Key benchmark indices registered small losses in a volatile trading session today, 29 September 2014. High volatility was witnessed in late trade as key indices recouped a lion's portion of intraday losses after a sudden slide took them into the red from green. High volatility in late trade materialized after media reports said Finance Minister Arun Jaitley was moved to an isolation ward of a government-run hospital to help him recover from an infection that followed a stomach operation early this month to treat diabetes. The barometer index, the S&P BSE Sensex, settled 29.21 points or 0.11% lower at 26,597.11.
The market breadth was strong. The BSE Mid-Cap index was up 1.01%. The BSE Small-Cap index rose 1.49%. Both these indices outperformed the Sensex. Asian and European stocks were in red. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1133.64 crore during the previous trading session on Friday, 26 September 2014, as per provisional data.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms and on weak rupee. Shares of travel companies jumped after Prime Minister Narendra Modi in his address to Indian community at Madison Square Garden, New York on Sunday, 28 September 2014, announced sweeping changes in procedures to facilitate travel between America and India. Most bank shares were trading lower. Cipla rose after the company said it aims to build a strong presence in Kenya. NTPC edged lower after signing a syndicated term loan facility of $250 million arranged by Mizuho Bank, Singapore Branch.
Barring volatility at the beginning of the trading session and during late trade, key indices moved within a narrow range.
A major near term event is a monetary policy review from the Reserve Bank of India (RBI) tomorrow, 30 September 2014. Meanwhile, Prime Minister Narendra Modi will hold talks with US President Barack Obama at the White House tomorrow, 30 September 2014. Modi is on a five-day visit to US.
In overseas market, European stocks edged lower as a measure of euro-area economic confidence declined this month. Hong Kong led decline in Asian stocks after clashes between police and pro-democracy protesters in the Chinese city.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar after US economic data bolstered the outlook for higher interest rates in the world's biggest economy.
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Brent crude oil prices edged lower due to weak data from major buyer China and a stronger US dollar.
The S&P BSE Sensex fell 29.21 points or 0.11% at 26,597.11, its lowest closing level since 25 September 2014. The index rose 89.45 points at the day's high of 26,715.77 in mid-afternoon trade. The index lost 108.31 points at the day's low of 26,518.01 in late trade.
The CNX Nifty fell 9.95 points or 0.12% at 7,958.90, its lowest closing level since 25 September 2014. The index hit a high of 7,991.75 in intraday trade. The index hit a low of 7,934.70 in intraday trade.
The total turnover on BSE amounted to Rs 2728 crore, lower than Rs 4436.77 crore on Friday, 26 September 2014.
The market breadth indicating the overall health of the market was strong. On BSE, 1,855 shares rose and 1,087 shares fell. A total of 100 shares were unchanged.
The BSE Mid-Cap index was up 95.38 points or 1.01% at 9,516.78. The BSE Small-Cap index was up 156.68 points or 1.49% at 10,667.67. Both these indices outperformed the Sensex.
Among the 30 Sensex shares, 21 fell and the remaining shares rose.
Mahindra & Mahindra (M&M) dropped in volatile trade after the company said that credit rating agency CRISIL has upgraded its ratings on the company's long-term bank facilities and Non-Convertible Debenture (NCD) programme. The stock fell 0.64% at Rs 1,384.80. The stock hit high of Rs 1,400 and low of Rs 1,377 so far during the day. CRISIL has upgraded its ratings on M&M's long-term bank facilities and Non-Convertible Debenture (NCD) programme to 'CRISIL AAA/Stable' from 'CRISIL AA+/Stable', while reaffirming the rating on M&M's short- term facilities and debt programme at 'CRISIL A1+'. The rating indicates the highest degree of safety regarding timely servicing of financial obligations.
Sun Pharmaceutical Industries rose 3.36% at Rs 834.20 with the stock extending Friday's rally. Dilip Shanghvi, Managing Director of Sun Pharma at the 22nd AGM of Sun Pharmaceutical Industries held on 27 September 2014, said that in May 2014, the company received a warning letter from the US FDA for its cephalosporin facility located at Karkhadi in Gujarat. The contribution of this facility to Sun Pharma's consolidated revenues is negligible, he added. The letter was a follow-up to the import alert issued by the US FDA for this facility in March 2014, identifying some practices at the facility, which were non-compliant with cGMP regulations. The company remains fully committed to compliance and has already initiated several corrective steps to address the US FDA's observations.
NTPC fell 0.57% at Rs 138.55. The company announced during trading hours today, 29 September 2014, that it has signed a syndicated term loan facility of $250 million arranged by Mizuho Bank, Singapore Branch. The loan carries a floating rate of interest linked to LIBOR and has a door to door maturity of 7 years. The proceeds of the facility will be utilized to finance capital expenditure on the company's ongoing and new projects and renovation and modernization of stations.
