Amid mixed trend in index components, key benchmark indices registered small losses. Benchmark indices witnessed high volatility in late trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty recovered soon after hitting their lowest level in more than seven weeks in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was provisionally down 15.15 points or 0.06% at 26,256.82. The market breadth indicating the overall health of the market was negative. Asian and European stocks edged lower, extending a global selloff. Crude oil prices slumped which augurs well for India. Meanwhile, tension continues on the Indo-Pak border.
Index heavyweight Reliance Industries gained after a foreign bank reportedly upgraded the stock to "overweight" from "equal weight. Software stocks declined after a foreign brokerage reportedly downgraded its rating on Infosys, Tech Mahindra and MindTree. L&T advanced after its owned subsidiary L&T Technology Services announced the intent to acquire the asset of US based Dell Product and Process Innovation Services. PSU OMCs gained as crude oil prices dropped sharply. Shares of state-run upstream oil and gas companies edged higher on hopes of lower subsidy sharing burden.
Meanwhile, the International Monetary Fund yesterday, 7 October 2014, raised its growth forecast for India to 5.6% for FY 2015 from 5.4% predicted earlier.
In overseas markets, European stocks fell as investors awaited minutes from the Federal Reserve's last meeting to be released later in the global day. Asian stocks declined, extending a global selloff, amid concern that the global economic outlook is worsening. US stocks tumbled on Tuesday, 7 October 2014, as weak data out of Germany raised concerns about the strength of global growth ahead of the start of earnings season.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil prices dropped after the International Monetary Fund (IMF) yesterday, 7 October 2014, cut its outlook for global growth in 2015.
As per provisional closing, the S&P BSE Sensex was down 15.15 points or 0.06% at 26,256.82. The index fell 121.88 points at the day's low of 26,150.09 in mid-afternoon trade, its lowest level since 18 August 2014. The index gained 66.34 points at the day's high of 26,338.31 in late trade.
The CNX Nifty was down 9.70 points or 0.12% at 7,842.70. The index hit a low of 7,815.75 in intraday trade, its lowest level since 18 August 2014. The index hit a high of 7,869.90 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,563 shares declined and 1,348 shares gained. A total of 115 shares were unchanged.
The BSE Mid-Cap index was off 21.56 points or 0.23% at 9,403.83, underperforming the Sensex. The BSE Small-Cap index was up 6.18 points or 0.06% at 10,564.14, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2782 crore, lower than turnover of Rs 2940.82 crore on Tuesday, 7 October 2014.
Index heavyweight Reliance Industries (RIL) gained 1.13% to Rs 937.15. The stock hit high of Rs 942 and low of Rs 922.10. A foreign bank has reportedly upgraded the stock to "overweight" from "equal weight". RIL's earnings are likely to more than double in the subsequent five years starting second half of year ending 31 March 2016, the foreign bank reportedly said.
Software stocks declined after a foreign brokerage downgraded its rating on Infosys, Tech Mahindra and MindTree.
Infosys dropped 4.65%. The foreign brokerage downgraded its rating on Infosys to "neutral" from "buy." It said the stock trades at around 17x 1-year forward earnings after outperforming the market and added that positives in the stock are adequately discounted.
Investors will keenly watch Infosys' commentary regarding changes in its strategy under the new CEO, Dr. Vishal Sikka, when the company unveils its Q2 September 2014 results on Friday, 10 October 2014. At the time of announcing Q1 June 2014 results in July 2014, Infosys had forecast 7% to 9% growth in the company's revenue in dollar terms for the year ending 31 March 2015 (FY 2015). At that time, the company had forecast 5.6% to 7.6% growth in revenue in rupee terms for FY 2015. The guidance was based on rupee dollar exchange rate of 60. With deprecation of rupee against the dollar since that time, there is a room for upward revision in revenue guidance in rupee terms.
Tech Mahindra lost 4.61%. A foreign brokerage cut its rating on Tech Mahindra to "sell" from "neutral".
