Volatility continued as key benchmark indices alternately swung between positive and negative zone in morning trade. The barometer index, the S&P BSE Sensex was currently off 22.70 points or 0.09% at 26,326.63. The market breadth indicating the overall health of the market was negative. Global stocks were weak amid growing concerns over economic growth around the world. Foreign portfolio investors sold shares worth a net Rs 694.67 crore during the previous trading session on Tuesday, 14 October 2014, as per provisional data. Meanwhile, India's merchandise export registered a muted growth of 2.7% in September 2014, data released the government early this week showed.
Meanwhile, various exit polls released after assembly elections in Maharashtra and Haryana showed that the BJP is set to wrest power from the Congress party in Haryana and will emerge as the single largest party in Maharashtra. Polling was held yesterday, 15 October 2014, for assembly elections in Maharashtra and Haryana. The counting of votes for elections in both these states takes places on Sunday, 19 October 2014, and the results will be out on the same day. BJP's seat tally in Maharashtra, according to various exit polls, varied from just over 100 to 150-plus, the latter a clear majority mark in a 288-member assembly. In 90-seat Haryana, exit polls gave BJP between 37 and 50-plus seats; the latter a majority mark. BJP's strong showing in assembly elections in Maharashtra and Haryana could boost Prime Minister Narendra Modi's ability to carry forward legislative reforms.
PSU OMCs advanced as Brent crude oil prices fell to the lowest level in four years. Telecom stocks declined after Telecom Regulatory Authority of India yesterday, 15 October 2014, proposed the starting prices for a coming auction of frequencies to cellphone companies whose permits are set to expire later this year. TCS and Hero MotoCorp advanced ahead of their Q2 September 2014 earnings. Bajaj Auto declined amid volatility after weak Q2 earnings. Tata Steel advanced after signing of a MoU with Klesch Group to undertake detailed due diligence and negotiations for the potential sale of its long products Europe business and associated distribution activities.
Earlier, a high volatility was witnessed at the onset of the trading session as key indices staged a strong recovery after a weak opening.
In overseas markets, Asian stocks declined amid growing concerns over economic growth around the world. US index futures pointed to a recovery for US stocks after yesterday's decline.
Brent crude oil prices fell to the lowest level in four years on concern global supply is outpacing demand.
In the foreign exchange market, the rupee edged lower against the dollar as India's trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013.
At 10:16 IST, the S&P BSE Sensex was down 22.70 points or 0.09% at 26,326.63. The index lost 100.86 points at the day's low of 26,248.47 at the onset of the trading session. The index jumped 112.75 points at the day's high of 26,462.08 in early trade
The CNX Nifty was down 5.40 points or 0.07% at 7,858.60. The index hit a high of 7,893.90 in intraday trade. The index hit a low of 7,836.45 in intraday trade.
The BSE Mid-Cap index was down 33.48 points or 0.35% at 9,439.60. The BSE Small-Cap index was down 38.69 points or 0.36% at 10,592.56.
The market breadth indicating the overall health of the market was negative. On BSE, 1,115 shares declined while 853 shares gained. A total of 99 shares were unchanged.
ITC rose 0.55% at Rs 349.45. The stock was volatile. The stock hit a high of Rs 350.55 and a low of Rs 343.65 so far in the day.
Union Health Minister Dr Harsh Vardhan yesterday, 15 October 2015, issued a notification requiring cigarette manufacturing companies to devote at least 85% of the surface areas of cigarette packets on both sides to graphically and literally represent the statutory warning. Beginning 1 April 2015 every cigarette packet will carry on both sides pictorial depiction of throat cancer and a message in English, Hindi or any Indian language.
Among other cigarette makers, Godfrey Philips India (down 0.19%) and VST Industries (down 0.34%) declined.
PSU OMCs edged higher as Brent crude oil prices dropped to the lowest level in four years on concern global supply is outpacing demand.
BPCL (up 0.44%), HPCL (up 1.79%) and Indian Oil Corporation (up 0.75%) gained.
Meanwhile, PSU OMCs cut petrol price by Re 1 a litre with effect from 15 October 2014 excluding local sales tax or VAT.
Telecom stocks declined after Telecom Regulatory Authority of India (Trai) yesterday, 15 October 2014, proposed the starting prices for a coming auction of frequencies to cellphone companies whose permits are set to expire later this year. Idea Cellular (down 0.03%), MTNL (down 1.66%), Bharti Airtel (down 0.98%), and Tata Teleservices (Maharashtra) (down 1.47%) declined. Shares of Reliance Communications were up 1.34% at Rs 102.35.
The Trai suggested that the Department of Telecommunications auction frequencies in the 900-megahertz band with a starting price of Rs 3004 crore per unit and in the 1800-megahertz band at Rs 2138 crore. The auctions are crucial to top four cellphone operators viz. Bharti Airtel, the local unit of Vodafone Group PLC., Idea Cellular and Reliance Communications, whose permits in some of the service areas are set to expire in the next two years. These operators use frequencies in both bandwidths to provide cellphone services. Auctions won't be held for the 900-megahertz band in four service areas, and in two service areas for the 1800-megahertz band as frequencies aren't available in those areas, the regulator said.
