A bout of volatility was witnessed as key benchmark indices trimmed losses soon after hitting fresh intraday low in afternoon trade. The barometer index, the S&P BSE Sensex, was a tad below the psychological 27,000 level. The Sensex was currently down 94.02 points or 0.35% at 26,991.91. The market breadth indicating the overall health of the market was positive. Banks were mostly lower. Global cues were negative. European stocks were a tad lower in early trade. Asian stocks remained in red.
Earlier, key benchmark indices had slipped into the red from green in mid-morning trade after giving up almost entire initial gains after opening higher.
Asian and European stocks fell as investors awaited the influential US non-farm payroll data for August. Meanwhile, strength in dollar has raised concerns that it could spur capital outflows from emerging markets. The European Central Bank (ECB) unexpectedly moved to cut its main policy rates and announced additional measures after a monetary policy review yesterday, 4 September 2014, in an attempt to stimulate the flagging economy in the 18-country region. Brent crude oil prices rose after previous day's losses.
At 13:15 IST, the S&P BSE Sensex was down 94.02 points or 0.35% at 26,991.91. The index fell 132.77 points at the day's low of 26,953.16 trade in afternoon trade, its lowest level since 2 September 2014. The index gained 92.87 points at the day's high of 27,178.80 in early trade, its highest level since 3 September 2014.
The CNX Nifty was down 26.70 points or 0.33% at 8,069.25. The index hit a low of 8,057.05 in intraday trade, its lowest level since 2 September 2014. The index hit a high of 8,122.70 in intraday trade, its highest level since 3 September 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1498 shares gained and 1276 shares fell. A total of 99 shares were unchanged.
The BSE Mid-Cap index was up 30.32 points or 0.32% at 9,645.39. The BSE Small-Cap index was up 72.75 points or 0.69% at 10,568.21. Both these indices outperformed the Sensex.
Among the 30 Sensex shares, 17 declined and the remaining shares rose. HDFC (down 2.16%), Coal India (down 2.05%), Bharat Heavy Electricals (down 1.89%), Tata Motors (down 1.53%), Hero MotoCorp (down 1.43%), Bharti Airtel (down 1.25%), Maruti Suzuki India (down 1.20%), Tata Power (down 1.18%) and Sun Pharmaceuticals Industries (down 1.05%), edged lower from the Sensex pack.
Bajaj Auto (up 1.19%), ONGC (up 1.01%), Larsen & Toubro (up 0.85%), Cipla (up 0.68%), Infosys (up 0.53%), GAIL (India) (up 0.40%), Hindalco Industries (up 0.35%), Sesa Sterlite (up 0.25%), Reliance Industries (up 0.19%), TCS (up 0.17%), ITC (up 0.04%) and Hindustan Unilever (up 0.03%), edged higher from the Sensex pack.
Banks were mostly lower. Among PSU banks, Union Bank of India (down 1.96%), Bank of India (down 1.84%), IDBI Bank (down 1.46%), Punjab National Bank (down 0.78%), Bank of Baroda (down 0.32%) and Canara Bank (down 0.25%), edged lower. However, State Bank of India was up 0.61%.
Among private banks, ICICI Bank (down 1.46%), Yes Bank (down 1.36%), Federal Bank (down 0.88%), HDFC Bank (down 0.72%) and Axis Bank (down 0.2%), edged lower. However, IndusInd Bank (up 0.25%) and Kotak Mahindra Bank (up 0.06%), edged higher.
Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 4 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1697.74 crore on that day.
Brent crude oil futures edged higher after previous day's losses. Brent for October settlement was up 28 cents at $102.11 a barrel. The contract fell 94 cents a barrel to settle at $101.83 a barrel yesterday, 4 September 2014, as a surprise cut in interest rates by the European Central Bank led to a spike in the dollar, making it more expensive for holders of other currencies to buy the dollar-denominated commodity.
Ukrainian President Petro Poroshenko will hold talks today, 5 September 2014, with pro-Russian rebels in Minsk, Belarus.
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.
In the foreign exchange market, the rupee edged lower against the dollar on dollar's broad strength. The partially convertible rupee was hovering at 60.45, compared with its close of 60.36 during the previous trading session.
European stocks edged lower in early trade today, 5 September 2014, as investors awaited the influential US non-farm payroll data for August. Key benchmark indices in UK, France and Germany were off 0.11% to 0.19%.
In Brussels today, representatives of the 28 European Union (EU) governments will consider tightening the economic sanctions that were imposed on Russia in July.
The European central Bank (ECB) unexpectedly lowered all its interest rates to all-time low on Thursday, 4 September 2014. ECB President Mario Draghi announced two new programs under which the institution will buy asset-backed securities and covered bonds issued by eurozone banks. In a news conference, Draghi said the aim was to expand the bank's balance sheet back to the heights reached in early 2012, which equates to a rise of around 50% or 1 trillion euros in new assets.
The Bank of England's Monetary Policy Committee at its meeting on Thursday, 4 September 2014, left its Bank Rate at 0.5%, where it has been since the depths of the financial crisis more than five years ago.
Asian stocks fell today, 5 September 2014, led by fall in material companies. Key indices in Hong Kong, Japan, South Korea, Taiwan, and Singapore were off 0.05% to 0.44%. Key indices in China and Indonesia were up 0.11% to 0.85%.
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell on Friday, 5 September 2014. US stocks edged lower on Thursday, 4 September 2014, as energy producers sank with oil prices to overshadow the ECB announcement.
The influential US non-farm payroll data for August is due later in the global day today, 5 September 2014.
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