Intraday recovery in European stocks and US index futures aided strong intraday rebound on the domestic bourses during the second half of the trading session. Banking, metal and mining stocks led the intraday rebound. The barometer index, the S&P BSE Sensex, was provisionally up 73.42 points or 0.28% at 26,370.80. The market breadth indicating the overall health of the market was negative. Meanwhile, falling crude oil prices augur well for India.
Metal and mining stocks edged higher after better-than-expected Chinese September trade data. Reliance Industries declined ahead of its Q2 September 2014 results. 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. IndusInd Bank gained after strong Q2 earnings.
Industrial production growth remained subdued at 0.4% in August 2014, compared with a revised 0.4% growth in July 2014, data released by the government after trading hours on Friday, 10 October 2014, showed.
Earlier, amid weak cues from global markets, key indices had hit 8-week low in morning trade.
In overseas markets, European stocks staged a strong rebound after a weak opening as Federal Reserve policy makers said over the weekend at the International Monetary Fund's annual meetings in Washington that a global slowdown could undermine the US expansion and prompt them to delay raising US interest rates. Asian stocks were mostly in red even as stocks bounced back in Hong Kong after strong Chinese trade data. US index futures reversed initial losses.
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.
As per provisional closing, the S&P BSE Sensex was up 73.42 points or 0.28% to 26,370.80. The index surged 145.78 points at the day's high of 26,443.16 in late trade. 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 CNX Nifty was up 24.30 points or 0.31% at 7,884.25, as per provisional figures. The index hit a high of 7,901.15 in intraday trade. The index hit a low of 7,796 in intraday trade, its lowest level since 18 August 2014.
The BSE Mid-Cap index was up 45.35 points or 0.48% at 9,489.76. The BSE Small-Cap index was up 35.47 points or 0.33% at 10,646.47. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,475 shares declined and 1,442 shares gained. A total of 111 shares were unchanged.
The total turnover on BSE amounted to Rs 2414 crore, lower than turnover of Rs 3055.53 crore on Friday, 10 October 2014.
Metal and mining stocks edged higher after better-than-expected Chinese September trade data. China is the world's largest consumer of steel, copper and aluminum. Jindal Steel & Power (up 1.8%), Hindustan Zinc (up 2.55%), Steel Authority of India (up 3.54%), Tata Steel (up 1.96%), Hindalco Industries (up 0.6%), NMDC (up 2.2%), and Sesa Sterlite (up 0.18%) gained.
Reliance Industries (RIL) lost 0.23% at Rs 958.05. The company announces its Q2 September 2014 results today, 13 October 2014.
RIL during market hours in a clarification with regard to news item titled "RIL seeking a Buyer for Eagle Ford Basin Joint Venture Stake" said that RIL constantly strives to identify means by which to create additional value for its shareholders. It is RIL's policy not to comment on market speculation, the company said. If there are any required disclosures, RIL will make them at the appropriate time, the company added. Media reports had said recently that RIL is looking to sell its 45% stake in the Eagle Ford basin shale oil and gas venture in the US for an estimated $4.5 billion.
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.
IndusInd Bank rose 2.01% at Rs 635.80 after net profit surged 30.27% to Rs 430.20 crore on 20.6% growth in total income to Rs 2937.03 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours.
Mahindra & Mahindra (M&M) lost 3.55% at Rs 1,271.60. 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 1.28% at Rs 1,386. 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.
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.
Meanwhile, the stock market will remain closed on Wednesday, 15 October 2014, on account of assembly election in Maharashtra, BSE said in a circular.
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 61.19, compared with its close of 61.35 during the previous trading session.
Reserve Bank of India Governor Raghuram Rajan reportedly said at an event on Saturday, 11 October 2014, that the Indian rupee was not overvalued at this point in time and that the Indian economy was in the beginning phases of a recovery.
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 $1.79 a barrel at $88.42 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 $1.73 a barrel at $88.85 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 0.4% in August 2014 compared with 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.
In overseas markets, European stocks staged a strong rebound after a weak opening today, 13 October 2014, as Federal Reserve policy makers said over the weekend at the International Monetary Fund's annual meetings in Washington that a global slowdown could undermine the US expansion and prompt them to delay raising US interest rates. Key benchmark indices in UK, France and Germany were up 0.02% to 0.42%.
IMF meetings in Washington this weekend showed differing opinions over how much more stimulus the euro-area economy needs from the European Central Bank (ECB). While ECB President Mario Draghi repeated he's ready to expand the central bank's balance sheet by as much as 1 trillion euros ($1.3 trillion), Bundesbank head Jens Weidmann said a target value isn't set in stone.
Asian stocks dropped today, 13 October 2014, amid growing concern the global economy is slowing. Key benchmark indices in China, Singapore, Taiwan, Indonesia and South Korea were off 0.36% to 2.84%. Hong Kong's Hang Seng index rose 0.24%. Japanese markets were closed for holiday.
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.
In Hong Kong, police removed some barricades on the periphery of the main pro-democracy site in the city's business district, while hundreds of men attempted to remove more barriers.
Trading in US index futures indicated that the Dow could advance 10 points at the opening bell today, 13 October 2014.
US interest rate increases could be delayed by slowdowns elsewhere, Federal Reserve Vice Chairman Stanley Fischer said at the weekend, and Fed Governor Daniel Tarullo said he's worried about the world's economic expansion.
Meanwhile, a health-care worker in Dallas was confirmed at the weekend to have contracted Ebola after being in contact with an infected patient there, raising the possibility other caregivers could have been exposed to the disease.
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