Key benchmark indices languished in red mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 77.74 points or 0.3% at 26,194.23. The market breadth indicating the overall health of the market was negative. Asian and European stocks edged lower, extending a global selloff. Crude oil prices slumped which augurs well for India. Meanwhile, tension continues on the Indo-Pak border. Index heavyweight Reliance Industries extended intraday gain. Telecom stocks saw mixed trend. Shares of Jindal Steel & Power reversed direction after hitting a 52-week low. Among the side counters, V-Guard Industries scaled record high. Parsvnath Developers hit 52-week low.
Meanwhile, the International Monetary Fund yesterday, 7 October 2014, raised its growth forecast for India to 5.6% for FY 2015 from 5.4% predicted earlier.
In overseas markets, European stocks fell as investors awaited minutes from the Federal Reserve's last meeting to be released later in the global day. Asian stocks declined, extending a global selloff, amid concern that the global economic outlook is worsening. US stocks tumbled on Tuesday, 7 October 2014, as weak data out of Germany raised concerns about the strength of global growth ahead of the start of earnings season.
Earlier, the Sensex and the 50-unit CNX Nifty hit their lowest level in more than 7 weeks in early afternoon trade after seeing intraday volatility.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil prices dropped sharply after the International Monetary Fund (IMF) yesterday, 7 October 2014, cut its outlook for global growth in 2015.
At 14:15 IST, the S&P BSE Sensex was down 77.74 points or 0.3% at 26,194.23. The index fell 98.17 points at the day's low of 26,173.80 in early afternoon trade, its lowest level since 18 August 2014. The index gained 62.38 points at the day's high of 26,334.35 in morning trade.
The CNX Nifty was down 25.25 points or 0.32% at 7,827.15. The index hit a low of 7,824.20 in intraday trade, its lowest level since 18 August 2014. The index hit a high of 7,869.90 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,529 shares declined and 1,231 shares gained. A total of 118 shares were unchanged.
The BSE Mid-Cap index was off 40.51 points or 0.43% at 9,384.88, underperforming the Sensex. The BSE Small-Cap index was off 20.68 points or 0.2% at 10,537.28, outperforming the Sensex.
Among the 30-share Sensex pack, 18 stocks gained and rest of them declined.
Tata Steel (up 2.51%), NTPC (up 1.88%) and ONGC (up 1.81%) edged higher from the Sensex pack.
Sun Pharmaceutical Industries (down 4.77%), Infosys (down 4.66%) and Wipro (down 3.58%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries gained 1.35% to Rs 939.15, with the stock extending intraday gain. The stock hit high of Rs 939.90 and low of Rs 922.10 so far during the day.
Coal India rose 0.47%. Manoj Joshi, joint secretary of financial markets in the Finance Ministry, was quoted as saying that Coal India's divestment process should begin immediately after the Diwali festival on 23 October 2014. The government wants to sell a 10% in the state-owned company this fiscal year ending 31 March as part of many divestments aimed at bolstering its stressed finances.
Telecom stocks saw mixed trend. Idea Cellular (down 3.73%), Bharti Airtel (down 0.9%) and Tata Teleservices (Maharashtra) (down 0.23%) declined. MTNL (up 0.39%) and Reliance Communications (up 0.83%) rose.
Jindal Steel & Power rose 1.16% to Rs 165.25, with the stock reversing direction after hitting a 52-week low of Rs 161 in intraday trade.
V-Guard Industries gained 3.11% to Rs 909 after scaling a record high of Rs 936.70 in intraday trade.
Parsvnath Developers lost 3.83% to Rs 20.10 after hitting a 52-week low of Rs 19.90 in intraday trade.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.3775, compared with its close of 61.425 during the previous trading session.
Brent crude oil prices dropped after the International Monetary Fund (IMF) cut its outlook for global growth. Brent for November settlement was off 94 cents at $91.17 a barrel. The contract hit a low $90.76 a barrel earlier in the session, its lowest point since June 2012. The contract had declined 68 cents to settle at $92.11 a barrel yesterday, 7 October 2014, the lowest settlement price since June 2012.
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.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 7 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 332.84 crore on that day.
Meanwhile, India's international border with Pakistan remains tense. As per reports, two people have lost their lives in fresh firing that took place in Samba along the International Border today, 8 October 2014, taking the death toll in ceasefire violations up to seven. Six others including a Border Security Force personnel have also been injured in the firing, according to reports.
The International Monetary Fund yesterday, 7 October 2014, raised its growth forecast for India to 5.6% for FY 2015 from 5.4% predicted earlier. It has forecast 6.4% growth for India for FY 2016. IMF said the post-election recovery of confidence in India provides an opportunity for the country to embark on much-needed structural reforms in areas such as education, labour and markets to improve competitiveness and productivity. The IMF said it believes that fiscal reforms and improvement of investment conditions will continue in India, lowering near-term vulnerabilities and bolstering medium-term growth.
The IMF yesterday, 7 October 2014, cut its outlook for global growth in 2015 and warned about the risks of rising geopolitical tensions and a financial-market correction as stocks reach frothy levels. The world economy will grow 3.8% next year, compared with a July forecast for 4%, after a 3.3% expansion this year, the Washington-based IMF said. Some financial markets may be overheating after a sustained period of near-zero rates, according to the report.
European stocks fell today, 8 October 2014, as investors awaited minutes from the Federal Reserve's last meeting later in the global day. Key benchmark indices in France, Germany and UK were off 0.13% to 0.65%.
Asian stocks declined today, 8 October 2014, after the International Monetary Fund (IMF) cut its outlook for global growth in 2015. Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea were off 0.39% to 1.19%. China's Shanghai Composite index was up 0.8%.
The HSBC China services Purchasing Managers Index edged down to 53.5 in September, after recording a 17-month high of 54.1 in August, HSBC Holdings PLC today, 8 October said. A reading above 50 indicates a month-on-month expansion while below points to contraction.
Trading in US index futures indicated that the Dow could rise 8 points at the opening bell today, 8 October 2014. US stocks ended sharply lower on Tuesday, 7 October 2014, as weak data out of Germany raised concerns about the strength of global growth ahead of the start of earnings season.
The US Federal Reserve will today, 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. The Fed minutes may reveal clues about the policy makers' thinking on the timing of an interest-rate increase. Policy makers next begin their two-day meeting on 28 October 2014.
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