Weakness continued on the bourses in mid-morning trade. The barometer index, the S&P BSE Sensex, was down 311.60 points or 1.47%, off 77.07 points from the day's high and up 34.71 points from the day's low. The market breadth, indicating the overall health of the market, was weak. The BSE Mid-Cap index was off 1.74%. The BSE Small-Cap index was off 1.68%. Weakness in Asian stocks and a steep slide in US stocks on Friday, 24 January 2014, hit sentiment on the domestic bourses adversely.
Index heavyweight and cigarette maker ITC trimmed intraday losses in volatile trade. ONGC hovered in red after the company said it has signed a Memorandum of Understanding (MoU) with Japanese conglomerate Mitsui & Co. for cooperation in pursuing petroleum and natural gas opportunities in India and third countries. Reliance Infrastructure and Tata Power Company, both, dropped as Maharashtra Chief Minister Prithviraj Chavan will shortly announce a decision on cutting power tariffs in Mumbai.
In the pharma pack, Sun Pharmaceutical Industries reversed initial fall in volatile trade. Ranbaxy Laboratories extended Friday's slump triggered by the US Food and Drug Administration notifying the company that it is prohibited from manufacturing and distributing active pharmaceutical ingredients (APIs) from its facility in Toansa, India, for FDA-regulated drug products.
Asian stocks dropped on Monday, 27 January 2014, as concern that the global economic recovery is faltering spurred investors to sell riskier assets. Emerging-market stocks fell amid concern that slower Chinese growth and reduced Federal Reserve stimulus will spark more capital outflows.
Key benchmark indices slumped in early trade on weak Asian stocks. The Sensex fell below the psychological 21,000 mark. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in over two weeks. Weakness persisted on the bourses in mid-morning trade.
The market sentiment was hit adversely by data showing that foreign funds were net sellers of Indian stocks on Friday, 24 January 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 230.96 crore on Friday, 24 January 2014, as per provisional data from the stock exchanges.
More From This Section
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire on Thursday, 30 January 2014.
At 11:25 IST, the S&P BSE Sensex was down 311.60 points or 1.47% to 20,821.96. The index lost 346.31 points at the day's low of 20,787.25 in early trade, its lowest level since 10 January 2014. The index fell 234.53 points at the day's high of 20,899.03 in early trade.
The CNX Nifty was down 94.05 points or 1.5% to 6,172.70. The index hit a low of 6,162.90 in intraday trade, its lowest level since 10 January 2014. The index hit a high of 6,188.55 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,504 shares declined and 520 shares gained. A total of 94 shares were unchanged.
The BSE Mid-Cap index was off 112.53 points or 1.74% at 6,342.73. The Small-Cap index was off 106.37 points or 1.65% at 6,338.09. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 665 crore by 11:25 IST compared to Rs 423 crore by 10:20 IST.
Among the 30-share Sensex pack, 28 declined while only two of them gained.
Index heavyweight and cigarette maker ITC was off 0.35% at Rs 323.05. The stock hit a high of Rs 323 and low of Rs 319 so far during the day.
ONGC hovered in red after the company said it has signed a Memorandum of Understanding (MoU) with Japanese conglomerate Mitsui & Co. for cooperation in pursuing petroleum and natural gas opportunities in India and third countries. The stock was off 1.15%. The MoU provides for cooperation in exploration and production for conventional and unconventional petroleum and natural gas opportunities in India and in third countries, ONGC said. ONGC made the announcement during market hours today, 27 January 2014.
In August 2012, ONGC and Mitsui had entered into an MoU for wide ranging cooperation in gas and LNG business. Later in March 2013, Mitsui had entered into another MoU with ONGC, BPCL and New Mangalore Port Trust for feasibility study of a LNG terminal at Mangalore.
Sun Pharmaceutical Industries gained 1.21% to Rs 610, with the stock reversing initial fall in volatile trade. The stock hit a high of Rs 613 and low of Rs 594.70 so far during the day.
Ranbaxy Laboratories lost 5.77% to Rs 317.10 in volatile trade. The stock hit a high of Rs 329 and low of Rs 306.05 so far during the day. The stock extended Friday's slump triggered by the US Food and Drug Administration notifying the company that it is prohibited from manufacturing and distributing active pharmaceutical ingredients (APIs) from its facility in Toansa, India, for FDA-regulated drug products. The Toansa facility is now subject to certain terms of a consent decree of permanent injunction entered against Ranbaxy in January 2012, Ranbaxy said in a statement on Friday, 24 January 2014.
