Don’t miss the latest developments in business and finance.

Sensex slips below 27,000

Image
Capital Market
Last Updated : Sep 15 2014 | 11:15 AM IST

Key benchmark indices edged lower in early trade as weakness in Asian stocks dampened sentiment. The barometer index, the S&P BSE Sensex slipped below the psychological 27,000 level in opening trade. The Sensex was currently down 193.93 points or 0.72% at 26,867.11. The market breadth indicating the overall health of the market was positive. Domestic data showing sharp drop in growth of industrial production in July 2014 compared with June 2014 also weighed on sentiment. On the flip side, data also showed inflation based on the combined consumer price indices (CPI) for urban and rural India moderated in August 2014. Both the IIP and CPI data was released by the government after trading hours on Friday, 12 September 2014. Asian stocks fell today, 15 September 2014, after Chinese factory and retail data added to evidence a slowdown is deepening in China. Brent crude oil prices extended recent slide.

IDFC dropped after the Capital Raise Committee of the board of directors of the company fixed the issue price of qualified institutions placement at a discount to the ruling price.

At 9:23 IST, the S&P BSE Sensex was down 193.93 points or 0.72% at 26,867.11. The index dropped 196.65 points at the day's low of 26,864.39 in early trade. The index fell 62.97 points at the day's high of 26,998.07 in opening trade.

The CNX Nifty was down 54.60 points or 0.67% at 8,050.90. The index hit a low of 8,046.65 in intraday trade. The index hit a high of 8,077.30 in intraday trade.

The market breadth indicating the overall health of the market was positive. On BSE, 833 shares gained and 779 shares fell. A total of 63 shares were unchanged.

The BSE Mid-Cap index was down 38.47 points or 0.39% at 9,944.61. The BSE Small-Cap index was down 0.81 points or 0.01% at 11,165.98. Both these indices outperformed the Sensex.

More From This Section

GAIL (India) (down 1.63%), Tata Steel (down 1.45%) and Bharat Heavy Electricals (Bhel) (down 1.25%) edged lower from the Sensex pack.

IDFC dropped 0.37% to Rs 145.40 after the Capital Raise Committee of the board of directors of the company fixed the issue price of qualified institutions placement at a discount to the ruling price. The company after market hours on Friday, 12 September 2014 said that the Capital Raise Committee of the board of directors of the company by a resolution dated Friday, 12 September 2014, fixed the issue closing date for the qualified institutions placement as being 12 September 2014. The Committee approved the issuance of 7.30 crore equity shares at a price of Rs 137 per equity share (including a premium of Rs 127 per equity share), aggregating to Rs 1000.10 crore, to qualified institutional buyers, and the issue price was fixed at a price of Rs 137 per equity share.

Zee Entertainment Enterprises fell 0.05%. The company after market hours on Friday, 12 September 2014 said that at the hearing held on 12 September 2014, the Mumbai High Court has approved the scheme of arrangement between Diligent Media Corporation (DMCL) and the company and their respective shareholders and creditors, for demerger of Media Business Undertaking of DMCL vesting with the company with effect from 31 March 2014 (appointed date).

Among macro economic data, index of industrial production (IIP) growth moderated to 0.5% in July 2014, from revised 3.9% rise recorded in June 2014, data released by the government after trading hours on Friday, 12 September 2014, showed. The moderation in the IIP growth in July was mainly contributed by 1% decline in the manufacturing sectors output. On the other hand, the mining sector output increased 2.1%, while the electricity generation posted double-digit growth for second straight month at 11.7%.

The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 7.8% in August 2014, from 7.96% July 2014, data released by the government after trading hours on Friday, 12 September 2014, showed. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India accelerated to 9.42% in August 2014, from 9.36% in July 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 6.9% in August 2014, from 7.4% in July 2014.

The government will release the inflation data based on the Wholesale Price Index (WPI) for August 2014 at 12 noon today, 15 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.

Advance tax payment by India Inc today, 15 September 2014 will provide clues about Q2 September 2014 corporate earnings. Advance taxes are collected in four installments -- 15% by 15 June; 40% by 15 September; 75% by 15 December and 100% by 15 March.

The provisional data released by the stock exchanges after trading hours on Friday, 12 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 182.80 crore on that day.

Asian stocks fell today, 15 September 2014, after Chinese factory and retail data added to evidence a slowdown is deepening in China. Key benchmark indices in Indonesia, South Korea, China, Singapore, Taiwan and Hong Kong fell by 0.1% to 0.77%.

Factory production in China rose 6.9% in August from a year earlier, the statistics office reported on 13 September 2014, down from 9% in July. It was the slowest pace outside the Lunar New Year holiday period of January and February since December 2008. Growth in fixed-asset investment slowed to 16.5% in August, while retail sales expanded 11.9% in August, easing from 12.2% in July.

US stocks edged lower on Friday, 12 September 2014, as investors looked ahead to a Federal Reserve meeting due on 16-17 September 2014.

Investors will look to Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. A policy meeting of the Federal Open Market Committee (FOMC) will be held on 16 and 17 September 2014. At the end of a two-day meeting, 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.

The Fed will also announce US economic projections after the policy meet. Fed now releases economic projections four times a year (March, June, September, and December). Traditionally, the Fed forecasts covered GDP, the PCE price index, and the civilian unemployment rate. However, the forecast report additionally now includes forecasts for the appropriate timing of the next change in the fed funds rate and the expected fed funds rate at the end of the next two years. The policy meet will be followed by a press conference by Federal Reserve Chairwoman Janet Yellen on 17 September 2014.

The Federal Reserve after two-day policy meeting on 30 July 2014, said it would reduce its purchases of mortgage and Treasury bonds by $10 billion to $25 billion monthly from $35 billion earlier, as widely expected.

Powered by Capital Market - Live News

Also Read

First Published: Sep 15 2014 | 9:26 AM IST

Next Story