Key benchmark indices provisionally settled marginally lower after alternately swinging between positive and negative zone throughout the trading session. The market breadth, indicating the overall health of the market, was negative. The barometer index, the S&P BSE Sensex, was provisionally down 4.47 points or 0.02%, up 72.22 points from the day's low and off 53.22 points from the day's high.
Reliance Industries (RIL) edged higher in volatile trade on reports the company has started producing gas from the MA-8 well in the Krishna-Godavari basis from 1 January 2014. Index heavyweight and cigarette major ITC edged lower in volatile trade. Shares of state-run coal miner Coal India extended Wednesday's gains triggered by speculation that the company may announce a hefty interim dividend next week. ONGC rose on rumours that the company will announce a hefty interim dividend.
In the IT pack, Infosys edged higher in volatile trade ahead of Q3 results tomorrow, 10 January 2014. HCL Technologies hit record high. Among pharma stocks, Dr Reddy's Laboratories hit record high. Cadila Healthcare jumped after the company said it has received final approval from the US drug regulator to market Sirolimus Tablets 0.5 mg in the United States with 180 days of marketing exclusivity.
Key benchmark indices edged higher amid initial volatility. Volatility continued as the key benchmark indices trimmed losses after reversing initial gains. Key benchmark indices languished in red in early afternoon trade. Key benchmark indices extended losses and hit fresh intraday low in afternoon trade. A bout of volatility was witnessed as key benchmark indices trimmed losses in mid-afternoon trade.
As per provisional closing, the S&P BSE Sensex was down 4.47 points or 0.02% to 20,724.91. The index fell 76.69 points at the day's low of 20,652.69 in afternoon trade, its lowest level since 7 January 2014. The index gained 48.75 points at the day's high of 20,778.13 in early trade.
The CNX Nifty was down 3.45 points or 0.06% to 6,171.15. The index hit a low of 6,148.25 in intraday trade, its lowest level since 7 January 2014. The index hit a high of 6,188.05 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,389 shares dropped and 1,164 shares rose. A total of 139 shares were unchanged.
The total turnover on BSE amounted to Rs 2167 crore, lower than Rs 2354 crore on Wednesday, 8 January 2014.
Among the 30-share Sensex pack, 17 stocks declined and rest of them gained.
L&T (down 2.64%), AXIS Bank (down 2.29%) and Hindalco Industries (down 2.17%) declined.
Sesa Sterlite (up 4.36%), NTPC (up 3.13%) and Sun Pharmaceutical Industries (up 0.61%) gained.
Index heavyweight and cigarette major ITC shed 0.41% to Rs 315.50, with the stock trimming losses in late trade. The stock hit a high of Rs 316.80 and low of Rs 313.
Reliance Industries (RIL) rose 0.55% to Rs 852.90 in volatile trade. The stock hit a high of Rs 853.10 and low of Rs 844.95. RIL, which operates the Krishna-Godavari basin's D6 block off the east coast, has reportedly started producing gas from the MA-8 well from 1 January 2014. The well has potential to produce 1 million to 2 million standard cubic metres per day (mscmd) of gas from the well.
Shares of state-run coal miner Coal India extended Wednesday's gains triggered by speculation that the company may announce a hefty interim dividend next week. The stock rose 2.75%. The scrip had surged 4.77% on Wednesday, 8 January 2014, after the company said during trading hours on that day that a meeting of the board of directors of the company will be held on 14 January, 2014, to consider payment of interim dividend, if any, for the year ending 31 March 2014.
The market has been abuzz with rumours that the government may force cash rich state-run firms to declare hefty interim dividend to enable the government to meet the fiscal deficit target for the current year.
ONGC edged higher on rumours that the company will announce a hefty interim dividend. The stock was up 2.65% at Rs 280.40. The stock hit a high of Rs 281.40 and low of Rs 271.25.
Dr Reddy's Laboratories advanced 2.29% at Rs 2,590. The stock hit record high of Rs 2,596.95 in intraday trade.
Infosys rose 0.68% to Rs 3,451.90. The stock hit high of Rs 3,481.95 and low of Rs 3,417.30. Infosys announces its Q3 December 2013 results tomorrow, 10 January 2014. At the time of announcement of Q2 September 2013 results in October 2013, Infosys had raised its revenue guidance in both dollar and rupee terms. The increase in revenue growth guidance in rupee terms was driven by weakness in rupee against the dollar. At that time, the company had issued a forecast of 21% to 22% growth in revenue in rupee terms based on the assumption of rupee dollar conversion rate of 62.61 for the rest of the fiscal year. The company had at that time forecast 9% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014).