Subsequent to the Form 483 issued in early January 2014, Ranbaxy voluntarily and proactively suspended shipments of API from this facility to the US market when it received the inspection findings. Ranbaxy said that the management is disappointed with the recent FDA action and would like to apologize to all its stakeholders in for the inconvenience caused by the suspension of shipment. Arun Sawhney, CEO and Managing Director of Ranbaxy said that this development is clearly unacceptable and an appropriate management action will be taken upon completion of the internal investigation.
Ranbaxy further said that the company is committed to highest standard of patient safety and quality, and shall constantly endeavour to strengthen its systems and processes. Ranbaxy will cooperate with the FDA and shall comply with the Consent Decree in both the letter and spirit, it said.
Reliance Infrastructure lost 3.97%. Tata Power Company dropped 2.44%. Maharashtra Chief Minister Prithviraj Chavan will announce in two days, a decision on cutting power tariffs in Mumbai. Similar to an announcement made by Chief Minister Arvind Kejriwal in Delhi, Chavan on Sunday, 26 January 2014, said that his government is examining the possibility of auditing private power discoms. Calling on his party colleague Sanjay Nirupam to end his fast, Chavan said that there was a need to check if surcharge was being levied beyond the period it was approved for. Following his announcement, Nirupam, who was on an indefinite strike, ended his protest on Sunday. The Congress MP, however, warned that he will go on fast again if his demands are not met.
Reliance Infrastructure on Saturday, 25 January 2014, said that the company on Friday, 24 January 2014, acquired 9.5 crore equity shares at Rs 68 per share of face value Rs 10 each of Reliance Power from Reliance Enterprises and Ventures in a bulk deal on BSE by way of an inter se transfer.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 62.75, compared with its close of 62.66/67 on Friday, 24 January 2014.
The Ministry of Consumer Affairs, Food & Public Distribution on Friday, 24 January 2014, said that as per data monitored by the Ministry of Consumer Affairs and Food, prices of rice, wheat and sugar during the week - 16 January 2014 to 23 January 2014 - remained steady in wholesale markets across the country. The Price Monitoring Cell of the Ministry monitors prices of twenty two essential commodities regularly at 55 wholesale centers. During the period, prices of rice remained steady at all wholesale centers and decreased at one center (Aizwal). Prices of wheat also were steady at all wholesale centers except one centre at Ludhiana. While sugar prices decreased at eight centers and remain steady at rest of the reporting centers, the Ministry of Consumer Affairs and Food said in a statement.
Prices of twenty two essential commodities are regularly monitored by Department of Consumer Affairs for taking suitable action to keep the prices under check. Price data is collected on daily basis from the State Civil Supplies Departments of the respective State Governments.
The Reserve Bank of India announces Third Quarter Review of Monetary Policy for 2013-14 at 11:00 IST tomorrow, 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
Asian stocks slumped on Monday, 27 January 2014, as concern that the global economic recovery is faltering spurred investors to sell riskier assets. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea were off 0.64% to 2.91%.
Emerging-market stocks fell amid concern that slower Chinese growth and reduced Federal Reserve stimulus will spark more capital outflows. In recent years, emerging markets have been supported by the Fed's policy of easy money, but any cut could pull more money out of these risky markets and hurt growth.
Japan reported a record annual trade deficit for last year as energy shipments and weakness in the yen pumped up the nation's import bill. The shortfall was 11.5 trillion yen ($113 billion), almost double the previous year's 6.9 trillion yen, a finance ministry report showed in Tokyo today, 27 January 2014. Imports rose 25% in December from a year earlier and exports gained 15%, leaving a monthly deficit of 1.3 trillion yen.
South Korea has accepted the North Korea's offer to renew reunions of families separated by the Korean War, a move that may signal thawing tensions between the two nations.
Trading in US index futures indicated that the Dow could drop 11 points at the opening bell today, 27 January 2014. US stocks tumbled on Friday, 24 January 2014, as investors fled equities and emerging-markets currencies on concerns about a contagion effect from China's manufacturing slowdown. The CBOE Volatility Index, known as the Vix, surged 32%, its steepest rise since the April 15 Boston Marathon bombings.
The Federal Open Market Committee's (FOMC) two-day monetary policy meeting begins tomorrow, 28 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.
Global stocks tumbled the most since June on Friday, 24 January 2014, as a sell-off in emerging-market currencies prompted investors to seek havens in Treasuries, gold and the yen.
Powered by Capital Market - Live News