A divergent trend among various index constituents led to small losses for key benchmark indices in what was a volatile trading session. The barometer index, the S&P BSE Sensex, fell 59.28 points or 0.22% to 26,844.83, as per the provisional closing data. The 50-unit CNX Nifty dropped 11.90 points or 0.15% at 8,131.70, as per the provisional closing data. Intraday recovery in index heavyweights HDFC and Reliance Industries (RIL) helped the Sensex and the Nifty trim losses after both these indices hit their lowest level in more than a week in mid-afternoon trade.
Another index heavyweight and cigarette major ITC edged higher. Shares of another heavyweight and IT major Infosys edged lower, with the stock extending previous trading session's decline triggered by the company lowering its full year revenue growth guidance in dollar terms at the time of announcement of Q2 September 2015 results. Metal and mining stocks witnessed a mixed trend after weak Chinese trade data.
The market breadth indicating the overall health of the market was positive. On BSE, 1,535 shares rose and 1,232 shares declined. A total of 106 shares were unchanged. The BSE Mid-Cap index was provisionally up 0.02%. The BSE Small-Cap index was provisionally up 0.41%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2766 crore, higher than turnover of Rs 2390.13 crore registered during the previous trading session.
Index heavyweight and cigarette major ITC rose 1.36% at Rs 345.35. The stock hit a high of Rs 346 and a low of Rs 340.80 in intraday trade.
Index heavyweight and housing finance firm HDFC rose 0.42% at Rs 1,277.50. The stock hit a high of Rs 1,280.90 and a low of Rs 1,264.30 in intraday trade.
Metal and mining stocks witnessed a mixed trend after weak Chinese trade data. Tata Steel (down 2.59%), Vedanta (down 2.93%) and Hindalco Industries (down 3.21%) edged lower. Hindustan Zinc (up 3.48%), Jindal Steel & Power (up 1.93%), National Aluminium Company (up 1.63%), JSW Steel (up 1.33%), NMDC (up 0.15%) and Steel Authority of India (up 0.09%) edged higher. China is the world's largest consumer of steel, copper and aluminum.
China's September exports continued to struggle against weak global demand. Exports fell 3.7% in September 2015 from a year earlier in US dollar terms following a 5.5% drop in August 2015. Imports fell 20.4% in September 2015 compared with a 13.8% decrease in August 2015.
Shares of state-run coal mining giant Coal India were up 2% at Rs 341.20.
Shares of public sector oil marketing companies (PSU OMCs) edged higher on lower crude oil prices. BPCL (up 1.58%), HPCL (up 0.92%) and Indian Oil Corporation (up 0.25%) edged higher.
Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already decontrolled pricing of petrol and diesel.
In global commodities markets, Brent for November settlement was currently off 16 cents at $49.70 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 down 11 cents at $50.14 a barrel.
In the foreign exchange market, the partially convertible rupee was hovering at 65.08, compared with closing of 64.755 during the previous trading session.
Shares of oil exploration and production (E&P) firms dropped along with decline in crude oil prices. ONGC (down 3.68%), Cairn India (down 1.85%) and Oil India (down 0.1%) declined. Lower crude oil prices will decrease realizations from crude sales for oil exploration firms.
Index heavyweight Reliance Industries was up 0.06%. The stock hit a high of Rs 895 and a low of Rs 883 in intraday trade.
Telecom stocks were mixed. Idea Cellular (down 3.68%) and Bharti Airtel (down 1.56%) edged lower. Reliance Communications (up 3.94%) edged higher.
Infosys lost 2.35% at Rs 1,096.10, with the stock extending previous trading session's decline triggered by the company lowering its full year revenue growth guidance in dollar terms at the time of announcement of Q2 September 2015 results. The stock had fallen 3.88% to settle at Rs 1,122.50 yesterday, 12 October 2015. Infosys now expects its revenue to grow 6.4%-8.4% in dollar terms for the year ending 31 March 2016 (FY 2016). At the time of announcing Q1 June 2015 results, Infosys had forecast revenue growth of 7.2%-9.2% in dollar terms for FY 2016. The revenue growth guidance for FY 2016 has been kept unchanged at 10%-12% in constant currency terms.
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.
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.
Powered by Capital Market - Live News
