Weakness continued on the bourses in early afternoon trade as investors accessed the impact of yesterday's Supreme Court decision cancelling most coal block allocations since 1993. The barometer index, the S&P BSE Sensex, was currently was down 150.14 points or 0.56% at 26,594.55. Foreign portfolio investors (FPIs) sold shares worth a net Rs 793.65 crore yesterday, 24 September 2014, as per provisional data. Asian stocks were mixed. A number of side counters fell. There were more than three losers for every gainer on BSE. The BSE Mid-Cap index was off 1.58%. The BSE Small-Cap index was off 2.27%. Bank stocks extended Wednesday's losses on concerns of bad loans due to their exposure to coal mines after the Supreme Court's decision cancelling most coal block allocations since 1993. Shares of gas producers fell after the government once again reportedly deferred a decision on revising gas prices. Meanwhile, Reserve Bank of India Governor Raghuram Rajan reportedly said in a speech in Mumbai that India suffered from persistent inflation and we have got to break this persistence.
The market may remain volatile today, 25 September 2014, as traders roll over positions in the futures & options (F&O) segment from the near month September 2014 series to October 2014 series. The near-month September 2014 F&O contracts expire today, 25 September 2014.
Meanwhile, Prime Minister Narendra Modi today, 25 September 2014, launched the ambitious 'Make in India' campaign in the presence of global and domestic CEOs. The initiative is aimed at making the country a global manufacturing hub.
The 50-unit CNX Nifty continued to trade below the psychological 8,000 mark, having fallen below that level earlier during the day.
In overseas markets, Japanese stocks rose on the yen's weakness against the dollar while overall trend in Asian markets was mixed. US stocks jumped in a broad advance on Wednesday, 24 September 2014, with the S&P 500 index snapping a three-day losing streak after data showed new home sales jumped sharply in August.
Brent crude oil prices edged lower as abundant supply continued to drag on prices.
In the foreign exchange market, the rupee edged lower against the dollar.
At 12:15 IST, the S&P BSE Sensex was down 150.14 points or 0.56% at 26,594.55. The index fell 176.15 points at the day's low of 26,568.54 in mid-morning trade. The index rose 69.51 points at the day's high of 26,814.20 in early trade.
The CNX Nifty was down 43.05 points or 0.54% at 7,959.35. The index hit a low of 7,950.55 in intraday trade. The index hit a high of 8,019.30 in intraday trade.
The market breadth indicating the overall health of the market was weak, with more than three losers for every gainer on BSE. On BSE, 2,007 shares fell and 623 shares rose. A total of 61 shares were unchanged.
The BSE Mid-Cap index was off 151.45 points or 1.58% at 9,429.38. The BSE Small-Cap index was off 244.51 points or 2.27% at 10,546.93. Both these indices underperformed the Sensex.
Bank stocks extended Wednesday's losses on concerns of bad loans due to their exposure to coal mines after the Supreme Court's decision cancelling most coal block allocations since 1993. Among PSU banks, Canara Bank (down 2.9%), Union Bank of India (down 4.83%), Bank of India (down 3.11%), Punjab National Bank (down 4.29%) Syndicate Bank (down 4.01%), Indian Overseas Bank (down 2.96%), Andhra Bank (down 5.21%), Oriental Bank of Commerce (down 4.25%), Dena Bank (down 1.1%), and Indian Bank (down 0.83%) declined.
State Bank of India fell 2.37%. The state-run bank after market hours close on Wednesday, 24 September 2014, said that the central board of the bank at its meeting held on Wednesday, 24 September 2014, approved a 10-for-1 stock split.
Shares of private sector banks also dropped. ICICI Bank (down 2.45%), IndusInd Bank (down 0.65%), Federal Bank (down 0.91%), Yes Bank (down 1.08%), and Axis Bank (down 3.62%) declined. HDFC Bank (up 0.83%) and Kotak Mahindra Bank (up 0.31%) gained.
In the foreign exchange market, the rupee edged lower against the dollar on month-end dollar demand from importers for paying month-end bills. The partially convertible rupee was hovering at 61.02, compared with its close of 60.97 during the previous trading session.
Brent crude oil prices edged lower as abundant supply continued to drag on prices. Brent for November settlement was off 18 cents at $96.77 a barrel. The contract had risen 10 cents a barrel or 0.1% to settle at $96.95 a barrel yesterday, 24 September 2014.
The Supreme Court in its verdict yesterday, 24 September 2014, cancelled the allocation of 214 out of 218 coal blocks it had already declared illegal due to irregularities in the allocation of the blocks. Of these, licenses for 172 coal blocks which weren't in production stand canceled immediately, while licenses for 42 blocks which were producing coal or were close to starting production would stand canceled after six months, the court said. The six months' time has been allowed to ensure coal supplies don't get affected until the government comes out with a fresh policy for auctioning the canceled coal blocks. Coal India will take over operations of the cancelled coal blocks until they are re-auctioned.
The court also slapped a penalty of Rs 295 per tonne on operating coal blocks for coal already extracted from these blocks.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said in a speech in Mumbai that India suffered from persistent inflation and we have got to break this persistence. "Once we do it we can be much more comfortable," he said. His comments come just a few days ahead of a monetary policy review on 30 September 2014.
Modi leaves for a five-day visit to the United States today, 25 September 2014. The Indian Prime Minister will meet US President Barack Obama at the White House on 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.
Japanese stocks rose today, 25 September 2014, on the yen's weakness against the dollar while overall trend in Asian markets was mixed. Key benchmark indices in Hong Kong, South Korea, Taiwan and Singapore fell 0.08% to 0.96%. Key benchmark indices in China, Indonesia, and Japan rose by 0.31% to 1.28%.
Trading in US index futures indicated that the Dow could fall 11 points at the opening bell on Thursday, 25 September 2014. US stocks jumped in a broad advance on Wednesday, 24 September 2014, with the S&P 500 index snapping a three-day losing streak after data showed new home sales jumped sharply in August.
The data showed yesterday, new-home sales in US surged in August to the highest level in more than six years.
Powered by Capital Market - Live News
