After initial volatility, key benchmark indices lost ground in morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit 1-1/2-week low. The Sensex was currently down 94.48 points or 0.36% at 26,473.51. The market breadth indicating the overall health of the market was positive. Asian stocks were mixed. Capital goods stocks declined.
In overseas markets, Asian stocks were trading mixed. US stocks edged lower in volatile trade on yesterday, 6 October 2014, as investors resorted to profit taking after last week's rally.
Earlier, key indices had recovered after a weak opening.
In the foreign exchange market, the rupee edged higher against the dollar tracking gains of most Asian currencies against the dollar.
Brent crude oil prices edged lower as concerns about abundant supply offset the positive boost to prices from the dollar's recent weakness.
At 10:18 IST, the S&P BSE Sensex was down 94.48 points or 0.36% at 26,473.51. The index lost 143.66 points at the day's low of 26,424.33 in morning trade, its lowest level since 26 September 2014. The index rose 2.39 points at the day's high of 26,570.38 in early trade.
The CNX Nifty was down 36.30 points or 0.46% at 7,909.25. The index hit a low of 7,896.80 in intraday trade, its lowest level since 26 September 2014. The index hit a high of 7,943.05 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,120 shares gained and 936 shares fell. A total of 99 shares were unchanged.
The BSE Mid-Cap index was up 14.69 points or 0.15% at 9,526.09. The BSE Small-Cap index was up 33.94 points or 0.32% at 10,675.76. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 774 crore by 10:20 IST, compared to Rs 150 crore by 09:25 IST.
Among the 30-share Sensex pack, 19 stocks declined and rest of them gained.
Capital goods stocks declined. ABB India (down 1.24%), BEML (down 1.77%), Crompton Greaves (down 0.8%), Thermax (down 2.22%) declined.
L&T shed 0.36% to Rs 1,440.30. The stock was volatile. The stock hit high of Rs 1,458.70 and low of Rs 1,435.55 so far during the day. L&T during market hours said that the Transportation Infrastructure Business of its construction division has won an EPC order worth Rs 1630 crore from the Uttar Pradesh Expressways Industrial Development Authority. The greenfield order is for the construction of six-lane access controlled expressway from Unnao district (village Neval) to Lucknow. The project is scheduled to be completed within 36 months, L&T said.
Bharat Heavy Electricals (Bhel) declined 0.75%. Bhel has bagged a contract worth Rs 359 crore from NMDC for setting up a Plant Power Distribution Package on turnkey basis. The contract pertains to NMDC's three million tonnes per annum integrated steel plant at Nagarnar in Chattisgarh. The order win was announced on Thursday, 2 October 2014.
Siemens slipped 0.18%. Siemens before market hours today, 7 October 2014, said that Siemens Rail Automation has become a wholly owned subsidiary of the company with effect from 1 October 2014. On 30 January 2014, the Board of Directors of Siemens had approved the acquisition of 100% equity shares of Siemens Rail Automation from Siemens International Holding BV, Netherlands (99.99%) and Siemens AG (0.01%) for Rs 55 crore.
In the foreign exchange market, the rupee edged higher against the dollar tracking gains of most Asian currencies against the dollar. The partially convertible rupee was hovering at 61.42, compared with its close of 61.61 during the previous trading session on Wednesday, 1 October 2014. The foreign exchange market was closed from Thursday, 2 October 2014, to Monday, 6 October 2014 for local holidays.
Brent crude oil prices edged lower as concerns about abundant supply offset the positive boost to prices from the dollar's recent weakness. Brent for November settlement was off 18 cents at $92.61 a barrel. The contract had risen 48 cents to settle at $92.79 a barrel yesterday, 6 October 2014.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Wednesday, 1 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 63.24 crore on that day. Indian financial markets were closed from Thursday, 2 October 2014, till Monday, 6 October 2014, for local holidays.
HSBC Services PMI for August 2014 will be released today, 7 October 2014. Adjusted for seasonal influences, the headline HSBC India Services Business Activity Index posted 50.6 in August, down from 52.2 in July.
Economic growth in South Asia is forecast to accelerate to 2016 led by an increase in activity in India, the biggest economy in a region that has the world's largest concentration of poor people, a World Bank report said. In the twice-a-year South Asia Economic Focus, the World Bank said the region's economy will expand by a real 6% in 2015 and by 6.4% in 2016 compared to 5.4% this year, potentially making it the second fastest growing region in the world after East Asia and the Pacific. The Indian economy, 80% of the region's output, is set to grow by 6.4% in fiscal year (FY) 2015/16 after 5.6% growth in FY2014/15. India is benefiting from a "Modi dividend", the report said, with economic activity buoyed by expectations from the newly elected government of Prime Minister Narendra Modi. Over the next year or so economic growth should be supported by the recovering US economy that would provide a market for Indian merchandise and service exports, the report said. Private investment is expected to pick up thanks to the government's business orientation, and declining oil prices should boost private sector competitiveness, the report said. But economic reforms will be needed for India to achieve its full long-term growth potential, the report argued.
Meanwhile, indicating a sharp improvement for the second consecutive quarter, the CII Business Confidence Index (CII-BCI) for July-September quarter shot up to 57.4, up from 53.7 in April-June quarter and 49.9 in January-March quarter this year. During the same quarter last fiscal, the index had touched the all-time low value of 45.7. The number 50 is the dividing line on the index between positive and weak business confidence. The result of the 88th Business Outlook Survey based on responses from over 150 industry members was declared on Monday, 6 October 2014.
Cumulative rainfall during this year's monsoon from 1 June 2014 up to 30 September 2014 was 12% below the Long Period Average (LPA), India Meteorological Department said on 1 October 2014. India's farming sector accounts for around 14% of the economy, but two-thirds of the nation's 1.2 billion people depend on farming for a livelihood and more than half of its arable land needs the summer rains.
Asian stocks were trading mixed today, 7 October 2014. Key benchmark indices in Hong Kong, Indonesia and South Korea were up 0.24% to 0.51%. Key benchmark indices in Japan, Taiwan and Singapore were off 0.23% to 0.55%. China's Shanghai Composite was closed for holiday.
Meanwhile, protests in Hong Kong showed signs of winding down as pro-democracy demonstrators and the government agreed to start formal talks.
Trading in US index futures indicated that the Dow could fall 6 points at the opening bell on Tuesday, 7 October 2014. US stocks edged lower in volatile trade on yesterday, 6 October 2014, as investors resorted to profit taking after last week's rally.
The US Federal Reserve will tomorrow, 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. Policy makers next begin their two-day meeting on 28 October 2014.
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