Key benchmark indices opened with downward gap triggered by weak Asian stocks. The barometer index, the S&P BSE Sensex was currently down 195.75 points or 0.73% at 26,441.53. The market breadth indicating the overall health of the market was weak. IT major Infosys jumped in volatile trade after the company reported good Q2 result and a liberal bonus issue.
Asian stocks dropped today, 10 October 2014 after weak German export data raised fears that a recession at the heart of Europe could slow down the global economy.
At 9:25 IST, the S&P BSE Sensex was down 195.75 points or 0.73% at 26,441.53. The index lost 256.81 points at the day's low of 26,380.47 in early trade. The index fell 81.36 points at the day's high of 26,555.92 in early trade.
The CNX Nifty was down 59.80 points or 0.75% at 7,900.75. The index hit a low of 7,880.85 in intraday trade. The index hit a high of 7,912.65 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,022 shares declined and 381 shares gained. A total of 32 shares were unchanged.
The BSE Mid-Cap index was off 93.32 points or 0.97% at 9,483.06. The BSE Small-Cap index was off 93.52 points or 0.87% at 10,638.17. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 250 crore by 09:25 IST.
Among the 30-share Sensex pack, 26 stocks declined and only four of them gained.
Hindalco Industries (down 3.2%), Tata Motors (down 2.73%) and Sesa Sterlite (down 2.35%) edged lower from the Sensex pack.
IT major Infosys jumped 5.16% to Rs 3,833.50. The stock was volatile. The stock hit high of Rs 3,839.85 and low of Rs 3,600 so far during the day. Infosys' consolidated net profit as per IFRS rose 7.28% to Rs 3096 crore on 4.48% decline in revenue to Rs 13,342 crore in Q2 September 2014 over Q1 June 2014. The result was announced during trading hours today, 10 October 2014.
Infosys announced that its board recommended a bonus issue of one equity share for every equity share held, and a bonus issue, viz., a stock dividend of one American Depositary Share (ADS) for every ADS held, respectively, as on a record date to be determined. Consequently, the ratio of equity shares underlying the ADSs held by an American Depositary Receipt holder would remain unchanged.
The board recommended the issuance in order to increase the liquidity of its shares and to expand the retail shareholder base.
The government will unveil industrial production data for August 2014 today, 10 October 2014. India's Index of industrial production (IIP) growth moderated to 0.5% in July 2014, showing moderation in the pace of growth from 3.9% (revised) increase recorded in the previous month of June 2014.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 9 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 20.89 crore on that day.
Asian stocks dropped today, 10 October 2014 after weak German export data raised fears that a recession at the heart of Europe could slow down the global economy. Key benchmark indices in China, Singapore, Hong Kong, Japan, Indonesia and South Korea fell by 0.59% to 1.64%. Taiwan's markets are shut today.
US slumped on Thursday, 9 October 2014 on concern that slowing growth in Europe will hurt the American economy as the Federal Reserve ends its bond purchases.
Europe's biggest economy, Germany, reported on Thursday, 9 October 2014 that its exports fell 5.8% in August, the worst decline since January 2009.
The Bank of England (BoE) voted on Thursday, 9 October 2014 to keep its main interest rate at a record-low level of 0.50%, with Britain experiencing low inflation and steady economic recovery. The central bank's nine-strong monetary policy committee opted also to maintain the level of its cash stimulus, or quantitative easing, at 375 billion ($608 billion, 476 billion), the BoE said in a statement issued following a regular monthly meeting. Minutes of the meeting, containing reasons behind the decisions, will be published on October 22.
European Central Bank President Mario Draghi on Thursday, 9 October 2014 said there are signs the region's recovery is losing momentum. Meanwhile, Federal Reserve officials said the US economy may be at risk from a global slowdown as the International Monetary Fund this week cut its outlook for global growth.
The IMF and World Bank begin their annual meetings in Washington today, 10 October 2014 as finance ministers and central bankers from around the world discuss ways to bolster the global economic recovery, weather the latest bout of geopolitical instability and lift incomes in poor countries.
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