Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit one-week low. The Sensex was down 133.23 points or 0.61%, off close to 75 points from the day's high and up about 30 points from the day's low. The market breadth, indicating the overall health of the market, was weak. Weakness in Asian stocks hit sentiment on the domestic bourses adversely.
Bank stocks declined ahead of the announcement of data on wholesale price inflation for the month of February 2014 at 12:00 IST today, 14 March 2014. Sun Pharmaceutical Industries edged lower in choppy trade.
The market edged lower in early trade on weak Asian stocks. The Sensex languished in negative terrain in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. The Sensex and the 50-unit CNX Nifty, both, hit one-week low.
The stock market remains closed on Monday, 17 March 2014, on account of Holi.
Asian stocks edged lower on Friday, 14 March 2014, after at least four investment banks lowered forecasts for China's 2014 economic expansion after reports on Thursday, 13 March 2014, showed factory output rose in January and February from a year earlier by the least since the global financial crisis, while retail sales grew at the slowest rate for the period since 2004.
At 11:24 IST, the S&P BSE Sensex was down 133.23 points or 0.61% to 21,641.38. The index shed 166.24 points at the day's low of 21,608.37 in mid-morning trade, its lowest level since 7 March 2014. The index dropped 60.17 points at the day's high of 21,714.44 in morning trade.
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The CNX Nifty was down 43 points or 0.68% to 6,450.10. The index hit a low of 6,436.70 in intraday trade, its lowest level since 7 March 2014. The index hit a high of 6,472.95 in intraday trade.
The BSE Mid-Cap index was off 42.18 points or 0.63% at 6,629.36. The BSE Small-Cap index was off 47.48 points or 0.71% at 6,602.71. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,401 shares fell and 767 shares rose. A total of 113 shares were unchanged.
Bharti Airtel (down 2.35%), L&T (down 1.54%) and Sesa Sterlite (down 1.63%) edged lower from the Sensex pack.
Bank stocks declined ahead of the announcement of data on wholesale price inflation for the month of February 2014 at 12:00 IST today, 14 March 2014. Among private sector banks, ICICI Bank (down 1.63%), Yes Bank (down 2.03%), Federal Bank (down 1.11%), Kotak Mahindra Bank (down 2.92%) and AXIS Bank (down 1.5%), declined.
Among PSU bank stocks, SBI (down 0.05%), Canara Bank (down 1.98%), Union Bank of India (down 2.96%), Bank of India (down 2.82%) and Bank of Baroda (down 1.38%) dropped.
Punjab National Bank shed 0.9%. The bank announced after market hours on Thursday, 13 March 2014, that Dr. R. S. Sangapure has been appointed as Executive Director of the bank in terms of Department of Financial Services, Ministry of Finance, Government of India Notification dated 13 March 2014 for a period upto 28 February 2018 i.e. the date of attaining the age of superannuation or until further orders, whichever is earlier. Further the Bank has informed that, Dr. Sangapure has assumed the charge of Executive Director on 13 March 2014.
Sun Pharmaceutical Industries was off 0.8% at Rs 569, with the stock extending Thursday's 5.13% slide triggered by USFDA issuing an import alert for the company's cephalosporin facility located at Karkhadi, Gujarat in India. The stock was volatile. The scrip hit high of Rs 579 and low of Rs 552.50 so far during the day. The company during trading hours on Thursday, 13 March 2014, said that the United States Food and Drug Administration (USFDA) has issued an import alert for the company's cephalosporin facility located at Karkhadi, Gujarat in India. The import alert was issued by the USFDA as a follow up to the last inspection of the facility, during which some non-compliance of current Good Manufacturing Practice (cGMP) regulations were identified, Sun Pharma said in a statement.
Sun Pharma said it remains fully committed to compliance and has already initiated several corrective steps to address the observations made by the USFDA. The contribution of this facility to Sun Pharma's consolidated revenues is negligible. Sun Pharma said that there is no change in the company's consolidated sales growth guidance for the year ending March 2014.
At the time of the announcement of Q3 December 2013 results last month, Sun Pharmaceutical Industries had raised its consolidated revenue growth guidance to 29% for the year ending 31 March 2014, from the previous guidance of 25%. The guidance is at constant exchange rate.
