Key benchmark indices languished in negative zone in mid-morning trade. The market breadth, indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was down 16.35 points or 0.07%, off 79.12 points from the day's high and up 53.65 points from the day's low.
Index heavyweight Reliance Industries (RIL) edged lower in volatile trade. Shares of state-run oil marketing companies declined as crude oil prices edged higher. JSW Steel rose after the company announced the launch of its Cold Roll Mill 2 (CRM-2) facility at Vijayanagar Works, Karnataka.
High volatility was witnessed as the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high at the onset of the trading session. Volatility continued in morning trade as key benchmark alternately swung between positive and negative zone. Key benchmark indices languished in negative zone in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 767.61 crore on Wednesday, 23 April 2014, as per provisional data from the stock exchanges. The stock market was closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
At 11:18 IST, the S&P BSE Sensex was down 16.35 points or 0.07% to 22,860.19. The index gained 62.77 points at the day's high of 22,939.31 in early trade, a lifetime high for the barometer index. The index fell 70 points at the day's low of 22,806.54 in morning trade.
The CNX Nifty was down 10.30 points or 0.15% to 6,830.50. The index hit a high of 6,869.85 in intraday trade, a lifetime high for the index. The index hit a low of 6,818.20 in intraday trade, its lowest level since 22 April 2014.
The market breadth, indicating the overall health of the market turned negative from positive in mid-morning trade. On BSE, 1,171 shares dropped and 1,118 shares rose. A total of 110 shares were unchanged.
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The BSE Mid-Cap index was up 5.04 points or 0.07% at 7,400.10. The BSE Small-Cap index was up 5.74 points or 0.08% at 7,651.84. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1069 crore by 11:15 IST on BSE, compared with Rs 706 crore by 10:15 IST.
Engineering and construction major L&T fell 0.78%. L&T today, 25 April 2014, said that its construction division has made a major breakthrough in Qatar by winning a prestigious $740 million (about Rs 4510 crore) order from Qatar Railways Company for the design and construction of the Gold Line of the Doha Metro project in Qatar. L&T secured the order along with its joint venture partners Aktor - Greece, Yapi Merkezi Insaat - Turkey, STFA Group - Turkey and Al Jaber Engineering - Qatar. The total value of order for the joint venture is $3.3 billion (about Rs 20000 crore).
The project is scheduled to be completed in 54 months. The contract includes the design and construction of twin tunnels for an approximate length of 11 Km and nine underground metro stations including architectural finishes and mechanical, electrical and plumbing works. This Metro project is among the key infrastructure projects of national interest as per the Qatar National Vision 2030, L&T said.
Index heavyweight Reliance Industries (RIL) was off 1.63% at Rs 951.55. The stock hit high of Rs 968 and low of Rs 947.50 so far during the day.
Shares of state-run oil marketing companies declined as crude oil prices edged higher. Indian Oil Corporation (down 0.55%), BPCL (down 2.38%) and HPCL (down 1.78%) edged lower.
Higher crude oil prices could increase under recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at government controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals. The government has already freed pricing of petrol.
Brent crude futures rose by more than a dollar a barrel on Thursday, 24 April 2014, as mutual accusations of aggression by Ukraine and Russia raised concerns over future oil supplies, while strong US economic data suggested higher demand. Global benchmark Brent crude settled $1.22 a barrel higher at $110.33 and US crude settled 50 cents higher at $101.94 on Thursday, 24 April 2014.
JSW Steel rose 1.11%. JSW Steel today, 25 April 2014, announced the launch of its Cold Roll Mill 2 (CRM-2) facility at Vijayanagar Works, Karnataka. With India on road to becoming a global hub for Automobiles, the demand for high end steel from the auto sector is likely to see an exponential growth, JSW Steel said. The new CRM-2 complex, with a production capacity of 2.3 million tonnes per annum (MTPA), is the most sophisticated plant by configuration with capability to produce high strength and advanced high strength steel, both in uncoated and coated (galvanized and galvannealed Gland GA) categories and wider width upto 1870mm. The CRM-2 facility includes a Continuous Annealing Line, which is the first to start operations in India.
JFE Steel, which has a 15% stake in JSW Steel has been providing Technical assistance to develop various grades of auto steel, including steel for external panels for automobiles, to meet the high demand from both domestic and international arena, JSW Steel said in a statement.
JSW Steel has commissioned the phase-1 of CRM-2 consisting of 2.3 MTPA Pickling Line Coupled with Tandem Cold Mill (PLTCM), 0.95 MTPA Continuous Annealing Line (CAL-1) and 0.4 MTPA Continuous Galvanising Line (CGL). The phase-2 of the CRM-2 plant consisting of 0.95 MTPA CAL-2 is targeted to be commissioned during first half of FY 2016. The new plant will be the cornerstone of JSW Steel's growth story enhancing the share of value added products in the product basket of the company, JSW Steel said.
In the foreign exchange market, the rupee edged lower against the dollar on speculation importers stepped up dollar purchases to meet month-end payments. The partially convertible rupee was hovering at 61.105, compared with its close of on 61.07/08 on Wednesday, 23 April 2014. Indian financial markets were closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
The country will likely get below-normal levels of monsoon rain this year, the India Meteorological Department (IMD) said on Thursday, 24 April 2014. The IMD said that the rainfall during the June-September summer rainy season will likely be 95% of the long-term average for the country. India's weather department defines a normal monsoon as one with rainfall between 96% and 104% of the 50-year average, which is 89 centimeters this year. This year could be a below normal monsoon, the weather department said, as there is a 60% possibility of the emergence of the El Ni weather phenomenona warm weather system that starts in the southern Pacific can affect weather around the world. El Ni last affected India's monsoon in 2009 when the monsoon rainfall was 23% below normal.
Annual rains are important for India as most of its farmlands are dependent or rain for irrigation and more than half of its workforce is employed in agriculture. The monsoon rains usually arrive over the southern state of Kerala by the end of May or the first week of June, and gradually cover the entire country by July. The IMD will revise its update in June.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Asian stocks declined on Friday, 25 April 2014, on fears of escalating tensions in Ukraine. Key benchmark indices in China, Japan, South Korea, Taiwan, Hong Kong and Singapore were off 0.07% to 1.92%. In Indonesia, the Jakarta Composite index was up 0.39%.
In Japan, consumer prices rose 2.7% in April from a year earlier, the biggest jump since 1992, driven by a sales-tax increase and stimulus from the Bank of Japan. Inflation excluding fresh food accelerated from 1% in the previous month, while nationally the same price gauge rose 1.3% in March from a year earlier, statistics bureau data showed today, 25 April 2014.
Trading in US index futures indicated that the Dow could drop 18 points at the opening bell on Friday, 25 April 2014. US stock markets finished Thursday's volatile session generally higher as positive earnings and stronger-than-expected data outweighed worries over military escalation near Ukrainian border.
US Secretary of State John Kerry on Thursday, 24 April 2014, warned that Russia is running out of time to comply with an accord to ease tensions in Ukraine, as Russian forces began new military exercises on the two countries' border.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion
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