Key benchmark indices registered small losses after witnessing high intraday volatility. After staging a strong intraday rebound in mid-afternoon trade, benchmark indices once again slipped into the red in late trade as European stocks faltered after a key sentiment survey from Germany underscored fears about slowing growth in Europe's largest economy. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, fell 34.74 points or 0.13% to settle at 26,349.33. Foreign portfolio investors (FPIs) sold shares worth a net Rs 571.82 crore from the secondary equity market yesterday, 13 October 2014, as per data from Securities & Exchange Board of India.
Index heavyweight Reliance Industries (RIL) edged higher in volatile trade after reporting record quarterly profit. Realty major 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. Bajaj Finserv reversed gains after declaring Q2 earnings. Some FMCG stocks advanced in a weak market.
Metal stocks trimmed initial losses. Sesa Sterlite edged lower in volatile trade on reports that the Supreme Court has reiterated a prior ruling that all iron ore mined in Goa before 2007 belonged to the state. Most bank stocks gained after moderation in consumer price inflation in September 2014. Pharma stocks were mostly higher. Among side counters, Sun TV Network hit 52-week low. Asahi India Glass hit 52-week high.
Key indices underwent volatility in intraday trade. Key benchmark indices reversed direction soon after a firm opening triggered by data released after trading hours yesterday, 13 October 2014, showing easing of consumer price inflation last month. Volatility ruled the roost in late trade as benchmark indices once again slipped into the red after staging a strong intraday rebound in mid-afternoon trade.
In overseas markets, European stocks fell after a key sentiment survey from Germany underscored fears about slowing growth in Europe's largest economy. Asian stocks were mixed. US index futures fluctuated after yesterday's sell-off for US stocks.
Brent crude oil prices dropped after the International Energy Agency cut its 2014 oil demand growth forecast to its weakest in five years
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade.
The S&P BSE Sensex fell 34.74 points or 0.13% to settle at 26,349.33, its lowest closing level since 10 October 2014. 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 declined 20.25 points or 0.26% to settle at 7,864, its lowest closing level since 10 October 2014. 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 declined 16.68 points or 0.18% to settle at 9,473.08. The BSE Small-Cap index fell 15.22 points or 0.14% to settle at 10,631.25.
The market breadth indicating the overall health of the market was negative. On BSE, 1,634 shares declined and 1,291 shares gained. A total of 104 shares were unchanged.
The total turnover on BSE amounted to Rs 3175 crore, higher than turnover of Rs 2426.68 crore on Monday, 13 October 2014.
Among sectoral indices on BSE, the S&P BSE FMCG index (down 0.16%), the S&P BSE Auto index (down 0.43%), the S&P BSE Teck index (down 0.5%), the S&P BSE Oil & Gas index (down 0.54%), the S&P BSE Consumer Durables index (down 0.63%), the S&P BSE IT index (down 0.77%) and the S&P BSE Realty index (down 9.24%) underperformed the Sensex.
The S&P BSE Power index (up 0.57%), the S&P BSE Bankex (up 0.52%), the S&P BSE Healthcare index (up 0.13%), the S&P BSE Metal index (up 0.08%) and the S&P BSE Capital Goods index (down 0.01%) outperformed the Sensex.
Index heavyweight Reliance Industries (RIL) rose 0.33% at Rs 961 after consolidated net profit rose 1.7% to a record Rs 5972 crore in Q2 September 2014 over Q2 September 2013. Turnover declined 4.3% to Rs 113396 crore in Q2 September 2014 over Q2 September 2013. The stock was volatile. The stock hit a high of Rs 980 and a low of Rs 959.15. The result was announced after market hours yesterday, 13 October 2014.
RIL attributed the decline in turnover to lower crude prices and decline in volumes in the refining and oil & gas businesses. RIL's other income or non-operational income dropped 14.36% to Rs 2009 crore in Q2 September 2014 over Q2 September 2013. RIL said the decline in non-operational income was primarily on account of lower investible surplus.
RIL's gross refining margins (GRM) edged up to $8.3 a barrel in Q2 September 2014, from $7.7 a barrel in Q2 September 2013. The GRM was lower than $8.7 a barrel in Q1 June 2014.
PSU OMCs declined on reports state run oil companies may slash the prices of petrol and diesel effective 16 October 2014. BPCL (down 2.42%), HPCL (down 2.21%) and Indian Oil Corporation (down 2.93%) edged lower.
