Key benchmark indices dropped to fresh intraday low in early afternoon trade as concerns about India's macroeconomic situation resurfaced as crude rose. The barometer index, the S&P BSE Sensex, was down 142.27 points or 0.56%, off 321.87 points from the day's high and up 34.32 points from the day's low. The market breadth indicating the overall health of the market turned negative from positive in early afternoon trade.
Metal and mining stocks declined. Sugar stocks edged lower.
At 12:15 IST, the S&P BSE Sensex was down 142.27 points or 0.56% to 25,103.98. The index lost 176.59 points at the day's low of 25,069.66 in early afternoon trade, its lowest level since 16 June 2014. The index jumped 179.60 points at the day's high of 25,425.85 in early trade.
The CNX Nifty was down 47.55 points or 0.63% to 7,510.65. The index hit a low of 7,502.55 in intraday trade, its lowest level since 16 June 2014. The index hit a high of 7,606.45 in intraday trade.
The market breadth indicating the overall health of the market turned negative from positive in early afternoon trade. On BSE, 1,543 shares declined and 1,165 shares gained. A total of 121 shares were unchanged.
The BSE Mid-Cap index was off 59.31 points or 0.66% at 8,975.94, underperforming the Sensex. The BSE Small-Cap index was off 41.34 points or 0.42% at 9,832.30, outperforming the Sensex.
The total turnover on BSE amounted to Rs 1693 crore by 12:15 IST, compared with Rs 1264 crore by 11:15 IST.
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Among the 30-share Sensex pack, 17 stocks declined and the rest of them gained.
ONGC (down 6.9%), Reliance Industries (down 2.43%) and Coal India (down 2.36%) edged lower from the Sensex pack.
Metal and mining stocks declined. Hindustan Zinc (down 3.55%), Steel Authority of India (Sail) (down 3.29%), National Aluminium Company (down 2.25%), Tata Steel (down 0.95%), Sesa Sterlite (down 0.82%), Hindalco Industries (down 0.75%), NMDC (down 0.54%), Hindustan Copper (down 0.5%) and JSW Steel (down 0.39%) declined. Jindal Steel & Power rose 0.88%.
Dr Reddy's Laboratories rose 0.36%. The US Food and Drug Administration has reportedly announced that Dr Reddy's Laboratories is recalling 13,560 bottles of the high blood pressure drug metoprolol succinate in the United States after it failed a dissolution test. Metoprolol succinate extended release is a cheaper generic form of AstraZeneca Plc's Toprol XL. The recall was voluntarily started by Dr Reddy's on 23 May 2014, reports suggest.
Sugar stocks edged lower. Simbhaoli Sugar Mills (down 2.93%), Shree Renuka Sugars (down 2.19%), Sakthi Sugars (down 2.11%), Dwarikesh Sugar Industries (down 1.9%), Dhampur Sugar Mills (down 1.23%), Balrampur Chini Mills (down 1.09%), Bajaj Hindusthan (down 0.89%) and Triveni Engineering & Industries (down 0.86%) declined.
Key benchmark indices edged higher in early trade as Asian stocks rose after the US Federal Reserve on Wednesday, 18 June 2014, after a monetary policy review said a highly accommodative stance of monetary policy remains appropriate at this juncture. Volatility struck the bourses in morning trade as the key benchmark indices retreated from intraday high hit in early trade only to regain strength later. The 50-unit CNX Nifty regained positive zone soon after reversing intraday gain to briefly turn negative. Volatility continued in mid-morning trade as the key benchmark indices regained positive zone after hitting fresh intraday low in negative zone. Key benchmark indices extended fall and hit fresh intraday low in early afternoon trade.
Brent crude rose as investors worried about exports from Iraq as militant violence in the country continues. Brent crude futures for August delivery were up 36 cents at $114.62 a barrel.
Increase in oil prices has triggered macroeconomic worries for India which imports majority of its crude oil requirements. Increase in crude oil prices have raised concerns of increase in fuel price inflation and increase in India's current account deficit and fiscal deficit.
In the foreign exchange market, the rupee edged higher against the dollar after the US Federal Reserve signalled that interest rates will stay low for a while yet. The partially convertible rupee was hovering at 59.98, compared with its close of 60.39/40 on Wednesday, 18 June 2014.
Asian markets edged higher on Thursday, 19 June 2014, on the optimism of Wall Street after the US Federal Reserve gave a positive assessment of the world's largest economy and committed to retaining its accommodative monetary policy. Key benchmark indices in Singapore, Taiwan, South Korea and Japan rose by 0.02% to 1.62%. Key benchmark indices in Hong Kong, Indonesia and China fell by 0.1% to 1.53%.
Chinese Premier Li Keqiang vowed that his nation's economy will not suffer a so-called "hard landing," a report said.
Trading in US index futures indicated that the Dow could rise 6 points at the opening bell on Thursday, 19 June 2014. US stocks rallied on Wednesday, 18 June 2014, gaining the most in four weeks, after the Federal Reserve chief signaled no hurry to raise rates.
The Federal Reserve said growth is bouncing back and the job market is improving as it continued to reduce the monthly pace of asset purchases. The Federal Open Market Committee trimmed bond-buying by $10 billion for a fifth straight meeting, to $35 billion, keeping it on pace to end the program late this year.
In a statement, the Federal Open Market Committee (FOMC) said that if the incoming information broadly supports the committee's expectation of ongoing improvement in US labor market conditions and inflation moving back toward its longer-run objective, the committee will likely reduce the pace of asset purchases in further measured steps at future meetings. However, asset purchases are not on a preset course, and the committee's decisions about their pace will remain contingent on the committee's outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases. To support continued progress toward maximum employment and price stability, a highly accommodative stance of monetary policy remains appropriate at this juncture, the FOMC said. In determining how long to maintain the current zero to 1/4 percent target range for the federal funds rate, the committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2% inflation, the FOMC said. The committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the committee's 2% longer-run goal, and provided that longer-term inflation expectations remain well anchored.
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