Volatility continued as the key benchmark indices trimmed losses after reversing initial gains. The barometer index, the S&P BSE Sensex, was down 18.17 points or 0.09%, up 41.41 points from the day's low and off 66.92 points from the day's high. The market breadth, indicating the overall health of the market, was positive. In the foreign exchange market, the rupee edged lower against the dollar tracking broad gains in the dollar versus major currencies.
Bank stocks edged lower. Among media stocks, Zee Entertainment Enterprises hit 52-week high. Among tyre shares, Apollo Tyres scaled record high.
Key benchmark indices edged higher amid initial volatility. Volatility continued as the key benchmark indices trimmed losses after reversing initial gains.
Foreign institutional investors (FIIs) bought shares worth a net Rs 79.68 crore on Wednesday, 8 January 2014, as per provisional data from the stock exchanges.
At 10:16 IST, the S&P BSE Sensex was down 18.17 points or 0.09% to 20,711.21. The index gained 48.75 points at the day's high of 20,778.13 in early trade. The index fell 59.58 points at the day's low of 20,669.80 in morning trade, its lowest level since 7 January 2014.
The CNX Nifty was down 8.05 points or 0.13% to 6,166.55. The index hit a high of 6,188.05 in intraday trade. The index hit a low of 6,154.10 in intraday trade, its lowest level since 7 January 2014.
The market breadth, indicating the overall health of the market, was positive. On BSE, 949 shares gained and 770 shares fell. A total of 119 shares were unchanged.
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The total turnover on BSE amounted to Rs 526 crore by 10:15 IST, compared with Rs 280 crore by 09:30 IST.
Among the 30-share Sensex pack, 18 stocks declined and rest of them gained.
Bank stocks edged lower. Among private sector banks, AXIS Bank (down 2.13%), HDFC Bank (down 1.13%), Kotak Mahindra Bank (down 0.66%), ICICI Bank (down 0.69%) declined.
IndusInd Bank fell 1.16%. The bank unveils Q3 earnings tomorrow, 10 January 2014.
Dhanlaxmi Bank fell 0.63% to Rs 39.90. Shares allotted by the private sector bank to qualified institutional buyers (QIB) under qualified institutional placement (QIP) conducted last month were admitted for trading on the bourses today, 9 January 2014. Dhanlaxmi Bank had raised about Rs 67.22 crore last month from the QIP issue. A total of 1.75 crore shares were issued to QIBs at an issue price of Rs 38.25 per share.
Among PSU bank stocks, Canara Bank (down 0.84%), Punjab National Bank (down 1.03%), Bank of Baroda (down 1.63%), Bank of India (down 1.01%) edged lower.
State Bank of India dropped 1.25%. The state-run bank on 2 January 2014 said that the Executive Committee of the Central Board of the bank at its meeting held on 2 January 2014 has accorded its approval for the issuance and allotment of 1.12 crore equity shares at an issue price of Rs 1,782.74 per share to the Government of India (GoI) on preferential basis. The committee also approved the allotment of Basel III compliant Tier 2 bonds of Rs 2000 crore, issued for 120 months (10 year bullet), at an annually payable coupon of 9.69%, by way of private placement.
Union Bank of India fell 1.16%. The bank said after market hours on Wednesday, 8 January 2014 that the board of directors of the bank at its meeting held on 8 January 2014 have declared an interim dividend of 27% or Rs 2.70 per share for the financial year ending 31 March 2014 (FY 2014). The bank has fixed 21 January 2014 as the record date for the purpose of payment of interim dividend. The date of payment of interim dividend shall be 29 January 2014.
Oriental Bank of Commerce shed 0.63%. The bank said after market hours on Wednesday, 8 January 2014, that a meeting of the board of directors of the bank will be held on 11 January 2014, to consider declaration of interim dividend on the paid up equity capital of the bank for the financial year ending 31 March 2014 (FY 2014).
Syndicate Bank fell 0.65%. Syndicate Bank's board meets today, 9 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.
Allahabad Bank fell 0.6%. Allahabad Bank's board will meet on 11 January 2014 to consider payment of interim dividend for the year ending 31 March 2014.
IDBI Bank declined 0.67%. IDBI Bank's board will meet on 13 January 2014 to consider payment of interim dividend for the year ending 31 March 2014.
Indian Bank rose 2.06%. Indian Bank's board will meet tomorrow, 10 January 2014 to consider payment of interim dividend for the year ending 31 March 2014.