PSU OMCs review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight.
Brent crude oil prices have witnessed sharp fall recently. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Shares of upstream state-run oil and gas firms also dropped. Oil India (down 2.09%) and ONGC (down 1.16%) declined. GAIL (India) gained 0.81%.
Bajaj Auto rose 2.59% at Rs 2412 ahead of its Q2 September 2014 earnings today, 14 October 2014.
Bosch dropped amid volatility after the company said that the Karnataka state government has prohibited strike by the company's employees at its Bangalore plant with immediate effect. The stock was off 0.42% at Rs 14,501.60. The stock hit a high of Rs 14,655 and a low of Rs 14,500. Bosch said it will continue to adopt a fair but firm approach and urges its workmen union to call off the indefinite illegal strike, report to work and restore normalcy. The management is continuing to take necessary measures taking into account overall customer requirements, Bosch said during trading hours.
Metal stocks trimmed initial losses. Jindal Steel & Power (down 1.38%), NMDC (down 0.55%), Hindustan Zinc (down 0.13%) declined.
Hindalco Industries (up 0.23%), JSW Steel (up 0.28%), Steel Authority of India (up 2.11%) gained.
Sesa Sterlite lost 1.08% at Rs 247.55. The stock saw high intraday volatility. The stock hit a high of Rs 254.20 and a low of Rs 219.25. High volumes accompanied the decline in the stock. On BSE, 29.24 lakh shares changed hands in the counter, compared with average daily volume of 5.52 lakh shares during the past one quarter. As per reports, the Supreme Court today, 14 October 2014, reiterated a prior ruling that all iron ore mined in Goa before 2007 belonged to the state. The court has ordered pre-2007 iron ore to be auctioned by a monitoring panel, according to reports. Sesa Sterlite was formed after Vedanta Resources Plc merged Sterlite Industries and Sesa Goa in 2013.
Tata Steel lost 0.17% at Rs 457. The stock was volatile. The stock hit high of Rs 461.90 and low of Rs 441.50. The company after trading hours yesterday, 13 October 2014, said that its saleable steel production rose 0.31% to 2.21 million tonnes in Q2 September 2014 over Q2 September 2013. The company's hot metal production rose 4.78% to 2.58 million tones in Q2 September 2014 over Q2 September 2013. Crude steel production declined 0.91% to 2.26 million tones in Q2 September 2014 over Q2 September 2013. Tata Steel's steel deliveries rose 3.53% to 2.11 million tones in Q2 September 2014 over Q2 September 2013.
Select FMCG stocks edged higher. Hindustan Unilever (up 1.54%), Marico (up 0.83%), and Colgate-Palmolive (India) (up 0.09%) gained.
Most bank stocks edged higher after moderation in consumer price inflation in September 2014. Among private bank stocks, Kotak Mahindra Bank (up 0.8%), Axis Bank (up 2.92%) gained. ICICI Bank (down 0.04%), HDFC Bank (down 1.06%) and Yes Bank (down 0.22%) declined.
IndusInd Bank rose 2.45%, 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.
Federal Bank rose 2.51% to Rs 139. The stock hit a record high of Rs 139.90 in intraday trade.
Among PSU bank stocks, State Bank of India (SBI) (up 2.16%), Punjab National Bank (up 1.27%), Bank of Baroda (up 0.97%), Bank of India (up 3.75%) and Union Bank of India (up 3.2%) gained.
Bajaj Finance rose 0.63% after net profit rose 18% to Rs 197 crore on 29% growth in total income to Rs 1242 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours. The company's gross non-performing assets (NPA) and net NPA ratio stood at 1.41% and 0.48% respectively as of 30 September 2014. The company continues to provide for loan losses in excess of RBI requirements, Bajaj Finance said.
Bajaj Finserv lost 3.9% at Rs 1,070. The stock was volatile. The stock hit a high of Rs 1,140.15 and a low of Rs 1,066.40. The company's consolidated net profit rose 14.24% to Rs 315.93 crore on 25.89% growth in total income to Rs 1648.46 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours.
IT stocks edged lower. Oracle Financial Services Software (down 2.36%), MindTree (down 2.11%), TCS (down 0.46%), HCL Technologies (down 1.38%), MphasiS (down 1.77%), Wipro (down 0.75%), and Infosys (down 0.49%) declined.
