After seeing intraday volatility, key benchmark indices registered small losses at close after the Supreme Court in its verdict announced today, 24 September 2014, scrapped 214 out of 218 coal blocks allocated between 1993 and 2010 it had already declared illegal due to irregularities in the allocation of the blocks. Key indices reversed intraday losses after a sharp slide post the court ruling which hit the market at around 14:05 IST. Benchmark indices once again slipped into the red later. The 50-unit CNX Nifty managed to hold the psychological 8,000 level. The index alternately moved above and below that mark in intraday trade. With a small decline, the barometer index, the S&P BSE Sensex, and the Nifty, both, hit one-week closing low. The Sensex lost 31 points or 0.12% to settle at 26,744.69. The market breadth was weak with more than two losers for every gainer on BSE. The BSE Mid-Cap index lost 1.19%. The BSE Small-Cap index lost 1.62%. Foreign portfolio investors sold shares worth a net Rs 942.46 crore into the secondary equity markets yesterday, 23 September 2014, as per the data from the Securities and Exchange Board of India.
Bank stocks declined on concerns of bad loans due to their exposure to coal mines after the Supreme Court's verdict on coal block allocation. Shares of Coal India jumped. Capital goods stocks declined. IT stocks were mixed. Titan Company advanced after board's in-principle nod to spin off the precision engineering division of the company as a wholly owned subsidiary. Thermax surged after the company's joint venture with a US-based firm received an order worth about Rs 339 crore. Oracle Financial Services Software tumbled on turning ex-dividend today, 24 September 2014. CARE tumbled on turning ex-dividend today, 24 September 2014.
The Supreme Court in its final verdict has given six months' breathing time for the blocks to wind up operations. The Supreme Court said that it saw no reason to save the blocks as the allocations were arbitrary. Allottees have been asked to pay a fine of Rs. 295 per tonne from the time the coal was mined. The government is now free to auction or allot the blocks to central firms. The 4 coal blocks which are exempt from the verdict are run by the Central government with no joint venture with the private sector.
Meanwhile, Prime Minister Narendra Modi leaves for a five-day visit to the United States tomorrow, 25 September 2014, hours after the launch of the "Make in India" campaign in Delhi.
In overseas markets, European stocks were mixed after data showed German business confidence fell for a fifth month in September. Chinese shares led gains for Asian stocks after better-than-anticipated Chinese manufacturing data announced yesterday, 23 September 2014. US stocks declined for the third straight session yesterday, 23 September 2014, as a weak report on Europe's economy fueled more investor jitters about global growth.
Earlier, the Sensex and the 50 unit CNX Nifty had recovered after the two indices hit their lowest level in almost a week in morning trade.
Brent crude oil prices edged lower in choppy trade ahead of weekly US oil inventory data from US Energy Information Administration.
Also Read
In the foreign exchange market, the rupee was almost unchanged in choppy trade against the dollar.
The S&P BSE Sensex lost 31 points or 0.12% to settle at 26,744.69, its lowest closing level since 17 September 2014. The index lost 215.69 points at the day's low of 26,560 in mid-afternoon trade. The index rose 69.01 points at the day's high of 26,844.70 in mid-morning trade.
The CNX Nifty shed 15.15 points or 0.19% to settle at 8,002.40, its lowest closing level since 17 September 2014. The index hit a low of 7,950.05 in intraday trade. The index hit a high of 8,042.05 in intraday trade.
The market breadth was weak with more than two losers for every gainer on BSE. 1,999 shares fell and 971 shares rose. A total of 92 shares were unchanged.
The BSE Mid-Cap index lost 115.32 points or 1.19% to settle at 9,580.83. The BSE Small-Cap index shed 177.86 points or 1.62% to settle at 10,791.44. Both these indices underperformed the Sensex.
Share of Coal India jumped 5.02% at Rs 351.35 after the Supreme Court's ruling on illegal coal blocks.
Among the sectoral indices on BSE, the S&P BSE Auto index (down 0.51%), Bankex index (down 1.08%), Consumer Durables index (down 1.27%), Capital Goods index (down 1.69%), IT index (down 0.14%), Power index (down 0.36%), Realty index (down 1.69%), and Teck index (down 0.35%), underperformed the Sensex.
The FMCG index (up 1.75%), Healthcare index (up 0.55%), Metal index (down 0.02%), and Oil & Gas index (up 0.23%), outperformed the Sensex.
