After hitting fresh intrday low, key benchmark indices continued to languish in red in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 96.38 points or 0.35% at 27,223.47. The market breadth indicating the overall health of the market was positive. IT stocks edged lower. Bank stocks were mixed. Shares of tyre makers surged as domestic rubber prices have fallen to a five-year low.
Earlier, key indices had briefly reversed small losses registered in early trade.
Asian stocks were in green, with Japanese shares gaining on a weak yen. Brent crude oil futures fell, extending previous day's decline.
Meanwhile, a research report released yesterday, 8 September 2014, by the Federal Reserve Bank of San Francisco, fueled expectations for an earlier rate hike by the US Federal Reserve. Ahead of next week's FOMC policy meeting, which will be scrutinized for clues on the timing of the decision to raise interest rates, the report said that evidence based on surveys, market expectations, and models shows that the public seems to expect a more accommodative policy than do the Federal Open Market Committee (FOMC) participants.
At 12:15 IST, the S&P BSE Sensex was down 96.38 points or 0.35% at 27,223.47. The index fell 117.32 points at the day's low of 27,202.53 in early afternoon trade. The index rose 8.42 points at the day's high of 27,328.27 in early trade.
The CNX Nifty was down 33.40 points or 0.41% at 8,140.50. The index hit a low of 8,134.40 in intraday trade. The index hit a high of 8,174.55 in intraday trade.
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The market breadth indicating the overall health of the market was positive. On BSE, 1,402 shares gained and 1,289 shares fell. A total of 83 shares were unchanged.
The BSE Mid-Cap index was up 31.45 points or 0.32% at 9,825.12. The BSE Small-Cap index was off 3.51 points or 0.03% at 10,848.32. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1707 crore by 12:15 IST compared to Rs 1253 crore by 11:15 IST.
Bharti Airtel rose 1.19%. Bharti Airtel said in a statement that while the company's network has been down in some parts of Jammu & Kashmir as a result of the unprecedented flooding there, the company's teams have been able to manage to revive several parts of the network there. Bharti Airtel said that the company is constantly monitoring the situation and is working with the authorities to normalize the services in the affected areas at the earliest possible. Bharti Airtel further said that the management believes that this temporary disruption will not cause any material loss in revenues or to the assets of the company.
Bharti Infratel lost 3.9%. Bharti Infratel said in a statement that while some of company's operations in some parts of Jammu & Kashmir have been affected in the unprecedented flooding there, the company's teams have been able to manage to materially mitigate the consequences. The company's teams are constantly monitoring the situation and are working with the authorities to fully normalize the operations in the affected areas at the earliest possible, Bharti Infratel said. The company further said it is adequately insured and the management does not expect any material financial impact on the company.
Larsen & Toubro (L&T) fell 1.07%. L&T said during market hours that in a move to strengthen its design base in the infrastructure space, the company has acquired 50% of stake in L&T-Ramboll Consulting Engineers (LTR) hitherto held by Ramboll Denmark AS. With this acquisition, LTR now becomes a wholly owned subsidiary of L&T.
IT stocks edged lower. Infosys (down 1.39%), Wipro (down 1.01%), HCL Technologies (down 1.25%), Tech Mahindra (down 1.43%), Polaris Financial Technology (down 0.76%), Hexaware Technologies (down 0.26%) and MphasiS (down 0.22%) declined.
Tata Consultancy Services (TCS) shed 0.17% to Rs 2,631.65. The stock was volatile. The stock hit high of Rs 2,667 and low of Rs 2,626.25 so far during the day. TCS on Monday, 8 September 2014, reportedly reiterated its revenue and margin outlook for year ending 31 March 2015 (FY 2015).
Bank stocks were mixed. Among private bank stocks, HDFC Bank (up 0.16%) and Kotak Mahindra Bank (up 0.32%) rose. Yes Bank (up 0.85%), IndusInd Bank (down 0.51%), Axis Bank (down 0.53%), and ICICI Bank (down 1.23%) declined.
PSU bank stocks were mixed. Punjab National Bank (up 0.16%), Bank of Baroda (up 1.44%), Bank of India (up 0.37%) and State Bank of India (SBI) (up 0.03%) gained.
Andhra Bank (down 1.71%), Oriental Bank of Commerce (down 1.61%) and Union Bank of India (down 0.98%) declined.
Shares of tyre makers surged as domestic rubber prices have fallen to a five-year low.
CEAT jumped 4.27% at Rs 811.40. The stock hit a record high of Rs 848.90 in intraday trade.
JK Tyre & Industries rose 2.56% at Rs 380. The stock hit a record high of Rs 391.55 in intraday trade.
Apollo Tyres rose 2% at Rs 213.85. The stock hit a record high of Rs 217.70 in intraday trade.
MRF rose 1.14% at Rs 29,925. The stock hit a record high of Rs 30,289 in intraday trade.
Goodyear India advanced 2.51% at Rs 647.50. The stock hit a record high of Rs 663 in intraday trade.
TVS Srichakra surged 3.02% at Rs 990.05. The stock hit a record high of Rs 1,009.05 in intraday trade.
As per reports, domestic rubber prices have seen sharpest fall in five years, hitting Rs 126 per kg. Decline in rubber prices could boost profit margin of tyre firms. Rubber is a key raw material in tyre manufacturing. Also recent steep decline in crude oil prices aided rally in tyre stocks. Nearly 30% of raw material for tyres is derived from crude products.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 8 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1162.98 crore on that day.
Brent crude oil futures edged lower, extending previous day's decline ahead of the weekly oil inventory data in the US, the biggest crude oil consumer. Brent for October settlement was off 25 cents at $99.95 a barrel. The contract fell 62 cents to settle at $100.20 a barrel yesterday, 8 September 2014. It had slumped to $99.36 in intraday trade yesterday, the lowest since 1 May 2013, before rebounding into three-digit territory.
Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Iraq's parliament yesterday, 8 September 2014, approved a new government headed by Prime Minister Haider al-Abadi in a move to save Iraq from collapse.
The European Union yesterday, 8 September 2014, adopted new sanctions against Russia over the Ukraine crisis, but enforcement will be delayed while an assessment is being done on whether a ceasefire in Ukraine is holding. The measures will target the ability of Russia's top oil producers to raise capital in Europe, according to reports.
In the foreign exchange market, the rupee edged lower against the dollar on a broad strength in dollar in global currency markets. The partially convertible rupee was hovering at 60.43, compared with its close of 60.295 on Monday, 8 September 2014.
Meanwhile, as per a statement issued by White House on Monday, 8 September 2014, India's Prime Minister Narendra Modi will meet US President Barack Obama at the White House on 29-30 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.
Asian stocks were trading higher today, 9 September 2014, with Japanese shares gaining on a weak yen. Key benchmark indices in Singapore, Japan and Taiwan were up 0.28% to 0.29%. Key benchmark indices in China and Indonesia were off 0.14% to 0.73%. Stock markets in Hong Kong and South Korea are closed for a holiday.
Trading in US index futures indicated that the Dow could fall 15 points at the opening bell on Tuesday, 9 September 2014. Most US stocks fell on Monday, 8 September 2014, as declining oil prices sent shares of energy companies lower.
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