Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade after the government once again reportedly deferred a decision on revising gas prices and as investors accessed the impact of yesterday's Supreme Court decision cancelling most coal block allocations since 1993. The barometer index, the S&P BSE Sensex, was currently down 175.97 points or 0.66% at 26,568.72. Foreign portfolio investors (FPIs) sold shares worth a net Rs 793.65 crore yesterday, 24 September 2014, as per provisional data. Asian stocks were mixed. A number of side counters fell. The market breadth indicating the overall health of the market was weak, with more than three losers for every gainer on BSE. The BSE Mid-Cap index was down 1.85%. The BSE Small-Cap index was down 2.33%. IT stocks rose on positive economic data in the US, the biggest outsourcing market for the Indian IT firms.
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.
The 50-unit CNX Nifty continued to trade below the psychological 8,000 mark, having fallen below that level earlier during the day.
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.
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In the foreign exchange market, the rupee edged lower against the dollar.
At 11:15 IST, the S&P BSE Sensex was down 175.97 points or 0.66% at 26,568.72. The index fell 176.15 points at the day's low of 26,568.54 in mid-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 35.85 points or 0.45% at 7,966.55. The index hit a low of 7,950.55 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, with more than three losers for every gainer on BSE. On BSE, 1,917 shares fell and 559 shares rose. A total of 64 shares were unchanged.
The BSE Mid-Cap index was down 177.43 points or 1.85% at 9,403.40. The BSE Small-Cap index was down 251.46 points or 2.33% at 10,539.98. Both these indices underperformed the Sensex.
IT stocks rose on positive economic data in the US, the biggest outsourcing market for the Indian IT firms. TCS (up 1.88%), HCL Technologies (up 0.24%), Tech Mahindra (up 1.33%) and Infosys (up 0.84%) gained. Wipro fell 0.52%.
GMR Infrastructure declined 2.31%. With respect to the media report titled "Airbus in talks for stake in GMR's maintenance unit", GMR Infrastructure clarified during market hours that being in the nature of mere evaluations at this juncture, it will be too premature to comment and that as part of its Asset Light Asset Right strategy the group does often explore different funding/divestment options. The company said there is no material information to be disclosed at this juncture.
Jaiprakash Power Ventures slumped 11.73%. Reliance Power on Wednesday, 24 September 2014, called off its discussions with the company to buy three hydropower projects. Jaiprakash Power Ventures (JPVL) announced that for reasons not attributable to any regulatory uncertainties but due to difference of commercial aspects, discussion with Reliance Power (RPower) has been called off.
Reliance Power declined 3.36%.
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 60.99, 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 19 cents at $96.76 a barrel. The contract had risen 10 cents a barrel or 0.1% to settle at $96.95 a barrel yesterday, 24 September 2014.
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.
Prime Minister Narendra Modi will launch Make in India initiative today, 25 September 2014. 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 0.08% to 0.98%. Key benchmark indices in China, Indonesia, and Japan rose by 0.35% to 1.08%.
Trading in US index futures indicated that the Dow could fall 11 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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