Key benchmark indices trimmed intraday losses in afternoon trade. The barometer index, the S&P BSE Sensex, was down 300.94 points or 1.42%, up about 60 points from the day's low and off close to 65 points from the day's high. The market breadth indicating the overall health of the market was quite weak with more than three losers for every gainer on BSE. The BSE Mid-Cap was off 1.91% and the Small-Cap index was off 1.85%. All the thirteen sectoral indices on BSE were in the red. Weakness in Asian stocks and a steep slide in US stocks on Friday, 24 January 2014, hit sentiment on the domestic bourses adversely.
Auto stocks dropped ahead of the Reserve Bank of India (RBI) Third Quarter Review of Monetary Policy for 2013-14 tomorrow, 28 January 2014. Tata Motors slumped as the company, before market hours today, 27 January 2014, announced the demise of its Managing Director, Karl Slym. Mining and metal stocks dropped on concerns about slower Chinese growth. Telecom stocks also declined.
Asian stocks dropped on Monday, 27 January 2014, as concern that the global economic recovery is faltering spurred investors to sell riskier assets. Emerging-market stocks fell amid concern that slower Chinese growth and reduced Federal Reserve stimulus will spark more capital outflows.
Key benchmark indices slumped in early trade on weak Asian stocks. The Sensex fell below the psychological 21,000 mark. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in over two weeks. Weakness persisted on the bourses in mid-morning trade. Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. The Sensex trimmed intraday losses in afternoon trade.
The market sentiment was hit adversely by data showing that foreign funds were net sellers of Indian stocks on Friday, 24 January 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 230.96 crore on Friday, 24 January 2014, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire on Thursday, 30 January 2014.
At 13:20 IST, the S&P BSE Sensex was down 300.94 points or 1.42% to 20,832.62. The index lost 359.81 points at the day's low of 20,773.75 in early afternoon trade, its lowest level since 10 January 2014. The index fell 234.53 points at the day's high of 20,899.03 in early trade.
The CNX Nifty was down 88.25 points or 1.41% to 6,178.50. The index hit a low of 6,156.85 in intraday trade, its lowest level since 10 January 2014. The index hit a high of 6,188.55 in intraday trade.
The market breadth indicating the overall health of the market was quite weak with more than three losers for every gainer on BSE. On BSE, 1,788 shares declined and 568 shares gained. A total of 108 shares were unchanged.
The BSE Mid-Cap index was off 123.40 points or 1.91% at 6,331.86. The Small-Cap index was off 119.18 points or 1.85% at 6,325.28. Both these indices underperformed the Sensex.
Among the 30-share Sensex pack, 26 declined while only four of them gained. ICICI Bank (down 3.76%), L&T (down 2.61%) and HDFC Bank (down 2.97%) edged lower from the Sensex pack.
Auto stocks dropped ahead of the Reserve Bank of India (RBI) Third Quarter Review of Monetary Policy for 2013-14 tomorrow, 28 January 2014. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Tata Motors slumped 4.4%. The company before market hours today, 27 January 2014, announced the demise of its Managing Director, Karl Slym. "Tata Motors deeply regrets to announce the untimely and tragic demise of its Managing Director, Karl Slym, in Bangkok on Sunday, 26 January 2014. Karl Slym was in Bangkok to attend a meeting of the Board of Directors of Tata Motors Thailand. Karl Slym joined Tata Motors in October 2012, and was providing leadership to the company through a challenging market environment. The company shares in the grief of Karl Slym's wife and family at their irreparable loss," Tata Motors said in a statement.
Maruti Suzuki India shed 3.44% ahead of its Q3 results tomorrow, 28 January 2014.
M&M (down 2.16%) and Ashok Leyland (down 2.64%) dropped.
Shares of two wheeler companies also declined. Hero MotoCorp (down 0.52%), Bajaj Auto (down 1.62%) and TVS Motor Company (down 0.15%) declined.
Mining and metal stocks dropped on concerns about slower Chinese growth. Factory output may shrink this month, a preliminary survey from HSBC Holdings Plc and Markit Economics indicated last week, as the People's Bank of China injected more funds into the financial system to ease a cash shortage. China is the world's largest consumer of copper and aluminum. Hindustan Copper (down 3.27%), Hindalco Industries (down 2.81%), Tata Steel (down 4.08%), Hindustan Zinc (down 1.45%), Steel Authority of India (down 3.47%), NMDC (down 2.16%), JSW Steel (down 3.35%), Bhushan Steel (down 0.01%) and National Aluminum Company (down 2.07%), declined.
