After a range bound moved earlier during the day, key benchmark indices trimmed losses in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 222.56 points or 0.84% at 26,414.72. Global stocks were weak amid concern global growth is slowing. The market breadth indicating the overall health of the market was weak. Cairn India dropped as crude oil prices tumbled. Shares of public sector oil marketing companies gained as crude oil prices edged lower. IT major Infosys jumped after the company reported good Q2 result and announced a liberal 1:1 bonus issue. Meanwhile, tension remains at the Indo-Pak border.
In overseas markets, Asian stocks dropped after US shares tumbled yesterday, 9 October 2014, amid European slowdown concerns and after Hong Kong's government canceled talks with pro-democracy protesters.
Earlier, key indices had tumbled on a sell-off in global stocks.
In the foreign exchange market, the rupee edged lower against the dollar tracking losses of Asian currencies against the dollar.
Brent crude futures tumbled amid speculation that rising global oil supplies will be more than enough to meet slowing demand.
At 12:25 IST, the S&P BSE Sensex was down 222.56 points or 0.84% at 26,414.72. The index lost 335.90 points at the day's low of 26,301.38 in early trade, its lowest level since 8 October 2014. The index fell 81.36 points at the day's high of 26,555.92 in early trade.
The CNX Nifty was down 64.55 points or 0.81% at 7,896. The index hit a low of 7,854.50 in intraday trade, its lowest level since 8 October 2014. 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, 1,651 shares declined and 879 shares gained. A total of 115 shares were unchanged.
The BSE Mid-Cap index was off 65.32 points or 0.68% at 9,511.06. The BSE Small-Cap index was off 49.87 points or 0.46% at 10,681.82. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1529 crore by 12:15 IST, compared to Rs 1117 crore by 11:15 IST.
Cipla reversed decline in volatile trade. The stock was up 0.05% to Rs 591.50. The stock hit high of Rs 595 and low of Rs 580.80 so far during the day. Cipla during market hours said that India Ratings & Research, a Fitch Group Company, has affirmed the Long-Term Issuer Rating of 'IND AAA' to the company and 'IND A1+' rating to the company's Rs 1000 crore Commercial Paper/Short Term Debt Programme. Further, India Ratings & Research has assigned 'IND AAA' rating to the company's proposed Rs 2000 crore NCD programme, Cipla said.
Cairn India dropped 3.25% as crude oil prices edged lower. Lower crude oil prices would result in lower realizations from crude sales for oil exploration firms like Cairn India. Meanwhile, Cairn India during market hours said its average gross production fell 9% to 194,508 barrels of oil equivalent per day (boepd) in Q2 September 2014 over Q2 September 2013.
Sesa Sterlite dropped 2.48%. Sesa Sterlite during market hours said that during Q2 September 2014, mined metal production at Zinc India was 30% higher than Q1, but 4% lower than the corresponding prior year quarter. Copper cathode production was 22% higher than the corresponding prior period with the Tuticorin smelter delivering record production since its planned shutdown in Q1. The company expects to produce at over 90% utilizations going forward.
Shares of public sector oil marketing companies gained as crude oil prices edged lower. HPCL (up 1.28%), Indian Oil Corporation (up 0.91%) and BPCL (up 1.06%) edged higher.
Lower crude oil prices will reduce under recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at government controlled prices.
Tata Power Company fell 1.42%. As per reports, private equity fund, ICICI Venture, is in talks to team up with Tata Power Company to take over troubled power plants that have been short circuited by regulatory uncertainties, fuel supply disruptions, low demand and high debt. Both parties are finalising a joint venture platform the exact nature of the arrangement is being finalised with a mandate to buy out power plants which are facing stress for one reason or the other, reports added. While ICICI Venture will primarily be responsible for organising both debt and equity funding for these acquisitions, Tata Power Company will handle the operation and maintenance of these plants, post acquisition, as an asset manager.
