As the rupee weakened past 61 against the dollar, key benchmark indices extended losses and hit fresh intraday low in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 237.06 points or 0.87% at 27,028.26. Key indices dropped on speculation that US interest rates will rise sooner than estimated. Higher interest rates could lure money to the US from emerging markets, including India. Meanwhile, as per reports, Finance Minister Arun Jaitley will miss a meeting of finance ministers from the Group of 20 nations in Australia next week as he is still in hospital undergoing treatment. The market breadth indicating the overall health of the market was positive. Oil and gas stocks dropped. PSU OMCs fell on reports that diesel prices may be cut for first time in seven years on declining crude oil prices. Index heavyweight and cigarette major ITC edged lower on reports that the government is considering a proposal to ban the sale of loose cigarettes. Bharti Airtel edged higher in choppy trade.
Among side counters, Finolex Industries and Jyothy Laboratories scaled record high. Kesoram Industries and Unichem Laboratories hit 52-week high. Shares of jewellery retailers were mixed in reaction to reports the government is not considering an immediate gold import duty cut.
After an initial decline triggered by weakness in Asian stocks, key benchmark have languished in red throughout the trading session so far.
In overseas markets, European stocks edged lower as the region's governments weighed tougher sanctions on Russia and concern grew the UK may be heading for partition. Asian stocks dropped on concern that China's growth is slowing and speculation that US interest rates will rise sooner than estimated.
In the foreign exchange market, the rupee weakened past 61 against the dollar on concern improving US economic data will encourage the Federal Reserve to increase interest rates, eroding the attraction of higher-yielding assets elsewhere.
Brent crude oil futures edged lower amid intraday volatility after reaching a 17-month low below $100 per barrel during the previous trading session.
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At 14:18 IST, the S&P BSE Sensex was down 237.06 points or 0.87% at 27,028.26. The index lost 246.13 points at the day's low of 27,019.19 in mid-afternoon trade, its lowest level since 5 September 2014. The index fell 13.88 points at the day's high of 27,251.44 in early trade.
The CNX Nifty was down 68.25 points or 0.84% at 8,084.70. The index hit a low of 8,084.15 in intraday trade, its lowest level since 5 September 2014. The index hit a high of 8,135.75 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,597 shares gained and 1,276 shares fell. A total of 107 shares were unchanged.
The BSE Mid-Cap index was off 5.74 points or 0.06% at 9,837.63. The BSE Small-Cap index was up 38.77 points or 0.36% at 10,924.75. Both these indices outperformed the Sensex.
Oil and gas stocks dropped. Cairn India (down 2.78%), Reliance Industries (down 1.48%), Oil India (down 1.27%) and ONGC (down 0.72%) declined.
PSU OMCs fell on reports that diesel prices may be cut for first time in seven years on declining crude oil prices. Indian Oil Corporation (down 1.3%), BPCL (down 1.59%), and HPCL (down 1.44%) declined.
As per reports, petrol prices may be cut by Re 1 a litre and there is also a likelihood of first reduction in diesel rates in seven years owing to continuous downtrend in international crude oil prices. Petrol and diesel rates are due for revision on 15 September 2014 and there is a possibility of reduction in retail prices if benchmark Brent crude continues to stay below $100 a barrel mark, reports added.
Diesel prices were last hiked on 31 August 2014 by 50 paise in line with the January 2013 decision to raise rates in small doses every month to bridge the difference between retail selling price and cost. The under-recovery on diesel had reduced to just 8 paise a litre after the last increase.
Bharti Airtel edged higher in choppy trade. The stock was up 0.3% at Rs 407.25. The stock hit 52-week high of Rs 411.60 in intraday trade. The stock hit low of Rs 403.60 so far during the day.
Finolex Industries gained 3.34% to Rs 320.50 after scaling a record high of Rs 321.80 in intraday trade.
Jyothy Laboratories jumped 8.46%to Rs 290.50 after scaling a record high of Rs 299 in intraday trade.
Kesoram Industries galloped 7.57% to Rs 140 after a hitting a 52-week high of Rs 143.15 in intraday trade.
Unichem Laboratories advanced 5.2% to Rs 245.60 after a hitting a 52-week high of Rs 251.25 in intraday trade.
Shares of jewellery retailers were mixed in reaction to reports the government is not considering an immediate gold import duty cut.
Gitanjali Gems (up 0.52%), Thangamayil Jewellery (up 5.71%) and Shree Ganesh Jewellery House (up 3.42%) gained.
PC Jeweller (down 0.64%), Tara Jewels (down 0.81%), Tribhovandas Bhimji Zaveri (TBZ) (down 0.2%), Titan Company (down 2.09%) declined.
The government had raised the import duty on the gold in 2013 to 10% to limit overseas purchases by the second-biggest bullion consumer and help trim bloated current account deficit. However, a dramatic improvement in the deficit had raised market expectations of a duty cut, reports added.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 9 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 479.40 crore on that day.
Brent crude oil futures edged lower amid intraday volatility after reaching a 17-month low below $100 per barrel during the previous trading session. Brent for October settlement was down 20 cents at $98.96 a barrel. The contract fell $1.04 a barrel to settle at $99.16 a barrel yesterday, 9 September 2014, as ample supplies weighed. The price had slumped to $99.03 in intraday trade, the lowest intraday price since 1 May 2013.
Representatives of 28 European Union (EU) governments will meet in Brussels today, 10 September 2014, to discuss tougher economic sanctions on Russia for its involvement in the Ukraine crisis. The talks follow the EU's decision this week to put on hold a second package of economic penalties.
In the foreign exchange market, the rupee weakened past 61 against the dollar on concern improving US economic data will encourage the Federal Reserve to increase interest rates, eroding the attraction of higher-yielding assets elsewhere. The partially convertible rupee was hovering at 61.015, compared with its close of 60.60 on Tuesday, 9 September 2014.
Meanwhile, as per reports, Finance Minister Arun Jaitley will miss a meeting of finance ministers from the Group of 20 nations in Australia next week as he is still in hospital undergoing treatment. Jaitley was admitted to a private hospital in New Delhi on 1 September 2014 for surgery to manage a long-standing diabetic condition, and had originally been expected to leave after a few days.
European stocks dropped for a fourth day today, 10 September 2014, as the region's governments weighed tougher sanctions on Russia and concern grew the UK may be heading for partition. Key benchmark indices in France, Germany and UK shed 0.3% to 0.56%.
In the UK, opinion polls have indicated that the result of a Sept. 18 referendum on Scottish independence is too close to call.
Asian stocks edged lower today, 10 September 2014, on concern that China's growth is slowing and speculation that US interest rates will rise sooner than estimated. Key benchmark indices in Taiwan, Hong Kong, Singapore, Indonesia and China were off 0.06% to 1.93%. Japan's Nikkei 225 index rose 0.25%. South Korean stock market will reopen tomorrow, 11 September 2014, after a three-day break for the Harvest Moon festival.
China's money-supply growth in August eased to the slowest pace in five months. M2, the government's broadest measure, rose 12.8% in August from a year earlier, lower than 13.5% rise in July
Trading in US index futures indicated that the Dow could fall 27 points at the opening bell today, 10 September 2014. US stocks fell on Tuesday, 9 September 2014, as Apple shares declined and as bond yields hit their highest in a month on concerns the Federal Reserve could raise interest rates sooner than some investors had expected.
At the end of a two-day meeting on 16-17 September 2014, the Federal Open Market Committee (FOMC) is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
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