Sesa Sterlite lost 3.01% ahead of its Q3 results tomorrow, 28 January 2014.
Jindal Steel & Power dropped 2.86% ahead of its Q3 results tomorrow, 28 January 2014.
Telecom stocks declined. Bharti Airtel (down 0.94%), Idea Cellular (down 1.74%), Tata Teleservices (Maharashtra) (down 0.81%) and Reliance Communications (down 2.71%) declined.
A panel of ministers decided on Monday, 27 January 2014, that the annual fees companies pay to use mobile phone frequencies be capped at 5% of revenue for spectrum they will buy in an auction next month, Telecom Minister Kapil Sibal said. The move scraps the 3-8% fee range the country currently levies in an effort to coax previously reluctant operators into taking part in India's third attempt at auctioning off two frequency bands for billions of dollars. A sector regulator had recommended the annual fee for spectrum to be fixed at 3% of the operators' revenue.
Sibal said companies like Reliance Industries (RIL) which bought 4G spectrum in a 2010 auction, will continue to pay 1% of their revenue as annual fee for that spectrum.
Shares of RIL hovered in red. The stock was off 1.3% at Rs 855.05. The stock was volatile. The scrip hit high of Rs 860.55 and low of Rs 854 so far during the day.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade as equities fell sharply. The partially convertible rupee was hovering at 62.725, compared with its close of 62.66/67 on Friday, 24 January 2014.
The Ministry of Consumer Affairs, Food & Public Distribution on Friday, 24 January 2014, said that as per data monitored by the Ministry of Consumer Affairs and Food, prices of rice, wheat and sugar during the week - 16 January 2014 to 23 January 2014 - remained steady in wholesale markets across the country. The Price Monitoring Cell of the Ministry monitors prices of twenty two essential commodities regularly at 55 wholesale centers. During the period, prices of rice remained steady at all wholesale centers and decreased at one center (Aizwal). Prices of wheat also were steady at all wholesale centers except one centre at Ludhiana. While sugar prices decreased at eight centers and remain steady at rest of the reporting centers, the Ministry of Consumer Affairs and Food said in a statement.
Prices of twenty two essential commodities are regularly monitored by Department of Consumer Affairs for taking suitable action to keep the prices under check. Price data is collected on daily basis from the State Civil Supplies Departments of the respective State Governments.
The Reserve Bank of India announces Third Quarter Review of Monetary Policy for 2013-14 at 11:00 IST tomorrow, 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
Asian stocks slumped on Monday, 27 January 2014, as concern that the global economic recovery is faltering spurred investors to sell riskier assets. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea were off 1.03% to 2.51%.
Emerging-market stocks fell amid concern that slower Chinese growth and reduced Federal Reserve stimulus will spark more capital outflows. In recent years, emerging markets have been supported by the Fed's policy of easy money, but any cut could pull more money out of these risky markets and hurt growth.
Japan reported a record annual trade deficit for last year as energy shipments and weakness in the yen pumped up the nation's import bill. The shortfall was 11.5 trillion yen ($113 billion), almost double the previous year's 6.9 trillion yen, a finance ministry report showed in Tokyo today, 27 January 2014. Imports rose 25% in December from a year earlier and exports gained 15%, leaving a monthly deficit of 1.3 trillion yen.
South Korea has accepted the North Korea's offer to renew reunions of families separated by the Korean War, a move that may signal thawing tensions between the two nations.
Trading in US index futures indicated that the Dow could advance 41 points at the opening bell today, 27 January 2014. US stocks tumbled on Friday, 24 January 2014, as investors fled equities and emerging-markets currencies on concerns about a contagion effect from China's manufacturing slowdown. The CBOE Volatility Index, known as the Vix, surged 32%, its steepest rise since the April 15 Boston Marathon bombings.
The Federal Open Market Committee's (FOMC) two-day monetary policy meeting begins tomorrow, 28 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.
Global stocks tumbled the most since June on Friday, 24 January 2014, as a sell-off in emerging-market currencies prompted investors to seek havens in Treasuries, gold and the yen.
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