Key benchmark indices trimmed losses after hitting fresh intraday low in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was down 155.54 points or 0.62%, up about 40 points from the day's low and off close to 150 points from the day's high. The market breadth indicating the overall health of the market once again turned negative from positive in mid-afternoon trade. The market sentiment was hit adversely as the government's decision to defer revision in gas prices for three months came contrary to market expectations that the new government will quickly take business-friendly decisions aimed at economic revival. Prime Minister Narendra Modi is perceived as a business friendly leader.
Shares of offshore oil service providers rallied. Realty stocks edged lower. Monsanto India jumped after its US parent Monsanto Company on Wednesday, 25 June 2014, raised its guidance to the upper end of its previously announced ranges for the year ending 31 August 2014 at the time of announcement of Q3 May 2014 results.
At 14:20 IST, the S&P BSE Sensex was down 155.54 points or 0.62% to 25,157.80. The index shed 195.92 points at the day's low of 25,117.82 in afternoon trade, its lowest level since 24 June 2014. The index fell 4.41 points at the day's high of 25,309.33 in early trade.
The CNX Nifty was down 37.60 points or 0.5% to 7,531.65. The index hit a low of 7,514.30 in intraday trade, its lowest level since 23 June 2014. The index hit a high of 7,570.20 in intraday trade.
The market breadth indicating the overall health of the market once again turned negative from positive in mid-afternoon trade. On BSE, 1,457 shares fell and 1,414 shares rose. A total of 99 shares were unchanged. The market breadth has alternately been positive and negative during the trading session so far.
The BSE Mid-Cap index was down 3.88 points or 0.04% at 9,204.78. The BSE Small-Cap index was down 5.76 points or 0.06% at 10,007.03. Both these indices outperformed the Sensex.
Among the 30 Sensex shares, 17 declined and the remaining shares rose.
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Shares of offshore oil service providers rallied. Aban Offshore (up 5.3% to Rs 764.65), Global Offshore (up 5% to Rs 361.45), Seamec (up 5% to Rs 121.30) and GOL Offshore (up 4.24% to Rs 120.60) surged.
Realty stocks edged lower. DLF (down 2.46% to Rs 211.80), Housing Development & Infrastructure (HDIL) (down 2.49% to Rs 92.15), Sobha Developers (down 0.15% to Rs 535.65), D B Realty (down 6.16% to Rs 103.65), and Unitech (down 4.32% to Rs 33.20) declined.
Monsanto India jumped 4.6% to Rs 2,325 after its US parent Monsanto Company on Wednesday, 25 June 2014, raised its guidance to the upper end of its previously announced ranges for the year ending 31 August 2014 at the time of announcement of Q3 May 2014 results. The stock hit record high of Rs 2,414.60 in intraday trade.
US based Monsanto Company on Wednesday also announced a target to at least double full year ongoing EPS by the end of fiscal year 2019 based on its core business and the transformational potential of its new platforms. The largest driver of the overall growth over the next five years is expected to come from the established core seeds and traits business, with an expected contribution of more than $4 billion in total incremental gross profit growth during that period, Monsanto Company said in a statement on Wednesday, 25 June 2014.
Monsanto Company holds 72.14% stake in Monsanto India (as per the shareholding pattern as on 31 March 2014). Monsanto India focuses on maize seed and agrochemicals.
A bout of volatility was witnessed as key benchmark indices trimmed losses after a weak opening. A sudden slide took key benchmark indices lower in morning trade. The Sensex languished in negative terrain in early afternoon trade. Weakness continued on the bourses in afternoon trade. Key benchmark indices trimmed losses after hitting fresh intraday low in mid-afternoon trade.
Indian stocks may remain volatile during the last one hour or so of trade as traders roll over positions in the futures & options (F&O) segment from the near month June 2014 series to July 2014 series. The near-month June 2014 F&O contract expire today, 26 June 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.16, compared with its close of 60.125/135 on Wednesday, 25 June 2014.
The government on Wednesday, 25 June 2014, announced extension of concessional excise duty on automobiles, capital goods and consumer durables by six months up to 31 December 2014. It may be recalled that the Congress led United Progressive Alliance (UPA) government had in Interim Budget for 2014-15 in February this year reduced excise duty on small cars, two wheelers, scooters and commercial vehicles to 8% from 12%. Excise duty on sports utility vehicles (SUVs) was cut to 24% from 30% and that on mid and large cars was cut to 24/20% from 27/24%. At that time, the reduction is excise duty was restricted till 30 June 2014 as an interim relief measure for the auto sector.
Similarly, excise duty was cut to 10% from 12% for a period up to 30 June 2014 for capital goods and consumer durable falling under chapter 84 and chapter 85 of the Schedule to the Central Excise Tariff Act. The chapter 84/85 includes products like boiler, turbine, transformers, motors, air conditioners, toaster, oven, switches, switchgears etc.
European markets traded higher on Thursday, 26 June 2014, after weaker than expected US growth figures suggested that interest rates set by the Federal Reserve may stay lower for longer than thought. Key benchmark indices in UK, France and Germany were up 0.09% to 0.14%.
Asian stocks rose on Thursday, 26 June 2014, amid optimism the US economy is emerging from a worse-than-estimated contraction last quarter. Key benchmark indices in Japan, China, Indonesia, Singapore, Hong Kong, South Korea and Taiwan rose by 0.27% to 1.45%.
Trading in US index futures indicated that the Dow could gain 3 points at the opening bell on Thursday, 26 June 2014. US stocks gained for the first time in three days on Wednesday, 25 June 2014, as investors speculated the economy is recovering from a first-quarter contraction and Monsanto Co. announced a $10 billion stock buyback plan.
A report showed that US gross domestic product shrank 2.9% in the first quarter, the worst reading since 2009. Orders for business equipment climbed in May, a sign that corporate investment is helping revive the economy after slumping at the start of the year.
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