A bout of volatility was witnessed as the barometer index, the S&P BSE Sensex, regained positive zone after slipping into the red from green in early trade. The Sensex was currently up 38.69 points or 0.14% at 27,096.10. The market breadth indicating the overall health of the market was strong with almost three gainers for every loser on BSE. The BSE Mid-Cap index was up 1.04%. The BSE Small-Cap index was up 1.36%. Both these indices outperformed the Sensex. Sun Pharmaceutical Industries and Ranbaxy Laboratories dropped on reports that Sun Pharma's manufacturing facility in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration (USFDA). Shares of other pharma companies were mixed. On the macro front, data due later this week and early next week is likely to show easing of inflation in August 2014 and a muted growth in industrial production in July 2014. Meanwhile, the government has kicked off a big-bang divestment programme by announcing stake-sale in ONGC, Coal India and NHPC.
Earlier, key indices had opened on a firm note after overnight drop in Brent crude oil prices and gains in US stocks.
In overseas markets, Asian stocks rose in volatile trade after weaker-than-expected inflation in China spurred speculation that the Chinese government will add stimulus to support the economy.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged higher after reaching a 17-month low below $98 per barrel during the previous trading session.
At 10:18 IST, the S&P BSE Sensex was up 38.69 points or 0.14% at 27,096.10. The index gained 93.37 points at the day's high of 27,150.78 at the onset of the trading session. The index fell 20.46 points at the day's low of 27,036.95 in morning trade.
The CNX Nifty was up 19.40 points or 0.24% at 8,113.50. The index hit a high of 8,127.95 in intraday trade. The index hit a low of 8,096.25 in intraday trade.
The market breadth indicating the overall health of the market was strong with almost three gainers for every loser on BSE. 1,701 shares gained and 573 shares fell. A total of 71 shares were unchanged.
The BSE Mid-Cap index was up 102.87 points or 1.04% at 9,953.66. The BSE Small-Cap index was up 148.58 points or 1.36% at 11,099.61. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 872 crore by 10:15 IST, compared to a turnover of Rs 335 crore by 09:30 IST.
Larsen & Toubro (up 1.36%), Axis Bank (up 1.25%) and State Bank of India (up 1.27%) edged higher from the Sensex pack.
Sun Pharmaceutical Industries dropped 4.17% on reports that the company's manufacturing facility in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration (USFDA). The plant supplies significant amount of medicines to the US. Halol plant reportedly contributes to around 40% of US sales and around 25% of consolidated profit of the company.
Shares of Ranbaxy Laboratories fell 4.01%. In April 2014, Sun Pharmaceutical Industries acquired Ranbaxy Laboratories in a $4 billion landmark transaction.
Shares of other pharma companies were mixed. Cipla (down 1.24%), Dr Reddy's Laboratories (down 0.66%) and Lupin (down 0.67%) declined. Cadila Healthcare (up 0.39%), Glenmark Pharmaceuticals (up 0.29%) and Wockhardt (up 0.3%) rose.
Meanwhile, Finance Minister Arun Jaitley was released from hospital on Wednesday, 10 September 2014, after a longer-than-expected stay for treatment. Media reports said that Jaitley will not be able to attend a meeting of finance ministers from the Group of 20 nations in Australia next week. Jaitley was admitted to a private hospital in New Delhi on 1 September 2014 for planned surgery to manage a long-standing diabetic condition. He had been expected to leave after a few days, a report indicated.
Brent crude oil futures edged higher after reaching a 17-month low below $98 per barrel during the previous trading session. Brent for October settlement was up 7 cents at $98.11 a barrel. The contract fell $1.12 to settle at $98.04 a barrel yesterday, 10 September 2014, on rising supply and tepid demand. The price had slumped to $97.60 in intraday trade yesterday, the lowest intraday price since 18 April 2013.
US President Barack Obama reportedly told Americans in a speech late on Wednesday, 10 September 2014 that he had authorized US air strikes for the first time in Syria and more attacks in Iraq in a broad escalation of a campaign against the Islamic State militant group. He said he would hunt down Islamic State militants "wherever they are," reports added.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.8575, compared with its close of 60.955 on Wednesday, 10 September 2014.
Data due later this week and early next week is likely to show easing of inflation in August 2014 and a muted growth in industrial production in July 2014. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen decelerating to 7.8% in August 2014, from 7.96% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the CPI data for August 2014 at 17:30 IST tomorrow, 12 September 2014. The Reserve Bank of India (RBI) is targeting CPI inflation at 8% by January 2015 and 6% by January 2016.
Meanwhile, the growth in industrial production is seen decelerating to 1.9% in July 2014, from 3.4% in June 2014, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production growth had eased to 3.4% in June 2014, from 5% increase recorded in May 2014. The government will release the industrial production data for July 2014 at 17:30 IST tomorrow, 12 September 2014.
The annual rate of inflation based on the monthly Wholesale Price Index (WPI) is seen decelerating to 4.43% in August 2014, from 5.19% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the WPI data for August 2014 at 12 noon on Monday, 15 September 2014.
Asian stocks rose in volatile trade today, 11 September 2014, after weaker-than-expected inflation in China spurred speculation that the Chinese government will add stimulus to support the economy. Key benchmark indices in China, Hong Kong, Japan, Indonesia and Singapore were up 0.11% to 0.7%. Key benchmark indices in Taiwan and South Korea were off 0.05% to 0.08%.
China's consumer price index rose 2% last month from a year earlier, according to data released by the National Bureau of Statistics today, 11 September 2014. Factory-gate prices extended their decline to 30 months, adding room for government stimulus to support the economy amid a property slump.
Japanese Prime Minister Shinzo Abe and Bank of Japan Governor Haruhiko Kuroda will hold a meeting today, 11 September 2014, to exchange views on the state of the economy, their first in about five months.
Trading in US index futures indicated that the Dow could fall 10 points at the opening bell today, 11 September 2014. US stocks edged higher on Wednesday, 10 September 2014, helped by rebound in Apple shares.
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