Amid mixed trend in index constituents, key benchmark indices languished in red in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 22.65 points or 0.08% at 26,361.42. The market breadth indicating the overall health of the market was negative. Foreign portfolio investors (FPIs) sold shares worth a net Rs 671.06 crore yesterday, 13 October 2014, as per provisional data.
Pharma stocks were mostly higher. Bajaj Finance advanced after strong Q2 earnings. Federal Bank hit record high. Symphony surged to record high after strong Q1 earnings.
Key indices have seen intraday volatility so far during the day. Benchmark indices had briefly turned positive from negative in afternoon trade after the latest data showed a substantial easing of wholesale price inflation in September 2014. Earlier, key indices had reversed direction after a firm opening triggered by data released after trading hours yesterday, 13 October 2014, showing easing of consumer price inflation last month.
In overseas markets, European stocks fell as data showing decline in French consumer prices in September added to worries over persistently low inflation in the eurozone. Asian stocks were mixed. US index futures pointed to a recovery of US stocks after yesterday's sell-off.
Brent crude oil prices dropped after the International Energy Agency cut its 2014 oil demand growth forecast to its weakest in five years
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade.
At 14:09 IST, the S&P BSE Sensex was down 22.65 points or 0.08% at 26,361.42. The index lost 172.06 points at the day's low of 26,212.01 in mid-morning trade. The index surged 166.72 points at the day's high of 26,550.79 at the onset of the trading session, its highest level since 10 October 2014.
The CNX Nifty was down 16.30 points or 0.21% at 7,867.95. The index hit a low of 7,825.45 in intraday trade. The index hit a high of 7,928 in intraday trade, its highest level since 9 October 2014.
The BSE Mid-Cap index was up 25.53 points or 0.27% at 9,515.29. The BSE Small-Cap index was up 28.79 points or 0.27% at 10,675.26. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,448 shares declined and 1,332 shares gained. A total of 115 shares were unchanged
Pharma stocks were mostly higher. Divi's Laboratories (up 2.33%), Glenmark Pharmaceuticals (up 2.46%), Cipla (up 0.82%), Sun Pharmaceutical Industries (up 0.24%), Lupin (up 0.35%), and Dr Reddy's Laboratories (up 0.3%) gained. Biocon (down 0.12%), Ranbaxy Laboratories (down 0.05%), Cadila Healthcare (down 0.77%), and Aurobindo Pharma (down 0.35%) declined.
Bajaj Finance rose 1.93% at Rs 2,735 after net profit rose 18% to Rs 197 crore on 29% growth in total income to Rs 1242 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours. The company's gross non-performing assets (NPA) and net NPA ratio stood at 1.41% and 0.48% respectively as of 30 September 2014. The company continues to provide for loan losses in excess of RBI requirements, Bajaj Finance said.
Federal Bank rose 2.43% to Rs 138.90. The stock hit a record high of Rs 139.65 in intraday trade.
Symphony jumped 6.8% at Rs 1,567. The stock hit a record high of Rs 1,608.70 in intraday. The company's net profit jumped 51.04% to Rs 21.63 crore on 41.44% growth in total income from operations to Rs 110.40 crore in Q1 September 2014 over Q1 September 2013. The result was announced during market hours.
Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 13 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 671.06 crore on that day.
Meanwhile, the stock market will remain closed tomorrow, 15 October 2014, on account of assembly election in Maharashtra.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 61.21, compared with its close of 61.10 during the previous trading session.
Brent crude oil prices dropped after the International Energy Agency (IEA) cut its 2014 oil demand growth forecast to its weakest in five years. Brent for November settlement was off 35 cents at $88.54 a barrel. The contract had tumbled $1.32 to settle at $88.89 a barrel on Monday, 13 October 2014, its lowest closing level since 1 December 2010. Brent for December settlement was off 38 cents at $89.03 a barrel.
In its closely watched monthly oil market report, IEA cut its forecast for the amount it expects oil demand to increase this year by 200,000 barrels a day to just 700,000 barrels a day. However, the IEA said the weakness in demand growth may have reached its bottom. The organization sees demand picking up more next year, to increase by 1.1 million barrels a day.
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.
The annual rate of inflation based on the Wholesale Price Index (WPI) eased to 2.38% in September 2014, from 3.74% in August 2014, data released by the government today, 14 October 2014, showed. Core WPI inflation which excludes volatile food and fuel prices eased to 2.8% in September 2014, from 3.5% in August 2014. Meanwhile, July WPI inflation rate was revised upwards to 5.41% from 5.19% reported earlier.
The WPI data comes after another data released by the government after trading hours yesterday, 13 October 2014, showed easing of consumer price inflation last month. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 6.46% in September 2014, from 7.73% in August 2014. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India eased to 7.67% in September 2014, from 9.35% in August 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 5.9% in September 2014, from 6.82% in August 2014.
European stocks fell today, 14 October 2014, as data showing decline in French consumer prices in September added to worries over persistently low inflation in the eurozone and as investors awaited German investor confidence report. Key benchmark indices in UK, France and Germany were off 0.12% to 0.3%.
French consumer prices fell further than expected in September, adding to concerns over persistently low inflation in the eurozone. Consumer prices in the eurozone's second-largest economy fell 0.4% in September from August and were 0.3% higher than in September last year.
Asian stocks were mixed today, 14 October 2014. Key indices in Singapore, Taiwan, South Korea and Indonesia were up 0.01% to 0.65%. Key indices in China, Hong Kong and Japan were off 0.28% to 2.38%.
China's central bank cut the interest rate it pays lenders for 14-day repurchase agreements for the second time in a month. The People's Bank of China sold 20 billion yuan ($3.3 billion) of the contracts at 3.4% today, 14 October 2014, according to a statement on its website. That compares with 3.5 percent in a similar auction on 9 October 2014.
Trading in US index futures indicated that the Dow could gain 59 points at the opening bell today, 14 October 2014. The US stock market ended Monday's volatile session sharply lower as selling intensified at the last hour. Volatile trading came on the heels of last week's deep losses that had been triggered by global economic growth concerns.
Other Fed officials joined Vice Chairman Stanley Fischer in signaling that the threat posed by slowing global growth may cause US rate increases to be delayed. Chicago Fed President Charles Evans reiterated his concern yesterday that inflation may only quicken slowly toward the US central bank's 2% goal and said officials should be exceptionally patient in adjusting monetary policy.
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