Key equity benchmarks were trading in a narrow range with modest gains in afternoon trade. At 13:25 IST, the barometer index, the S&P BSE Sensex was up 185.28 points or 0.49% at 38,312.36. The Nifty 50 index was up 58.45 points or 0.52% at 11,363.50. Sentiment was positive amid strength in other Asian shares.
The S&P BSE Mid-Cap index was up 0.92%. The S&P BSE Small-Cap index rose 0.46%.
The market breadth was positive. On the BSE, shares 1,229 rose and 1,096 shares fell. A total of 197 shares were unchanged.
On the macro front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 0.33% (provisional) for September 2019 (over September 2018) compared with 1.08% (provisional) in the previous month and 5.22% during the corresponding month of the previous year. The data was unveiled during trading hours today, 14 October 2019.
India's industrial production (IIP) declined 1.1% in August 2019, while snapping consistent growth for last 25 straight months. Also, the pace of decline in industrial production was highest in August 2019 for 2011-12 base year data. As per the revised data for industrial production of July 2019, the growth is higher at 4.6% compared with 4.3% growth reported provisionally. The data was announced after market hours on Friday, 11 October 2019.
India's growth rate is projected to fall to 6% in this fiscal year, the World Bank said in its latest edition of the South Asia Economic Focus. In 2018-19, the growth rate of the country stood at 6.9%. However, the World Bank said the country was expected to gradually recover to 6.9% in 2021 and 7.2% in 2022 as it assumed that the monetary stance would remain accommodative, given benign price dynamics.
Moody's Investors Service on Thursday, 10 October 2019, cut India's gross domestic product (GDP) growth forecast for 2019-20 to 5.8% from the earlier estimate of 6.2%. It attributed the deceleration to an investment-led slowdown that has broadened into consumption, driven by financial stress among rural households and weak job creation. It expects growth to pick up to 6.6% in FY21 and around 7% over the medium term.
FMCG major Hindustan Unilever (HUL) rose 0.30% ahead of its Q2 result today, 14 October 2019.
Tata Motors (up 6.27%), ONGC (up 4.34%) and Tata Steel (up 2.74%) advanced.
Bajaj Finance (down 1.29%), Hero MotoCorp (down 0.59%) and PowerGrid Corporation of India (down 0.37%) declined.
Software major Infosys lost 3.76%. On a consolidated basis, Infosys' net profit rose 4.55% to Rs 3,971 crore on a 3.78% increase in total revenue from operations to Rs 22,629 crore in Q2 September 2019 over Q1 June 2019. The result was announced after market hours on Friday, 11 October 2019.
The company's operating margin stood at 21.7% in Q2 September 2019 compared with 20.5% in Q1 June 2019. The firm increased lower end of FY 2020 revenue guidance. Revised guidance is 9%-10% in constant currency. It maintained FY 2020 operating margin guidance range of 21%-23%.
Sun Pharmaceutical Industries advanced 2.85% to Rs 397.30 after the drug major announced the launch CEQUA solution for the treatment of dry eye disease in the US. CEQUA (cyclosporine ophthalmic solution) has been approved by USFDA and offers the highest concentration of cyclosporine for ophthalmic use. CEQUA is indicated to increase tear production in patients with keratoconjunctivitis sicca (dry eye), an inflammatory disease that afflicts more than 16 million people in the US.
HCL Technologies gained 0.82% after the IT major completed the acquisition of Sankalp Semiconductors. The company, on 9 September 2019, announced the acquisition of Sankalp Semiconductors. The firm addressed that this acquisition would enable HCL to further expand into newer market-domains, especially in analog and mixed signal design.
JSW Steel rose 2.92% after media reports said that NCLAT stayed with the implementation of Bhushan Power sale to the company.
Overseas, European stocks fell Monday as the UK and the European Union are still divided on customs arrangements as they look to hammer out a deal for Britain's departure before the 31 October deadline.
Asian shares edged higher on Monday as investor sentiment improved following last week's high-level trade negotiations between the United States and China. Markets in Japan are closed for a public holiday.
The US agreed to postpone an increase in tariffs from 25% to 30% on at least $250 billion of Chinese goods, which had been scheduled for Tuesday.
However, customs data showed that China's import and export figures were worse than expected in September, with exports falling 3.2% on the year in US dollar terms, while imports declined 8.5%.
Meanwhile, US Federal Reserve announced that it would buy $60 billion of Treasury bills every month at least into the second-quarter, starting from next week. The central bank also said it would conduct overnight repurchase agreements at least through January of next year in order to reduce pressures in funding markets.
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