After trimming gains in early afternoon trade, key benchmark indices once again recovered from lower level in afternoon trade as European stocks edged higher in early trade there. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently up 120.67 points or 0.46% at 26,613.18. The BSE Small-Cap and Mid-Cap indices were, both, in red. Asian stocks were firm after overnight gains for US stocks which took the Dow Jones Industrial Average to an intraday record high. In pharma pack, Dr Reddy's Laboratories scaled record high. In auto pack, Hero MotoCorp scaled record high.
Shares of state-run upstream oil and gas companies declined. PSU OMCs also edged lower. Cairn India rose after the company announced three new oil discoveries in Rajasthan block. Jindal Steel & Power (JSPL) extended intraday fall in volatile trade. In telecom pack, Reliance Communications hit 52-week low. Ratings firm Credit Analysis and Research (CARE) scaled record high. Sugar stocks declined after an industry body Indian Sugar Mills Association (ISMA) said that the country is likely to churn out a surplus sugar for the fifth straight year despite erratic rainfall in key growing areas.
Key indices have witnessed intermittent volatility within positive zone so far during the day after a higher opening triggered by firm Asian stocks and after the Dow Jones Industrial Average hit an intraday record high overnight.
In overseas markets, European stocks edged higher in early trade as investors weighed central-bank stimulus around the world before the Federal Reserve's decision on monetary policy. Asian stocks rose on a report China's central bank is boosting stimulus. Investors across the globe are awaiting the outcome on the Federal Reserve's two-day policy meeting that concludes today, 17 September 2014, to gauge the timing of interest rate hike in the US. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
In the foreign exchange market, small gains helped the rupee strengthen past 61 against the dollar.
Brent crude oil prices edged lower after overnight gains.
At 13:15 IST, the S&P BSE Sensex was up 120.67 points or 0.46% at 26,613.18. The index jumped 190.13 points at the day's high of 26,682.64 in morning trade. The index rose 19.20 points at the day's low of 26,511.71 in morning trade.
The CNX Nifty was up 32.85 points or 0.41% at 7,965.75. The index hit a high of 7,990.65 in intraday trade. The index hit a low of 7,936.95 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,640 shares fell and 1,141 shares rose. A total of 93 shares were unchanged.
The BSE Mid-Cap index was off 23.29 points or 0.24% at 9,636.02. The BSE Small-Cap index was off 27.35 points or 0.25% at 10,768.96. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2139 crore by 13:15 IST
Shares of state-run upstream oil and gas companies declined. ONGC (down 0.56%), Oil India (down 0.65%) and GAIL (India) (down 2.02%) declined.
State-run upstream oil and gas companies share a part of the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PDS kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning & Analysis Cell.
Shares of private sector upstream oil stocks were in demand. Reliance Industries rose 0.47%.
Cairn India gained 2.39%. Cairn India during market hours today, 17 September 2014, announced three new oil discoveries in Rajasthan block. Cairn India said one the oil discoveries is a significant discovery in view of its proximity to the Mangala oil field and fast track appraisal is planned to facilitate rapid commercialization of this discovery.
Meanwhile, Cairn India's board of directors at its meeting held today, 17 September 2014, declared an interim dividend of Rs 5 per equity share for the financial year ending 31 March 2015. This will entail an outflow of Rs 1097 crore, including the dividend distribution tax of Rs 159 crore.
PSU OMCs edged lower. HPCL (down 0.82%), Indian Oil Corporation (IOCL) (down 2.39%) and BPCL (down 2.15%) declined.
Meanwhile, recent media reports indicated that the government will decide on ending government control on diesel pricing after elections in two states next month, even though local prices of the fuel are currently higher than the global rates, making a case for a cut in retail prices. PSU OMCs now have over recovery of 35 paise per litre on sale of diesel, as per the latest data released by Petroleum Planning & Analysis Cell.
PSU OMCs are currently incurring daily under-recovery of Rs 190 crore on the sale of Diesel, PDS Kerosene and Domestic LPG.
Jindal Steel & Power (JSPL) dropped 4.56% to Rs 208.35, with the stock extending intraday fall in volatile trade. The stock hit high of Rs 224 and low of Rs 205.40 so far during the day.
Dr Reddy's Laboratories rose 1.33% to Rs 3,049.25 after scaling record high of Rs 3,061 in intraday trade.
Hero MotoCorp advanced 1.93% to Rs 2,845.30 after scaling record high of Rs 2,848.60 in intraday trade. The company said during market hours yesterday, 16 September 2014, that the company has entered into a Memorandum of Understanding (MOU) with the state government of Andhra Pradesh to set-up a manufacturing plant in Chittoor district of the state of Andhra Pradesh. The plant with an investment of about Rs 1600 crore will have a production capacity of around 1.8 million per annum.
Reliance Communications lost 4.3% to Rs 102.30 after hitting a 52-week low of Rs 100.65 in intraday trade.