MindTree dropped 3.98%. A foreign brokerage downgraded MindTree to "sell" from "buy".
Tata Consultancy Services (TCS) (down 1.73%), Wipro (down 4.18%), HCL Technologies (down 3.72%), Oracle Financial Services Software (down 0.69%), Hexaware Technologies (down 5.62%) declined.
Larsen & Turbo (L&T) advanced 2.5% to Rs 1,450. The stock was volatile. The stock hit high of Rs 1,451 and low of Rs 1,400. L&T Technology Services, the wholly owned subsidiary of L&T, today, 8 October 2014, announced the intent to acquire the asset of US based Dell Product and Process Innovation Services, the engineering services division of Dell. The Competition Commission of India (CCI) has approved the proposed transaction. The company is awaiting US regulatory approvals which are expected shortly, L&T said. The proposed transaction will significantly drive forward L&T Technology Services' position as a premier engineering services provider by adding local delivery centers in North America, L&T said. The proposed acquisition enables L&T Technology Services to consolidate its position as preferred vendor in the $4 billion Transportation Engineering Research & Development (RR&D) market.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.395, compared with its close of 61.425 during the previous trading session.
Brent crude oil prices dropped after the International Monetary Fund (IMF) cut its outlook for global growth. Brent for November settlement was off $1.02 at $91.09 a barrel. The contract hit a low $90.76 a barrel earlier in the session, its lowest point since June 2012. The contract had declined 68 cents to settle at $92.11 a barrel yesterday, 7 October 2014, the lowest settlement price since June 2012.
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 yesterday, 7 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 332.84 crore on that day.
Meanwhile, India's international border with Pakistan remains tense. As per reports, two people have lost their lives in fresh firing that took place in Samba along the International Border today, 8 October 2014, taking the death toll in ceasefire violations up to seven. Six others including a Border Security Force personnel have also been injured in the firing, according to reports.
The International Monetary Fund yesterday, 7 October 2014, raised its growth forecast for India to 5.6% for FY 2015 from 5.4% predicted earlier. It has forecast 6.4% growth for India for FY 2016. IMF said the post-election recovery of confidence in India provides an opportunity for the country to embark on much-needed structural reforms in areas such as education, labour and markets to improve competitiveness and productivity. The IMF said it believes that fiscal reforms and improvement of investment conditions will continue in India, lowering near-term vulnerabilities and bolstering medium-term growth.
The IMF yesterday, 7 October 2014, cut its outlook for global growth in 2015 and warned about the risks of rising geopolitical tensions and a financial-market correction as stocks reach frothy levels. The world economy will grow 3.8% next year, compared with a July forecast for 4%, after a 3.3% expansion this year, the Washington-based IMF said. Some financial markets may be overheating after a sustained period of near-zero rates, according to the report.
European stocks fell today, 8 October 2014, as investors awaited minutes from the Federal Reserve's last meeting later in the global day. Key benchmark indices in France, Germany and UK were off 0.49% to 0.75%.
Asian stocks declined today, 8 October 2014, after the International Monetary Fund (IMF) cut its outlook for global growth in 2015. Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea were off 0.39% to 1.48%. China's Shanghai Composite index was up 0.8%.
The HSBC China services Purchasing Managers Index edged down to 53.5 in September, after recording a 17-month high of 54.1 in August, HSBC Holdings PLC today, 8 October said. A reading above 50 indicates a month-on-month expansion while below points to contraction.
Trading in US index futures indicated that the Dow could fall 14 points at the opening bell today, 8 October 2014. US stocks ended sharply lower on Tuesday, 7 October 2014, as weak data out of Germany raised concerns about the strength of global growth ahead of the start of earnings season.
The US Federal Reserve will today, 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. The Fed minutes may reveal clues about the policy makers' thinking on the timing of an interest-rate increase. Policy makers next begin their two-day meeting on 28 October 2014.
Powered by Capital Market - Live News
