The Indian markets fell in line to some of their regional counterparts in last session and ended with cut of about a percent despite a positive beginning. Today, the start is likely to be soft and indices may get a gap down start in a knee-jerk reaction to the lower than expected Industrial Production numbers, IIP for September grew 2% compared to a contraction of by 0.7% in the corresponding period last year. The rate sensitives’ are likely to remain under pressure, as in a separate development, driven by food prices, the annual consumer price inflation quickened to 10.09 percent in October from 9.84 percent in September. Meanwhile, there will be buzz among the foreign investors, as the Finance Ministry has said that it would finalise views on the definitions of foreign direct investment and foreign institutional investment in the next two weeks to remove any ambiguity over the two terms. There will be some action in all services related stocks, as the Commerce and Industry Minister Anand Sharma has said that the Government will set up a joint task force for the services sector together with the industry to prepare an action plan for the development of the sector and increase services exports.
There will be lots of important result announcements too, to keep the markets buzzing. Aban Offshore, ABG Shipyard, Ajcon Global, Andhra Bank, BGR Energy, BPCL, Cipla, Coal India, Educomp Sol, Elder Pharma, Hindustan Copper and SBI are among the majors to announce their numbers today.
The US markets ended mostly lower after a lackluster day of trade, the concern about the timing of the Fed's plans to begin scaling back its asset purchases kept looming large, weighing on the sentiments. The Asian markets have made a weak start with many of the indices trading lower by over a percent in early deals. Chinese market was leading the pack of losers after China’s leaders failed to give details about a policy shift after a four-day gathering of Communist Party leaders in Beijing.
Back home, Tuesday despite a good beginning could not bring any relief to the Indian markets, which extending their losses for the sixth straight session closed with cut of around a percent. Benchmark indices that moved higher in early trade bucking the sluggishness in the regional peers could not hold up to their gains for long and in afternoon slipped into red from where they could not recover, instead the selling intensified towards the closing and they ended at their lowest point of the day. The continuous decline in the domestic currency that took it to its two months low, too weighed on the market sentiments, while traders eyed the important macro data release of IIP and CPI inflation. On the global front, while the US markets managed a positive closing overnight, the Asian markets ended mixed with some of the indices snapping the session marginally in red. The European markets too remained sluggish and made a soft start, adding pressure to the domestic markets. Back home, the markets after a surprisingly positive start went through rounds of volatility during the day. Traders continued booking profits at every opportunity and had dragged the markets into red in the very first hour of trade but soon recovery was seen though that too did not lasted long, both the major indices slipped into red in late morning trade. There was bounce back in noon trade that took the markets out of red but there were no major support that could have kept the indices in green for long and traders awaiting the IIP and CPI numbers preferred to remain on sidelines. While, the CPI is placed on the higher side at around 10%, there might be some improvement in the overall IIP data for the month of September, given the strong growth in core sector. There were mixed set of earnings and that too were unable to give any direction to the markets. Canara Bank reported a fall of 5.29% in its net profit at Rs 625.94 crore for the quarter ended September 30, 2013 and Corporation Bank reported a fall of 96.18% in its net profit at Rs 15.47 crore for the quarter. On the other hand, Britannia Industries posted a rise of Rs 109.82% in its net profit at Rs 95.68 crore. Sectorally, barring the defensive FMCG all other indices closed in red on the BSE with metal and power taking the maximum beating, while the rate sensitive auto and banking index too suffered cut of over one and half a percent. The auto stocks were additionally under pressure with SIAM reporting that domestic passenger car sales segment, declined by 3.88% to 163,199 units for the month of October compared with 169,788 in the same month of 2012. Finally, the BSE Sensex lost 209.05 points or 1.02%, to settle at 20281.91, while the CNX Nifty plunged by 60.75 points or 1.00% to settle at 6,018.05.
There will be lots of important result announcements too, to keep the markets buzzing. Aban Offshore, ABG Shipyard, Ajcon Global, Andhra Bank, BGR Energy, BPCL, Cipla, Coal India, Educomp Sol, Elder Pharma, Hindustan Copper and SBI are among the majors to announce their numbers today.
The US markets ended mostly lower after a lackluster day of trade, the concern about the timing of the Fed's plans to begin scaling back its asset purchases kept looming large, weighing on the sentiments. The Asian markets have made a weak start with many of the indices trading lower by over a percent in early deals. Chinese market was leading the pack of losers after China’s leaders failed to give details about a policy shift after a four-day gathering of Communist Party leaders in Beijing.
Back home, Tuesday despite a good beginning could not bring any relief to the Indian markets, which extending their losses for the sixth straight session closed with cut of around a percent. Benchmark indices that moved higher in early trade bucking the sluggishness in the regional peers could not hold up to their gains for long and in afternoon slipped into red from where they could not recover, instead the selling intensified towards the closing and they ended at their lowest point of the day. The continuous decline in the domestic currency that took it to its two months low, too weighed on the market sentiments, while traders eyed the important macro data release of IIP and CPI inflation. On the global front, while the US markets managed a positive closing overnight, the Asian markets ended mixed with some of the indices snapping the session marginally in red. The European markets too remained sluggish and made a soft start, adding pressure to the domestic markets. Back home, the markets after a surprisingly positive start went through rounds of volatility during the day. Traders continued booking profits at every opportunity and had dragged the markets into red in the very first hour of trade but soon recovery was seen though that too did not lasted long, both the major indices slipped into red in late morning trade. There was bounce back in noon trade that took the markets out of red but there were no major support that could have kept the indices in green for long and traders awaiting the IIP and CPI numbers preferred to remain on sidelines. While, the CPI is placed on the higher side at around 10%, there might be some improvement in the overall IIP data for the month of September, given the strong growth in core sector. There were mixed set of earnings and that too were unable to give any direction to the markets. Canara Bank reported a fall of 5.29% in its net profit at Rs 625.94 crore for the quarter ended September 30, 2013 and Corporation Bank reported a fall of 96.18% in its net profit at Rs 15.47 crore for the quarter. On the other hand, Britannia Industries posted a rise of Rs 109.82% in its net profit at Rs 95.68 crore. Sectorally, barring the defensive FMCG all other indices closed in red on the BSE with metal and power taking the maximum beating, while the rate sensitive auto and banking index too suffered cut of over one and half a percent. The auto stocks were additionally under pressure with SIAM reporting that domestic passenger car sales segment, declined by 3.88% to 163,199 units for the month of October compared with 169,788 in the same month of 2012. Finally, the BSE Sensex lost 209.05 points or 1.02%, to settle at 20281.91, while the CNX Nifty plunged by 60.75 points or 1.00% to settle at 6,018.05.
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