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Nifty hits one-week low below 6,000

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Last Updated : Feb 17 2014 | 11:56 PM IST

Key benchmark indices slipped into the red from green in mid-afternoon trade after the latest data showed that core wholesale price inflation edged up in January 2014. The market breadth, indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest level in more than a week. The Nifty fell below the psychological 6,000 mark. The Sensex was down 7.34 points or 0.04%, off close to 125 points from the day's high and up about 35 points from the day's low.

State Bank of India fell after weak Q3 results. Shares of other banks were mixed. M&M dropped in volatile trade after announcing Q3 results. Bajaj Auto extended intraday losses.

The market edged higher in early trade on firm Asian stocks. The Sensex regained positive terrain after slipping into the red to hit fresh intraday low in morning trade. The Sensex retained positive zone in early afternoon trade. Key benchmark indices trimmed gains in early afternoon trade after the latest data showed that core wholesale price inflation edged up in January 2014. Key benchmark indices slipped into the red from green in mid-afternoon trade. The 50-unit CNX Nifty fell below the psychological 6,000 mark.

Foreign institutional investors (FIIs) bought shares worth a net Rs 399.40 crore on Thursday, 13 February 2014, as per provisional data from the stock exchanges.

At 14:20 IST, the S&P BSE Sensex was down 7.34 points or 0.04% to 20,186.01. The index fell 44.34 points at the day's low of 20,149.01 in mid-afternoon trade, its lowest level since 6 February 2014. The index jumped 119.67 points at the day's high of 20,313.02 in early trade.

The CNX Nifty was down 5.80 points or 0.1% to 5,999.05. The index hit a low of 5,984.60 in intraday trade, its lowest level since 6 February 2014. The index hit a high of 6,033.30 in intraday trade.

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The BSE Mid-Cap index was down 25.45 points or 0.4% to 6,279.33. The BSE Small-Cap index was down 31.70 points or 0.5% at 6,250.79. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,390 shares fell and 1,044 shares rose. A total of 138 shares were unchanged.

Bhel (down 2.54%), Sesa Sterlite (down 1.96%) and Cipla (down 2.49%), edged lower from the Sensex pack.

Bajaj Auto fell 4.25%, with the stock extending intraday losses.

State Bank of India (SBI) fell 2.49% after net profit fell 34.2% to Rs 2234.34 crore on 14.91% increase in total income to Rs 39060.76 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 14 February 2014.

On a consolidated basis, SBI's net profit fell 38.93% to Rs 2838.62 crore on 15.11% increase in total income to Rs 58642.16 crore in Q3 December 2013 over Q3 December 2012.

Shares of other banks were mixed. HDFC Bank (up 0.43%) and Kotak Mahindra Bank (up 1.44%) gained. AXIS Bank down 1.2%) and ICICI Bank (down 0.72%) declined.

M&M dropped 1.53% after announcing Q3 results. The combined net profit of M&M and Mahindra Vehicle Manufacturers -- a wholly owned subsidiary of M&M -- rose 9.3% to Rs 1000.10 crore on 2.18% fall in gross revenues plus other income to Rs 11270 crore in Q3 December 2013 over Q3 December 2012. Mahindra Vehicle Manufacturers (MVML), located at Chakan near Pune, was set up as a 100% subsidiary of the company with a view to sourcing contemporary products for expanding the market offerings of the company. The result was announced during market hours.

Amtek Auto surged 12.57% after net profit jumped 57.8% to Rs 78.04 crore on 59.3% growth in net sales to Rs 839.10 crore in the quarter ended 31 December 2013 over the quarter ended 31 December 2012. The result was announced after market hours on Thursday, 13 February 2014.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.185, compared with its close of 62.42/43 on Thursday, 13 February 2014.

Inflation based on the wholesale price index (WPI) stood at 5.05% (provisional) in January 2014 as compared to 6.16% (provisional) for December 2013 and 7.31% in January 2013. Build up inflation rate in the financial year so far was 5.17% compared to a build up rate of 5.78% in the corresponding period of the previous year. The government unveiled data on inflation based on the wholesale price index (WPI) for January 2014 at 12 noon today, 14 February 2014.

Core inflation or non-food manufacturing inflation edged up to 3.04% in January 2014, from 2.75% in December 2013, the latest data showed.

Finance Minister P Chidambaram will present the Vote-on-Account or interim budget for the first four months of 2014/15 on 17 February 2014. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections.

The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.

The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.

European stocks edged higher in early trade on Friday, 14 February 2014. Key benchmark indices in France and Germany rose 0.06% to 0.13%. UK's FTSE 100 fell 0.02%.

Asian stocks edged higher on Friday, 14 February 2014, as US stocks rose overnight. Key benchmark indices in China, Hong Kong, South Korea, Indonesia and Taiwan fell by 0.36% to 0.83%. Key benchmark indices in Japan and Singapore fell by 0.05% to 1.53%.

China's inflation stayed subdued in January while factory-gate prices extended the longest drop since the 1990s, in a sign of moderating demand in the world's second-largest economy. The consumer price index rose 2.5% from a year earlier, the National Bureau of Statistics said today in Beijing, the same pace as in December. The producer-price index fell 1.6%.

Trading in US index futures indicated that the Dow could fall 25 points at the opening bell on Friday, 14 February 2014. US stocks rose on Thursday as earnings and a $45.2 billion takeover of Time Warner Cable Inc. overshadowed an unexpected drop in retail sales.

Receipts at US retailers declined 0.4% in January amid bad weather and uneven progress in the labor market, a report yesterday showed, signaling the economy was off to a slow start this year. The decline was the biggest since June 2012. A Labor Department report showed the number of Americans filing applications for unemployment benefits rose by 8,000 to 339,000 in the week ended Feb. 8.

Federal Reserve Chairwoman Janet Yellen's scheduled appearance before the Senate Banking Committee on Thursday, 13 February 2014, was postponed due to a snowstorm.

The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.

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First Published: Feb 14 2014 | 2:25 PM IST

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