After a range bound movement earlier during the day, key benchmark indices extended losses in afternoon trade as European stocks edged lower in early trade there. The Sensex was currently down 169.70 points or 0.62% at 27,095.62. Key indices dropped on speculation that US interest rates will rise sooner than estimated. Higher interest rates could lure money to the US from emerging markets, including India. The market breadth indicating the overall health of the market was positive. Realty stocks edged higher. Most auto stocks also edged higher with Ashok Leyland hitting a record high. Mahindra & Mahindra (M&M) dropped on reports a domestic brokerage house cut the automaker to "reduce" from "add," and lowered the target price.
After an initial decline triggered by weakness in Asian stocks, key benchmark have languished in red throughout the trading session so far.
In overseas markets, European stocks edged lower in early trade as the region's governments weighed tougher sanctions on Russia and concern grew the UK may be heading for partition. Asian stocks edged lower on concern that China's growth is slowing and speculation that US interest rates will rise sooner than estimated.
In the foreign exchange market, the rupee edged lower against the dollar as key equity benchmark indices fell.
Brent crude oil futures edged higher after reaching a 17-month low below $100 per barrel during the previous trading session.
At 13:15 IST, the S&P BSE Sensex was down 169.70 points or 0.62% at 27,095.62. The index lost 170.30 points at the day's low of 27,095.02 in afternoon trade, its lowest level since 5 September 2014. The index fell 13.88 points at the day's high of 27,251.44 in early trade.
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The CNX Nifty was down 43.95 points or 0.54% at 8,109. The index hit a low of 8,105.75 in intraday trade, its lowest level since 5 September 2014. The index hit a high of 8,135.75 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,637 shares gained and 1,155 shares fell. A total of 105 shares were unchanged.
The BSE Mid-Cap index was up 41.56 points or 0.42% at 9,884.93. The BSE Small-Cap index was up 98.57 points or 0.91% at 10,984.55. Both these indices outperformed the Sensex.
Realty stocks edged higher. DLF (up 1.16%), Housing Development and Infrastructure (up 0.01%), Unitech (up 1.32%), Sobha (up 1.51%), Oberoi Realty (up 0.98%) and Parsvnath Developers (up 0.42%) gained.
Most auto stocks edged higher. Tata Motors (up 0.12%), Maruti Suzuki India (up 0.17%), and Bajaj Auto (up 1.32%) gained. Hero MotoCorp declined 0.62%.
TVS Motor Company rose 0.22%. Shares of TVS Motor were included for trading in NSE's futures & options segment from today, 10 September 2014.
Ashok Leyland gained 2.09% to Rs 41.55 after hitting a record high of Rs 41.85 in intraday trade. The company during trading hours on Tuesday, 9 September 2014 said it has bagged orders worth nearly Rs 1500 crore for supply of buses under JNNURM-II scheme. Ashok Leyland said it has received orders for around 4000 buses from a total of 22 STUs across the country. The supply of these buses has started and many of them are already carrying passengers, the company said in a statement.
Mahindra & Mahindra (M&M) dropped 1.16% on reports a domestic brokerage house cut the automaker to "reduce" from "add," and lowered the target price. The brokerage has reportedly cited high valuations as the key reason for the downgrade. The brokerage reportedly said M&M lost 13% market share in the utility vehicle segment over the past two years, describing that as a "significant loss". It said further re-rating of the stock would depend on curtailing subsidiary losses, improving consolidated returns on capital employed.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 9 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 479.40 crore on that day.
Brent crude oil futures edged higher after reaching a 17-month low below $100 per barrel during the previous trading session. Brent for October settlement was up 6 cents at $99.22 a barrel. The contract fell $1.04 a barrel to settle at $99.16 a barrel yesterday, 9 September 2014, as ample supplies weighed. The price had slumped to $99.03 in intraday trade, the lowest intraday price since 1 May 2013.
Representatives of 28 European Union (EU) governments will meet in Brussels today, 10 September 2014, to discuss tougher economic sanctions on Russia for its involvement in the Ukraine crisis. The talks follow the EU's decision this week to put on hold a second package of economic penalties.
In the foreign exchange market, the rupee edged lower against the dollar as key equity benchmark indices fell. The partially convertible rupee was hovering at 60.885, compared with its close of 60.60 on Tuesday, 9 September 2014.
Meanwhile, as per reports, Finance Minister Arun Jaitley will miss a meeting of finance ministers from the Group of 20 nations in Australia next week as he is still in hospital undergoing treatment. Jaitley was admitted to a hospital in Delhi on 1 September 2014 for treatment to manage a diabetic condition.
European stocks dropped for a fourth day today, 10 September 2014, their longest streak of losses in five weeks, as the region's governments weighed tougher sanctions on Russia and concern grew the UK may be heading for partition. Key benchmark indices in France, Germany and UK shed 0.02% to 0.38%.
In the UK, opinion polls have indicated that the result of a Sept. 18 referendum on Scottish independence is too close to call.
Asian stocks edged lower today, 10 September 2014, on concern that China's growth is slowing and speculation that US interest rates will rise sooner than estimated. Key benchmark indices in Taiwan, Hong Kong, Indonesia and China were off 0.33% to 1.85%. Key benchmark indices in Japan and Singapore rose 0.03% to 0.23%. South Korean stock market will reopen tomorrow, 11 September 2014, after a three-day break for the Harvest Moon festival.
China's money-supply growth in August eased to the slowest pace in five months. M2, the government's broadest measure, rose 12.8% in August from a year earlier, lower than 13.5% rise in July
Trading in US index futures indicated that the Dow could fall 15 points at the opening bell today, 10 September 2014. US stocks fell on Tuesday, 9 September 2014, as Apple shares declined and as bond yields hit their highest in a month on concerns the Federal Reserve could raise interest rates sooner than some investors had expected.
At the end of a two-day meeting on 16-17 September 2014, the Federal Open Market Committee (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.
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