Volatility continued as key benchmark indices languished in negative terrain in mid-morning trade. The barometer index, the S&P BSE Sensex, was down 25.27 points or 0.1%, up about 90 points from the day's low and off close to 115 points from the day's high. The market breadth indicating the overall health of the market was weak.
Metal and mining stocks edged lower. Index heavyweight Reliance Industries (RIL) dropped in volatile trade. Coal India dropped in volatile trade after the government on Monday, 7 July 2014, said it has no plan to set up an independent pricing authority for coal.
At 11:20 IST, the S&P BSE Sensex was down 25.27 points or 0.1% to 26,074.81. The index dropped 117.11 points at the day's low of 25,982.97 in morning trade, its lowest level since 4 July 2014. The index rose 90.36 points at the day's high of 26,190.44 in early trade, a lifetime high of the index.
The CNX Nifty was down 15.65 points or 0.2% to 7,771.50. The index hit a low of 7,744.95 in intraday trade, its lowest level since 4 July 2014. The index hit a high of 7,808.85 in intraday trade, a lifetime high of the index.
The market breadth indicating the overall health of the market was weak. On BSE, 1,469 shares declined and 954 shares rose. A total of 88 shares were unchanged.
The BSE Mid-Cap index was down 12.91 points or 0.14% at 9,544.23. The BSE Small-Cap index was down 53.60 points or 0.51% at 10,517.18. Both these indices underperformed the Sensex.
Metal and mining stocks edged lower. Sesa Sterlite (down 2.29% to Rs 300.30), JSW Steel (down 1.29% to Rs 1,217), Hindalco Industries (down 0.26% to Rs 173.60), Hindustan Zinc (down 1.66% to Rs 162.60), Jindal Steel & Power (down 3.3% to Rs 79.10), Bhushan Steel (down 0.52% to Rs 398), Tata Steel (down 0.76% to Rs 532), Steel Authority of India (Sail) (down 0.98% to Rs 92.90), National Aluminum Company (down 2.84% to Rs 57.20) and Hindustan Copper (down 1.52% to Rs 113.40) declined.
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Index heavyweight Reliance Industries (RIL) fell 0.82% to Rs 1,018. The stock was volatile. The stock hit high of Rs 1,034.45 and low of Rs 1,015.15 so far during the day. The company announced after market hours on Monday, 7 July 2014, that Independent Media Trust (IMT) of which RIL is the sole beneficiary, has completed the acquisition of control of Network 18 Media and Investments (NW18) including its subsidiary TV18 Broadcast (TV18).
Network 18 Media rose 1.92% to Rs 61.20. TV18 Broadcast gained 3.41% to Rs 31.85.
With the completion of this transaction, IMT and RIL have become promoters of NW18 and TV18. The open offers to the public shareholders for acquisition of equity shares of NW18, TV18 and Infomedia Press as announced on 29 May 2014 by IMT are in process and the draft letter of offer has been filed with Securities & Exchange Board of India (Sebi) for its comments, RIL said in a statement.
Coal India shed 1.03% to Rs 392.40. The stock hit high of Rs 397.95 and low of Rs 391 so far during the day. Minister of state for Power, Coal & New and Renewable Energy Piyush Goyal said in a written reply to a question in the Rajya Sabha on Monday, 7 July 2014, that the government has no plan to set up an independent pricing authority for coal. Goyal said that the pricing of coal has been fully deregulated and coal companies themselves fix the coal price based on input costs, inflation index, market trends etc. and notify the same periodically.
A bout of volatility was witnessed as key benchmark indices trimmed gains after opening on a firm note. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both scaled record high. Volatility continued as key benchmark indices reversed initial gains in morning trade. The Sensex regained 26,000 mark after falling below that level for a brief period in morning trade. Key benchmark indices hovered in negative terrain in mid-morning trade.
The current week is a crucial period for Indian financial markets. Railway Minister Sadananda Gowda will present the final Railway Budget for 2014-15 in Lok Sabha today, 8 July 2014. The Finance Ministry will table Economic Survey for 2013-14 tomorrow, 9 July 2014. Finance Minister Arun Jaitley will present the final Union Budget for 2014-15 in Lok Sabha at 11:00 IST on Thursday, 10 July 2014. After a clear mandate in Lok Sabha elections this year and with BJP perceived as a business friendly party, expectations from the Budget are running high.
There are expectations that the finance minster will announce measures in the Budget aimed at bolstering economic growth. Increase in outlay on infrastructure sector with focus on stricter and time-bound implementation of projects, initiatives towards investments in agriculture and irrigation aimed at easing supply bottlenecks for food-grains, fiscal prudence with roadmap to reduce the fiscal deficit, a roadmap for reducing the subsidy burden and timeline for implementation of the Goods and Services Tax are some of the expectations from the Budget.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 59.828, compared with its close of 60.0125/0225 on Monday, 7 July 2014.
Asian stocks dropped on Tuesday, 8 July 2014, as earnings guidance from regional tech heavyweight Samsung came in well short of forecasts. Key benchmark indices in China, South Korea, Hong Kong, and Japan were off 0.02% to 0.22%. Key benchmark indices in Singapore, Taiwan and Indonesia rose 0.01% to 0.98%.
Trading in US index futures indicated that the Dow could fall 10 points at the opening bell on Tuesday, 8 July 2014. US stocks fell Monday, 7 July 2014, on profit booking after Dow Jones Industrial Avergae and the S&P 500 index hit record high last week.
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