Key benchmark indices continued to hover in negative terrain in early afternoon trade. The decline was very small. The barometer index, the S&P BSE Sensex, was currently down 44.44 points or 0.17% at 26,772.12. The market breadth indicating the overall health of the market was positive. Key indices dropped after the latest data showed that India's merchandise exports registered a small increase of 2.35% in August 2014. Asian stocks were in red. Most IT stocks gained. Wipro rose after the company said that its subsidiary Wipro Arabia has entered into a strategic partnership with Saudi-based Saudi Electricity Company (SEC). Infosys rose after the company said that Muji, a leading retailer in Japan, has deployed InteractEdge from Infosys.
Earlier, small losses took key indices to their lowest level in more than two week in morning trade.
Asian stocks declined on caution ahead of the start of Federal Reserve's two-day policy meeting today, 16 September 2014.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil prices edged higher, holding gains after recovering from its lowest price in more than two years in previous session but capped by a soft global economic outlook
At 12:15 IST, the S&P BSE Sensex was down 44.44 points or 0.17% at 26,772.12. The index dropped 71.02 points at the day's low of 26,745.54 in morning trade, its lowest level since 1 September 2014. The index rose 44.73 points at the day's high of 26,861.29 in early trade.
The CNX Nifty was down 17.55 points or 0.22% at 8,024.45. The index hit a low of 8,019.65 in intraday trade, its lowest level since 1 September 2014. The index hit a high of 8,044.90 in intraday trade.
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The market breadth indicating the overall health of the market was positive. 1,505 shares gained and 1,182 shares fell. A total of 105 shares were unchanged.
The BSE Mid-Cap index was up 14.71 points or 0.15% at 10,015.57. The BSE Small-Cap index was up 63.52 points or 0.56% at 11,309.04. Both these indices outperformed the Sensex.
Cadila Healthcare rose 2%. The company said during market hours that it has received tentative approval from the USFDA to market Glipizide Extended release tablets in the strengths of 2.5mg, 5mg and 10mg. The drug falls in the ant-diabetic segment. The estimated sales in 2014 for Glipizide ER tablets in the United States is $90.1 million, as per IMS.
Separately, Cadila Healthcare and Gilead Sciences, Inc. on Monday, 15 September 2014, announced that they have signed a non-exclusive licensing agreement which will allow the generic manufacture of sofosbuvir and investigational single tablet regimen of ledipasvir/ sofosbuvir for distribution in 90 developing countries, including India.
Most IT stocks gained. HCL Technologies rose 1.34%.
Infosys rose 0.24% after the company said during market hours that Muji, a leading retailer in Japan, has deployed InteractEdge from Infosys which will enable Muji to deliver a superior shopping experience through real time insights into the buying behaviour of its customers.
Wipro rose 0.77% after the company said after market hours on Monday, 15 September 2014 that the company's subsidiary Wipro Arabia has entered into a strategic partnership with Saudi-based Saudi Electricity Company (SEC), the largest power utility company in the Middle East serving approximately 5 million customers in the Kingdom of Saudi Arabia (KSA). As part of this engagement, Wipro will implement and rollout the plant maintenance and project system functionality of the SAP ERP application for SEC's distribution business line across KSA.
Tech Mahindra declined 0.74%.
Tata Consultancy Services (TCS) fell 0.07%. TCS reportedly paid 34.29% higher advance tax at Rs 1390 crore in Q2 September 2014 over Q2 September 2013.
IndusInd Bank fell 1%. The bank has cut interest rate on savings bank account to 4.5% from 5.5% on daily balance less than Rs 1 lakh. The change is effective from 1 September 2014. The bank has, however, maintained the rate of 6% for daily balance equal to or greater than Rs 1 lakh. Savings deposits currently constitute 16.6% of the total deposits of IndusInd Bank (as on 30 June 2014).
BPCL declined 1.39%. BPCL reportedly paid 141% higher advance tax at Rs 487 crore in Q2 September 2014 over Q2 September 2013.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.095, compared with its close of 61.14 during the previous trading session.
Provisional data released by the stock exchanges after trading hours on Monday, 15 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 74.59 crore on that day.
Brent crude oil prices edged higher, holding gains after recovering from its lowest price in more than two years in previous session but capped by a soft global economic outlook. Brent for November settlement was up 4 cents at $97.98 a barrel. The contract had risen 0.84% to settle at $97.88 a barrel on Monday, 15 September 2014. The October contract which expired on Monday, 15 September 2014 dipped to a 26-month low at $96.21 in its final session.
On macro front, India's merchandise exports registered a small increase of 2.35% at $26.95 billion in August 2014 over August 2013, data released by the government after trading hours yesterday, 15 September 2014, showed. Imports rose 2.08% at $37.79 billion in August 2014 over August 2013. Oil imports declined 14.97% at $12.83 billion in August 2014 over August 2013. Non-oil imports jumped 13.82% at $24.95 billion in August 2014 over August 2013. The trade deficit increased to $10.83 billion in August 2014, from $10.68 billion in August 2013.
Asian stocks declined today, 16 September 2014, on caution ahead of the start of Federal Reserve's two-day policy meeting today, 16 September 2014. Key benchmark indices in Hong Kong, Indonesia, Singapore, China, Taiwan and Japan were off 0.09% to 0.91%. South Korea's Kospi rose 0.35%.
Foreign direct investment into China, a gauge of external confidence, slumped to a four-year low amid widening antitrust probes into multinational companies. Inbound investment was $7.2 billion in August, down 14% from a year earlier, the Ministry of Commerce said on its website today in Beijing after a 17% drop in July. It was the first back-to-back decline of more than 10% since 2009.
Trading in US index futures indicated that the Dow could fall 4 points at the opening bell on Tuesday, 16 September 2014. US stocks closed mostly lower on Monday, 15 September 2014, with losses led by technology and small-cap stocks as investors continued to unload riskier position ahead of this week's pivotal Federal Reserve policy meeting.
Economic data yesterday showed US industrial production unexpectedly declined in August for the first time in seven months as automakers slowed assembly lines.
Investors will look to Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. A two-day policy meeting of the Federal Open Market Committee (FOMC) starts today, 16 September 2014. At the end of a two-day meeting, the 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.
The Fed will also announce US economic projections after the policy meet. Fed now releases economic projections four times a year (March, June, September, and December). Traditionally, the Fed forecasts covered GDP, the PCE price index, and the civilian unemployment rate. However, the forecast report additionally now includes forecasts for the appropriate timing of the next change in the fed funds rate and the expected fed funds rate at the end of the next two years. The policy meet will be followed by a press conference by Federal Reserve Chairwoman Janet Yellen on 17 September 2014.
The Federal Reserve after two-day policy meeting on 30 July 2014, said it would reduce its purchases of mortgage and Treasury bonds by $10 billion to $25 billion monthly from $35 billion earlier, as widely expected.
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