With the latest data showing a substantial easing of wholesale price inflation in September 2014, key equity benchmark indices traded off the day's low. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently down 19.14 points or 0.07% at 26,364.93. Foreign portfolio investors (FPIs) sold shares worth a net Rs 671.06 crore yesterday, 13 October 2014, as per provisional data. Asian stocks were mixed and US index futures pointed to a recovery of US stocks after yesterday's sell-off.
IT stocks edge lower. Tata Communications advanced after the company announced signing high definition video conferencing (HDVC) interconnect agreement with PCCW Global to interconnect the two companies' IPX and MPLS networks via a Network-to-Network Interface (NNI). IndusInd Bank advanced, with the stock extending yesterday's gains triggered by strong Q2 earnings. DLF tumbled to record low after Securities and Exchange Board of India barred the company and its chairman K.P. Singh along with five other company executives from accessing India's capital markets for three years.
Earlier, key indices had reversed direction after a firm opening triggered by data released after trading hours yesterday, 13 October 2014, showing easing of consumer price inflation last month.
In overseas markets, Asian stocks were mixed. US index futures pointed to a recovery of US stocks after yesterday's sell-off.
Brent crude oil prices dropped as expectations faded that OPEC could cut output and shore up prices.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade.
At 12:13 IST, the S&P BSE Sensex was down 19.14 points or 0.07% at 26,364.93. The index lost 172.06 points at the day's low of 26,212.01 in mid-morning trade. The index surged 166.72 points at the day's high of 26,550.79 at the onset of the trading session, its highest level since 10 October 2014.
The CNX Nifty was down 19.35 points or 0.25% at 7,864.90. The index hit a low of 7,825.45 in intraday trade. The index hit a high of 7,928 in intraday trade, its highest level since 9 October 2014.
The BSE Mid-Cap index was up 27.04 points or 0.28% at 9,516.80. The BSE Small-Cap index was up 39.24 points or 0.37% at 10,685.71. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,243 shares declined and 1,213 shares gained. A total of 110 shares were unchanged.
IT stocks edged lower. MindTree (down 2.53%), TCS (down 1.48%), HCL Technologies (down 1.32%), MphasiS (down 0.92%), Wipro (down 0.21%), and Infosys (down 0.16%) declined.
Tata Communications rose 1.45% at Rs 381.90. The company during market hours said it has signed a high definition video conferencing (HDVC) interconnect agreement with PCCW Global, the international operating division of HKT, Hong Kong's premier telecommunications service provider, to interconnect the two companies' IPX and MPLS networks via a network-to-network interface (NNI). This will allow both companies to offer global enterprise customers enhanced network data services and the highest quality HD video conferencing capability.
DLF tumbled 25.73% at Rs 108.95. The stock hit a record low of Rs 108 in intraday. High volumes accompanied the decline in the stock. On BSE, 1.14 crore shares changed hands in the counter so far, compared with average daily volume of 11.14 lakh shares during the past one quarter. Market regulator Securities and Exchange Board of India (Sebi) on Monday, 13 October 2014, barred DLF and its chairman K.P. Singh along with five other company executives from accessing India's capital markets for three years. The order is related to lapses in disclosures made at time of the company's IPO in 2007.
DLF said before market hours today, 14 October 2014, that the order dated 10 October 2014 passed by the whole time member of Securities and Exchange Board of India (Sebi) has come to the notice of DLF only on 13 October 2014. The order is being reviewed by DLF and its legal advisors. DLF and its board wish to reassure its investors and all other stakeholders that it has not acted in contravention of law either during its initial public offer or otherwise, DLF said. DLF and its board were guided by and acted on the advise of eminent legal advisors, merchant bankers and audit firms while formulating its offer documents, the company said. DLF will defend itself to the fullest extent against any adverse findings and measures contained in the order passed by Sebi, DLF said. The realty major said it has full faith in the judicial process and is confident of vindication of its stand in the near future, the company added.
IndusInd Bank rose 2.13% at Rs 648.80, with the stock extending yesterday's gains triggered by the bank's strong Q2 results. IndusInd Bank's net profit rose 30.27% to Rs 430.20 crore on 20.60% increase in total income to Rs 2937.03 crore in Q2 September 2014 over Q2 September 2013. The result was announced during trading hours yesterday, 13 October 2014.
Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 13 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 671.06 crore on that day.
Meanwhile, the stock market will remain closed tomorrow, 15 October 2014, on account of assembly election in Maharashtra.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 61.09, compared with its close of 61.10 during the previous trading session.
Brent crude oil prices dropped as expectations faded that OPEC could cut output and shore up prices. Brent for November settlement was off 62 cents at $88.27 a barrel. The contract had tumbled $1.32 to settle at $88.89 a barrel on Monday, 13 October 2014, its lowest closing level since 1 December 2010. Brent for December settlement was off 59 cents at $88.82 a barrel.
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.
The annual rate of inflation based on the Wholesale Price Index (WPI) eased to 2.38% in September 2014, from 3.74% in August 2014, data released by the government today, 14 October 2014, showed. Core WPI inflation which exculdes volatile food and fuel prices eased to 2.8% in September 2014, from 3.5% in August 2014. Meanwhile, July WPI inflation rate was revised upwards to 5.41% from 5.19% reported earlier.
The WPI data comes after another data released by the government after trading hours yesterday, 13 October 2014, showed easing of consumer price inflation last month. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 6.46% in September 2014, from 7.73% in August 2014. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India eased to 7.67% in September 2014, from 9.35% in August 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 5.9% in September 2014, from 6.82% in August 2014.
Asian stocks were mixed today, 14 October 2014. Key indices in China, Hong Kong, Singapore, and Japan were off 0.14% to 2.38%. Key indices in Taiwan, South Korea, and Indonesia were up 0.11% to 0.65%.
Trading in US index futures indicated that the Dow could gain 47 points at the opening bell today, 14 October 2014. The US stock market ended Monday's volatile session sharply lower as selling intensified at the last hour. Volatile trading came on the heels of last week's deep losses that had been triggered by global economic growth concerns.
Other Fed officials joined Vice Chairman Stanley Fischer in signaling that the threat posed by slowing global growth may cause US rate increases to be delayed. Chicago Fed President Charles Evans reiterated his concern yesterday that inflation may only quicken slowly toward the US central bank's 2% goal and said officials should be exceptionally patient in adjusting monetary policy.
Powered by Capital Market - Live News