Gujarat Gas Company rose 2.07% after the company said it has accepted the authorization in Schedule D of the PNGRB to lay, build, operate, or expand local natural gas distribution network in Bhavnagar district. The announcement was made after market hours on Thursday, 13 March 2014.
Gujarat Gas Company (GGCL) said that pursuant to the receipt of letter from PNGRB dated 5 March 2014 granting GGCL an authorisation to lay, build, operate, or expand city or local natural gas distribution network (CGD network) for the geographical area of Bhavnagar comprising of Bhavnagar district and few talukas of the newly formed district of Botad, GGCL has accepted the authorisation in Schedule D of the PNGRB (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulation, 2008, vide a confirmation letter to PNGRB on Thursday, 13 March 2014.
As per the provisions of the PNGRB (Exclusivity for City or Local Natural Gas Distribution Networks) Regulation, 2008, GGCL has been granted 300 months of infrastructure exclusivity i.e. valid up to 4 March 2039 and 60 months of marketing exclusivity valid up to 6 March 2019 for the CGD network. Further, the Authorised area for laying, building, operating or expanding the proposed CGD Network shall cover a geographical area of 8,153 square kilometers (sq.km), Gujarat Gas said.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment. The partially convertible rupee was hovering at 61.525, compared with its close of 61.17/18 on Thursday, 13 March 2014.
Inflation based on the wholesale price index (WPI) is seen easing at 4.9% in February 2014, from 5.05% in January 2014, as per the median estimate of a poll of economists carried out by Capital Market. The data on inflation based on the wholesale price index (WPI) for February 2014 is due at 12:00 IST today, 14 March 2014.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
The next major trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Lok Sabha elections will be held between 7 April 2014 and 12 May 2014 in nine phases. The counting of votes will be take place on 16 May 2014. The term of the current Lok Sabha expires on June 1 and the new House has to be constituted by May 31. Along with the Lok Sabha election, Andhra Pradesh (AP), including the regions comprising Telangana, Odisha and Sikkim will go to polls to elect new assemblies. AP, Odisha and Sikkim assemblies come to end on June 2, June 7 and May 7 respectively.
Asian stocks edged lower on Friday, 14 March 2014, after at least four investment banks lowered forecasts for China's 2014 economic expansion after reports on Thursday, 13 March 2014, showed factory output rose in January and February from a year earlier by the least since the global financial crisis, while retail sales grew at the slowest rate for the period since 2004. Key benchmark indices in China, Indonesia, South Korea, Taiwan, Hong Kong, Japan and Singapore were off 0.5% to 3.6%.
China's Premier Li Keqiang told reporters on Thursday, 13 March 2014, that the nation's 2014 goal of 7.5% economic growth is flexible and some financial-product defaults may be unavoidable.
Trading in US index futures indicated that the Dow could drop 12 points at the opening bell on Friday, 14 March 2014. US stocks tumbled on Thursday, 13 March 2014, as disappointing China data and ongoing tension in Ukraine overshadowed reports showing improvement in the American economy. The implied volatility on the S&P 500 as measured by the CBOE Vix index, dubbed "Wall Street fear gauge" jumped 12.1% to the highest level since early February.
Global concerns overshadowed better-than-forecast data in the US retail sales rose in February for the first time in three months, as Americans ventured out to shop last month even as colder-than-normal temperatures and severe snowstorms blanketed parts of the US.
The number of Americans filing applications for unemployment benefits unexpectedly fell last week to the lowest level since the end of November, a sign of further improvement in the labor market. Jobless claims dropped by 9,000 to 315,000 in the week ended March 8, a Labor Department report showed in Washington.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion.
The Black Sea region of Crimea votes March 16 on becoming independent or rejoining Russia, with the US and Germany threatening Moscow with sanctions over its support for the secession. Russia launched new military exercises near its border with Ukraine on Thursday, showing no sign of backing down in its plans to annex its neighbour's Crimea region despite a stronger than expected drive for sanctions from the EU and United States.
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