A sudden slide pushed key benchmark indices into red from green in morning trade. The barometer index, the S&P BSE Sensex, fell below the psychological 28,000 level. The market breadth indicating the overall health of the market turned negative from positive. The Sensex was currently off 79.34 points or 0.28% at 27,929.56. Asian stocks were in red ahead of data on China's retail sales and industrial output for October 2014.
Consumer price inflation dropped further last month, data released by the government after trading hours yesterday, 12 November 2014, showed. Industrial production growth improved to 2.5% in September 2014, from a revised 0.5% growth in August 2014, another data released by the government after trading hours yesterday, 12 November 2014, showed.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 459.47 crore yesterday, 12 November 2014, as per provisional data.
Auto stocks were mixed. Tata Steel edged higher after Q2 results. HPCL and Hindustan Copper dropped amid volatility ahead of Q2 results.
In overseas markets, Asian stocks were in red ahead of data on China's retail sales and industrial output for October 2014. US stocks ended choppy session essentially unchanged yesterday, 12 November 2014, as the main indexes struggled to stay in record territory.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged lower amid signs that OPEC remains unwilling to reduce output to ease concern of a global supply glut.
At 10:15 IST, the S&P BSE Sensex was down 79.34 points or 0.28% at 27,929.56. The index lost 92.77 points at the day's low of 27,916.13 in morning trade, its lowest level since 11 November 2014. The index gained 89.84 points at the day's high of 28,098.74 in early trade.
The CNX Nifty was down 35.55 points or 0.42% at 8,347.75. The index hit a low of 8,347.60 in intraday trade, its lowest level since 11 November 2014. The index hit a high of 8,408 in intraday trade.
The BSE Mid-Cap index was up 1.85 points or 0.02% at 10,135.12. The BSE Small-Cap index was off 23.36 points or 0.21% at 11,160.99. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market turned negative from positive in morning trade. On BSE, 1,092 shares declined and 953 shares advanced. A total of 83 shares were unchanged.
Auto stocks were mixed. Tata Motors (down 0.26%) and Mahindra & Mahindra (down 0.47%) declined. Maruti Suzuki India (up 0.47%) gained.
Shares of two-wheeler makers were mostly higher. TVS Motor Company (up 1.6%) and Bajaj Auto (up 0.38%) gained. Hero MotoCorp (down 0.06%) declined.
Tata Steel rose 0.83% at Rs 472. The stock hit a high of Rs 473.60 and a low of Rs 462.45. The company's consolidated net profit rose 36.82% to Rs 1254.33 crore on 2.03% fall in total income to Rs 36098.63 crore in Q2 September 2014 over Q2 September 2013. The bottom line was boosted by profit of Rs 1146.86 crore on sale of land at Borivali in Mumbai. The result was announced after market hours yesterday, 12 November 2014.
Mr T V Narendran, Managing Director of Tata Steel India and South East Asia said that he is hopeful that the stable political climate in India will trigger a steel-intensive economic revival in India and that Tata Steel is well positioned to take advantage of any improvement in the steel demand in the country. Tata Steel said that its South East Asian operations were under pressure during the quarter to a surge in low priced imports and a decline in the rebar-scrap spread.
Dr Karl-Ulrich Kler, MD & CEO of Tata Steel in Europe said that there are headwinds constraining steel demand growth globally. There are concerns about the impact of rising imports on steelmakers in European Union countries, particularly from China, he said. Mr Koushik Chatterjee, Group Executive Director (Finance and Corporate), Tata Steel said that while the Tata Steel group across geographical entities continues to focus on internal improvement initiatives, there are several external factors that continues to put challenges to the business, especially the declining spreads in Europe and South East Asia due to Chinese exports and lower commodity prices and the uncertainty created on the renewal of the mines in India due to various hurdles that has the potential to impact the company if not resolved urgently.
HPCL lost 2.87% at Rs 560.50. The stock hit a high of Rs 577 and a low of Rs 560. The company announces Q2 September 2014 result today, 13 November 2014.
Hindustan Copper lost 0.24% at Rs 82.80. The stock hit a high of Rs 83.85 and a low of Rs 82.60. The company announces Q2 September 2014 result today, 13 November 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.5475, compared with its closing of 61.5225 during the previous trading session.
Brent crude oil futures edged lower amid signs that OPEC remains unwilling to reduce output to ease concern of a global supply glut. Brent for December settlement, which expires today, 13 November 2014, was off 35 cents at $80.03 a barrel. The contract had lost $1.29 a barrel to settle at $80.38 a barrel yesterday, 12 November 2014, its lowest close since September 2010. Brent for January delivery was off 29 cents at $80.83 a barrel.
Indian government's decision last month to decontrol diesel prices and a sharp decline in global crude oil prices recently will help India in containing its fiscal deficit. The fall in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent.
The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 5.52% in October 2014, from 6.46% in September 2014, data released by the government after trading hours yesterday, 12 November 2014, showed. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India eased to 5.59% in October 2014, from 7.67% in September 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 5.86% in October 2014, from 5.9% in September 2014.
The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016.
Industrial production growth improved to 2.5% in September 2014, from a revised 0.5% growth in August 2014, data released by the government after trading hours yesterday, 12 November 2014, showed. The manufacturing sector's output growth rebounded to 2.5% in September 2014, snapping decline for last two sequential months mainly contributing to the improvement in industrial production growth. However, the mining sector as well as electricity generation growth decelerated to 0.7% and 3.9%, respectively in September 2014.
The rate of inflation based on wholesale price index (WPI) is seen easing further to 2.1% in October 2014, from 2.38% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI inflation data for October 2014 at 12:00 noon tomorrow, 14 November 2014.
Asian stocks were in red today, 13 Novemeber 2014, ahead of data on China's retail sales and industrial output for October 2014. Key indices in China, Hong Kong, Indonesia, and South Korea were off 0.03% to 0.41%. Key indices in Japan, Taiwan, and Singapore were up 0.2% to 1.02%.
Trading in US index futures indicated that the Dow could gain 3 points at the opening bell today 13 November 2014. US stocks ended choppy session essentially unchanged yesterday, 12 November 2014, as the main indexes struggled to stay in record territory. The S&P 500 and Dow Jones Industrial Average snapped a five-day streak closing at a new high, as falling oil prices and heightened geopolitical risks turned investors cautious.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said yesterday, 12 November 2014, financial markets could face less than placid waters in coming years. In his formal remarks, Mr. Kocherlakota repeated his belief that a US central bank rate increase next year would be a mistake. Inflation is unlikely to reach the Fed's 2% target until 2018, and because of this outlook, "it would be inappropriate for the [Federal Open Market Committee] to raise the target range for the fed funds rate at any such meeting" occurring in 2015, he said.
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