After a bout of initial volatility, key benchmark indices drifted lower in morning trade as shares of gas producers fell after the government once again reportedly deferred a decision on revising gas prices. The 50-unit CNX Nifty fell below the psychological 8,000 mark after alternately moving above and below that mark in initial trade. It had settled a tad above the psychological level yesterday, 24 September 2014. Jindal & Steel and Power and Hindalco Industries which have been hit adversely by yesterday's decision of the Supreme Court to cancel most coal block allocations since 1993 continued to slide. Bank stocks also continued to lose ground on concerns related to their lending to coal block allottees whose licences have been cancelled. The barometer index, the S&P BSE Sensex, was currently down 62.05 points or 0.23% at 26,682.64. The market breadth indicating the overall health of the market was weak. Asian stocks were mixed today, 25 September 2014.
The market may remain volatile today, 25 September 2014, as traders roll over positions in the futures & options (F&O) segment from the near month September 2014 series to October 2014 series. The near-month September 2014 F&O contracts expire today, 25 September 2014.
Meanwhile, Prime Minister Narendra Modi will launch Make in India initiative today, 25 September 2014. Later in the day, Modi leaves for a five-day visit to the United States.
In overseas markets, Japanese stocks rose on the yen's weakness against the dollar while overall trend in Asian markets was mixed. US stocks jumped in a broad advance on Wednesday, 24 September 2014, with the S&P 500 index snapping a three-day losing streak after data showed new home sales jumped sharply in August.
Brent crude oil prices edged lower as abundant supply continued to drag on prices.
In the foreign exchange market, the rupee weakened past 61 against the dollar.
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At 10:15 IST, the S&P BSE Sensex was down 62.05 points or 0.23% at 26,682.64. The index fell 76.59 points at the day's low of 26,668.10 in morning trade. The index rose 69.51 points at the day's high of 26,814.20 in early trade.
The CNX Nifty was down 13.60 points or 0.17% at 7,988.80. The index hit a low of 7,980.70 in intraday trade. The index hit a high of 8,019.30 in intraday trade.
The market breadth indicating the overall health of the market was weak, On BSE, 1,267 shares fell and 724 shares rose. A total of 49 shares were unchanged.
The BSE Mid-Cap index was down 61.87 points or 0.65% at 9,518.96. The BSE Small-Cap index was down 90.75 points or 0.84% at 10,700.69. Both these indices underperformed the Sensex.
Shares of oil and gas exploration firms fell on reports that the Cabinet Committee on Economic Affairs has once again deferred a decision on revising gas prices. Reliance Industries (down 1.23%) and Oil India (down 1.02%) declined. Reports said that the government has deferred the decision until 15 November 2014 from 30 September 2014. As a result, the fuel will still be sold at $4.20 per unit.
ONGC dropped 1.97%. Brazil's state-run oil company Petroleo Brasileiro SA reportedly discovered natural gas in a well being drilled to help measure the potential of a giant Brazilian offshore find. Petrobras, owns 75% and its Indian partner ONGC owns 25% of the discovery.
Jindal & Steel and Power (JSPL) and Hindalco Industries which have been hit adversely by yesterday's decision of the Supreme Court to cancel most coal block allocations since 1993 continued to slide. JSPL was off 7.6% at Rs 175.20. Hindalco was off 3.4% at Rs 150.95. Both these companies have operating coal blocks which have been cancelled.
The Supreme Court in its verdict yesterday, 24 September 2014, cancelled the allocation of 214 out of 218 coal blocks it had already declared illegal due to irregularities in the allocation of the blocks. Of these, licenses for 172 coal blocks which weren't in production stand canceled immediately, while licenses for 42 blocks which were producing coal or were close to starting production would stand canceled after six months, the court said. The six months' time has been allowed to ensure coal supplies don't get affected until the government comes out with a fresh policy for auctioning the canceled coal blocks. Coal India will take over operations of the cancelled coal blocks until they are re-auctioned.
The court also slapped a penalty of Rs 295 per tonne on operating coal blocks for coal already extracted from the operating coal blocks.
Sasken Communication Technologies jumped 9.91% after the company said that its board of directors will meet on 29 September 2014, to consider a proposal for payment of a special dividend, if any.
The Sasken Communication Technologies stock had dropped 18.28% to settle at Rs 258.40 on Wednesday, 24 September 2014 triggered by the company saying that its whole-time director and CEO, Anjan Lahiri, has resigned from the services of the company and consequently from the board of directors with effect from Tuesday, 23 September 2014.
In the foreign exchange market, the rupee edged lower against the dollar on month-end dollar demand from importers for paying month-end bills. The partially convertible rupee was hovering at 61.0275, compared with its close of 60.97 during the previous trading session.
Brent crude oil prices edged lower as abundant supply continued to drag on prices. Brent for November settlement was off 20 cents at $96.75 a barrel. The contract had risen 10 cents a barrel or 0.1% to settle at $96.95 a barrel yesterday, 24 September 2014.
Provisional data released by the stock exchanges after trading hours on Wednesday, 24 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 793.65 crore on that day.
Prime Minister Narendra Modi will launch Make in India initiative today, 25 September 2014. The launch will be at both national level, state level and in Missions abroad. The initiative is one of the several steps which government has announced in order to improve ease of doing business in India and attract investments to boost manufacturing in the country.
Modi leaves for a five-day visit to the United States today, 25 September 2014, hours after the launch of the "Make in India" campaign in Delhi. The Indian Prime Minister will meet US President Barack Obama at the White House on 30 September 2014. The two leaders will discuss a range of issues of mutual interest in order to expand and deepen the US-India strategic partnership. They will discuss ways to accelerate economic growth, bolster security cooperation, and collaborate in activities that bring long-term benefits to both countries and the world.
Japanese stocks rose today, 25 September 2014, on the yen's weakness against the dollar while overall trend in Asian markets was mixed. Key benchmark indices in Hong Kong, South Korea, Taiwan and Singapore fell 0.07% to 0.68%. Key benchmark indices in China, Indonesia, and Japan rose by 0.18% to 1.03%.
Trading in US index futures indicated that the Dow could fall 17 points at the opening bell on Thursday, 25 September 2014. US stocks jumped in a broad advance on Wednesday, 24 September 2014, with the S&P 500 index snapping a three-day losing streak after data showed new home sales jumped sharply in August.
The data showed yesterday, new-home sales in US surged in August to the highest level in more than six years.
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