Metal and mining stocks declined after the Supreme Court's verdict on coal block allocation. Jindal Steel & Power (down 9.99%), Tata Steel (down 2.63%), Steel Authority of India (down 2.89%), NMDC (down 0.21%), and Hindalco Industries (down 0.48%) declined. Hindustan Zinc (up 2.24%) and JSW Steel (up 1.29%), and Sesa Sterlite (up 0.09%) gained.
Bank stocks declined on concerns of bad loans due to their exposure to coal mines after the Supreme Court's verdict on coal block allocation.
Among PSU banks, Canara Bank (down 4.95%), Union Bank of India (down 1.94%), Bank of India (down 5.57%), Punjab National Bank (down 4.28%) Syndicate Bank (down 3.42%), Indian Overseas Bank (down 0.75%), Andhra Bank (down 4%), Oriental Bank of Commerce (down 3.33%), Dena Bank (down 1.98%), and Indian Bank (down 0.33%) declined.
State Bank of India lost 2.68% at Rs 2,487.40. The bank after market hours said that the central board of the bank at its meeting held today, 24 September 2014, approved a 10-for-1 stock split.
Shares of private sector banks also dropped. ICICI Bank (down 1.42%), IndusInd Bank (down 1.23%), Yes Bank (down 2.47%), Kotak Mahindra Bank (down 0.2%) and Axis Bank (down 0.65%) declined. HDFC Bank (up 0.62%) and Federal Bank (up 0.72%) gained.
ING Vysya Bank rose 1.05% at Rs 617.90 after the bank after market hours on Tuesday, 23 September 2014 said that its board of directors at a meeting held on 22 September 2014, approved raising debt in the form of infrastructure bonds in the nature of debentures not exceeding Rs 250 crore. The board also approved issuance of Tier I and/or Tier II debt not exceeding Rs 450 crore as revised from the earlier approved amount of Rs 700 crore by the board of directors at their meeting held on 22 July 2014.
FMCG stocks surged in a weak market. Hindustan Unilever (up 2.87%), Nestle India (up 3.2%), Dabur India (up 1.74%), Colgate-Palmolive (India) (up 1.5%), ITC (up 1.58%), Godrej Consumer Products (up 1.62%), and Jubilant FoodWorks (up 0.14%) gained.
Capital goods stocks edged lower. ABB (down 3.23%), Bharat Heavy Electricals (down 2.06%), L&T (down 2.09%), Siemens (down 2.11%) and Alstom T&D India (down 1.51%) declined.
Crompton Greaves lost 0.75% at Rs 205.90. The company during market hours announced a $25 million new contract win for the design, construction and delivery of 16 mobile substations. The order was placed by the General Directorate for Transmission, Upper Euphrates Region, Ministry of Electricity in Iraq.
Thermax jumped 3.26% at Rs 917.60 after the company after market hours on Tuesday, 23 September 2014, said that Thermax Babcock & Wilcox Energy Solutions (TBWES), a joint venture of Thermax and US based Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), has received an export order from B&W PGG for detailed engineering, manufacturing and supply of selective items for two pulverized coal-fired boilers for an international project. The contract value is approximately Rs 339 crore.
IT stocks were mixed. MindTree (down 1.7%), TCS (down 1.69%), HCL Technologies (down 0.78%) and Persistent Systems (down 0.06%) declined. MphasiS (up 0.01%). Wipro (up 1.56%) and Infosys (up 1.01%) gained.
Tech Mahindra rose 0.51% at Rs 2,480.90. The company during market hours in a clarification with regard to news item titled "Geometric Limited is being acquired by Tech Mahindra" said that it is not in negotiation for acquisition of Geometric.
Geometric rose 0.03% at Rs 162.15.
Oracle Financial Services Software (OFSS) tumbled 12.89% at Rs 3,448.30 as the stock turned ex-dividend today, 24 September 2014, for an interim dividend of Rs 485 per share for the year ending 31 March 2015.
CARE lost 4.21% at Rs 1,504.20 as the stock turned ex-dividend for a total dividend of Rs 75 per share for the year ending 31 March 2015. This comprises of final dividend of Rs 10 per share and a special dividend of Rs 65 per share.
Titan Company rose 0.59% at Rs 392.55. The company during market hours said its board of directors at its meeting held on Tuesday, 23 September 2014, taken an in-principle decision to spin off the precision engineering division of the company as a wholly owned subsidiary, subject to applicable approvals.
