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PSU OMCs edge higher as crude drops

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Last Updated : Jul 31 2014 | 11:49 PM IST

The market's movement remained confined to a narrow range in afternoon trade. The barometer index, the S&P BSE Sensex, slipped once again into the red from positive terrain. The 50-unit CNX Nifty languished in the negative terrain near the flat line. The Sensex was currently down 17.20 points or 0.07% at 26,070.22. The market breadth indicating the overall health of the market was positive. PSU OMCs edged higher as crude oil prices dropped.

At 13:19 IST, the S&P BSE Sensex was down 17.20 points or 0.07% to 26,070.22. The index rose 31.46 points at the day's high of 26,118.88 in mid-morning trade, its highest level since 28 July 2014. The index fell 52.87 points at the day's low of 26,034.55 in early trade.

The CNX Nifty was down 8 points or 0.1% to 7,783.40. The index hit a high of 7,791.85 in intraday trade. The index hit a low of 7,768.70 in intraday trade.

The market breadth indicating the overall health of the market was positive. On BSE, 1,420 shares rose and 1,188 shares fell. A total of 116 shares were unchanged.

The BSE Mid-Cap index was up 46.36 points or 0.5% at 9,217.87. The BSE Small-Cap index was up 47.87 points or 0.48% at 10,012.80. Both these indices outperformed the Sensex.

PSU OMCs edged higher as crude oil prices dropped. HPCL (up 4.22%), Indian Oil Corporation (up 2.73%) and BPCL (up 2.29%) edged higher.

September-delivery Brent was off 73 cents at $105.78 a barrel on the ICE Futures Europe exchange in London today, 31 July 2014. The contract had declined $1.21 or 1.12% to close at $106.51 per barrel on Wednesday, 30 July 2014. India imports about 80% of its crude oil requirement.

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Lower crude oil prices could decrease under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.

Adani Enterprises rose 0.03%. The stock turned ex-dividend today, 31 July 2014, for dividend of Rs 1.40 per share for the year ended 31 March 2014.

Adani Ports & Special Economic Zone lost 0.25% on turning ex-dividend today, 31 July 2014, for dividend of Re 1 per share for the year ended 31 March 2014.

Divi's Laboratories fell 1.19% on turning ex-dividend today, 31 July 2014, for dividend of Rs 20 per share for the year ended March 2014.

Godrej Industries lost 0.07% on turning ex-dividend today, 31 July 2014, for a final dividend of Rs 1.75 per share for the year ended 31 March 2014.

Hexaware Technologies lost 1.65% on turning ex-dividend today, 31 July 2014, for an interim dividend of Rs 1.60 per share for the year ending 31 December 2014.

The market may remain volatile today, 31 July 2014, as traders roll over positions in the futures & options (F&O) segment from the near month July 2014 series to August 2014 series. The near-month July 2014 F&O contracts expire today, 31 July 2014.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.325, compared with its close of 60.07 on Wednesday, 30 July 2014.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 381.66 crore on Wednesday, 30 July 2014, as per provisional data from the stock exchanges.

A group of World Trade Organization (WTO) members has reportedly informally discussed adopting a global overhaul of customs rules without India if New Delhi goes ahead with threats to block the deal. India has demanded the deal, which must be approved in Geneva today, 31 July 2014, be accompanied by a parallel agreement giving it more freedom to subsidise and stockpile food grains than currently allowed under WTO rules.

Finance Minister Arun Jaitley said on Wednesday, 30 July 2014, said that the government is yet to decide the implementation date of the general anti-avoidance rules (GAAR) and whether any changes are needed to the existing provisions of GAAR. GAAR is scheduled to come into effect from 1 April 2015 or assessment year 2016-17. GAAR announced by the previous government had sparked alarm among foreign investors because of provisions that included tightening rules on investments from countries that have double taxation treaties with India. The implementation of GAAR was deferred by two years until 1 April 2015.

European stocks edged higher in early trade today, 31 July 2014. Key benchmark indices in UK and France were up 0.08% to 0.21%. German DAX index was off 0.55%.

Asian stocks were mixed today, 31 July 2014, after global credit rating agency Standard & Poor's declared Argentina in default on its foreign-currency obligations after the government missed a deadline for paying interest on $13 billion of restructured bonds. Key benchmark indices in China, Hong Kong and Singapore were up 0.37%to 0.93%. Key benchmark indices in Japan, South Korea and Taiwan were off 0.16% to 1.39%.

A breakdown in talks between Argentina and US creditors late Wednesday has sent the country tumbling into its second default in 13 years.

Trading in US index futures indicated that the Dow could fall 26 points at the opening bell on Thursday, 31 July 2014.

The Federal Reserve after two-day policy meeting on Wednesday, 30 July, said it would reduce its purchases of mortgage and Treasury bonds by $10 billion to $25 billion monthly from $35 billion earlier, as widely expected. The Fed retained a dovish monetary policy stance. To support continued progress toward maximum employment and price stability, the Federal Open Market Committee (FOMC) reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate, the FOMC said in a statement.

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First Published: Jul 31 2014 | 1:19 PM IST

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