Cipla rose 0.72% at Rs 615.90. The company announced during trading hours today, 29 September 2014, that it aims to build a strong presence in Kenya. In line with its global strategy, Cipla continues to retain ownership of its marketing authorisations and trademarks for its products in Kenya and will continue to invest further in developing the Kenya market. The products will be brought to Kenyan patients in partnership with Surgipharm, the company said in a statement. Over the years, Cipla has been working with various partners in Kenya and has been supplying a basket of products across various key therapies - anti-HIV, anti-malarial, anti-asthma, gastroenterology, anti-infectives, cardiovascular and oncology among others, Cipla said.
Zee Entertainment Enterprises rose 1.06% at Rs 305.50. The company announced during trading hours today, 29 September 2014, that its board has allotted 2.22 crore 6% non-cumulative redeemable non-convertible preference shares (Class A) of Re 1 each fully paid to the equity shareholders of Diligent Media Corporation (DMCL) as at the effective date i.e. 26 September 2014. The allotment was pursuant to the demerger of media business undertaking of DMCL and vesting it with the company from the appointed date i.e. 31 March 2014. Further the company has informed that, as per the terms of issuance, the preference shares allotted in pursuance of the said scheme are not proposed to be listed on any stock exchanges.
Most bank shares were trading lower. Among public sector banks, Union Bank of India (down 3.38%), Bank of India (down 3.36%), Punjab National Bank (down 1.26%), Canara Bank (down 0.97%) and IDBI Bank (down 0.16%), edged lower. State Bank of India was up 0.19%.
Bank of Baroda rose 0.11% after the bank said that its board of directors at a meeting held on Saturday, 27 September 2014, accorded its in-principle nod for 5-for-1 stock split, subject to necessary approvals.
Among private sector banks, Kotak Mahindra Bank (down 1.96%), ICICI Bank (down 1.39%), Axis Bank (down 0.9%), Yes Bank (down 0.88%), HDFC Bank (down 0.81%), IndusInd Bank (down 0.25%) and Federal Bank (down 0.08%), edged lower.
Kotak Mahindra Bank declined 1.96%. The bank said during market hours that the bank today, 29 September 2014, has completed the purchase of 76.49 lakh shares aggregating 15% stake in Multi Commodity Exchange of India (MCX India) from Financial Technologies for Rs 459 crore.
MCX (India) rose 3.73%. Financial Technologies (India) surged 4.99%.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. TCS (up 3.17%), Hexaware Technologies (up 2.24%), Infosys (up 1.90%), Wipro (up 1.18%), Tech Mahindra (up 0.65%), CMC (up 0.52%) and Oracle Financial Services Software (up 0.24%), edged higher. However. MphasiS (down 0.64%) and HCL Technologies (down 0.51%), edged lower.
Weakness in rupee also supported IT stocks. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Hindustan Unilever (HUL) declined 0.74% to Rs 746.65. A foreign brokerage firm has reportedly downgraded the stock to underweight from "equalweight", citing lofty valuations despite weak earnings growth.
Tata Power Company fell 0.71%. The company's defence engineering unit, Tata Power SED, has reportedly signed an agreement with Honeywell International to produce the US company's "TALIN" navigator in India. Honeywell will license the design and hardware to assemble, test and eventually build the production kits for the navigation system in India. The agreement was announced during Indian Prime Minister Narendra Modi's visit to the United States.
ABB (India) lost 0.37%. The company said during market hours that it has won an order worth Rs 172 crore from Power Grid Company of Bangladesh (PGCB), the country's leading transmission utility, to provide four new turnkey substations and help expend six others, to enhance transmission capacity and boost power supply to meet growing demand for electricity in Bangladesh.
Shares of travel companies jumped after Prime Minister Narendra Modi in his address to Indian community at Madison Square Garden, New York on Sunday, 28 September 2014, announced sweeping changes in procedures to facilitate travel between America and India. Cox & Kings (up 11.07%) and Thomas Cook (India) (up 5.65%) surged.
Interest rate sensitive realty stocks edged higher ahead of the Reserve Bank of India's policy review meet tomorrow, 30 September 2014. Purchases of both residential and commercial property are largely driven by finance. Phoenix Mills (up 4.52%), Godrej Properties (up 3.09%), Anant Raj (up 2.53%), Prestige Estates (up 2.52%), Peninsula Land (up 2.26%), Sunteck Realty (up 1.95%), Sobha Developers (up 1.69%), Parsvnath Developers (up 1.40%), HDIL (up 1.17%) and D B Realty (up 0.15%), edged lower.
Unitech (down 2.45%), DLF (down 2.31%), Indiabulls Real Estate (down 1.86%) and Oberoi Realty (down 0.91%), edged lower.
