Amid weakness in European stocks, key equity benchmark indices in India extended losses and hit fresh intraday low in mid-afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit 1-1/2-week low. The Sensex was currently down 212.17 points or 0.8% at 26,355.82. The market breadth indicating the overall health of the market was negative. Among side counters, Aurobindo Pharma and Cadila Healthcare scaled record high.
Meanwhile, the Ministry of Home Affairs has reportedly asked the Border Security Force (BSF) to seek a flag meeting with Pakistan over continuous ceasefire violations along the Line of Control. Five civilians were killed and 34 others were injured in firing by Pakistani troops on Monday in Jammu's Arnia sector, as per reports.
In overseas markets, European stocks dropped after data showed that industrial output in Germany declined sharply in August. Asian stocks were trading mixed. US stocks edged lower in volatile trade yesterday, 6 October 2014, as investors resorted to profit taking after last week's rally.
Earlier, key indices had lost ground after initial volatility.
In the foreign exchange market, the rupee edged higher against the dollar amid optimism the falling oil price will help narrow the nation's trade deficit.
Brent crude oil prices edged lower after disappointing German output reinforced concern that global oil demand will falter.
At 14:15 IST, the S&P BSE Sensex was down 212.17 points or 0.8% at 26,355.82. The index lost 213.79 points at the day's low of 26,354.20 in mid-afternoon trade, its lowest level since 26 September 2014. The index rose 2.39 points at the day's high of 26,570.38 in early trade.
The CNX Nifty was down 65.10 points or 0.82% at 7,880.45. The index hit a low of 7,879.15 in intraday trade, its lowest level since 26 September 2014. The index hit a high of 7,943.05 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,597 shares declined and 1,119 shares gained. A total of 118 shares were unchanged.
The BSE Mid-Cap index was down 38.44 points or 0.4% at 9,472.96. The BSE Small-Cap index was up 26.74 points or 0.25% at 10,615.08. Both these indices outperformed the Sensex.
Most pharma stocks declined. Dr Reddy's Laboratories (down 1.5%), Sun Pharmaceutical Industries (down 2.82%) and Wockhardt (down 0.19%) declined. Glenmark Pharmaceuticals (up 2.79%) gained.
Aurobindo Pharma gained 3.04% to Rs 995 after scaling a record high of Rs 1,000.80 in intraday trade.
Cadila Healthcare surged 3.91% to Rs 1359.30 after scaling a record high of Rs 1,373.20 in intraday trade.
Cipla dropped 2.08%. Cipla said on Saturday, 4 October 2014, that the company has signed a definitive agreement with its existing Iranian distributor for setting up a manufacturing facility in Iran. The total contribution from the company over the next 3 years will include machinery, equipment, technical know-how and is expected to be approximately Rs 225 crore for a 75% stake. The proposed investment is subject to completion of certain conditions precedent and applicable regulatory approvals.
Lupin slipped 0.75%. Lupin after market hours on Wednesday, 1 October 2014, said that the closing conditions for acquisition of 100% equity stake in Laboratorios Grin, S.A. DE C.V., Mexico (Lab Grin) were completed on 30 September 2014. As a result Lab Grin has become a wholly-owned subsidiary of Lupin with effect from 30 September 2014.
Ranbaxy Laboratories (Ranbaxy) fell 2.37%. Ranbaxy after market hours on Wednesday, 1 October 2014, said that its wholly owned subsidiary Ranbaxy Laboratories Inc. (RLI) has launched ABSORICA (isotretinoin) 25 mg and 35 mg capsules into the US healthcare market. ABSORICA has become the most prescribed branded oral isotretinoin in the US, as per a recent independent survey conducted with dermatologists, Ranbaxy said. The product is licensed by Ranbaxy from Cipher Pharmaceuticals, Inc. It is indicated for the treatment of severe recalcitrant nodular acne in patients 12 years of age and older, Ranbaxy said.
Cera Sanitaryware jumped 15.82% after net profit jumped 48.31% to Rs 15.75 crore on 25.72% increase in total income from operations (net) to Rs 199.59 crore in Q2 September 2014 over Q2 September 2013. The result was announced during trading hours today, 7 October 2014.
