined. HCL Technologies (down 2.86%), Oracle Financial Services Software (down 1.46%), Tech Mahindra (down 0.54%) and MindTree (down 0.64%) edged lower.
TCS was off 0.36% at Rs 2,583. The stock hit a high of Rs 2,612.45 and a low of Rs 2,575 so far during the day. The company announces its Q2 September 2015 results today, 13 October 2015.
Infosys lost 2.72% at Rs 1,092, with the stock extending previous trading session's decline triggered by the company lowering its full year revenue growth guidance in dollar terms at the time of announcement of Q2 September 2015 results. The stock had fallen 3.88% to settle at Rs 1,122.50 yesterday, 12 October 2015. Infosys now expects its revenue to grow 6.4%-8.4% in dollar terms for the year ending 31 March 2016 (FY 2016). At the time of announcing Q1 June 2015 results, Infosys had forecast revenue growth of 7.2%-9.2% in dollar terms for FY 2016. The revenue growth guidance for FY 2016 has been kept unchanged at 10%-12% in constant currency terms.
Reliance Capital surged 4.6% to Rs 396.90 after the company announced during market hours today, 13 October 2015, that Nippon Life Insurance (NLI) signed definitive agreements with the company to increase its stake in Reliance Capital Asset Management (RCAM) from the existing 35% to 49% in tranches. NLI will be investing an aggregate value of Rs 1196 crore ($184 million) to acquire an additional 14% stake in RCAM. The transaction pegs RCAM's valuation at Rs 8542 crore ($1.3 billion). In line with the new shareholding structure, the name of the company will also be changed from RCAM to Reliance Nippon Life Asset Management.
Astec Lifesciences rose 1.25% at Rs 243 after the company said its board of directors at a meeting held yesterday, 12 October 2015, approved the transfer of 88.11 lakh equity shares of the company held by the existing promoters of the company to Godrej Agrovet, the incoming promoter.
Meanwhile, on the macro front, the latest data showed acceleration in consumer price inflation in September 2015, mainly due to increase in vegetable prices. Another data showed that a surge in production of two items contributed to more than half of the 6.4% increase in industrial production in August 2015. Inflation based on the consumer price index (CPI) increased to 4.4% in September 2015 from with 3.7% in August 2015. The core CPI inflation rose to 4.1% in September 2015 from 3.9% in August 2015.
Growth in industrial production (IIP) hit its highest level in almost three years on the back a surge in the output of the manufacturing sector. Gems and jewellery and rubber insulated cables contributed to more than half of the 6.4% increase in industrial production in August 2015.
Powered by Capital Market - Live News