Zee Entertainment Enterprises rose 2.86% to Rs 293.15 after hitting 52-week high of Rs 298 in intraday trade.
Apollo Tyres rose 1.73% to Rs 114.55 after hitting record high of Rs 114.95 in intraday trade. Apollo Tyres late last month issued a press statement in response to Cooper Tire & Rubber Company's decision to terminate merger agreement with Apollo Tyres. The company said that the management is disappointed as Cooper has prematurely attempted to terminate the merger agreement. While Cooper's lack of control over its largest Chinese subsidiary -- Cooper Chengshan Tire Company -- and its inability to meet its legal and contractual financial reporting obligations has considerably complicated the situation, Apollo has made exhaustive efforts to find a sensible way forward over the past several months, Apollo Tyres said. However, Cooper has been unwilling to work constructively to complete a transaction that would have created value for both the companies and their shareholders, Apollo Tyres said. Cooper's actions leave Apollo no choice but to pursue legal remedies for Cooper's detrimental conduct, Apollo Tyres said.
Apollo Tyres said that the company has many other compelling growth opportunities around the world which it will continue to pursue. The company said its business is performing well, as evidenced by the strong top line and bottom line results for Q2 September 2013 and that the management remains focused on executing the company's standalone strategic plan to maximum value for Apollo's shareholders.
In the foreign exchange market, the rupee edged lower against the dollar tracking broad gains in the dollar versus major currencies. The partially convertible rupee was hovering at 62.1675, compared with its close of 62.07/08 on Wednesday, 8 January 2014.
The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Q3 earnings season begins tomorrow, 10 January 2014, the day when IT major Infosys and private sector bank IndusInd Bank unveil their earnings.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian stocks edged lower on Thursday, 9 January 2014, as better-than-expected US private sector jobs numbers strengthened the case for further tapering of the Federal Reserve's bond-buying program. Key benchmark indices in Hong Kong, Singapore, Taiwan, South Korea and Japan were off 0.03% to 1.63%. Key benchmark indices in China and Indonesia were up 0.22% to 0.36%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets over the past few years.
China's consumer-price inflation slowed in December 2013, according to government data out Thursday. China's consumer-price index rose 2.5% in December from a year earlier, the National Bureau of Statistics said in Beijing. That compares with 3% increase in November. The producer-price index fell 1.4% from a year earlier to record its longest series of losses since the Asian financial crisis in 1997.
A member of the Bank of Japan's policy board said the central bank should move quickly to step up its monetary easing if the country's economy or prices diverge from their predicted paths. "I believe that we should take additional easing measures without hesitation to avoid jeopardizing the Bank of Japan's credibility if it becomes clear that economic and price conditions have sharply diverged downward from our baseline scenario," Sayuri Shirai said in the text of speeches released Thursday by the BOJ. Ms. Shirai indicated she had doubts about the likelihood the BOJ will achieve its inflation goal in two years, saying "there may be high uncertainty regarding the duration in which to achieve the target." That is because it could take "some time" before the full impact of the BOJ's current easing program is felt, considering consumer worries about a rapid decline in real disposable income as well as firms' caution over raising sales prices.
She also said the BOJ needs to achieve stable 2% inflation paired with sustainable economic growth, "rather than merely achieving 2% in a specific year and failing to meet the target in subsequent years."
South Korea's central bank left its key interest rate unchanged for an eighth straight month after a monetary policy review today, 9 January 2014.
US stocks closed mostly lower on Wednesday, 8 January 2014, after minutes from the last Federal Open Market Committee meeting showed that a majority of officials judged the effects of the monthly asset purchases to be diminishing over time. Federal Reserve officials saw diminishing economic benefits from Fed's bond-buying program and voiced concern about future risks to financial stability during their last meeting, when they began to cut the pace of purchases, according to minutes from their last meeting released Wednesday, 8 January 2014. The minutes didn't describe a set schedule for reductions in bond purchases, although a few officials mentioned the need for a more deterministic path. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The US central bank is poised to continue winding down its stimulus measures gradually this year.
Automatic Data Processing (ADP) said on Wednesday that private employers created 238,000 jobs in December.
The US government will unveil the influential non-farm payroll report for December 2013 tomorrow, 10 January 2014.
The European Central Bank holds a monetary policy meeting today, 9 January 2014. UK's central bank -- Bank of England -- also undertakes monthly monetary policy review tomorrow, 9 January 2014. The Bank of England and the European Central Bank are both expected to keep monetary policy on hold.
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