Key benchmark indices edged lower in what was a volatile trading session. Benchmark indices trimmed losses soon after hitting fresh intraday low in late trade. The barometer index, the S&P BSE Sensex, regained the psychological 27,000 level after falling below that level in intraday trade. The Sensex shed 59.23 points or 0.22% to settle at 27,026.70. Strength in dollar has raised concerns that it could spur capital outflows from emerging markets including India. The market breadth indicating the overall health of the market was positive. The BSE Small-Cap index rose was more than 1%. Steel stocks rose on slide in global iron ore prices. Shares of other metal companies were mixed. JSW Steel rose after the company reported good growth of production in August. Most auto stocks declined. IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. BPCL fell on turning ex-dividend. Shares of private banks declined. Most auto stocks edged lower.
Earlier, key benchmark indices had recouped most of the intraday losses in mid-afternoon trade. Before that key indices had slipped into the red from green in mid-morning trade after giving up almost entire initial gains after opening higher.
European stocks edged lower before US jobs data and cease-fire talks in Ukraine. Asian stocks fell as investors awaited the influential US non-farm payroll data for August. 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.
The S&P BSE Sensex lost 59.23 points or 0.22% to settle at 27,026.70, its lowest closing level since 2 September 2014. The index fell 165.37 points at the day's low of 26,920.56 trade in late trade. 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 lost 9.10 points or 0.11% to settle at 8,086.85, its lowest closing level since 2 September 2014. The index hit a low of 8,049.85 in intraday trade. The index hit a high of 8,122.70 in intraday trade, its highest level since 3 September 2014.
The total turnover on BSE amounted to Rs 3588 crore, lower than Rs 4958.70 crore on Thursday, 4 September 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1,753 shares gained and 1,247 shares fell. A total of 87 shares were unchanged.
The BSE Mid-Cap index rose 53.69 points or 0.56% to settle at 9,668.76. The BSE Small-Cap index jumped 131.61 points or 1.25% to settle at 10,627.07. Both these indices outperformed the Sensex.
Most auto stocks edged lower. Tata Motors (down 1.34%), and Mahindra & Mahindra (M&M) (down 0.4%) edged lower. Ashok Leyland rose 2.41%.
Maruti Suzuki India fell 0.33%. The company announced during market hours that production rose 19.63% to 1.09 lakh units in August 2014 over August 2013. Maruti's total sales surged 26.9% to 1.10 lakh units in August 2014 over August 2013. The sales numbers were announced during market hours on 1 September 2014.
Most two wheeler makers declined. TVS Motor Company (down 3.41%) and Hero MotoCorp (down 2.51%) declined. Bajaj Auto rose 1.07%.
Steel stocks rose on slide in global iron ore prices. Jindal Steel & Power (up 1.97%), Bhushan Steel (up 5%), Tata Steel (up 0.62%), and Steel Authority of India (Sail) (up 0.18%) gained.
Iron ore producers also gained. NMDC (up 4.54%) and Sesa Sterlite (up 0.84%) rose.
JSW Steel rose 2.2% after the company reported good growth of production in August. The company said during market hours its crude steel production rose 13% to 11.16 lakh tonnes in August 2014 over August 2013. The production of flat rolled products rose 7% to 8.8 lakh tonnes in August 2014 over August 2013. The production of long rolled products jumped 53% to 1.96 lakh tonnes in August 2014 over August 2013.
Shares of other metal stocks were mixed. Hindalco Industries (down 0.98%) and Hindustan Copper (down 0.11%) declined. Hindustan Zinc (up 3.89%) and National Aluminum Company (Nalco) (up 8.73%) gained.
DLF rose 4.84% on bargain hunting after tumbling 8.6% on Thursday, 4 September 2014. The company before market hours on Thursday, 4 September 2014, said a judgement was passed by the Punjab and Haryana High Court on Wednesday, 3 September 2014, in a writ petition filed before it challenging the acquisition by Haryana state government with respect to 350 acres of land in Wazirabad Village, Gurgaon. The court while upholding the acquisition has passed certain observations regarding the allotment of the land to DLF. DLF said it is awaiting a copy of the order and can offer detailed comments only after that. However, at this juncture the company would only like to clarify that the said land was awarded to DLF by two rounds of international competitive bidding process, DLF said. The company further clarified that the above stated project is an independent project to be developed in the future and has no correlation whatsoever with any of the ongoing, existing or completed projects of the company including DLF 5, the company said.
PSU bank stocks were mixed. Union Bank of India (down 1.54%), Bank of India (down 1.89%), Indian Overseas Bank (down 1.65%), Punjab National Bank (down 1.09%), edged lower. Bank of Baroda (up 0.95%), Canara Bank (up 0.05%), and State Bank of India (up 1.1%) gained.
Shares of private banks declined. ICICI Bank (down 1.46%), Yes Bank (down 1.27%), Federal Bank (down 0.52%), HDFC Bank (down 0.37%), Axis Bank (down 0.22%), edged lower. However, IndusInd Bank (up 0.53%) and Kotak Mahindra Bank (up 2.12%), edged higher.
Tata Power dropped 1.18%. The company said after market hours on Thursday, 4 September 2014, that in its pronouncement on 4 September 2014, the Appellate Tribunal for Electricity has stayed Maharashtra Electricity Regulatory Commission's order which had no restrictions for consumers of all categories to make a choice of switching to Tata Power distribution services in Mumbai. The choice of multiple distributors in Mumbai was to facilitate consumers to get the benefit of competitive services available through different service providers. The detailed order is awaited. The company looks forward to continue to serve Mumbaikars with choice of reliable and superior customer services, Tata Power said.
