Key benchmark indices continued to hover in red in afternoon trade. The Sensex was currently down 98.92 points or 0.35% at 27,933.93. The market breadth indicating the overall health of the market was negative. Capital goods stocks edged lower. FMCG shares were mostly lower. Financial Technologies India dropped as the stock turned ex-dividend today, 20 November 2014.
The provisional data released by the stock exchanges after trading hours yesterday, 19 November 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 71.80 crore on that day.
In the global market, Asian stocks were mixed as China's manufacturing weakened and the latest Fed minutes reminded investors that US interest rates are likely to rise next year.
In the foreign exchange market, the rupee edged lower against the dollar, tracking the dollar's strength against major currencies.
Brent crude held above $78 a barrel as the market waited for news on possible cuts in oil output ahead of next week's OPEC meeting.
At 13:17 IST, the S&P BSE Sensex was down 98.92 points or 0.35% at 27,933.93. The index fell 117.62 points at the day's low of 27,915.23 in afternoon trade, its lowest level since 14 November 2014. The index rose 85.68 points at the day's high of 28,118.53, at onset of the trading session.
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The CNX Nifty was down 24.20 points or 0.29% at 8,358.10. The index hit a low of 8,353.15 in intraday trade, its lowest level since 17 November 2014. The index hit a high of 8,410.10 in intraday trade.
The BSE Mid-Cap index was down 32.07 points or 0.31% at 10,178.53, outperforming the Sensex. The BSE Small-Cap index was down 69.54 points or 0.61% at 11,299.01, underpeforming the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,646 shares fell and 1,115 shares gained. A total of 100 shares were unchanged.
Capital goods stocks declined. Bharat Heavy Electricals (down 2.85%), Siemens (down 1.65%), L&T (down 1.12%), Alstom T&D India (down 0.47%), ABB (down 0.34%), and Crompton Greaves (down 0.2%) declined. Thermax (up 1.61%) gained.
FMCG shares were mostly lower. Marico (down 0.79%), Dabur India (down 0.75%), Colgate-Palmolive (India) (down 0.71%), and Hindustan Unilever (down 0.26%) declined. ITC (up 0.27%) and Nestle India (up 0.45%) gained.
Cipla rose 3.11% at Rs 617.90. The company announced during market hours today, 20 November 2014 that Cipla Europe NV signed a distribution agreement with Serum Institute of India (SII). Under the agreement, SII will develop and manufacture paediatric vaccines, Cipla will seek European Medicines Agency approval and market the products in Europe, Cipla said in a statement. This collaboration with SII enables Cipla to enter into the vaccines segment, continuing its commitment to inclusive healthcare for the world, Cipla said. The vaccines will be manufactured in Serum's world class production facilities approved by WHO, the company said.
Financial Technologies (India) shed 2% at Rs 183.80 as the stock turned ex-dividend today, 20 November 2014, for second interim dividend of Rs 5 per share for the year ending 31 March 2015.
Shares of ING Vysya Bank and Kotak Mahindra Bank advanced on reports that the latter is in final stages to buy the former.
Shares of ING Vysya Bank (up 10.27%) and Kotak Mahindra Bank (up 6.63%) gained.
Kotak Mahindra Bank is reportedly in final stages to buy ING Vysya Bank in ratio of 2:2.5 (two shares of Kotak Mahindra Bank for 2.5 shares of ING Vysya Bank). The deal values ING Vysya Bank at Rs 16500 crore, reports added. As per reports, acquiring ING Vysya Bank may strategically fill many gaps for Kotak Mahindra Bank. Both banks have low geographical overlap, similar liability mix and adding it will provide Kotak with an (small and medium enterprises) SME banking platform, reports added. Potential acquisition will also help Kotak comply with the Reserve Bank of India's (RBIs) deadline on reducing promoter stake, reports further informed.
However, Kotak Mahindra Bank during market hours today, 20 November 2014 clarified that no decision has been made by the bank in relation to any merger or acquisition transaction. Also ING Vysya Bank during market hours today, 20 November 2014 clarified that the bank is aware of disclosure obligations of the Listing Agreement and will abide by its obligations to make appropriate disclosures as and when such disclosures are necessitated by decisions taken by it.
ING Vysya Bank is a leading private sector bank with retail, private and wholesale banking platforms.
In the foreign exchange market, the rupee edged lower against the dollar, tracking the dollar's strength against major currencies. The partially convertible rupee was hovering at 62.125, compared with its close of 61.96 during the previous trading session.
Brent crude held above $78 a barrel as the market waited for news on possible cuts in oil output ahead of next week's OPEC meeting. Brent for January settlement was currently up 2 cents at $78.12 a barrel. The contract had lost 37 cents to finish at $78.10 a barrel yesterday, 19 November 2014.
Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet in Vienna on 27 November 2014 to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 2 December 2014. The central bank aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India eased to 5.52% in October 2014 from 6.46% in September 2014, data released by the government on 12 November 2014 showed.
Asian stocks were mixed as China's manufacturing weakened and the latest Fed minutes reminded investors that U.S. interest rates are likely to rise next year. Key benchmark indices in Hong Kong, Japan and Taiwan were up by 0.06% to 1.29%. Key benchmark indices in Indonesia, Singapore and South Korea were off 0.3% 0.93%.
China's Shanghai Composite was down 0.05%. The China flash HSBC/Markit manufacturing purchasing managers' index published on Thursday showed factory output contracted in the world's third-biggest economy for the first time in six months. The preliminary HSBC China Manufacturing Purchasing Managers Index fell to 50.0 in November, compared with a final reading of 50.4 in October, HSBC Holdings PLC said Thursday. A reading above 50 indicates expansion from the previous month, while a reading below 50 indicates contraction.
Trading in US index futures indicated that the Dow could fall 13 points at the opening bell today, 20 November 2014. US stocks edged lower on Wednesday, 19 November 2014, as minutes from the most recent Federal Reserve meeting gave investors few new clues as to when US interest rates may rise. The S&P 500 snapped a four-day run of gains and a two-day streak of record closing highs. Minutes of the US central bank's October 28-29 meeting, where policymakers decided to finally end their bond-buying stimulus, indicated a debate among policymakers over the outlook for inflation and the economy.
Following the release of the minutes, US short-term interest-rate futures traders were still betting on a first Fed rate hike by September next year. Tech names were among the biggest drags on the market, with the Nasdaq underperforming both the Dow and S&P 500.
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