Intraday recovery was short lived as key benchmark indices once again weakened in afternoon trade after European stocks edged lower in early trade there. At 13:17 IST, the barometer index, the S&P BSE Sensex, was off 103.68 points or 0.38% at 26,800.43. The 50-unit CNX Nifty was off 26.75 points or 0.33% at 8,116.85. The market breadth indicating the overall health of the market was positive. On BSE, 1,385 shares rose and 1,119 shares declined. A total of 107 shares were unchanged. The BSE Mid-Cap index was down 0.18%. The decline in this index was lower than the Sensex's fall in percentage terms. The BSE Small-Cap index was up 0.28%, outperforming the Sensex.
In overseas stock markets, Asian and European stocks dropped after Chinese trade data signaled weakening global and domestic demand, the latest evidence that the world's No. 2 economy is stalling. The latest data showed China's imports and exports, both, fell on year-on-year basis in September 2015.
Hindalco Industries (down 4.29%), ONGC (down 3.36%) and Tata Steel (down 2.65%) were among the major losers from the Sensex pack.
Realty stocks rose on renewed buying. Sobha (up 0.76%), Indiabulls Real Estate (up 1.43%), Omaxe (up 0.15%), Godrej Properties (up 1.77%) Unitech (up 1.74%), Housing Development & Infrastructure (HDIL) (up 2.36%), Oberoi Realty (up 2%), Phoenix Mills (up 0.85%), and DLF (up 1.58%) edged higher.
Shares of power generation and power distribution companies also gained. Torrent Power (up 1.31%), Tata Power Company (up 0.43%), Power Grid Corporation of India (up 0.19%), Reliance Infrastructure (up 2.25%), NTPC (up 0.24%) and Reliance Power (up 0.52%) gained. NHPC (down 0.57%) and Adani Power (down 0.17%) declined.
Shares of aviation firms rose after a sharp decline in global crude oil prices yesterday, 12 October 2015. SpiceJet (up 15.11%) and Jet Airways (India) (up 6.73%) edged higher. Lower crude oil prices benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
In global commodities markets, Brent crude prices edged higher after previous trading session's sharp decline. Brent for November settlement was currently up 46 cents at $50.32 a barrel. The contract had slumped $2.79 a barrel or 5.29% to settle at $49.86 a barrel during the previous trading session. The Brent November contract is to expire on 15 October 2015. Brent for December settlement was currently up 47 cents at $50.72 a barrel.
However, a weakness in rupee against the dollar will raise routine expenses for carriers. A weak rupee impacts aviation sector adversely as almost a third of operational expenses of aviation firms are denominated in dollars. Among the payments made in dollars include, rentals of leased aircraft, maintenance, spare parts and salary paid out to foreign crew.
In the foreign exchange market, the partially convertible rupee was currently hovering at 65.0125, compared with its close of 64.755 during the previous trading session.
Suven Life Sciences rose 3.44% after the company announced that it has secured one product patent each in Australia, China, Europe, South Korea and USA for its new chemical entities (NCEs) for central nervous system (CNS) therapy. The announcement was made during trading hours today, 13 October 2015.
On the macro front, the latest data showed acceleration in consumer price inflation in September 2015, mainly due to increase in vegetable prices. Another data showed that a surge in production of two items contributed to more than half of the 6.4% increase in industrial production in August 2015. Inflation based on the consumer price index (CPI) increased to 4.4% in September 2015 from with 3.7% in August 2015. The core CPI inflation rose to 4.1% in September 2015 from 3.9% in August 2015.
Growth in industrial production (IIP) hit its highest level in almost three years on the back a surge in the output of the manufacturing sector. Gems and jewellery and rubber insulated cables contributed to more than half of the 6.4% increase in industrial production in August 2015.
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