After holding positive zone with small gains, key benchmark indices drifted lower in mid-morning trade. The barometer index, the S&P BSE Sensex, fell below the psychological 27,000 mark and hit its lowest level in almost a week. The 50-unit CNX Nifty also hit its lowest level in almost a week. The Sensex was currently down 95.02 points or 0.35% at 26,962.39. The BSE Small-Cap and Mid-Cap indices, both, trimmed initial gains. The market breadth indicating the overall health of the market was strong. PSU OMCs gained as crude oil prices declined. Bank stocks edged higher on renewed buying. On the macro front, data due later this week and early next week is likely to show easing of inflation in August 2014 and a muted growth in industrial production in July 2014. Meanwhile, the government has kicked off a big-bang divestment programme by announcing stake-sale in ONGC, Coal India and NHPC.
Earlier, key indices had opened on a firm note after overnight drop in Brent crude oil prices and gains in US stocks.
In overseas markets, Asian stocks were mixed after weaker-than-expected inflation in China spurred speculation that the Chinese government will add stimulus to support the economy.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures extended previous day's losses.
At 11:15 IST, the S&P BSE Sensex was down 95.02 points or 0.35% at 26,962.39. The index lost 135.90 points at the day's low of 26,921.51 in mid-morning trade, its lowest level since 5 September 2014. The index gained 93.37 points at the day's high of 27,150.78 at the onset of the trading session.
The CNX Nifty was down 20.45 points or 0.25% at 8,073.65. The index hit a low of 8,061.60 in intraday trade, its lowest level since 5 September 2014. The index hit a high of 8,127.95 in intraday trade.
More From This Section
The market breadth indicating the overall health of the market was strong on BSE. 1,621 shares gained and 910 shares fell. A total of 93 shares were unchanged.
The BSE Mid-Cap index was up 67.84 points or 0.69% at 9,918.63. The BSE Small-Cap index was up 82.29 points or 0.75% at 11,033.32. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1561 crore by 11:15 IST, compared to a turnover of Rs 872 crore by 10:15 IST.
Sun Pharmaceutical Industries (down 3.9%), Coal India (down 3.12%) and Mahindra & Mahindra (down 1.82%) edged lower from the Sensex pack.
PSU OMCs gained as crude oil prices declined. Indian Oil Corporation (up 0.64%), BPCL (up 1.11%), and HPCL (up 2.17%) gained.
Lower crude oil prices will reduce under recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at government 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.
Bank stocks edged higher on renewed buying. Among PSU bank stocks, State Bank of India (SBI) (up 1.21%), Bank of Baroda (up 2.06%), Punjab National Bank (up 1.81%), Bank of India (up 2.16%), Oriental Bank of Commerce (up 1.9%) and Union Bank of India (up 2.54%) gained.
Among private banks, Federal Bank (up 1.61%), Kotak Mahindra Bank (up 0.33%), Yes Bank (up 0.52%), HDFC Bank (up 0.22%), ICICI Bank (up 0.19%) rose.
IndusInd Bank rose 0.59%. IndusInd Bank said after market hours on Wednesday, 10 September 2014, that the bank has opened two branches in Chandigarh and one branch in Mohali in the state of Punjab. The bank plans to further strengthen its presence and customer reach in Punjab and Haryana with more branches in the coming quarters, IndusInd Bank said.
The government has kicked off a big-bang divestment programme by announcing stake-sale in ONGC, Coal India and NHPC. The Cabinet Committee on Economic Affairs (CCEA) on Wednesday, 10 September 2014, approved disinvestment of 10% stake in Coal India, 5% stake in ONCG and disinvestment of 11.36% stake in NHPC. The government will raise about Rs 46000 crore from the divestment in these three PSU based the closing price of the shares of these three PSUs on 10 September 2014.
Finance Minister Arun Jaitley was released from hospital on Wednesday, 10 September 2014, after a longer-than-expected stay for treatment. Media reports said that Jaitley will not be able to attend a meeting of finance ministers from the Group of 20 nations in Australia next week. Jaitley was admitted to a private hospital in New Delhi on 1 September 2014 for planned surgery to manage a long-standing diabetic condition. He had been expected to leave after a few days, a report indicated.
Brent crude oil futures extended previous day's losses. Brent for October settlement was off 6 cents at $97.98 a barrel. The contract fell $1.12 to settle at $98.04 a barrel yesterday, 10 September 2014, on rising supply and tepid demand. The price had slumped to $97.60 in intraday trade yesterday, the lowest intraday price since 18 April 2013.
US President Barack Obama reportedly told Americans in a speech late on Wednesday, 10 September 2014 that he had authorized US air strikes for the first time in Syria and more attacks in Iraq in a broad escalation of a campaign against the Islamic State militant group. He said he would hunt down Islamic State militants "wherever they are," reports added.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.915, compared with its close of 60.955 on Wednesday, 10 September 2014.
Data due later this week and early next week is likely to show easing of inflation in August 2014 and a muted growth in industrial production in July 2014. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen decelerating to 7.8% in August 2014, from 7.96% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the CPI data for August 2014 at 17:30 IST tomorrow, 12 September 2014. The Reserve Bank of India (RBI) is targeting CPI inflation at 8% by January 2015 and 6% by January 2016.
Meanwhile, the growth in industrial production is seen decelerating to 1.9% in July 2014, from 3.4% in June 2014, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production growth had eased to 3.4% in June 2014, from 5% increase recorded in May 2014. The government will release the industrial production data for July 2014 at 17:30 IST tomorrow, 12 September 2014.
The annual rate of inflation based on the monthly Wholesale Price Index (WPI) is seen decelerating to 4.43% in August 2014, from 5.19% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the WPI data for August 2014 at 12 noon on Monday, 15 September 2014.
Asian stocks were mixed today, 11 September 2014, after weaker-than-expected inflation in China spurred speculation that the Chinese government will add stimulus to support the economy. Key benchmark indices in Japan, Indonesia and Singapore were up 0.31% to 0.78%. Key benchmark indices in China, Hong Kong and Taiwan were off 0.17% to 0.3%. South Korea's Seoul Composite index was flat.
China's consumer price index rose 2% last month from a year earlier, according to data released by the National Bureau of Statistics today, 11 September 2014. Factory-gate prices extended their decline to 30 months, adding room for government stimulus to support the economy amid a property slump.
Meanwhile, Bank of Japan Governor Haruhiko Kuroda reportedly assured Prime Minister Shinzo Abe today, 11 September 2014, that the central bank won't hesitate to take further action should a 2% inflation target become difficult to achieve. In a meeting with Abe, Kuroda reportedly exchanged views with Abe over recent economic conditions, and told the prime minister that the global economy is on a recovery path. The BOJ governor also talked about consumer spending before and after April's sales tax increase, reports further indicated.
Trading in US index futures indicated that the Dow could fall 13 points at the opening bell today, 11 September 2014. US stocks edged higher on Wednesday, 10 September 2014, helped by rebound in Apple shares.
Investors will look to next week's Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. At the end of a two-day meeting on 16-17 September 2014, the FOMC is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008
Powered by Capital Market - Live News