Punjab National Bank (PNB) shed 0.89%. PNB during market hours said it has decided to realign the interest rates in case of single domestic term deposit of Rs 1 crore to Rs 10 crore with effect from today, 10 October 2014. PNB said that interest rate has been hiked to 6% from 4% earlier for maturity period of 7 days to 14 days. For maturity period of 15 days to 29 days, interest rate was been hiked to 6% from 4.5% earlier. For maturity period of 30 days to 45 days, interest rate has been cut to 6.25% from 6.5% earlier. For maturity period of 46 days to 90 days, the rate has been cut to 7% from 7.25% earlier. For maturity period of 271 days to less than 1 year, the rate has been cut to 8.5% from 8.75% earlier.
IT major Infosys jumped after the company reported good Q2 result and announced a liberal 1:1 bonus issue. The stock was up 6.22% at Rs 3,872.25. Infosys' consolidated net profit as per International Financial Reporting Standards (IFRS) jumped 7.3% to Rs 3096 crore on 4.5% increase in revenue to Rs 13342 crore in Q2 September 2014 over Q1 June 2014. The result was announced during trading hours today, 10 October 2014.
Infosys has maintained its revenue growth guidance in dollar terms for the year ending 31 March 2015 (FY 2015) even as it raised its revenue growth guidance in rupee terms due to rupee depreciation. Infosys expects 7% to 9% growth in the company's revenue in dollar terms in FY 2015. The company now expects 6.7% to 8.7% growth its revenue in rupee terms in FY 2015. At the time of announcing Q1 June 2014 results in July 2014, Infosys had forecast 5.6% to 7.6% growth in revenue in rupee terms for FY 2015.
Infosys and its subsidiaries added 49 clients (gross) in Q2 September 2014.
Meanwhile, 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.
In the foreign exchange market, the rupee edged lower against the dollar tracking losses of Asian currencies against the dollar. The partially convertible rupee was hovering at 61.16, compared with its close of 61.0575 during the previous trading session.
Brent crude futures tumbled amid speculation that rising global oil supplies will be more than enough to meet slowing demand. Brent for November settlement was down $1.27 a barrel at $88.78 a barrel. The contract dropped to $88.11 a barrel in intraday trade -- its lowest level since December 2010.
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 government will unveil industrial production data for August 2014 after market hours today, 10 October 2014. India's Index of industrial production (IIP) growth moderated to 0.5% in July 2014, from 3.9% (revised) increase recorded in the previous month of June 2014.
Meanwhile, tension remains at the Indo-Pak border. As per reports, Pakistan Prime Minister Nawaz Sharif is scheduled to hold a high level meeting of the National Security Council today, 10 October 2014, to discuss the border situation and decide next move. Meanwhile, for the first time in ten days, no fresh incidents of heavy firing or shelling overnight were reported today, 10 October 2014. However, intermittent light weapon fire has been reported from a few areas in Samba and RS Pura where a few BSF posts were targeted. Pakistan started firing at Indian BSF outposts and border villages 8 days ago in which 8 people have died so far and more than 50 have been injured. The BSF and local administration have asked civilians to stay away from the border areas.
Asian stocks dropped today, 10 October 2014, after US shares tumbled yesterday, 9 October 2014, amid European slowdown concerns and after Hong Kong's government canceled talks with pro-democracy protesters. Key benchmark indices in China, Singapore, Hong Kong, Japan, Indonesia and South Korea were off 0.75% to 1.81%. Taiwan's markets are shut today.
Hong Kong's government today, 10 October 2014, canceled talks with pro-democracy protesters after leaders of the movement called supporters back into the streets. The occupation by demonstrators, who are upset with Beijing demands to vet candidates for the city's leadership, is illegal and must end, Carrie Lam, Hong Kong's No. 2 official, told reporters.
Trading in US index futures indicated that the Dow could fall 24 points at the opening bell on Friday, 10 October 2014. US stocks slumped on Thursday, 9 October 2014, on concern that slowing growth in Europe will hurt the American economy.
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.
In Europe, the Bank of England (BoE) voted on Thursday, 9 October 2014 to keep its main interest rate at a record-low level of 0.5%, 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.
European Central Bank President Mario Draghi on Thursday, 9 October 2014, said the central bank must lift inflation from an excessively low level as the recovery falters. Draghi said in a speech in Washington that boosting growth in the euro area will have to come through improvements in productivity.
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