A sudden rebound took key benchmark indices to positive zone from negative zone in mid-afternoon trade, with the barometer index, the S&P BSE Sensex, regaining the psychological 26,000 mark. Banking stocks led the rebound. Pharma majors Lupin and Dr Reddys Laboratories, both, rose after reporting strong Q1 results. The Sensex was currently up 32.57 points or 0.13% at 26,023.80. The market breadth indicating the overall health of the market was weak. The recovery in key indices came shortly after a further decline took both, the Sensex, and the CNX Nifty, to their lowest level in more than a week in afternoon trade. Until early afternoon trade, the key indices had moved in a narrow range in negative zone.
Most auto stocks gained ahead of the announcement of monthly sales volume data for July 2014 starting 1 August 2014.
At 14:20 IST, the S&P BSE Sensex was up 32.57 points or 0.13% to 26,023.80. The index lost 141.19 points at the day's low of 25,850.04 in mid-afternoon trade, its lowest level since 22 July 2014. The index rose 32.82 points at the day's high of 26,024.05 in mid-afternoon trade.
The CNX Nifty was down 13.70 points or 0.18% to 7,762.40. The index hit a low of 7,707.60 in intraday trade, its lowest level since 22 July 2014. The index hit a high of 7,769.10 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,650 shares fell and 1,054 shares rose. A total of 122 shares were unchanged.
The BSE Mid-Cap index was down 0.58 points or 0.01% at 9,138.64. The BSE Small-Cap index was down 19.86 points or 0.2% at 9,946.78. Both these indices underperformed the Sensex.
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Among the 30-share Sensex pack, 16 stocks advaced and rest of them declined.
Most auto stocks gained ahead of the announcement of monthly sales volume data for July 2014 starting 1 August 2014. Mahindra & Mahindra (M&M) (up 1%), Maruti Suzuki India (up 0.49%), Ashok Leyland (up 3.82%), Hero MotoCorp (up 0.96%) and TVS Motor Company (up 1.5%) gained.
Tata Motors (down 1.73%) and Bajaj Auto (down 0.28%) declined.
Lupin rose 4.26% to Rs 1,166.40 on strong Q1 results. The stock hit high of Rs 1,174.40 and low of Rs 1,113.20 so far during the day. The company's consolidated net profit rose 55.8% to Rs 624.7 crore on 35.7% rise in net sales to Rs 3284 crore in Q1 June 2014 over Q1 June 2013. The result was announced during market hours.
Wipro declined 0.88%. Wipro today, 30 July 2014, clarified that the company constantly evaluates various vehicles for investment in companies focused on emerging technologies. As and when any such decision is taken on any material event, the company shall intimate the stock exchanges. The company issued this clarification with reference to the news item titled, "Premji Jr to be at wheel of Wipro's venture arm": The report had said the company is setting up a corporate venture arm to be spearheaded by Promoter Azim Premji's son Rishad Premji that will initially invest up to $100 million (Rs 600 crore) in startups to help the country's third-largest software exporter fill the missing innovation strand.
Steel Authority of India (SAIL) declined 0.17%. The company said during market hours that International Coal Ventures (ICVL), a joint venture company of Sail, Coal India, Rashtriya Ispat Nigam, NMDC and NTPC has signed an agreement for acquisition of Rio Tinto's 2.6 billion tonnes coal resource in Mozambique. The mine produces prime hard coking coal and thermal coal. The coal resource will become a long term captive source of raw material in steel making in geographical proximity to India.
Coal India gained 0.43%. NMDC declined 0.23%. NTPC dropped 0.13%.
The market may remain volatile in the near future 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 tomorrow, 31 July 2014.
In the foreign exchange market, the rupee was slightly higher against the dollar in choppy trade. The partially convertible rupee was hovering at 60.1225, compared with its close of 60.14 on Monday, 28 July 2014.
European stocks slipped today, 30 July 2014, as investors weighed corporate earnings, and as the US joined Europe in imposing new sanctions on Russia for its role in the insurgency in Ukraine. Key benchmark indices in UK, France and Germany were down 0.07% to 0.4%.
Asian stocks rose for a fourth day today, 30 July 2014, before the Federal Reserve updates markets on monetary policy later in the global day today, 30 July 2014. Key benchmark indices in Japan, Hong Kong, South Korea, and Taiwan rose by 0.16% to 1%. Key benchmark indices in China and Singapore fell by 0.09% to 0.11%.
Trading in US index futures indicated that the Dow could gain 23 points at the opening bell on Wednesday, 30 July 2014. US stocks fell on Tuesday, 29 July 2014, after US President Barack Obama announced new sanctions against Russia and warned its actions in Ukraine are "setting back decades of progress".
The US sanctioned three Russian banks and a state-owned shipbuilder that serves Russia's navy and oil and gas industry, joining with the European Union in escalating penalties for action in Ukraine. The EU curbed Russia's access to bank financing and advanced technology in its widest-ranging sanctions yet over President Vladimir Putin's backing of rebels in eastern Ukraine.
Economic reports yesterday showed improving US consumer sentiment while the housing market remains in a slowdown. The Conference Board's consumer confidence index rose to 90.9, the highest reading since October 2007. Residential real-estate prices advanced 9.3% in the 12 months ended May, the slowest pace in more than a year, according to the S&P/Case-Shiller index of property values in 20 cities.
Expectations are that the Federal Reserve's Federal Open Market Committee (FOMC) will announce reduction of another $10 billion from its monthly asset purchases, or quantitative easing (QE) program after its two-day policy meeting which concludes later in the global day today, 30 July 2014. So far in 2014, the FOMC has been consistently trimming its quantitative easing at each meeting by $10 billion per month. This is the purchase of Treasury and mortgage-backed securities meant to push down long-term interest rates. As the Fed approaches the end of its QE program, Fed watchers are looking for a signal on when the central bank will raise interest rates.
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