Tech Mahindra shed 0.24%. Tech Mahindra after market hours today, 14 October 2014, said that Pursuant to Clause 17(C) of the Scheme of Amalgamation and Arrangement of Mahindra Engineering Services with Tech Mahindra and their respective shareholders and creditors ('the Scheme'), the company's board of directors has extended the validity of the scheme by a further period of three months i.e. upto 31 January 2015.
Pharma stocks were mostly higher. Divi's Laboratories (up 2.72%), Glenmark Pharmaceuticals (up 1.69%), Cipla (up 0.34%), Sun Pharmaceutical Industries (up 0.18%), Lupin (up 0.08%) gained. Dr Reddy's Laboratories (down 0.24%) Ranbaxy Laboratories (down 0.13%), Cadila Healthcare (down 0.93%) and Aurobindo Pharma (down 1.13%) declined.
Realty major DLF tumbled 28.43% at Rs 105. The stock hit a record low of Rs 102.70 in intraday. High volumes accompanied the decline in the stock. On BSE, 1.68 crore shares changed hands in the counter, 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.
Other realty stocks were mixed. Indiabulls Real Estate (up 0.75%), Parsvnath Developers (up 0.24%) and Sobha (up 3.41%) gained. Oberoi Realty (down 0.42%), Godrej Properties (down 1.64%), Unitech (down 2.43%), Housing Development and Infrastructure (down 4.8%) declined.
Sun TV Network lost 5.73% to Rs 307 after hitting a 52-week low of Rs 306.15 in intraday trade.
Tata Communications rose 2.27%. 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.
Symphony jumped 4.55% at Rs 1,534. The stock hit a record high of Rs 1,608.70 in intraday. The company's net profit jumped 51.04% to Rs 21.63 crore on 41.44% growth in total income from operations to Rs 110.40 crore in Q1 September 2014 over Q1 September 2013. The result was announced during market hours.
Asahi India Glass surged 5.68% to Rs 117.15 after hitting a 52-week high of Rs 121.60 in intraday trade.
The stock market remains closed tomorrow, 15 October 2014, on account of assembly election in Maharashtra.
The Sensex has lost 281.18 points or 1.05% in this month so far (till 14 October 2014). The Sensex has gained 5,178.65 points or 24.46% in calendar year 2014 so far (till 14 October 2014). From a record high of 27,354.99 on 8 September 2014, the Sensex has declined 1,005.66 points or 3.67%. From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 6,386.21 points or 31.99%.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 61.405, compared with its close of 61.10 during the previous trading session.
Brent crude oil prices dropped after the International Energy Agency (IEA) cut its 2014 oil demand growth forecast to its weakest in five years. Brent for November settlement was off 82 cents at $88.07 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 99 cents at $88.42 a barrel.
In its closely watched monthly oil market report, IEA cut its forecast for the amount it expects oil demand to increase this year by 200,000 barrels a day to just 700,000 barrels a day. However, the IEA said the weakness in demand growth may have reached its bottom. The organization sees demand picking up more next year, to increase by 1.1 million barrels a day.
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. However, the weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent.
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 excludes 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.
European stocks fell today, 14 October 2014, after a key sentiment survey from Germany underscored fears about slowing growth in Europe's largest economy. Key benchmark indices in UK, France and Germany were off 0.54% to 0.8%.
The economic mood in Germany dropped in October, with the ZEW economic sentiment indicator sinking into negative territory for the first time since November 2012, data showed today, 14 October 2014. The index now stands at negative 3.6, down 10.5 points from September's level of 6.9.
French consumer prices fell further than expected in September, adding to concerns over persistently low inflation in the eurozone. Consumer prices in the eurozone's second-largest economy fell 0.4% in September from August and were 0.3% higher than in September last year.
Asian stocks were mixed today, 14 October 2014. Key indices in Taiwan, South Korea and Indonesia were up 0.11% to 0.65%. Key indices in China, Hong Kong, Singapore, and Japan were off 0.03% to 2.38%.
China's central bank cut the interest rate it pays lenders for 14-day repurchase agreements for the second time in a month. The People's Bank of China sold 20 billion yuan ($3.3 billion) of the contracts at 3.4% today, 14 October 2014, according to a statement on its website. That compares with 3.5% in a similar auction on 9 October 2014.
Trading in US index futures indicated that the Dow could rise 27 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.
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