Hindustan Zinc rose 0.18%. Hindustan Zinc's board of directors at its meeting held today, 17 September 2014, declared interim dividend of Rs 1.90 per equity share for the financial year ending 31 March 2015.
Credit Analysis and Research (CARE) gained 3.31% to Rs 1,425 after scaling record high of Rs 1,440 in intraday trade.
Sugar stocks declined after an industry body Indian Sugar Mills Association (ISMA) said that the country is likely to churn out a surplus sugar for the fifth straight year despite erratic rainfall in key growing areas. Bajaj Hindusthan (down 0.24%), Dhampur Sugar Mills (down 0.19%), Balrampur Chini Mills (down 3.28%), Triveni Engineering & Industries (down 3.85%) and Dwarikesh Sugar Industries (down 2.19%) declined. Shree Renuka Sugars was trading unchanged for the day at Rs 17.75.
India is likely to produce 25 million tonnes to 25.50 million tonnes of sugar in 2014-15 year starting 1 October 2014, Indian Sugar Mills Association (ISMA) said on Wednesday, 17 September 2014. In the current year 2013-14, it is expected that 24.3 million tonnes of sugar would be produced and domestic consumption would be a little over 24 million tonnes, ISMA said.
The surplus production could depress local prices and increase losses of debt-ridden sugar mills, reports indicated.
Meanwhile, provisional data released by the stock exchanges after trading hours on Tuesday, 16 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 828.95 crore on that day.
In the foreign exchange market, small gains helped the rupee strengthen past 61 against the dollar. The partially convertible rupee was hovering at 60.965, compared with its close of 61.06 during the previous trading session.
Brent crude oil prices edged lower after staging its steepest climb in two weeks in the previous session triggered by hopes the Organization of the Petroleum Exporting Countries (OPEC) will cut output and reduce a global supply glut. Brent for November settlement was off 3 cents at $99.02 a barrel. The contract had risen $2.4 a barrel or 1.2% to settle at $99.05 a barrel on Tuesday, 16 September 2014.
Chinese President Xi Jinping comes for a three-day visit to India today, 17 September 2014. The Chinese President is expected to pledge billions of dollars for railways, industrial parks and roads in India.
On the political front, the ruling government led by Bharatiya Janata Party (BJP) suffered a major blow in the Assembly by-elections in Uttar Pradesh, Rajasthan and Gujarat, the states it had swept in the Lok Sabha polls four months ago, losing 13 of the 24 seats held by it. The results of the by-elections held in nine states were announced on Tuesday, 16 September 2014. Counting in one assembly seat in Chhattisgarh will be held on Saturday, 20 September 2014. Considered yet another test of popularity of Prime Minister Narendra Modi, reversal in the outcome of by-elections come after the party's disappointing performance in the assembly by-elections in Bihar, Uttarakhand, Karnataka and Madhya Pradesh in the last two months.
European stocks edged higher today, 17 September 2014, as investors weighed central-bank stimulus around the world before the US Federal Reserve's decision on monetary policy. Key benchmark indices in UK, France and Germany were 0.2% to 0.4%.
In UK, investors are awaiting tomorrow's (18 September 2014) referendum on Scottish independence.
Asian stocks rose today, 17 September 2014, on a report China's central bank is boosting stimulus. Key benchmark indices in Hong Kong, Indonesia, South Korea, Singapore, Taiwan and China were up 0.49% to 1.2%. Japan's Nikkei Average was off 0.14%.
China reportedly provided 500 billion yuan ($81.4 billion) of liquidity to its five biggest banks, as leaders in Asia's largest economy seek to support growth. The People's Bank of China started providing the banks with 100 billion yuan each through standing lending-facilities with tenor of three months. The PBOC will complete the process today, 17 September 2014, according to reports.
Trading in US index futures indicated that the Dow could fall 8 points at the opening bell on Wednesday, 17 September 2014. US stocks rose on Tuesday, 16 September 2014, with the Dow Jones Industrial Average hitting a record intraday high as markets reacted to wavering expectations over the language the Federal Reserve will use Wednesday, 17 September 2014, to describe its next policy move.
Investors will look to Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. A two-day policy meeting of the Federal Open Market Committee (FOMC) ends today, 17 September 2014. At the end of a two-day meeting, the FOMC is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
The Fed will also announce US economic projections after the policy meet. Fed now releases economic projections four times a year (March, June, September, and December). Traditionally, the Fed forecasts covered GDP, the PCE price index, and the civilian unemployment rate. However, the forecast report additionally now includes forecasts for the appropriate timing of the next change in the fed funds rate and the expected fed funds rate at the end of the next two years. The policy meet will be followed by a press conference by Federal Reserve Chairwoman Janet Yellen on 17 September 2014.
The Federal Reserve after two-day policy meeting on 30 July 2014, said it would reduce its purchases of mortgage and Treasury bonds by $10 billion to $25 billion monthly from $35 billion earlier, as widely expected.
Powered by Capital Market - Live News
