Key benchmark indices trimmed losses after hitting fresh intraday low in early afternoon trade. The market breadth, indicating the overall health of the market, was negative. The barometer index, the S&P BSE Sensex, was down 166.43 points or 0.84%, up close to 80 points from the day's low and off about 225 points from the day's high. The market sentiment was hit adversely by the government's failure to raise fuel prices. Weakness in Asian stocks also weighed on sentiment on the domestic bourses. The government's decision on Tuesday not to raise fuel prices sparked concerns about the government's fiscal deficit. PSU OMCs, which control more than 90% of the fuel-retail market in India, sell diesel and cooking fuels at government-set discounted prices. The government partially reimburses them for the discounted sales.
Bank stocks declined. Realty stocks reversed intraday gain. Index heavyweights, Reliance Industries and ITC, both, declined.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between gains and losses. The market moved in a narrow range in morning trade. Key benchmark indices extended intraday losses and hit fresh intraday low in mid-morning trade as index heavyweights, Reliance Industries and ITC, both, extended intraday losses. Key benchmark indices trimmed losses in early afternoon trade after hitting their lowest level in more than a week.
The market may remain volatile in the immediate future as traders roll over positions in the futures & options (F&O) segment from the near month September 2013 series to October 2013 series. The September 2013 F&O contracts expire tomorrow, 26 September 2013.
At 12:20 IST, the S&P BSE Sensex was down 166.43 points or 0.84% to 19,753.78. The index declined 243.36 points at the day's low of 19,676.85 in early afternoon trade, its lowest level since 17 September 2013. The index rose 58.28 points at the day's high of 19,978.49 in early trade.
The CNX Nifty was down 65.15 points or 1.11% to 5,827.30. The index hit a low of 5,813.60 in intraday trade, its lowest level since 17 September 2013. The index hit a high of 5,910.55 in intraday trade.
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The market breadth, indicating the overall health of the market, was negative. On BSE, 1,176 shares fell and 788 shares rose. A total of 143 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks fell and rest of them rose. Tata Steel (down 1.71%), M&M (down 3.1%) and HDFC (down 1.63%), declined.
Index heavyweight and cigarette maker ITC dropped 2.23% to Rs 343. The stock hit high of Rs 350 and low of Rs Rs 337.45 so far during the day.
Another index heavyweight Reliance Industries lost 2.89% to Rs 849.05. The stock hit high of Rs 874 and low of Rs 847 so far during the day.
PSU bank stocks extended their recent steep losses. Indian Bank, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank dropped by 0.35% to 2.9%.
Ratings agency Fitch early this week downgraded some ratings for Indian Bank, Punjab National Bank and Bank of Baroda on expectations of a further deterioration in asset quality and a sharp deceleration in economic growth.
State Bank of India (SBI) rose 0.71%. Ratings agency Moody's on Tuesday downgraded its outlook on the bank's financial strength rating to 'negative' from 'stable'. Moody's also downgraded SBI's unsecured debt rating on par with the sovereign foreign currency bond rating. SBI's standalone credit profile continues to face negative pressures, and it will have to compete with other public sector lenders for capital injection from the government, Moody's said. SBI's impaired loan ratio of 8.6% at end-June is below the 11.5% average for Indian public sector banks rated by Moody's.
SBI on 18 September 2013 said it has raised the base rate by 10 basis points (bps) to 9.8% per annum (pa) from 9.7% and the benchmark prime lending rate by 10 bps to 14.55% from 14.45% with effect from 19 September 2013. The bank also raised interest rates for retail term deposits.
Among private bank stocks, HDFC Bank (down 3.14%) and ICICI Bank (down 1%), declined.
ING Vysya Bank rose 1.13% to 500.90. Two block deals were executed in the counter on BSE. One block deal of 2 lakh shares was struck at Rs 500 per share at 11:07 IST and another block deal of 1.75 lakh shares was executed at Rs 500 per share at 11:08 IST.
