Key benchmark indices continued hovering in a narrow range in mid-afternoon trade. At 14:19 IST, the barometer index, the S&P BSE Sensex, was up 42.78 points or 0.15% at 27,685.89. The Nifty 50 index was currently up 4.55 points or 0.05% at 8,577.90. The market breadth indicating the overall health of the market was strong. On BSE, 1,646 shares rose and 999 shares fell. A total of 197 shares were unchanged. The BSE Mid-Cap index was currently up 0.60%. The BSE Small-Cap index was currently up 0.72%. Both these indices outperformed the Sensex.
In overseas stock markets, European stocks were higher after stronger-than-anticipated inflation data from China helped to calm nerves over global growth prospects. UK construction output slipped 1.5% in August 2016 over July 2016. UK construction output rose 0.2% in August 2016 over August 2015. Asia stocks were trading higher, reversing some early losses, as investors weighed price increases in China and the possibility of a US interest rate hike later in the year. Meanwhile, China's producer price index edged up 0.1% in September from a year earlier, reversing a 0.8% on-year drop in August, the National Bureau of Statistics said.
US stocks finished in the red yesterday, 13 October 2016, as investors grew jittery following the Federal Reserve's latest meeting minutes as well as weak Chinese economic reports. The number of Americans filing for unemployment benefits held at a 43-year low last week, pointing to sustained labor market strength that could pave the way for the Federal Reserve to raise interest rates in December. Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 246,000 for the week ended 8 October 2016, the lowest reading since November 1973, the Labor Department said.
Back home, capital goods shares edged higher. BEML (up 3.47%), Jindal Saw (up 3.45%), Punj Lloyd (up 2.22%), Thermax (up 2.22%), Reliance Defence and Engineering (up 1.67%), Bharat Electronics (up 1.03%), Bharat Heavy Electricals (up 0.68%), Crompton Greaves (up 0.40%), SKF India (up 0.31%), GE Power India (up 0.24%), AIA Engineering (up 0.13%) and Siemens (up 0.01%), edged higher. Havells India (down 0.05%), ABB India (down 0.2%), Suzlon Energy (down 0.27%), Praj Industries (down 0.42%), GE T&D India (down 1%) and Lakshmi Machine Works (down 1.06%), edged lower.
Engineering and construction major Larsen & Toubro (L&T) was up 2.17% to Rs 1,467.55 after the company said its construction division has secured a major order worth Rs 3799 crore from the Dedicated Freight Corridor Corporation of India. The latest order has been secured by a consortium of L&T and Sojitz Corp, Japan. The announcement was made during market hours today, 14 October 2016.
Auto stocks were mixed. Ashok Leyland (up 2.02%), TVS Motor Company (up 1.37%), Escorts (up 0.67%) and Hero MotoCorp (up 0.15%), edged higher. Bajaj Auto (down 0.4%), Maruti Suzuki India (down 0.58%), Mahindra & Mahindra (down 0.68%) and Eicher Motors (down 0.87%), edged lower.
Tata Motors was up 0.73% to Rs 548.30 on reports that a foreign brokerage has retained its overweight rating on the stock and revised target price on the stock to Rs 642 from Rs 585 earlier. The brokerage reportedly said that Jaguar Land Lover (JLR) numbers are expected to be driven by high average selling price. Volume growth will moderate buy scale will gain, it said. JLR is likely to post 22% earnings per share (EPS) compound annual growth rate (CAGR) between FY 2016-2018, it added.
On the economic front, the all-India general CPI inflation dipped to 13-months low of 4.31% in September 2016, compared with 5.05% in August 2016. The core CPI inflation moved up to 4.77% in September 2016 from 4.59% in August 2016. The data was announced after market hours yesterday, 13 October 2016.
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