Key benchmark indices tumbled to hit fresh intraday low in early afternoon trade. The S&P BSE Sensex fell below the 28,000 mark. The Sensex was currently down 77.56 points or 0.28% at 27,955.29. The market breadth indicating the overall health of the market was negative. Most metal and mining stocks declined after weak Chinese data. Pharma stocks rose as rupee declined against the dollar today, 20 November 2014.
The provisional data released by the stock exchanges after trading hours on Wednesday, 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 U.S. interest rates are likely to rise next year.
The Indian rupee breached the 62 mark, tracking the dollar's strength against major currencies.
Brent crude held above $78 a barrel on Thursday as the market waited for news on possible cuts in oil output ahead of next week's OPEC meeting.
At 12:20 IST, the S&P BSE Sensex was down 77.56 points or 0.28% at 27,955.29. The index rose 85.68 points at the day's high of 28,118.53, at onset of the trading session. The index fell 104.38 points at the day's low of 27,928.47 in early afternoon trade, its lowest level since 17 November 2014.
The CNX Nifty was down 16.75 points or 0.20% at 8,365.55. The index hit a high of 8,410.10 in intraday trade. The index hit a low of 8,358.90 in intraday trade, its lowest level since 17 November 2014.
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The market breadth indicating the overall health of the market was negative. On BSE, 1,563 shares fell and 1,094 shares gained. A total of 107 shares were unchanged.
The BSE Mid-Cap index was down 14.31 points or 0.14% at 10,196.29, outperforming the Sensex. The BSE Small-Cap index was up 46.27 points or 0.41% at 11,322.28, underpeforming the Sensex.
Pharma stocks rose as rupee declined against the dollar today, 20 November 2014. Ranbaxy Laboratories (up 2.79%), Strides Arcolab (up 2.29%), Cipla (up 1.91%), Wockhardt (up 2.08%), Divi's Laboratories (up 1.57%), GlaxoSmithKline Pharmaceuticals (up 1.40%), Biocon (up 0.99%), Sun Pharmaceutical Industries (up 0.59%), Lupin (up 0.47%) and Dr. Reddy's Laboratories (up 0.23%), edged higher.
Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.
Most metal and mining stocks declined after a private survey showed China's factory growth stalled and was at six-month low in November 2014. Jindal Steel & Power (down 2.14%), NMDC (down 1.64%), Sesa Sterlite (down 1.35%), Tata Steel (down 0.98%), Bhushan Steel (down 0.53%) and Steel Authority of India (down 0.18%), edged lower. JSW Steel (up 0.19%), Hindustan Zinc (up 0.46%) and Hindalco Industries (up 0.74%), edged higher.
China is the world's largest consumer of copper, steel and aluminum.
Meanwhile, the Ministry of Coal yesterday, 19 November 2014, placed in public domain the draft rules for auction/allocation of 204 coal blocks cancelled by the Supreme Court in September this year. The draft rules provide the process of allocation through auction and allotment. The central government will issue an order to the Nominated Authority specifying which coal mines are to be auctioned and which are to be allotted to the government companies. The Nominated Authority will prepare a 'Mine Dossier' for each mine containing the particulars of geographical area, coal reserves, mine infrastructure, approvals, permits, etc. in relation to such mine.
Eligibility to bid for Schedule II & III coal mines shall be dependent on the status of preparedness of their end use plant viz. 80% of investment made in the EUP for Schedule II mines and 60% of investment made in the EUP for Schedule III mines. In case of allotment to government companies, the progress of development of coal blocks by the applicant in the past, financial and technical capabilities of the applicant, status of preparedness of end use plant, per-capita power availability in the state of the applicant, its current and future requirements etc. will be the factors for selecting the allottee. The Nominated Authority may also specify the maximum number of mines and/or coal reserves that may be allocated to one or more persons.
The draft rules for auction/allocation of coal blocks also provide the manner of determination of compensation, priority of disbursal of proceeds arising out of land and mine infrastructure, determination of claims and manner of disbursement.
A successful bidder or allottee may utilize coal mined from a particular coal mine in any of its other similar end use plants by giving a prior intimation to the Central Government in writing and the Central Government may impose such terms and conditions as may be found necessary.
The coal ministry has invited comments on the draft rules for auction/allocation of coal blocks from the public and stakeholders. The comments and suggestions can be sent by 9:00 IST on Monday 24 November 2014, the coal ministry said. Coal is used in the production of steel.
In the foreign exchange market, the rupee breached the 62 mark, tracking the dollar's strength against major currencies. The partially convertible rupee was hovering at 62.0850, compared with its close of 61.96 during the previous trading session.
Brent crude held above $78 a barrel on Thursday 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 15 cents at $78.25 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 0.08% to 1.29%. Key benchmark indices in Indonesia, Singapore and South Korea were off 0.24% 0.94%.
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 28 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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