A bout of volatility was witnessed as key benchmark indices weakened once again and hit fresh intraday low after staging a mild recovery from lower level. The barometer index, the S&P BSE Sensex, was currently down 109.33 points or 0.4% at 27,210.52. The market breadth indicating the overall health of the market was positive. Some capital goods stocks declined. But, ABB India bucked the trend after the company's overseas parent firm ABB today, 9 September 2014, announced up to $4 billion share buyback program. Auto stocks were mixed.
Earlier, key indices had briefly reversed small losses registered in early trade.
European stocks edged higher in early trade there. Asian stocks rose, with Japanese shares gaining on a weak yen. Brent crude oil futures fell, extending previous day's decline.
At 13:15 IST, the S&P BSE Sensex was down 109.33 points or 0.4% at 27,210.52. The index fell 125.82 points at the day's low of 27,194.03 in 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 37.65 points or 0.46% at 8,136.25. The index hit a low of 8,131.55 in intraday trade. The index hit a high of 8,174.55 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,469 shares gained and 1,353 shares fell. A total of 85 shares were unchanged.
The BSE Mid-Cap index was up 32.78 points or 0.33% at 9,826.43. The BSE Small-Cap index was up 9.98 points or 0.09% at 10,861.81. Both these indices outperformed the Sensex.
Some capital goods stocks declined. Bharat Heavy Electricals (Bhel) (down 0.9%), BEML (down 1.97%), and Bharat Electronics (down 0.87%), declined.
L&T dropped 1.15%. 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.
ABB India jumped 5.07% to Rs 1,167.95 after the company's overseas parent firm ABB today, 9 September 2014, announced up to $4 billion share buyback program. The stock hit a 52-week high of Rs 1,225.55 in intraday trade. The parent firm said that the company intends to allocate approximately three-quarters of the buyback program to a reduction of share capital and the remainder to support its employee share programs globally with a total of more than 22,000 participants.
The parent firm also today, 9 September 2014, presented its next level strategy and financial targets for the period 2015-2020, aimed at accelerating sustainable value creation. The world's biggest maker of power grids said it expects to grow operational earnings per share by 10% to 15% on a compound annual basis between 2015 and 2020. It aims to boost comparable sales by 4% to 7%, the company said.
Auto stocks were mixed. Maruti Suzuki India (down 0.19%), Hero MotoCorp (down 0.78%) and Bajaj Auto (down 1.66%) declined.
TVS Motor Company (up 2.68%), Tata Motors (up 0.88%), Ashok Leyland (up 6.43%), and Mahindra & Mahindra (M&M) (up 0.33%) edged higher.
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 10 cents at $100.10 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 60.5225, 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.
European stocks edged higher today, 9 September 2014, after their biggest two-day decline in a month. Key benchmark indices in France and UK were up 0.03% to 0.12%. In Germany, the DAX index was off 0.06%.
The French trade deficit fell less-than-expected in July, industry data showed today, 9 September 2014. In a report, Ministry of Finance said that French trade deficit was at 5.5 billion euros, from 5.6 billion euros in the prior month whose figure was revised from 5.4 billion euros.
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 0.32%. Indonesia's Jakarta Composite fell 0.77%. China's Shanghai Composite was flat. Stock markets in Hong Kong and South Korea are closed for a holiday.
Trading in US index futures indicated that the Dow could gain 12 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.
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.
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