Key benchmark indices moved in a narrow range in negative zone in early afternoon trade. But, the broad market depicted strength. The barometer index, the S&P BSE Sensex was down 144.86 points or 0.53% at 27,120.46. Key indices dropped on speculation that US interest rates will rise sooner than estimated. Higher interest rates could lure money to the US from emerging markets, including India. The market breadth indicating the overall health of the market was strong. Index heavyweight Reliance Industries extended intraday fall. Bank stocks declined on reports that the collective exposure of banks to coal blocks which are under legal scrutiny and related industries stands at a whopping Rs 4 lakh crore. ICICI Bank rose after its board of directors at its meeting held on Tuesday, 9 September 2014, approved a 5-for-1 stock split. Steel Authority of India (Sail) fell on reports the government is proposing to offload 5% stake in the company this month.
After an initial decline triggered by weakness in Asian stocks, key benchmark have languished in red throughout the trading session so far.
In overseas markets, Asian stocks edged lower on concern that China's growth is slowing and speculation that US interest rates will rise sooner than estimated. In the foreign exchange market, the rupee edged lower against the dollar as key equity benchmark indices fell. Brent crude oil futures edged higher after reaching a 17-month low below $100 per barrel during the previous trading session.
At 12:15 IST, the S&P BSE Sensex was down 144.86 points or 0.53% at 27,120.46. The index lost 157.90 points at the day's low of 27,107.42 in early trade, its lowest level since 5 September 2014. The index fell 13.88 points at the day's high of 27,251.44 in early trade.
The CNX Nifty was down 40.75 points or 0.5% at 8,112.20. The index hit a low of 8,105.75 in intraday trade, its lowest level since 5 September 2014. The index hit a high of 8,135.75 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,635 shares gained and 1,028 shares fell. A total of 96 shares were unchanged.
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The BSE Mid-Cap index was up 41.38 points or 0.42% at 9,884.75. The BSE Small-Cap index was up 81.25 points or 0.75% at 10,967.23. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1623 crore by 12:15 IST, compared to a turnover of Rs 1226 crore by 11:15 IST.
Among the 30-share Sensex pack, 20 stocks declined and rest of them gained.
ITC (down 1.58%), Infosys (down 1.52%) and Mahindra & Mahindra (down 1.26%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries lost 1.32% to Rs 1,019.70, with the stock extending intraday fall. The stock hit high of Rs 1,030 and low of Rs 1,018.15 so far during the day.
Bank stocks declined on reports that the collective exposure of banks to coal blocks which are under legal scrutiny and related industries stands at a whopping Rs 4 lakh crore. Among PSU bank stocks, State Bank of India (SBI) (down 1.18%), Punjab National Bank (down 1.11%), Bank of Baroda (down 1.25%), Bank of India (down 1.41%), Oriental Bank of Commerce (down 0.39%) and Union Bank of India (down 1.77%) declined.
After a day-long hearing on the fate of 218 coal blocks, the Supreme Court on Tuesday, 9 September 2014, reserved its judgement to an unspecified date. The Supreme Court had on 25 August 2014 held that the allocation of coal blocks to various firms between 1993 and 2009 was illegal.
Among private banks, IndusInd Bank (down 1.47%), Federal Bank (down 1.2%), Kotak Mahindra Bank (down 0.83%), Yes Bank (down 1.83%), HDFC Bank (down 0.8%) and Axis Bank (down 0.63%) declined.
ICICI Bank rose 1.17%. ICICI Bank after market hours on Tuesday, 9 September 2014, said that the board of directors of the bank at its meeting held on Tuesday, 9 September 2014, approved 5-for-1 stock split.
Steel Authority of India (Sail) fell 1.56%. As per reports, the government is proposing to offload 5% stake in Sail this month and provide more incentives to retail investors to increase their participation. The government owns 80% stake in Sail (as per shareholding pattern as on 30 June 2014).
BL Kashyap and Sons was locked at 20% upper circuit at Rs 12.96 after HDFC Mutual Fund bought 14.20 lakh shares at Rs 9.20 per share in a bulk deal on BSE on Tuesday, 9 September 2014. Ajay Ashok Shah sold 14.53 lakh shares at Rs 9 per share in this bulk deal.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 9 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 479.40 crore on that day.
Brent crude oil futures edged higher after reaching a 17-month low below $100 per barrel during the previous trading session. Brent for October settlement was up 19 cents at $99.35 a barrel. The contract fell $1.04 a barrel to settle at $99.16 a barrel yesterday, 9 September 2014, as ample supplies weighed. The price had slumped to $99.03 in intraday trade, the lowest intraday price since 1 May 2013.
In the foreign exchange market, the rupee edged lower against the dollar as key equity benchmark indices fell. The partially convertible rupee was hovering at 60.8325, compared with its close of 60.60 on Tuesday, 9 September 2014.
Meanwhile, as per reports, Finance Minister Arun Jaitley will miss a meeting of finance ministers from the Group of 20 nations in Australia next week as he is still in hospital undergoing treatment. Jaitley was admitted to a hospital in Delhi on 1 September 2014 for treatment to manage a diabetic condition.
Asian stocks edged lower today, 10 September 2014, on concern that China's growth is slowing and speculation that US interest rates will rise sooner than estimated. Key benchmark indices in Taiwan, Hong Kong, Japan, Indonesia and China were off 0.33% to 1.63%. Singapore's Straits Times index rose 0.01%. South Korean stock market will reopen tomorrow, 11 September 2014, after a three-day break for the Harvest Moon festival.
China's money-supply growth in August eased to the slowest pace in five months. M2, the government's broadest measure, rose 12.8% in August from a year earlier, lower than 13.5% rise in July
Trading in US index futures indicated that the Dow could fall 25 points at the opening bell today, 10 September 2014. US stocks fell on Tuesday, 9 September 2014, as Apple shares declined and as bond yields hit their highest in a month on concerns the Federal Reserve could raise interest rates sooner than some investors had expected.
At the end of a two-day meeting on 16-17 September 2014, the Federal Open Market Committee (FOMC) is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
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