Key benchmark indices traded off the day's lows in mid-afternoon trade. Despite intraday recovery, the barometer index, the S&P BSE Sensex, continued to trade below the psychological 26,000 mark. The market breadth indicating the overall health of the market was negative. The Sensex was off 160.71 points or 0.62%, off about 215 points from the day's high and up about 85 points from the day's low.
Cement stocks dropped. ACC declined as the stock turned ex-dividend today, 28 July 2014, for dividend of Rs 15 per share for the year ending 31 December 2014 (FY 2014). Reliance Power and Jaiprakash Power Ventures gained after Reliance Power signed memorandum of understanding to acquire the entire hydroelectric power portfolio of Jaiprakash Power Ventures.
At 14:20 IST, the S&P BSE Sensex was down 160.71 points or 0.62% to 25,966.04. The index lost 226.50 points at the day's low of 25,900.25 in afternoon trade, its lowest level since 22 July 2014. The index rose 55.08 points at the day's high of 26,181.83 in early trade.
The CNX Nifty was down 42.60 points or 0.55% to 7,747.85. The index hit a low of 7,722.65 in intraday trade, its lowest level since 22 July 2014. The index hit a high of 7,799.90 in intraday trade.
The BSE Mid-Cap index was off 37.20 points or 0.41% at 9,141.04, outperforming the Sensex. The BSE Small-Cap Index was off 64.99 points or 0.65% at 9,972.18, underperforming the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,590 shares fell and 1,103 shares rose. A total of 103 shares were unchanged.
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Among the 30-share Sensex pack, 21 stocks fell and rest of them rose.
Reliance Power rose 2.81% and Jaiprakash Power Ventures gained 4.22% after Reliance Power signed memorandum of understanding to acquire the entire hydroelectric power portfolio of Jaiprakash Power Ventures. Reliance Power (RPower) and Jaiprakash Power Ventures (JPVL) made the announcement on Sunday, 27 July 2014.
JPVL hydroelectric power portfolio has an aggregate capacity of nearly 1,800 megawatt (MW) fully in operation and with an asset base of over Rs 10000 crore. The portfolio consists of 3 plants with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir. JPVL is a subsidiary of Jaiprakash Associates (JAL). JAL intends to utilise the entire proceeds of the proposed transaction to reduce its outstanding debt, and thereby deleverage its consolidated balance sheet.
Upon completion of the proposed transaction, Reliance Power will become the largest provider of hydroelectric power in the private sector in India.
Cement stocks dropped. ACC dropped 2.59% as the stock turned ex-dividend today, 28 July 2014, for dividend of Rs 15 per share for the year ending 31 December 2014 (FY 2014).
Ambuja Cements (down 2.8%), and UltraTech Cement (down 2.25%), declined.
Grasim Industries declined 1.76%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Shree Cement rose 0.67%.
A bout of volatility was witnessed as key benchmark indices edged lower after opening higher. Key benchmark indices alternately swung between positive and negative terrain near the flat line in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. The Sensex and CNX Nifty both hit fresh intraday low in afternoon trade. Key benchmark indices traded off the day's lows in mid-afternoon trade.
Investors are keeping a close watch on crude oil prices. Brent crude dropped after Friday's rally. September-delivery Brent was off 50 cents at $107.89 a barrel on the ICE Futures Europe exchange in London. The contract soared $1.32 or 1.2% to close at $108.39 per barrel on Friday, 25 July 2014. It was the highest price the future has closed at since 10 July 2014. India imports about 80% of its crude oil requirement.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month July 2014 series to August 2014 series. The near-month July 2014 F&O contracts expire on Thursday, 31 July 2014.
The stock market remains closed tomorrow, 29 July 2014, on account of Ramzan Id.
In the foreign exchange market, the rupee was almost unchanged against the dollar. The partially convertible rupee was hovering at 60.105, compared with its close of 60.11 on Friday, 25 July 2014.
European stocks edged higher today, 28 July 2014, as investors weighed company earnings and awaited data on American services and home sales. Key benchmark indices in UK and France were up 0.12% to 0.41%. In Germany, the DAX index was off 0.06%.
Chinese stocks led gains in Asian stocks today, 28 July 2014, on strong growth in profit at China's industrial companies in June 2014. Key benchmark indices in China, Hong Kong, Japan, and were up by 0.46% to 2.41%. Taiwan's Taiwan Weighted fell 0.2%.
Chinese industrial-company profits jumped the most last month since September, data yesterday showed. Profits at industrial companies in Asia's largest economy increased by 17.9% in June from a year earlier, after gaining 8.9% in May, data from China's statistics bureau showed. It was the biggest gain since an 18.4% climb in September of last year and came after a private gauge of Chinese manufacturing advanced to an 18-month high.
Trading in US index futures indicated that the Dow could fall 11 points at the opening bell on Monday, 28 July 2014. US stocks fell on Friday, 25 July 2014, on disappointing earnings reports from Amazon and Visa and Starbucks.
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