A bout of volatility was witnessed as key indices saw intermittent recovery from lower level in afternoon trade. There was weakness in the broad market, with more than two losers for every gainer on BSE. The 50-unit CNX Nifty was currently a tad below the psychological 8,000 level, having alternately moved above and below that mark in afternoon trade. Earlier, the Nifty had regained the 8,000 mark after falling below that level in morning trade. The barometer index, the S&P BSE Sensex, was currently down 40.87 points or 0.15% at 26,734.82. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1185.17 crore yesterday, 23 September 2014, as per provisional data. The BSE Mid-Cap index was off 1.43%. The BSE Small-Cap index was off 1.53%.
Capital goods stocks declined. IT stocks were mixed. Titan Company advanced after board's in-principle nod to spin off the precision engineering division of the company as a wholly owned subsidiary. Thermax surged after the company's joint venture with a US-based firm received an order worth about Rs 339 crore. Oracle Financial Services Software tumbled on turning ex-dividend today, 24 September 2014. 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. 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, European stocks edged lower ahead of a key German sentiment report. Chinese shares led gains for Asian stocks after better-than-anticipated Chinese manufacturing data announced yesterday, 23 September 2014. 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.
Earlier, high volatility was witnessed as the Sensex and the 50 unit CNX Nifty recovered after the two indices hit their lowest level in almost a week in morning trade.
Brent crude oil prices rose ahead of weekly US oil inventory data from US Energy Information Administration.
In the foreign exchange market, the rupee edged lower against the dollar on concern the escalating conflict in the Middle East will prompt investors to shun riskier emerging-market assets.
More From This Section
At 13:15 IST, the S&P BSE Sensex was down 40.87 points or 0.15% at 26,734.82. 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 19.75 points or 0.25% at 7,997.80. 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. 1,930 shares fell and 802 shares rose. A total of 74 shares were unchanged.
The BSE Mid-Cap index was down 138.71 points or 1.43% at 9,557.44. The BSE Small-Cap index was down 167.40 points or 1.53% at 10,801.90. Both these indices underperformed the Sensex.
Capital goods stocks edged lower. ABB (down 2.59%), Bharat Heavy Electricals (down 2.96%), Crompton Greaves (down 2.07%), L&T (down 2.71%), Siemens (down 2.34%) and Alstom T&D India (down 0.84%) declined.
Thermax jumped 3.63% at Rs 920.95 after the company after market hours on Tuesday, 23 September 2014, said that Thermax Babcock & Wilcox Energy Solutions (TBWES), a joint venture of Thermax and US based Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), has received an export order from B&W PGG for detailed engineering, manufacturing and supply of selective items for two pulverized coal-fired boilers for an international project. The contract value is approximately Rs 339 crore.
IT stocks were mixed. MindTree (down 2.47%), TCS (down 1.39%), HCL Technologies (down 0.79%), Persistent Systems (down 0.67%) and MphasiS (down 0.63%) edged lower. Wipro (up 1.64%), Infosys (up 1.22%), and Tech Mahindra (up 0.23%) edged higher.
Oracle Financial Services Software (OFSS) tumbled 12.87% at Rs 3,449 as the stock turned ex-dividend today, 24 September 2014, for an interim dividend of Rs 485 per share for the year ending 31 March 2015.
Titan Company rose 0.49% at Rs 392.15. The company during market hours said its board of directors at its meeting held on Tuesday, 23 September 2014, taken an in-principle decision to spin off the precision engineering division of the company as a wholly owned subsidiary, subject to applicable approvals.
ING Vysya Bank lost 0.29% at Rs 609.70. The bank after market hours on Tuesday, 23 September 2014 said that its board of directors at a meeting held on 22 September 2014, approved raising debt in the form of infrastructure bonds in the nature of debentures not exceeding Rs 250 crore. The board also approved issuance of Tier I and/or Tier II debt not exceeding Rs 450 crore as revised from the earlier approved amount of Rs 700 crore by the board of directors at their meeting held on 22 July 2014.
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 edged lower 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 60.965, compared with its close of 60.955 during the previous trading session.
Brent crude oil prices rose ahead of weekly US oil inventory data from US Energy Information Administration. Brent for November settlement was up 5 cents at $96.90 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.
Meanwhile, NATO said Russia has embarked on a significant withdrawal of its forces from Ukraine, adding to signs that a truce is taking hold.
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.
European stocks edged lower in early trade today, 24 September 2014, ahead of a key German sentiment report. Key indices in Germany and UK were off 0.14% to 0.19%. In France, the CAC 40 index was up 0.02%.
Chinese shares led gains for Asian stocks today, 24 September 2014, after better-than-anticipated Chinese manufacturing data announced yesterday, 23 September 2014. Key benchmark indices in China, Hong Kong, Indonesia, Taiwan, and South Korea rose by 0.15% to 1.47%. Key benchmark indices in Japan and Singapore were off 0.12% to 0.24%.
Trading in US index futures indicated that the Dow could gain 35 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.
Powered by Capital Market - Live News