The telecommunications regulator has also asked the government to put up for auction frequencies that allow operators to offer high-speed third-generation and fourth-generation telecommunications services on cellphones and tablet computers, before the current set of proposals are finalized. The proposals will now be discussed by the Telecom Commission.
Bajaj Auto lost 0.04% at Rs 2,409. The stock was volatile. The stock hit a high of Rs 2,440 and a low of Rs 2,366 so far in the day. The company reported 29.41% fall in net profit to Rs 590.90 crore on 14.67% rise in total income to Rs 6076.70 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Tuesday, 14 October 2014. The Q2 September 2014 net profit was weighed by an exceptional item of Rs 340.29 crore of National Calamity Contingency Duty (NCCD). Excluding exceptional item, profit after tax, would have rose 1.91% to Rs 853 crore in Q2 September 2014 over Q2 September 2013, Bajaj Auto said.
It may be recalled that Bajaj Auto had filed a writ petition before the Uttarakhand High Court in October 2011, claiming benefit of exemption from payment of NCCD by Pantnagar plant. On 9 October 2014, the court ruled otherwise, the company said. Accordingly in Q2 September 2014, the company recognised liability for the last seven and a half years (1 April 2007 to 30 September 2014) aggregating to Rs 340.29 crore. This is a one time only charge and going forward, the monthly charge towards NCCD is expected to be around Rs 3 crore per month, it added.
The company's export revenue rose 28.75% to Rs 2736 crore in Q2 September 2014 over Q2 September 2013. Operating earnings before interest, taxes, depreciation and amortization (EBITDA) before mark-to-market loss and CSR spends rose 3.65% to Rs 1248 crore in Q2 September 2014 over Q2 September 2013. Operating EBITDA margin before mark-to-market (MTM) gain/loss was reported at 20.8% in Q2 September 2014, lower than 23.1% in Q2 September 2013.
Given the initial response to the Discover 150, the company looks forward to a very rewarding future, Bajaj Auto said.
Tata Steel rose 0.41% at Rs 458. The company before market hours today, 16 October 2014, announced the signing of a Memorandum of Understanding with Klesch Group to undertake detailed due diligence and negotiations for the potential sale of its long products Europe business and associated distribution activities. The memorandum covers several UK-based assets including Tata Steel's Scunthorpe steelworks, mills in Teesside, Dalzell and Clydebridge in Scotland, an engineering workshop in Workington and a rail consultancy in York, as well as other operations in France and Germany.
TCS rose 1.49% at Rs 2,739.95 ahead of its Q2 September 2014 earnings today, 16 October 2014.
Hero Motocorp rose 0.57% at Rs 2,873 ahead of its Q2 September 2014 earnings today, 16 October 2014.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Tuesday, 14 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 694.67 crore on that day. The stock market was closed yesterday, 15 October 2014, on account of assembly election in Maharashtra.
In the foreign exchange market, the rupee edged lower against the dollar as India's trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013. The partially convertible rupee was hovering at 61.605, compared with its close of 61.42 during the previous trading session.
India's merchandise export rose 2.7% to $28.90 billion in September 2014, data released after market hours on Tuesday, 14 October 2014 showed. Exports of engineering goods exports jumped 20.2%, exports of gems & jewellery rose 11.1%, exports of readymade garments rose 15.9%, rice exports rose 17.7% and exports of organic and inorganic chemicals rose 7.1%. The merchandise imports surged at more than two-and-half year pace of 26% to $43.15 billion in September 2014. Thus, the trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013, while also galloped from $10.84 billion in August 2014.
Brent crude oil prices fell to the lowest level in four years on concern global supply is outpacing demand. Brent for the most active December settlement was off 73 cents at $83.39 a barrel. The contract had tumbled $1.29 to settle at $84.12 a barrel yesterday, 15 October 2014.
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.
Mounting anxiety over global growth and the spread of Ebola dragged Asian bourses lower today, 16 October 2014. Key indices in Hong Kong, Singapore, Japan, South Korea, Indonesia and Taiwan were off 0.05% to 1.91%. In China, the Shanghai Composite was up 0.56%.
China attracted $9.0 billion of foreign direct investment in September, up 1.9% from a year earlier, the Ministry of Commerce said in a statement today, 16 October 2014. The figure was up from August's $7.2 billion, which was down 14% from a year earlier and the lowest level since July 2010.
Trading in US index futures indicated that the Dow could gain 50 points at the opening bell today, 16 October 2014. US stocks closed lower on Wednesday, 15 October 2014, but retraced some lost ground in late trading from historic intraday losses, as disappointing economic data fueled growth fears, which were compounded by the spread of Ebola after a second case was reported in the US.
According to the Fed's Beige Book of economic conditions data released yesterday, 15 October 2014, officials there see the economy moving at a modest-to-moderate pace, with consumer spending gaining at a slight-to-moderate pace.
Powered by Capital Market - Live News
