Key benchmark indices hovered between the positive and negative terrain after opening higher as weakness in Asian stocks dampened sentiment. The barometer index, the S&P BSE Sensex was down 13.92 points or 0.05% at 26,802.64. The market breadth indicating the overall health of the market was strong. Asian stocks declined today, 16 September 2014, ahead of the start of a Federal Reserve's two-day policy meeting today, 16 September 2014. The latest data showing India's merchandise exports registered a small increase of 2.35% in August 2014 also weighed on sentiment.
Cipla gained after the company announced the signing of a non-exclusive licensing agreement with Gilead Sciences, Inc. for manufacturing and distribution of medicines for the treatment of hepatitis C. Hindalco Industries dropped on reports the Jharkhand government has ordered closure of five bauxite mines of aluminium major in the state as these mines have been operating under second deemed renewal. Wipro rose after the company said that its joint-venture subsidiary, Wipro Arabia has entered into a strategic partnership with Saudi-based Saudi Electricity Company (SEC). Larsen & Toubro (L&T) rose after the company said that its construction division has won new orders worth Rs 2050 crore across various business segments in August 2014 and September 2014. Tata Motors declined after the Group global wholesales, including Jaguar Land Rover, fell 9.73% to 73,524 units in August 2014 over August 2013.
At 9:23 IST, the S&P BSE Sensex was down 13.92 points or 0.05% at 26,802.64. The index dropped 50.60 points at the day's low of 26,765.96 in early trade. The index rose 44.73 points at the day's high of 26,861.29 in early trade.
The CNX Nifty was down 7.25 points or 0.09% at 8,034.75. The index hit a high of 8,044.90 in intraday trade. The index hit a low of 8,025.75 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,071 shares gained and 358 shares fell. A total of 50 shares were unchanged.
The BSE Mid-Cap index was up 50.20 points or 0.5% at 10,051.86. The BSE Small-Cap index was up 77.56 points or 0.69% at 11,323.08. Both these indices outperformed the Sensex.
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Tata Motors declined 0.74% after the company's Group global wholesales, including Jaguar Land Rover, fell 9.73% to 73,524 units in August 2014 over August 2013. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range declined 19.6% to 30,536 units in August 2014 over August 2013. Global wholesales of all passenger vehicles slipped 1.11% to 42,988 units in August 2014 over August 2013.
Larsen & Toubro (L&T) rose 0.46% after the company after market hours on Monday, 15 September 2014 said that its construction division has won new orders worth Rs 2050 crore across various business segments in August 2014 and September 2014.
Wipro rose 0.74% after the company said after market hours on Monday, 15 September 2014 that the company's joint-venture subsidiary, Wipro Arabia has on Monday, 15 September 2014, entered into a strategic partnership with Saudi-based Saudi Electricity Company (SEC), the largest power utility company in the Middle East serving approximately 5 million customers in the Kingdom of Saudi Arabia (KSA). As part of this engagement, Wipro will implement and rollout the plant maintenance and project system functionality of the SAP ERP application for SEC's distribution business line across KSA.
Cipla gained 0.33% after the company said after market hours on Monday, 15 September 2014 announced the signing of a non-exclusive licensing agreement with Gilead Sciences, Inc. for manufacturing and distribution of medicines for the treatment of hepatitis C. Under this licensing agreement, Cipla will be allowed to manufacture and market Sofosbuvir, Ledipasvir in 91 countries including its home markets India and South Africa under Cipla's own brand names. It also covers countries like Egypt which has a high incidence of Hepatitis C. The countries within the agreement account for more than 100 million people living with hepatitis C globally representing 54% of the total global infected population. As per the agreement, Cipla has the option of receiving a technology transfer of the manufacturing process from Gilead.
Cadila Healthcare rose 0.6%. Cadila Healthcare and Gilead Sciences, Inc. on Monday, 15 September 2014 announced that they have signed a non-exclusive licensing agreement which will allow the generic manufacture of sofosbuvir and investigational single tablet regimen of ledipasvir/ sofosbuvir for distribution in 90 developing countries, including India.
Ranbaxy Laboratories rose 1.16%. Epirus Biopharmaceuticals Inc reportedly said India's drug regulator has approved its copy of a top-selling arthritis treatment, paving the way for its launch in the country early next year. The company's Indian partner, Ranbaxy Laboratories will sell a copycat version of Johnson & Johnson's and Merck & Co Inc's infliximab, an anti-inflammatory drug with annual sales of about $6 billion. Infliximab, sold under the brand name Remicade, is used to treat rheumatoid arthritis, Crohn's Disease, psoriasis and other inflammatory conditions. In India, it sells at about Rs 70,000 ($1,150) per month.
Hindalco Industries dropped 1.13% on reports the Jharkhand government has ordered closure of five bauxite mines of aluminium major in the state as these mines have been operating under second deemed renewal.The state government had issued similar closure notice to 12 iron ore mines of Tata Steel and Steel Authority of India along with Hindalco on September 8. The central government had ordered in July demanding closure of all mineral mine leases which fall under second deemed renewal.
On macro front, India's merchandise exports registered a small increase of 2.35% at $26.95 billion in August 2014 over August 2013, data released by the government after trading hours yesterday, 15 September 2014, showed. Imports rose 2.08% at $37.79 billion in August 2014 over August 2013. Oil imports declined 14.97% at $12.83 billion in August 2014 over August 2013. Non-oil imports jumped 13.82% at $24.95 billion in August 2014 over August 2013. The trade deficit increased to $10.83 billion in August 2014, from $10.68 billion in August 2013.
The provisional data released by the stock exchanges after trading hours on Monday, 15 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 74.59 crore on that day.
Asian stocks declined today, 16 September 2014, ahead of the start of a Federal Reserve policy meeting today, 16 September 2014. Key benchmark indices in Indonesia, Singapore, Taiwan and Japan fell by 0.1% to 0.56%. Key benchmark indices in China and South Korea rose 0.08% to 0.39%.
The morning session on the Hong Kong Stock Exchange was canceled due to Typhoon Kalmaegi.
Foreign direct investment into China, a gauge of external confidence, slumped to a four-year low amid widening antitrust probes into multinational companies. Inbound investment was $7.2 billion in August, down 14% from a year earlier, the Ministry of Commerce said on its website today in Beijing after a 17% drop in July. It was the first back-to-back decline of more than 10% since 2009.
US stocks closed mostly lower on Monday, 15 September 2014, with losses led by technology and small-cap stocks as investors continued to unload riskier position ahead of this week's pivotal Federal Reserve policy meeting.
Economic data yesterday showed US industrial production unexpectedly declined in August for the first time in seven months as automakers slowed assembly lines.
Investors will look to Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. A two-day policy meeting of the Federal Open Market Committee (FOMC) starts today, 16 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.
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