HCL Technologies gained 3.43% to Rs 1,292, also its record high.
Cadila Healthcare jumped after the company said it has received final approval from the US drug regulator to market Sirolimus Tablets 0.5 mg in the United States with 180 days of marketing exclusivity. The stock jumped 5.11% to Rs 889, with the stock extending Wednesday's gains. As per IMS data in 2013, the sales of Sirolimus was approximately $203.8 million in the United States.
Cadila Healthcare also said that the company has received approval from the USFDA for Duloxetine delayed release capsules in different strengths of 20 mg, 30 mg and 60 mg. Duloxetine had US sales of about $5.5 billion in 2013.
While Sirolimus tables are immunossuppresssant drugs used to prevent rejection in organ transplantation, Duloxetine delayed release capsules fall in the anti-depressants segment. The Cadila group now has 86 approvals and has so far filed 216 abbreviated new drug applications (ANDAs) since the commencement of the filing process in 2003-04, the company said.
The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Q3 earnings season begins tomorrow, 10 January 2014, the day when IT major Infosys and private sector bank IndusInd Bank unveil their earnings.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
European stock markets shook off early losses and edged higher on Thursday, 9 January 2014, as the wait began for policy decisions from the European Central Bank and the Bank of England. Key benchmark indices in UK, France and Germany were up 0.2% to 0.44%.
The European Central Bank (ECB) holds a monetary policy meeting today, 9 January 2014. The ECB is seen retaining its key interest rate at a record low of 0.25%. The ECB last cut its rate in November 2013.
UK's central bank -- Bank of England -- also undertakes monthly monetary policy review today, 9 January 2014. The Bank of England is expected to keep the key rate unchanged at 0.5% and maintain the asset-purchase target at 375 billion pounds ($617 billion).
Asian stocks edged lower on Thursday, 9 January 2014, as better-than-expected US private sector jobs numbers strengthened the case for further tapering of the Federal Reserve's bond-buying program. Key benchmark indices in Hong Kong, China, Singapore, Taiwan, South Korea and Japan were off 0.17% to 1.5%. In Indonesia, the Jakarta Composite rose 0.01%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets over the past few years.
China's consumer-price inflation slowed in December 2013, according to government data out Thursday. China's consumer-price index rose 2.5% in December from a year earlier, the National Bureau of Statistics said in Beijing. That compares with 3% increase in November. The producer-price index fell 1.4% from a year earlier to record its longest series of losses since the Asian financial crisis in 1997.
A member of the Bank of Japan's (BOJ) policy board said the central bank should move quickly to step up its monetary easing if the country's economy or prices diverge from their predicted paths. "I believe that we should take additional easing measures without hesitation to avoid jeopardizing the Bank of Japan's credibility if it becomes clear that economic and price conditions have sharply diverged downward from our baseline scenario," Sayuri Shirai said in the text of speeches released Thursday by the BOJ. Ms. Shirai indicated she had doubts about the likelihood the BOJ will achieve its inflation goal in two years, saying "there may be high uncertainty regarding the duration in which to achieve the target." That is because it could take "some time" before the full impact of the BOJ's current easing program is felt, considering consumer worries about a rapid decline in real disposable income as well as firms' caution over raising sales prices.
She also said the BOJ needs to achieve stable 2% inflation paired with sustainable economic growth, "rather than merely achieving 2% in a specific year and failing to meet the target in subsequent years."
South Korea's central bank left its key interest rate unchanged at 2.5% for an eighth straight month after a monetary policy review today, 9 January 2014.
Trading in US index futures indicated that the Dow could advance 59 points at the opening bell on Thursday, 9 January 2014. US stocks closed mostly lower on Wednesday, 8 January 2014, after minutes from the last Federal Open Market Committee meeting showed that a majority of officials judged the effects of the monthly asset purchases to be diminishing over time. Federal Reserve officials saw diminishing economic benefits from Fed's bond-buying program and voiced concern about future risks to financial stability during their last meeting, when they began to cut the pace of purchases, according to minutes from their last meeting released Wednesday, 8 January 2014. The minutes didn't describe a set schedule for reductions in bond purchases, although a few officials mentioned the need for a more deterministic path. 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.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The US central bank is poised to continue winding down its stimulus measures gradually this year.
Automatic Data Processing (ADP) said on Wednesday that private employers created 238,000 jobs in December.
The US government will unveil the influential non-farm payroll report for December 2013 tomorrow, 10 January 2014.
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