Amid negative cues from global markets, key benchmark indices extended initial losses in monring trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit 8-week low. The barometer index, the S&P BSE Sensex was currently down 179.08 points or 0.68% at 26,118.30. The market breadth indicating the overall health of the market was negative. Data showing muted growth in industrial production in August 2014 triggered worries about the economic rebound. Foreign portfolio investors sold shares worth a net Rs 719.77 crore on Friday, 10 October 2014, as per provisional data.
Realty stocks dropped. Bank stocks were mostly higher. Mahindra & Mahindra dropped after the company said it would observe no production days for four days during the balance period of October 2014 at its tractor plants located at Rudrapur and Jaipur to align production with sales requirements. ACC declined after the company said that clinker production at Chaibasa and Bargarh plants has stopped. Reliance Industries declined ahead of Q2 results.
Industrial production growth remained subdued at 0.5% in August 2014, from 0.4% (revised) increase in July 2014, data released by the government after trading hours on Friday, 10 October 2014, showed.
In overseas markets, Asian stocks and US index futures declined on global growth worries.
Brent crude oil prices edged lower after Saudi Arabia and Kuwait signalled ample supplies and their willingness to bear lower prices to defend market share.
In the foreign exchange market, the rupee edged higher against the dollar on broad weakness of the dollar.
At 10:12 IST, the S&P BSE Sensex was down 179.08 points or 0.68% at 26,118.30. The index lost 204.69 points at the day's low of 26,092.69 in morning trade, its lowest level since 18 August 2014. The index fell 20.81 points at the day's high of 26,276.57 in early trade.
The CNX Nifty was down 42.60 points or 0.54% at 7,807.35. The index hit a low of 7,796.60 in intraday trade, its lowest level since 18 August 2014. The index hit a high of 7,835.10 in intraday trade
The BSE Mid-Cap index was off 25.82 points or 0.27% at 9,418.59. The BSE Small-Cap index was off 15.82 points or 0.15% at 10,595.18.
The market breadth indicating the overall health of the market was negative. On BSE, 1,256 shares declined and 866 shares gained. A total of 66 shares were unchanged.
Bank stocks were mostly higher. Bank of India (up 1.3%), Yes Bank (up 0.51%), Punjab National Bank (up 0.38%), State Bank of India (up 0.33%), and Axis Bank (up 0.3%) gained.
IndusInd Bank rose 0.99% at Rs 628.95 ahead of its Q2 September 2014 earnings today, 13 October 2014.
Kotak Mahindra Bank (down 1.3%), HDFC Bank (down 1.01%) and ICICI Bank (down 0.95%), declined.
Realty stocks dropped. DLF (down 4.76%), Unitech (down 2.34%), Housing Development & Infrastructure (down 1.3%), and Godrej Properties (down 0.61%) declined.
Reliance Industries (RIL) lost 1.16% at Rs 949.20. The company announces its Q2 September 2014 results today, 13 October 2014. RIL said on Saturday, 11 October 2014, said two of chairman Mukesh Ambani's children had been appointed to the boards of the company's telecoms and retail businesses. At the board meetings held on 11 October 2014, Reliance Jio Infocomm and Reliance Retail Ventures approved the appointment of Isha Ambani and Akash Ambani as directors on their boards.
Mahindra & Mahindra (M&M) lost 1.76% at Rs 1,295.20. The company after market hours on Friday, 10 October 2014, said that as part of aligning its production with sales requirements, the company would be observing no production days at its tractor plants located at Rudrapur and Jaipur for four days during the balance period of October 2014. The management does not envisage any adverse impact on availability of tractors in the market due to adequacy of tractor stocks to serve the market requirements, M&M said.
ACC lost 1.78% at Rs 1,378.95. The company after trading hours on Friday, 10 October 2014, said that after a Supreme Court ruling on renewal of mining leases, the Jharkhand and Odisha state governments have served notices on the company to suspend limestone mining operations at Chaibasa and Bargarh cement plants. The clinker production at Chaibasa and Bargarh plants has stopped. However, the operations of cement grinding units associated with these plants are continuing with transfer of clinker to them from sister works, ACC said. The company said it is awaiting further developments in the matter. Whilst the company has complied with the court order seeking stopping mining activities, the company is in the process of seeking relief in the matter and is hopeful of a positive outcome, ACC said.
In the foreign exchange market, the rupee edged higher against the dollar on broad weakness of the dollar. The partially convertible rupee was hovering at 61.245, compared with its close of 61.35 during the previous trading session.
Brent crude oil prices edged lower after Saudi Arabia and Kuwait signalled ample supplies and their willingness to bear lower prices to defend market share. Brent for November settlement was off $1.26 a barrel at $88.95 a barrel. The contract briefly touched its lowest since December 2010 at $87.74 in early trade. The contract had risen 16 cents to settle at $90.21 a barrel on Friday, 10 October 2014. Brent for December settlement was off $1.19 a barrel at $89.39 a barrel.
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.
India's Index of industrial production (IIP) growth remained subdued at 0.5% in August 2014, from 0.4% (revised) increase in July 2014, data released by the government after trading hours on Friday, 10 October 2014, showed. The manufacturing sector's output declined for second straight month at 1.4%, mainly contributing to the subdued IIP growth in August 2014. However, mining sector output increased 2.6%, while electricity generation posted a double-digit growth for the third straight month, at 12.9%, in August 2014.
The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen further decelerating to 7.2% in September 2014, from 7.8% in August 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the CPI data for September 2014 at 17:30 IST today, 13 October 2014.
The annual rate of inflation based on the Wholesale Price Index (WPI) is seen further decelerating to 3.3% in September 2014, from 3.74% in August 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the WPI inflation data at 12 noon tomorrow, 14 October 2014.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Friday, 10 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 719.77 crore on that day.
Asian stocks dropped today, 13 October 2014 as worries about global economic growth sapped confidence. Key benchmark indices in China, Singapore, Hong Kong, Taiwan, Indonesia and South Korea were off 0.62% to 2.43%.
China's exports and imports rose faster than expected in September, data today, 13 October 2014, showed. Exports rose 15.3% in September from a year earlier, according to data from the General Administration of Customs. September's export growth exceeded August's 9.4% growth. Imports in September rose 7% from a year earlier, following a 2.4% decline in August. Increased imports saw China's trade surplus narrow in September to $31 billion from $49.8 billion in August. After the latest data, China's customs agency said it expects stronger exports and imports to continue in the fourth quarter.
Trading in US index futures indicated that the Dow could fall 87 points at the opening bell today, 13 October 2014.
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