Key benchmark indices edged lower amid initial volatility as weakness Asian stocks and data showing after market hours on Friday, 12 December 2014, that index of industrial production (IIP) declined, at a sharpest pace in three-years in October 2014 may weigh on investor sentiment. The barometer index, the S&P BSE Sensex was currently down 124.36 points or 0.45% at 27,226.32. The market breadth indicating the overall health of the market was weak. Crude oil prices sank to 5 1/2-year lows on concerns about a supply glut and slower global growth.
Foreign portfolio investors sold shares worth a net Rs 864.96 crore on Friday, 12 December 2014, as per provisional data.
In overseas markets, Asian stocks edged lower today, 15 December 2014 on slump in oil prices as concern that the global economic outlook is worsening pushed credit risk higher. US stocks sank on Friday, 12 December 2014, as oil prices continued to slide.
At 9:22 IST, the S&P BSE Sensex was down 124.36 points or 0.45% at 27,226.32. The index lost 245.64 points at the day's low of 27,105.04 in early trade. The index fell 44.64 points at the day's high of 27,306.04 in early trade.
The CNX Nifty was down 25.35 points or 0.31% at 8,198.75. The index hit a low of 8,152.50 in intraday trade. The index hit a high of 8,214.90 in intraday trade.
The BSE Mid-Cap index was down 42.54 points or 0.42% at 10,066.06. The BSE Small-Cap index was down 66.90 points or 0.6% at 11,001.58. The fall in both these indcies was more than Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 743 shares fell and 361 shares rose. A total of 39 shares were unchanged.
Oil & Natural Gas Corporation (ONGC) rose 1.04% after the Board of Directors at its meeting held on Friday, 12 December 2014, notified of the three discoveries made recently one in deepwater Krishna Godavari Basin, off the east coast of the country, one in Mumbai offshore Basin, off the west coast of the country and one in Cauvery basin in the southern onland part of the country.
The company's Board of Directors at its meeting held on Friday, 12 December 2014 also approved interim dividend of Rs 5 per share for the year ending 31 March 2015. The announcement was made after market hours on Friday, 12 December 2014.
Minister of State for Finance Jayant Sinha said in written reply to a question in the Lok Sabha on Friday, 12 December 2014, that as per the Action Plan of 2014-15 on disinvestment, the government intends to sell 5% stake in ONGC.
TCS dropped 3.01%. IT major TCS in its business update for Q3 December 2014 issued after trading hours on Friday, 12 December 2014, said that currency fluctuations will have a marginal positive impact on the company's earnings before interest and tax (EBIT) in Q3 December 2014. The target EBIT margin band for Q3 December 2014 remains unchanged, TCS said. There will be adverse currency impact of 20 basis points (bps) on constant currency revenue in rupee terms in Q3 December 2014. There will be adverse currency impact of 220 bps on constant currency revenue in dollar terms in Q3 December 2014. TCS said that revenue in Q3 December 2014 is expected to be in-line with the seasonal trends. Retail, manufacturing and Hi-Tech verticals are likely to see impact of holidays and furloughs. The BFSI vertical continues to be impacted by weakness in insurance and products. Telecom and smaller verticals are expected to grow better than the company average. Demand environment in North America is on expected lines, adjusted for seasonal weakness. TCS expects business in Europe to grow better than average while the business in UK remains weak due to seasonality and impact of insurance. TCS said that the strength in the IT infrastructure services vertical continues.
Tata Motors declined 1.01%. The company after trading hours on Friday, 12 December 2014, said that Tata Motors Group's global wholesales rose 2.37% to 83,906 units in November 2014 over November 2013. Global wholesales for Jaguar Land Rover (JLR) rose 3.4% to 41,318 units in November 2014 over November 2013.
The annual rate of inflation based on the wholesale price index (WPI) is seen easing further to 1.2% in November 2014, from 1.77% in October 2014, as per the median estimate of a poll of economist carried out by Capital Market. The government will release the inflation data based on wholesale price index (WPI) for November 2014 at 12.15 noon today, 15 December 2014.
Index of industrial production (IIP) declined, at a sharpest pace in three-years, contracting 4.2% in October 2014 compared with 2.8% (revised) increase in September 2014. The manufacturing sector's output dipped to 2.5% in October 2014, recording largest decline in last five-and-half years. The decline in the industrial production was entirely contributed by the manufacturing sector. Lesser number of working days in October 2014 mainly led to sharp decline in manufacturing sectors output.
The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 4.4% in November 2014 from 5.5% in October 2014, driven by a sharp decline in inflation for food articles. The corresponding provisional inflation rates for rural area were 4.1% and urban area also 4.7% as against 5.5% and 5.6% for October 2014.
Data on IIP for October 2014 as well as CPI for November 2014 were announced after market hours on Friday, 12 December 2014.
Asian stocks edged lower today, 15 December 2014 on slump in oil prices as concern that the global economic outlook is worsening pushed credit risk higher. Key indices in China, Hong Kong, Singapore, Indonesia, South Korea, Hong Kong and Taiwan were down 0.47% to 1.31%.
Japanese Prime Minister Shinzo Abe's coalition cruised to a big election win on Sunday, 14 December 2014, ensuring he will stick to reflationary economic policies and a muscular security stance, but record low turnout pointed to broad dissatisfaction with his performance.
Confidence of Japan's large manufacturers declined in the fourth quarter as a recession offset a boost from a weaker yen, underlining the economic challenges facing Prime Minister Shinzo Abe after his election win. The Tankan's big manufacturer index slipped to 12 in December from 13 in September Bank of Japan today.
US stocks sank on Friday, 12 December 2014, as oil prices continued to slide. The US Senate on Saturday, 12 December 2014, passed a $1.1 trillion spending bill that lifts the threat of a government shutdown as Congress attempts to wrap up a two-year legislative session marked by bitter partisanship and few major accomplishments. The Senate's 56-40 vote sends the measure to President Barack Obama, who is expected to sign it into law before federal spending authority expires at midnight.
A two-day meeting of Federal Open Market Committee (FOMC) to discuss monetary policy review starts tomorrow, 16 December 2014. The policy meeting will be keenly watched for any hints on the timing of interest rate increases in the world's biggest economy. It remains to be seen whether Federal Reserve officials would signal a rate hike by dropping their assurance that rates will stay low for a considerable time.
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