Realty stocks reversed intraday gain. DLF (down 2.7%), HDIL (down 2.49%), D B Realty (down 0.26%) and Unitech (down 0.9%), declined.
Omaxe declined 0.34%. Constellation Capital, Kautilya Monetary Services and S. A. Finvest which form part of the promoters and members of the promoter group of Omaxe have decided to collectively sell a total of 1.52 crore shares, representing 8.79% of the total paid up equity share capital of the company, via Offer for Sale (OFS) through a separate window provided by the BSE for this purpose. The OFS will take place on Friday, 27 September 2013.
Suven Life Sciences rose 2.68% after the company said it has secured three product patents corresponding to the new chemical entities for the treatment of disorders associated with Neurodegenerative diseases. The announcement was made during trading hours today, 25 September 2013.
Suven Life Sciences (Suven) announced today, 25 September 2013, the grant of three product patents one each from New Zealand, Singapore and South Korea corresponding to the New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases and these Patents are valid through 2029, 2030 and 2028 respectively.
The granted claims of the patents include the class of selective 5-HT compounds discovered by Suven and are being developed as therapeutic agents and are useful in the treatment of cognitive impairment associated with neurodegenerative disorders like Alzheimer's disease, Attention deficient hyperactivity disorder (ADHD), Huntington's disease, Parkinson and Schizophrenia, Suven said in a statement.
With these new patents, Suven has a total of seventeen granted patents from New Zealand, sixteen granted patents from Singapore and eleven granted patents fromSouth Korea. These granted patents are exclusive intellectual property of Suven and are achieved through the internal discovery research efforts. Products out of these inventions may be out-licensed at various phases of clinical development like at Phase-I or Phase-II, Suven said in a statement.
Venkat Jasti, CEO of Suven said, "We are very pleased by the grant of these patents to Suven for our pipeline of molecules in CNS arena that are being developed for cognitive disorders with high unmet medical need with huge market potential globally."
Minister of Petroleum & Natural Gas Dr. M. Veerappa Moily on Tuesday, 24 September 2013, ruled out any steep increase in diesel and cooking-fuel prices. The government's decision on Tuesday, 24 September 2013, not to raise fuel prices has sparked concerns about the government's fiscal deficit. PSU OMCs, which control more than 90% of the fuel-retail market in India, sell diesel and cooking fuels at government-set discounted prices. The government partially reimburses them for the discounted sales. Dr. Moily on Tuesday, 24 September 2013, asked the people of India to conserve petroleum products to help the government's finances and reduce the country's oil-import bill.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.66, compared with its close of 62.7525/7625 on Tuesday, 24 September 2013.
Asian stocks dropped on Wednesday, 25 September 2013, as concern that US lawmakers will fail to arrange a budget deal preventing a government shutdown next week weighed on sentiment. Key benchmark indices in China, Indonesia, Japan, Singapore, Taiwan and South Korea were off 0.08% to 1.5%. Hong Kong's Hang Seng rose 0.12%.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 25 September 2013. US stocks ended mostly lower on Tuesday, 24 September 2013, as a drop in consumer confidence and worries over a Washington debt-ceiling fight outweighed a rise in home prices and easing concerns over the Middle East.
Investors are worried about the latest squabbling in Washington over a new budget for the fiscal year that starts on 1 October 2013 and, more importantly, over whether to lift the debt ceiling. Ratings firm Moody's Investors Service on Tuesday said a failure by the US government to raise the country's debt limit would result in a worse outcome for financial markets than a government shutdown.
The Conference Board's index of US consumer confidence slumped in September to a four-month low and a separate report showed a gauge of manufacturing in the region covered by the Federal Reserve Bank of Richmond shrank in September. The Case-Shiller report on US home prices showed prices rose in July, but at a slower pace.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus.
US President Barack Obama on Tuesday said that the US is committed to finding diplomatic solutions for the Syria conflict and for the ongoing dispute with Iran over its nuclear program.
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