Force Motors clocked a highest turnover of Rs 136.68 crore on BSE. State Bank of India (Rs 53.25 crore), INOX Leisure (Rs 46.26 crore), Aurobindo Pharma (Rs 42.67 crore) and Reliance Industries (Rs 31.81 crore), were the other turnover toppers on BSE in that order.
Allied Computers International (Asia) reported highest volumes of 3.57 crore shares on BSE. Yantra Natural Resources (1.13 crore shares), Birla Power Solutions (55.84 lakh shares), Jaiprakash Associates (55.59 lakh shares) and Unitech (51.45 lakh shares), were the other volume toppers on BSE in that order.
The Sensex has lost 41 points or 0.15% in this month so far (till 29 September 2014). The Sensex has gained 5,426.43 points or 25.63% in calendar year 2014 so far (till 29 September 2014). From a record high of 27,354.99 on 8 September 2014, the Sensex has declined 757.88 points or 2.77%. From a 52-week low of 19,264.72 on 1 October 2013, the Sensex has risen 7,332.39 points or 38.06%.
The Prime Minister unveiled a series of facilitation initiatives aimed at making travel from America to India easier. Noting that there are certain differences between the PIO (Person of Indian Origin) and OCI (Overseas Citizens of India) schemes, the Prime Minister said PIO cardholders will be granted visa for life, and a new scheme will be announced soon, merging the two schemes. He said there would be no need for long-stay visitors to India to visit police stations. He also announced long term tourist visas for American citizens and said visa on arrival for American tourists will be announced soon.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar after US economic data bolstered the outlook for higher interest rates in the world's biggest economy. The partially convertible rupee was hovering at 61.5250, compared with its close of 61.15 during the previous trading session. An increase in borrowing costs by the Fed could reduce the allure of emerging-market assets.
Brent crude oil prices edged lower due to weak data from major buyer China and a stronger US dollar. Brent for November settlement was down 29 cents at $96.71 a barrel. The contract had settled unchanged at $97 a barrel on Friday, 26 September 2014.
Prime Minister, Narendra Modi, while addressing to Indian Community at Madison Square Garden, New York on Sunday, 28 September 2014, exhorted Indians to join in the development effort as a mass movement. The Prime Minister unveiled a series of facilitation initiatives aimed at making travel from America to India easier. He said one of his key initiatives was to remove redundant laws, and he would be happy if he could do so at a pace of one a day.
Modi will hold talks with US President Barack Obama at the White House tomorrow, 30 September 2014. Modi is on a five-day visit to US.
Meanwhile, media reports today, 29 September 2014, said that Finance Minister Arun Jaitley may have to cancel a trip to the United States in October after he was moved to an isolation ward of a government-run hospital to help him recover from an infection that followed a stomach operation to treat diabetes. Jaitley is due to attend a World Bank meeting on 10-12 October in Washington. He was due to leave on 8 October 2014.
The Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged after its fourth bi-monthly monetary policy review tomorrow, 30 September 2014. The central bank may reduce the statutory liquidity ratio (SLR) -- the portion of deposits that banks are required to keep in government bonds -- to support credit demand as the economy recovers from two years of tepid growth. The central bank's policy stance after the review could provide cues on the direction of interest rates in the coming months. The central bank is targeting consumer price inflation at 8% by end January 2015 and 6% by end January 2016.
European stocks edged lower in volatile trade today, 29 September 2014, as a measure of euro-area economic confidence declined this month. Key benchmark indices in UK, Germany and France were off 0.20% to 0.46%.
Asian stocks declined today, 29 September 2014, after clashes between police and pro-democracy protesters in the Chinese city. Key benchmark indices in Singapore, Hong Kong, South Korea and Taiwan were off 0.08% to 1.9%. Key benchmark indices in Japan and China were up 0.43% to 0.5%.
The Hong Kong government reportedly said today, 29 September 2014, that it has withdrawn riot police from city streets after pro-democracy protests began to calm down. Hong Kong police used pepper spray, tear gas and baton charges in an attempt to disperse thousands of pro-democracy protesters in the centre of the global financial hub at the weekend, reports said.
Chinese industrial profits fell 0.6% in August from a year earlier, reversing from July's 13.5% rise, the government said on Saturday, 27 September 2014, adding to problems such as unsteady exports, a housing downturn and cooling investment growth in the world's second largest economy.
Trading in US index futures indicated that the Dow could fall 72 points at the opening bell on Monday, 29 September 2014. US stocks closed higher on Friday, 26 September 2014, after a read on second-quarter GDP showed that the economy grew at its fastest pace in 2-1/2 years. The US government on Friday raised the estimate of US Q2 June 2014 GDP growth rate to 4.6% from 4.2% reported earlier.
The influential US monthly non-farms payroll data is due on Friday, 3 October 2014. The data pertains to September 2014.
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