Key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently down 26.44 points or 0.1% at 26,604.07. The market breadth indicating the overall health of the market was positive. Meanwhile, the results of a survey showed that growth in the Indian manufacturing sector slowed in September 2014 to slowest since December 2013. 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.
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.
Realty stocks extended Tuesday's losses. Airliners rose after Indian Oil Corporation cut jet fuel price by an average of nearly 3% across cities in India on Tuesday, 30 September 2014.
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 lower 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 11:15 IST, the S&P BSE Sensex was down 26.44 points or 0.1% at 26,604.07. 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 12.55 points or 0.16% at 7,952.25. 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 was positive. On BSE, 1,170 shares rose and 1,096 shares fell. A total of 86 shares were unchanged.
The BSE Mid-Cap index was up 19.18 points or 0.2% at 9,549.43. The BSE Small-Cap index was up 21.94 points or 0.21% at 10,703.40. Both these indices outperformed the Sensex.
Realty stocks extended Tuesday's losses. Housing Development & Infrastructure (HDIL) (down 1.74%), Unitech (down 1.06%), Anant Raj (down 1.09%), and D B Realty (down 1.41%), edged lower.
DLF rose 0.4%. The company after market hours yesterday, 30 September 2014, in a clarification with regard to news item titled "DLF under scanner for service tax evasion", said that the charges referred to in the news report are completely misleading and incorrect and the company denies them outright. DLF and its associates pay a total service tax of more than Rs 500 crore per annum to government of India and there is no question of evading service tax of Rs 30 crore across multiple years as speculated in the said news report, DLF said. The company further said that it has so far not received any finding or observation from any wing of the service tax department with reference to the matter mentioned in the said news report.
Maruti Suzuki India declined 2.23% The company said during market hours that its total sales rose 4.6% to 1.09 lakh units in September 2014 over September 2013. Domestic sales rose 9.8% to 99,290 units in September 2014 over September 2013. Exports declined 28.2% to 10,452 units in September 2014 over September 2013.
Separately, the company announced after market hours on Tuesday, 30 September 2014, that it will proactively inspect and repair the wiring harness fitment of 69,555 diesel vehicles (55,938 units of old Dzire, 12,486 units of old Swift and 1,131 units of Ritz) manufactured between 8 March 2010 and 11 August 2013. This exercise is limited to vehicles within the above specified range and does not pertain to any other vehicle of the company or its exports. This exercise does not pertain to any other model of the company or its exports. The problem was noticed based on feedback monitoring and internal checks by the company. Accordingly proactive action has been initiated in the interest of customers, the company said in a statement.
Airliners rose after Indian Oil Corporation cut jet fuel price by an average of nearly 3% across cities in India on Tuesday, 30 September 2014. Jet Airways (up 2.63%) and SpiceJet (up 2.76%) gained. Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost. Prices of jet fuel are directly linked to crude oil prices.
In the foreign exchange market, the rupee edged lower against the dollar as traders unwound positions ahead of holidays and at a time when the greenback is gaining globally. The partially convertible rupee was hovering at 61.7975, 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 42 cents at $95.09 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 -- a composite gauge designed to give a single-figure snapshot of manufacturing business conditions -- 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 0.3% to 1.42%. Taiwan's Taiwan weighted rose 0.3%. 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 17 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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