Key benchmark indices weakened once again in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was down 63.34 points or 0.28%, off close to 100 points from the day's high and up about 25 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Index heavyweight and cigarette maker ITC declined. IT stocks were mixed.
The market edged lower amid initial volatility. It slipped into the red after swing between gains and losses near the flat line in morning trade. It weakened once again after trimming losses after hitting fresh intraday low in mid-morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in 1-1/2 weeks. Indices were trading slightly lower in early afternoon trade. Key benchmark indices sharply pared losses in afternoon trade after European shares opened higher. It weakened once again in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 295.01 crore on Friday, 25 April 2014, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was down 63.34 points or 0.28% to 22,624.73. The index fell 90.88 points at the day's low of 22,597.19 in mid-morning trade, its lowest level since 17 April 2014. The index gained 33.29 points at the day's high of 22,721.36 in early trade.
The CNX Nifty was down 20.10 points or 0.3% to 6,762.65. The index hit a low of 6,750.30 in intraday trade, its lowest level since 17 April 2014. The index hit a high of 6,786.25 in intraday trade.
The BSE Mid-Cap index rose 49.65 points or 0.67% to 7,423/29. The BSE Small-Cap index rose 19.65 points or 0.26% to 7,616.99. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,296 shares declined and 1,280 shares rose. A total of 135 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks declined and rest of them rose. GAIL (India) (down 2.22%), Hero MotoCorp (down 2.12%), and Hindustan Unilever (down 1.84%) edged lower from the Sensex pack.
Bharti Airtel dropped 1.22% ahead of its Q4 results tomorrow, 29 April 2014.
Jindal Steel & Power declined 0.27% ahead of its Q4 results tomorrow, 29 April 2014.
Sesa Sterlite rose 1.01% ahead of its Q4 results tomorrow, 29 April 2014.
IT stocks were mixed. HCL Technologies (down 1.05%) and TCS (down 0.53%) declined. Infosys (up 0.21%), Wipro (up 1.77%) and Tech Mahindra (up 1.04%) gained.
Index heavyweight and cigarette maker ITC declined 0.8%.
Fulford (India) was locked at 20% upper circuit at Rs 823 on BSE after the company's promoter offered substantial premium to delist shares of Indian unit.
Fulford (India) after market hours on Friday, 25 April 2014 said that the company has received a letter from Dashtag, the promoter of the company, expressing intention to make a voluntary delisting offer to the public shareholders of the company. The indicative price for the delisting was fixed at Rs 1150 per share, a 67.67% premium over Fulford (India)'s latest closing price of Rs 685.85 on the BSE on Friday, 25 April 2014.
Dashtag, the promoter, plans to acquire 9.76 lakh shares, representing 25.05% of the paid-up equity share capital of Fulford (India). Promoters owned 74.95% stake in Fulford (India) as on 31 March 2014.
Dashtag's objective in making the delisting offer is to obtain full ownership of the target company, which will provide enhanced operational flexibility to the acquirer's business in India. Additionally, the foreign promoter believes that on account of low liquidity in Fulford (India)'s equity shares, the delisting offer would provide the public shareholders with an ability to exit fully at an attractive price.
The acquirer is of the view that the indicative price is an attractive price for the public shareholders of the target company subject to the acquirer's right to accept or reject the price finally discovered pursuant to the reverse book building process under the delisting regulations, Fulford (India) said.
Meanwhile, the board of directors of the company at their meeting held on Saturday, 26 April 2014 approved the delisting offer and intends to seek the approval of the shareholders through a postal ballot in terms of the delisting regulations. The floor price for the delisting offer has been set at Rs 701.71 per share, Fulford India said in a statement.
In the foreign exchange market, the rupee edged higher against the dollar on speculation fund repatriation by exporters and companies that have borrowed abroad is boosting foreign-exchange inflows. The partially convertible rupee was hovering at 60.48, compared with its close of 60.60/61 on Friday, 25 April 2014.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
European equities edged higher on Monday, with a slew of merger and acquisition news seen improving sentiment in the market. Key benchmark indices in UK, France and Germany were up by 0.28% to 0.46%.
Asian stocks fell on Monday as investors weighed company earnings amid prospects for additional sanctions against Russia over the Ukraine crisis. Key benchmark indices in Japan, China, Indonesia, Hong Kong, South Korea and Singapore were off 0.12% to 1.62%. Taiwan's Taiwan Weighted was up 0.41%.
Asian policy makers must push ahead with structural changes to ensure the region continues to lead global growth and withstand volatility as the US reduces monetary stimulus, the International Monetary Fund said. Asian economies will face higher interest rates and bouts of volatility in capital flows and asset prices as global liquidity tightens amid a recovery in advanced nations, the Washington-based lender said in its Regional Economic Outlook for Asia and Pacific released today. Tightening of global liquidity is one of the four main risks confronting Asia this year and next year, the IMF said. Other dangers include a sharper-than-envisaged slowdown in China, waning effectiveness of growth-supporting policies in Japan, and political and geopolitical tensions that disrupt trade, it said.
Trading in US index futures indicated that the Dow could gain 43 points at the opening bell on Monday, 28 April 2014. US stocks declined on Friday, 25 April 2014 as investors tracked escalating tension in Ukraine, with the geopolitical strife overshadowing upbeat results from Microsoft.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
The US and European Union will impose new sanctions on Russia amid the detention of international observers by pro-Russian separatists. Russia is one of the world's biggest nickel producers and is the fifth-largest wheat exporter, followed by Ukraine.
Russia has stoked tensions in Ukraine by threatening military maneuvers and by taking "no concrete steps" to implement an April 17 accord meant to diffuse the crisis, the Group of Seven nations -- the US, Japan, Canada, the UK, France, Germany and Italy -- said in an April 25 statement.
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