United Spirits (USL) lost 4.65% to 2,279.05, with the stock extending Thursday's losses triggered by weak Q4 results. The stock hit a high of Rs 2,381 and low of Rs 2,226. The company reported a net loss of a massive Rs 5380.10 crore in Q4 March 2014, compared with net profit of Rs 56.02 crore in Q4 March 2013. USL incurred extra-ordinary expenses of Rs 5334.38 crore in Q4 March 2014 of which Rs 1012.75 crore is provision for doubtful debts, advances & deposits and Rs 4321.63 crore is intra-USL group loan of Rs 3614.24 crore and the remaining is diminution in the value of investment in USL Holding, Palmer Investment Group & Montrose International.
United Spirits' total income from operations rose 3.84% to Rs 1943.34 crore in Q4 March 2014 over Q4 March 2013. The result was announced before market hours on Thursday, 4 September 2014.
L&T rose 1.27% after the company said during market hours that it has won a turnkey order for setting up a supercritical thermal power project valued at Rs 5100 crore. The order has been won from Madhya Pradesh state utility MP Power Generating Company (MPPGCL). L&T said that this is a repeat order from MPPGCL.
Shares of both Sun Pharmaceuticals Industries and Ranbaxy Laboratories declined in volatile trade after the Competition Commission of India (CCI) said that the merger of the two pharma companies is likely to have an appreciable adverse effect on competition in the Indian pharma sector. Shares of Sun Pharma were off 0.82% at Rs 857.60. The stock hit high of Rs 870 and low of Rs 852.75.
Shares of Ranbaxy Laboratories were off 0.6% at Rs 652. The stock hit high of Rs 660.40 and low of Rs 648.
CCI on Thursday, 4 September 2014, said that it has directed Sun Pharma and Ranbaxy to publish details of the merger within ten working days for bringing the combination to the knowledge or information of the public and persons affected or likely to be affected by such combination. CCI has also invited comments from anyone adversely affected or likely to be affected by the merger of the two pharma majors.
BPCL fell 1.89% as the stock turned ex-dividend today, 5 September 2014, for dividend of Rs 17 per share for the year ended 31 March 2014 (FY 2014).
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. TCS (up 0.5%) and HCL Technologies (up 0.32%) gained.
Wipro gained 0.6% after the company said before market hours that it has won a five year contract from Philip Morris International Inc. (PMI). As a part of five-year agreement, the company will provide a full suite of IT infrastructure management services to PMI.
Infosys gained 0.6% after the company said after market hours on Thursday, 4 September 2014, that it has been selected by BP to provide IT services, in particular application support and development to BP. The agreement is effective 1 September 2014.
Tech Mahindra rose 0.03% to Rs 2,465.55 after the company announced after market hours on Thursday, 4 September 2014, that it has signed an agreement with Bombardier Aerospace. The stock hit record high of Rs 2,521.80 in intraday trade. As part of this engagement, Tech Mahindra will provide engineering solutions to Bombardier.
Tech Mahindra and Bombardier have signed a mutual agreement that will lead Tech Mahindra to work with Bombardier globally. Tech Mahindra plans to invest significantly in infrastructure and talent in the Montrl region. Tech Mahindra aims to grow its Canada team to 1,200 people in the next five years.
Auto component makers gained on renewed buying. Clutch Auto (up 20%), Samkrg Pistons (up 13.75%), Minda Industries (up 16.91%), Subros (up 9.95%), Munjal Auto Industries (up 13.65%), Munjal Showa (up 5.7%), Sona Koyo Steering Systems (up 4.57%) and Bharat Gears (up 3.69%) surged.
The Sensex dropped for the second day in a row today, 5 September 2014, after hitting a string of record highs recently. From a recent high of 27,139.94 on 3 September 2014, the Sensex has declined 113.24 points or 0.41% in two trading sessions. The Sensex has gained 388.59 points or 1.45% in this month so far (till 5 September 2014). The Sensex has gained 5,856.02 points or 27.66% in calendar year 2014 so far (till 5 September 2014). From a record high of 27,225.85 on 3 September 2013, the Sensex has fallen 199.15 points or 0.73%. From a 52-week low of 18,188.43 on 4 September 2013, the Sensex has risen 8,838.27 points or 48.59%.
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 25 cents at $102.08 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.
Australia's Prime Minister Tony Abbott reportedly said today, 5 September 2014, he would sign a civil nuclear deal with Indian counterpart Prime Minister Narendra Modi later today, 5 September 2014, clearing the way for uranium sales to India.
In the foreign exchange market, the rupee edged lower against the dollar on dollar's broad strength. The partially convertible rupee was hovering at 60.41, compared with its close of 60.36 during the previous trading session.
European stocks edged lower today, 5 September 2014, ahead of the influential US non-farm payroll data for August. Key benchmark indices in France, Germany and UK dropped 0.19% to 0.65%.
German industrial output grew more than forecast in July, signaling that Europe's largest economy is headed for a third-quarter rebound. Production, adjusted for seasonal swings, rose 1.9% from June, when it expanded a revised 0.4% the Economy Ministry in Berlin said today, 5 September 2014.
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 0.14% to 0.33%. Key indices in Indonesia and China rose 0.23% to 0.85%.
Trading in US index futures indicated that the Dow could fall 58 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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