Volatility continued as key benchmark indices slipped into the red from positive terrain and hit fresh intraday low in mid-morning trade. Weakness in Asian stocks dampened sentiment. The barometer index, the S&P BSE Sensex, was currently down 81.12 points or 0.32% at 25,584.15. The market breadth indicating the overall health of the market turned negative from positive in mid-morning trade. Shares of defence equipment makers were mixed after the Union Cabinet on Wednesday, 6 August 2014, approved hike in the ceiling on foreign direct investment (FDI) in military-equipment making firms to 49% from 26%.
Earlier, the key benchmark indices had moved into positive zone from negative zone in morning trade.
At 11:32 IST, the S&P BSE Sensex was down 81.12 points or 0.32% to 25,584.15. The index rose 34.78 points at the day's high of 25,715.36 in morning trade. The index declined 105.34 points at the day's low of 25,559.93 in mid-morning trade, its lowest level since 4 August 2014.
The CNX Nifty was down 20.70 points or 0.27% to 7,651.35. The index hit a high of 7,686.70 in intraday trade. The index hit a low of 7,640.80 in intraday trade, its lowest level since 5 August 2014.
The market breadth indicating the overall health of the market turned negative from positive in mid-morning trade. On BSE, 1,238 shares fell and 1,130 shares rose. A total of 93 shares were unchanged.
The BSE Mid-Cap index was down 41.75 points or 0.45% at 9,159.49. The BSE Small-Cap index was down 33.96 points or 0.34% at 10,062.32. Both these indices underperformed the Sensex.
Also Read
TCS (down 1.72%), Infosys (down 1.56%) and Sun Pharmaceutical Industries (down 1.06%) edged lower from the Sensex pack.
Shares of defence equipment makers were mixed after the Union Cabinet on Wednesday, 6 August 2014, approved hike in the ceiling on foreign direct investment (FDI) in military-equipment making firms to 49% from 26%. Astra Micro Wave Products (up 2.35%), Bharat Electronics (up 1.74%), Dynamatic Technologies (up 4.9%), Taneja Aerospace & Aviation (up 1.3%), Bharat Forge (up 0.05%) edged higher. Centum Electronics (down 1.7%), Punj Lloyd (down 1.7%), Pipavav Defence & Offshore Engineering Company (down 0.95%), Tata Power (down 0.37%), L&T (down 0.04%) and Mahindra & Mahindra (down 0.26%) edged lower.
It may be recalled that Finance Minister Arun Jaitley in the Union Budget 2014-15 had announced proposed to raise the ceiling on FDI in defence equipment manufacturing companies to 49% from 26%.
Rossel India was locked at 5% lower circuit at Rs 57.30 on BSE after the company reported net loss of Rs 3.20 crore in Q1 June 2014 as against net profit of Rs 0.59 crore in Q1 June 2013. The Q1 result was announced after market hours on Wednesday, 6 August 2014. Rossel India's total income from operations declined 12.37% to Rs 14.45 crore in Q1 June 2014 over Q1 June 2013.
The government has opened up the defense and railway industries to more investment by foreign firms, in a move to attract more international capital and expertise to the sectors. The Union Cabinet on Wednesday, 6 August 2014, approved raising the maximum amount of foreign ownership allowed in military-equipment making firms to 49% from the previous cap of 26%. It also agreed to allow up to 100% foreign direct investment in railway-construction companies.
Last month, Finance Minister Arun Jaitley in the Union Budget 2014-15 had announced proposed to raise the ceiling on FDI in defence equipment manufacturing companies to 49% from 26%. In his maiden rail budget, Railway Minister D V Sadananda Gowda had last month said that the government was planning to open up the cash-starved railways to FDI.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.405, compared with its close of 61.5025 on Wednesday, 6 August 2014.
Asian stocks fell today, 7 August 2014, as tensions mounted over Ukraine. Key benchmark indices in China, Indonesia, Taiwan, Hong Kong, Singapore, and South Korea were off 0.14% to 0.66%. Japan's Nikkei Average rose 0.29%.
Trading in US index futures indicated that the Dow could gain 37 points at the opening bell on Thursday, 7 August 2014. US stocks edged higher on Wednesday, 6 August 2014, on gains in consumer-staples shares.
The US on Wednesday, 6 August 2014, joined NATO and Poland in warning there's a risk Russia could send troops into Ukraine.
Russia will reportedly ban billions of dollars of food imports from the US and other nations in retaliation for sanctions imposed over the turmoil in Ukraine. Russian President Vladimir Putin yesterday ordered restrictions on imports for one year from countries that have imposed or supported sanctions against Russia
Powered by Capital Market - Live News