Educomp Solutions rose 2.46% at Rs 33.30. The company in a clarification during market hours with regard to news item titled "Birla, Varkey eye Educom schools" said that there is no such proposal under active consideration. The said report is speculative and hence denied, Educomp said.
The market may remain volatile tomorrow, 25 September 2014, as traders roll over positions in the futures & options (F&O) segment from the near month September 2014 series to October 2014 series. The near-month September 2014 F&O contracts expire tomorrow, 25 September 2014.
The Sensex fell for a second straight day today, 24 September 2014. From recent high of 27,206.74 on 22 September 2014, the Sensex has lost 462.05 points or 1.69%. The Sensex has gained 106.58 points or 0.4% in this month so far (till 24 September 2014). The Sensex has gained 5,574.01 points or 26.32% in calendar year 2014 so far (till 24 September 2014). From a record high of 27,354.99 on 8 September 2014, the Sensex has declined 610.30 points or 2.23%. From a 52-week low of 19,264.72 on 1 October 2013, the Sensex has risen 7,479.97 points or 38.82%.
In the foreign exchange market, the rupee was almost unchanged in choppy trade against the dollar. The partially convertible rupee was hovering at 60.95, compared with its close of 60.955 during the previous trading session.
Brent crude oil prices edged lower in choppy trade ahead of weekly US oil inventory data from US Energy Information Administration. Brent for November settlement was off 31 cents at $96.54 a barrel. The contract had fallen 12 cents a barrel or 0.12% to settle at $96.85 a barrel yesterday, 23 September 2014.
The US and its Arab allies that have joined the fight against Islamic State launched airstrikes into Syria, in the first major expansion of a campaign to defeat the militants.
Meanwhile, NATO said Russia has embarked on a significant withdrawal of its forces from Ukraine, adding to signs that a truce is taking hold.
India made history today, 24 September 2014, by successfully placing its spacecraft, Mangalyaan, in orbit around Mars, becoming the first country in the world to succeed in such an inter-planetary mission in the maiden attempt itself.
Prime Minister Narendra Modi will launch Make in India initiative on 25 September 2014. The launch will be at both national level, state level and in Missions abroad. The initiative is one of the several steps which government has announced in order to improve ease of doing business in India and attract investments to boost manufacturing in the country.
Modi leaves for a five-day visit to the United States tomorrow, 25 September 2014, hours after the launch of the "Make in India" campaign in Delhi. The Indian Prime Minister will meet US President Barack Obama at the White House on 30 September 2014. The two leaders will discuss a range of issues of mutual interest in order to expand and deepen the US-India strategic partnership. They will discuss ways to accelerate economic growth, bolster security cooperation, and collaborate in activities that bring long-term benefits to both countries and the world.
European stocks were mixed today, 24 September 2014, after data showed German business confidence fell for a fifth month in September. Key indices in Germany and France were up 0.11% to 0.49%. In London, the FTSE 100 index was off 0.04%
German business confidence fell for a fifth month even after the European Central Bank stepped up plans to revive the faltering euro-area recovery. The Ifo institute's business climate index, based on a survey of 7,000 executives, dropped to 104.7 in September from 106.3 in August.
Chinese shares led gains for Asian stocks today, 24 September 2014, after better-than-anticipated Chinese manufacturing data announced yesterday, 23 September 2014. Key benchmark indices in China, Hong Kong, Indonesia, Taiwan, and South Korea rose by 0.15% to 1.47%. Key benchmark indices in Indonesia, Japan and Singapore were off 0.24% to 0.27%.
Trading in US index futures indicated that the Dow could gain 44 points at the opening bell on Wednesday, 24 September 2014. US stocks declined Tuesday, 23 September 2014, as a weak report on Europe's economy fueled more investor jitters about global growth.
In economic news, US manufacturing activity hovered at a near 4-1/2-year high in September and factory employment surged, supporting views of sturdy economic growth this quarter. The growth picture was also boosted by other data showing an acceleration in services industry growth this month. Markit said its preliminary or flash US Manufacturing Purchasing Managers Index was at 57.9, unchanged from August's reading when it touched its highest level since April 2010. A reading above 50 signals expansion in manufacturing. Factory employment increased for a second straight month, with a gauge of labor market conditions touching its highest level since March 2012. Separately, the Federal Reserve Bank of Philadelphia said its general activity index for non-manufacturing firms jumped to 35.7 this month from 27.3 in August.
Powered by Capital Market - Live News