In the foreign exchange market, the rupee edged higher against the dollar amid optimism the falling oil price will help narrow the nation's trade deficit. The partially convertible rupee was hovering at 61.3575, compared with its close of 61.61 during the previous trading session on Wednesday, 1 October 2014. The foreign exchange market was closed from Thursday, 2 October 2014, to Monday, 6 October 2014 for local holidays.
Brent crude oil prices edged lower after disappointing German output reinforced concern that global oil demand will falter. Brent for November settlement was off 55 cent at $92.24 a barrel. The contract had risen 48 cents to settle at $92.79 a barrel yesterday, 6 October 2014.
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.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Wednesday, 1 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 63.24 crore on that day. Indian financial markets were closed from Thursday, 2 October 2014, till Monday, 6 October 2014, for local holidays.
There was a moderate improvement in India's service sector activity during September, as per a latest survey. The headline seasonally adjusted HSBC India Services Business edged up to 51.6 in September from 50.6 in August. A figure above 50 indicates expansion while one below points to a contraction.
The Indian economy is set to grow by 6.4% in fiscal year (FY) 2015/16 after 5.6% growth in FY2014/15, a World Bank report said. India is benefiting from a "Modi dividend", the report said, with economic activity buoyed by expectations from the newly elected government of Prime Minister Narendra Modi. Over the next year or so economic growth should be supported by the recovering US economy that would provide a market for Indian merchandise and service exports, the report said. Private investment is expected to pick up thanks to the government's business orientation, and declining oil prices should boost private sector competitiveness, the report said. But economic reforms will be needed for India to achieve its full long-term growth potential, the report argued.
Meanwhile, indicating a sharp improvement for the second consecutive quarter, the CII Business Confidence Index (CII-BCI) for July-September quarter shot up to 57.4, up from 53.7 in April-June quarter and 49.9 in January-March quarter this year. During the same quarter last fiscal, the index had touched the all-time low value of 45.7. The number 50 is the dividing line on the index between positive and weak business confidence. The result of the 88th Business Outlook Survey based on responses from over 150 industry members was declared on Monday, 6 October 2014.
Cumulative rainfall during this year's monsoon from 1 June 2014 up to 30 September 2014 was 12% below the Long Period Average (LPA), India Meteorological Department said on 1 October 2014. India's farming sector accounts for around 14% of the economy, but two-thirds of the nation's 1.2 billion people depend on farming for a livelihood and more than half of its arable land needs the summer rains.
European stocks declined today, 7 October 2014, after data showed that industrial output in Germany declined sharply in August. Key benchmark indices in France, Germany and UK were off 0.62% to 0.88%.
The latest data showed that industrial output in Germany declined sharply in August, marking the second consecutive day of rough economic numbers for Europe's largest economy. In adjusted terms, factory output was down 4% in August. Meanwhile, July's figure was downwardly revised to growth of 1.6% from the 1.9% gain originally reported.
Asian stocks were trading mixed today, 7 October 2014. Key benchmark indices in Hong Kong, Indonesia and South Korea were up 0.23% to 0.92%. Key benchmark indices in Japan, Taiwan and Singapore were off 0.16% to 0.67%. China's Shanghai Composite was closed for holiday.
The Bank of Japan today, 7 October 2014, kept its policy unchanged as widely expected, adding no new easing. In his remarks to the parliament, the central bank's governor, Haruhiko Kuroda voiced approval of the yen's relatively weak level and said Japan remained on track to reach its goal of sustained 2% consumer inflation.
Trading in US index futures indicated that the Dow could fall 82 points at the opening bell today, 7 October 2014. US stocks edged lower in volatile trade on yesterday, 6 October 2014, as investors resorted to profit taking after last week's rally.
The US Federal Reserve will tomorrow, 8 October 2014, release the minutes of its Sept. 16-17 meeting at which it had decided to cut its monthly bond purchases to $15 billion. Policy makers next begin their two-day meeting on 28 October 2014.
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