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Sensex slips into the red

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Last Updated : Jun 28 2014 | 12:01 AM IST

A bout of volatility was witnessed as key benchmark indices reversed gains and hit fresh intraday low in early afternoon trade. The barometer index, the S&P BSE Sensex, was down 7.97 points or 0.03%, off close to 155 points from the day's high. The market breadth indicating the overall health of the market was positive. Weakness in Asian stocks weighed on sentiment.

PSU OMCs edged higher as crude prices dropped. GAIL (India) edged lower on reports more than a dozen people were killed today, 27 June 2014, after a blast at a gas pipeline operated by GAIL (India) in Andhra Pradesh.

At 12:20 IST, the S&P BSE Sensex was down 7.97 points or 0.03% to 25,054.70. The index jumped 146.94 points at the day's high of 25,209.61 in early trade. The index shed 9.54 points at the day's low of 25,053.13 in early afternoon trade.

The CNX Nifty was almost unchanged for the day at 7,493. The index hit a high of 7,538.75 in intraday trade. The index hit a low of 7,492.40 in intraday trade.

The market breadth indicating the overall health of the market was positive. On BSE, 1,448 shares gained and 1,167 shares fell. A total of 110 shares were unchanged.

The BSE Mid-Cap index was up 1.58 points or 0.02% at 9,182.42. The BSE Small-Cap index was up 28.61 points or 0.29% at 10,009.99. Both these indices outperformed the Sensex.

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PSU OMCs edged higher as crude prices dropped. HPCL (up 1.11% to Rs 402.50), Indian Oil Corporation (IOCL) (up 1.13% to Rs 332) and BPCL (up 0.67% to Rs 571.60) gained. Lower crude oil prices will decrease under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.

GAIL (India) dropped on reports more than a dozen people were killed today, 27 June 2014, after a blast at a gas pipeline operated by GAIL (India) in Andhra Pradesh. The stock was off 1.48% at Rs 452.95. The stock hit high of Rs 461.05 and low of Rs 451.25 so far during the day. The victims were local residents and a fire at the scene had been brought under control, reports said.

The 18-inch diameter pipeline supplies gas to a power plant operated by Lanco Infratech. Shares of Lanco Infratech dropped 0.26% to Rs 11.58.

ONGC rose 0.72% to Rs 414.05. The stock hit high of Rs 418.80 and low of Rs 410.50 so far during the day. As per reports, ONGC has shut two gas fields in Andhra Pradesh after a blast at a gas pipeline operated by GAIL (India) in Andhra Pradesh killed more than a dozen people.

Key benchmark indices edged higher amid initial volatility as crude oil prices dropped on Thursday, 26 June 2014. Intraday volatility continued as key benchmark indices pared gains after extending initial gains in morning trade. Key benchmark indices retained positive zone in mid-morning trade. A bout of volatility was witnessed as key benchmark indices reversed gains and hit fresh intraday low in early afternoon trade.

In the foreign exchange market, the rupee edged higher against the dollar as crude dropped. The partially convertible rupee was hovering at 60.125, compared with its close of 60.14/15 on Thursday, 26 June 2014.

Oil prices fell as militant violence in Iraq has not yet affected oil production from the country. Brent crude oil futures for August delivery were down 14 cents at $113.07 a barrel. The contract lost 79 cents to settle at $113.21 on Thursday, 26 June 2014, its lowest settlement since 16 June 2014.

As crude prices dropped, concerns arising from the impact of high crude oil prices on India's macroeconomic situation eased. India imports about 80% of its crude oil requirements.

Meanwhile, rain shortfall shrank in the third week since the onset of its monsoon, recovering a little after a poor start. Rains were 31% below average in the week to June 25, improving from 45% below average in the second week of the monsoon. India's farm sector accounts for 14% of its nearly $2 trillion economy.

The Reserve Bank of India on Thursday, 26 June 2014, said in its Financial Stability Report (FSR) June 2014 that the return to political stability has provided impetus to the domestic economic outlook and the capital markets reflect the expectations on policy measures to address the adverse growth-inflation dynamics and saving-investment balance as also efficient implementation of policies and programmes. Further progress on fiscal consolidation, a predictable tax and policy regime, and low and stable inflation rates will be the key anchors in promoting India's macroeconomic as well as financial stability, RBI Governor Raghuram Rajan said in his foreword to the FSR.

Asian stocks edged lower on Friday, 27 June 2014, after a Federal Reserve official said the US may raise interest rates by March. Key benchmark indices in Japan, Indonesia, Singapore, Hong Kong, South Korea and Taiwan fell by 0.04% to 1.39%. China's Shanghai Composite index rose 0.14%.

Trading in US index futures indicated that the Dow could fall 17 points at the opening bell on Friday, 27 June 2014. US stocks slipped for the third time in four days on Thursday, 26 June 2014, after James Bullard, president of the Federal Reserve Bank of St. Louis, suggested that higher interest rates may happen sooner than people thought. Economic data showing that consumer spending rose less than forecast also led to losses in US stocks. Bullard, speaking in an interview to a business channel, predicted the central bank's first interest-rate rise will happen in the first quarter of next year.

Consumer spending, which accounts for about 70% of the economy, climbed 0.2% in May after being little changed in April, US Commerce Department figures showed.

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First Published: Jun 27 2014 | 12:16 PM IST

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