Key benchmark indices continued to hover in negative terrain in afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 127.21 points or 0.47% at 27,012.73. Weakness in Asian and European stocks and an overnight rally in Brent crude oil prices dampened sentiment. Higher crude oil prices could increase fiscal deficit and current account deficit and stoke fuel price inflation. India imports 80% of its crude oil requirement. The market breadth indicating the overall health of the market was weak. Cement stocks dropped. Most IT stocks declined. Meanwhile, India's Intelligence Bureau has reportedly issued an all-India alert after Al Qaeda leader Ayman al Zawahri announced the formation of an Indian branch of his militant group.
The Sensex has swung near the psychological 27,000 mark so far during the day after falling below that level in intraday trade. Earlier, the barometer index had slipped into the red soon after opening a tad higher.
In overseas markets, European stocks dropped as investors awaited the European Central Bank's next steps on interest rates and quantitative easing. Shares of property developers led decline in Asian stocks.
At 13:15 IST, the S&P BSE Sensex was down 127.21 points or 0.47% at 27.012.73. The index fell 166.30 points at the day's low of 26,973.64 in early afternoon trade, its lowest level since 2 September 2014. The index gained 29.18 points at the day's high of 27,169.12 in early trade.
The CNX Nifty was down 40.90 points or 0.5% at 8,073.70. The index hit a low of 8,060.90 in intraday trade, its lowest level since 2 September 2014. The index hit a high of 8,114.80 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,787 shares declined and 931 shares advanced. A total of 84 shares were unchanged.
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The BSE Mid-Cap index was down 32.19 points or 0.34% at 9,572.68, outperformed the Sensex. The BSE Small-Cap index was down 89.24 points or 0.85% at 10,444.48, underperformed the Sensex.
Bharat Heavy Electricals (Bhel) (down 3.81%), Tata Steel (down 2.5%) and Tata Motors (down 2.1%) edged lower from the Sensex pack.
Cement stocks dropped. ACC (down 1.99%), Ambuja Cements (down 2.33%), and UltraTech Cement (down 1.49%) declined.
Grasim Industries declined 1.03%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
But, Shree Cement rose 1.2%.
Most IT stocks declined. TCS (down 0.3%), Infosys (down 0.78%) and Wipro (down 0.42%) declined. Tech Mahindra (up 0.76%) and HCL Technologies (up 0.28%) gained.
Meanwhile, India's Intelligence Bureau has reportedly issued an all-India alert after Al Qaeda leader Ayman al Zawahri announced the formation of an Indian branch of his militant group. The government has asked all the states to be on high alert for any possible attack, as per media reports. In a 55-minute video posted online Zawahri described the formation of Al-Qaeda in the Indian subcontinent as a glad tidings for Muslims in Burma, Bangladesh, Assam, Gujarat, Ahmedabad, and Kashmir and said that the new wing would rescue Muslims there from injustice and oppression.
Brent crude oil futures rallied Wednesday, 3 September 2014, on expectations that steps toward a cease-fire in eastern Ukraine could boost economic growth in Europe. Brent for October settlement surged $2.43 a barrel or 2.4% to settle at $102.77 a barrel yesterday, 3 September 2014. In today's trading, Brent for October settlement was down 67 cents at $102.10 a barrel.
Higher crude oil prices could increase fiscal deficit and current account deficit and stoke fuel price inflation. India imports 80% of its crude oil requirement.
Russian President Vladimir Putin on Wednesday, 3 September 2014, said he and his Ukrainian counterpart Petro Poroshenko had agreed to the outlines of a cease-fire for eastern Ukraine, calling for the separatists there to end their offensive and Kiev to pull its forces back.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.4475, compared with its close of 60.4825 during the previous trading session.
European stocks edged lower today, 4 September 2014, as investors awaited the European Central Bank's next steps on interest rates and quantitative easing. Key benchmark indices in France, Germany and UK were off 0.1% to 0.39%.
German factory orders surged the most in more than one year in July after weak demand in the second quarter contributed to an economic contraction. Orders, adjusted for seasonal swings and inflation, rose 4.6% from June, when they slid a revised 2.7%, the Economy Ministry in Berlin said today. That's the biggest increase since June 2013.
A monthly meeting of the European Central Bank (ECB) is scheduled today, 4 September 2014. There are expectations that the European Central Bank (ECB) will announce quantitative easing in the coming months to bolster growth and counter downward pressures on prices in the euro zone. At US Federal Reserve's annual symposium in the United States on 22 August 2014, ECB President Mario Draghi said that expectations of future inflation in Europe exhibited significant declines at all horizons this month.
Bank of England will also announce its monetary-policy decision later in the global day today, 4 September 2014. The UK central bank is expected to keep its benchmark rate unchanged at 0.5%, the level it held since March 2009.
Shares of property developers led decline in Asian stocks today, 4 September 2014. Key indices in Japan, Taiwan, Indonesia and Singapore were off 0.08% to 0.33%. Key indices in South Korea, China and Hong Kong rose 0.14% to 0.8%.
The Bank of Japan kept its record stimulus unchanged today, 4 September 2014 as Governor Haruhiko Kuroda looks to keep stoking inflation and boost economic momentum that's been sapped by a higher sales tax. The central bank kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen ($667 billion), the bank said in a statement today, 4 September 2014.
Trading in US index futures indicated that the Dow could fall 4 points at the opening bell on Thursday, 4 September 2014. The US economy expanded at a modest to moderate pace over the past six weeks as a booming auto industry and tourism continued to drive growth, the Federal Reserve said in its Beige Book on Wednesday, 3 September 2014.
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