More than two losers for every gainer on BSE

High volatility was witnessed as key benchmark indices bounced back a sudden slide in morning trade. The 50-unit CNX Nifty regained the psychological 8,000 mark after falling below that level in morning trade. The barometer index, the S&P BSE Sensex, was currently up 13.51 points or 0.05% at 26,789.20. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1185.17 crore yesterday, 23 September 2014, as per provisional data. The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. The BSE Small-Cap index was down 1.24%. Asian stocks were in green. Metal and mining stocks fell ahead of the Supreme Court's ruling today, 24 September 2014, on 193 coal blocks allocated by the government since 1993 which it had ruled last month as illegal. Meanwhile, Prime Minister Narendra Modi leaves for a five-day visit to the United States tomorrow, 25 September 2014, hours after the launch of the "Make in India" campaign in Delhi.

In overseas markets, Asian stocks rose today, 24 September 2014, with a rally in Hong Kong offsetting declines in Australia and Japan. US stocks declined for the third straight session yesterday, 23 September 2014, as a weak report on Europe's economy fueled more investor jitters about global growth.

High volatility was witnessed as the Sensex and the Nifty regained positive terrain after the two indices hit their lowest level in almost a week in morning trade.

Brent crude oil prices extended losses for a third day as inflated supplies and weak economic data outweighed rising geopolitical tensions in the Middle East.

In the foreign exchange market, the rupee weakened past 61 against the dollar on concern the escalating conflict in the Middle East will prompt investors to shun riskier emerging-market assets.

At 11:15 IST, the S&P BSE Sensex was up 13.51 points or 0.05% at 26,789.20. The index lost 133.93 points at the day's low of 26,641.76 in morning trade, its lowest level since 18 September 2014. The index rose 69.01 points at the day's high of 26,844.70 in mid-morning trade.

The CNX Nifty was down 6.50 points or 0.03% at 8,019.75. The index hit a low of 7,979.50 in intraday trade, its lowest level since 18 September 2014. The index hit a high of 8,042.05 in intraday trade.

The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. 1,675 shares fell and 783 shares rose. A total of 72 shares were unchanged.

The BSE Mid-Cap index was down 93.22 points or 0.96% at 9,602.93. The BSE Small-Cap index was down 135.34 points or 1.24% at 10,833.76. Both these indices underperformed the Sensex.

Metal and mining stocks fell ahead of the Supreme Court's ruling today, 24 September 2014, on 193 coal blocks allocated by the government since 1993 which it had ruled last month as illegal. JSW Steel (down 0.91%), Tata Steel (down 1.54%), Hindustan Copper (down 2.22%), Bhushan Steel (down 5%), Hindalco Industries (down 0.92%), Hindustan Zinc (down 1.33%), Steel Authority of India (down 0.92%), NMDC (down 1.15%), Jindal Steel & Power (down 2.04%) and Sesa Sterlite (down 0.77%) declined.

Sasken Communication Technologies hit 20% lower circuit at Rs 253 on BSE after the company said that Anjan Lahiri, whole-time director and CEO has resigned from the services of the company and consequently from the board of directors effective 23 September 2014.

Oracle Financial Services Software lost 11.76% on turning ex-dividend today, 24 September 2014, for an interim dividend of Rs 485 per share for the year ending 31 March 2015.

Manappuram Finance declined 2.4% after the company said its board approved the proposal for commencement of micro financing business either as a separate division of the company or by acquiring existing companies in micro financing activity. The board also approved commencement of finance against commercial vehicles.

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 September 2014 series to October 2014 series. The near-month September 2014 F&O contracts expire tomorrow, 25 September 2014.

Provisional data released by the stock exchanges after trading hours on Tuesday, 23 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1185.17 crore on that day.

In the foreign exchange market, the rupee weakened past 61 against the dollar on concern the escalating conflict in the Middle East will prompt investors to shun riskier emerging-market assets. The partially convertible rupee was hovering at 61.03, compared with its close of 60.955 during the previous trading session.

Brent crude oil prices extended losses for a third day as inflated supplies and weak economic data outweighed rising geopolitical tensions in the Middle East. Brent for November settlement was down 10 cents at $96.75 a barrel. The contract had fallen 12 cents a barrel or 0.12% to settle at $96.85 a barrel yesterday, 23 September 2014.

The US and its Arab allies that have joined the fight against Islamic State launched airstrikes into Syria, in the first major expansion of a campaign to defeat the militants.

Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. However, a weak rupee will offset the benefit of falling crude oil prices to that extent.

Meanwhile, the Supreme Court will reportedly deliver its verdict at 14:00 IST today, 24 September 2014, on how 193 coal blocks allocated between 1993 and 2010 should be treated. In a ruling on 25 August 2014, the apex court had declared the allocation of these blocks as illegal. The verdict is expected to clear the air on whether these blocks would be re-allocated or let off the hook with a penalty. Out of the 193 blocks termed illegal by the court, 38 are operational and 6 blocks are in position to start operations. Companies that could take a hit from the court ruling include Jindal Steel and Power and Hindalco Industries among others. The government has urged the apex court not to cancel those 38 coal blocks which are operational and another six which are on the verge of becoming operational.

India made history today, 24 September 2014, by successfully placing its spacecraft, Mangalyaan, in orbit around Mars, becoming the first country in the world to succeed in such an inter-planetary mission in the maiden attempt itself.

Prime Minister Narendra Modi is scheduled to launch the ambitious 'Make in India' campaign tomorrow, 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. In his maiden independence day address, Modi invited the global business community to set up manufacturing facilities in India, giving the slogan 'come, make in India'.

Modi leaves for a five-day visit to the United States tomorrow, 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.

Asian stocks rose today, 24 September 2014, with a rally in Hong Kong offsetting declines in Australia and Japan. Key benchmark indices in China, Hong Kong, Indonesia, Taiwan, and South Korea rose by 0.21% to 1.11%. Key benchmark indices in Japan and Singapore fell 0.05% to 0.33%.

Trading in US index futures indicated that the Dow could gain 20 points at the opening bell on Wednesday, 24 September 2014. US stocks declined Tuesday, 23 September 2014, as a weak report on Europe's economy fueled more investor jitters about global growth.

In economic news, US manufacturing activity hovered at a near 4-1/2-year high in September and factory employment surged, supporting views of sturdy economic growth this quarter. The growth picture was also boosted by other data showing an acceleration in services industry growth this month. Markit said its preliminary or flash US Manufacturing Purchasing Managers Index was at 57.9, unchanged from August's reading when it touched its highest level since April 2010. A reading above 50 signals expansion in manufacturing. Factory employment increased for a second straight month, with a gauge of labor market conditions touching its highest level since March 2012. Separately, the Federal Reserve Bank of Philadelphia said its general activity index for non-manufacturing firms jumped to 35.7 this month from 27.3 in August.

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