Key benchmark indices extended losses and hit fresh intraday low in afternoon trade. The market breadth, indicating the overall health of the market, was negative. The barometer index, the S&P BSE Sensex, was down 61.78 points or 0.3%, off close to 110 points from the day's high and up about 15 points from the day's low. Weakness in Asian stocks dampened investor sentiment.
Among pharma stocks, Dr Reddy's Laboratories hit record high. Ranbaxy Laboratories edged lower in choppy trade after the company announced the signing of a licensing agreement with EPIRUS Switzerland GmbH, a wholly-owned subsidiary of Boston-based EPIRUS Biopharmaceuticals, Inc. (EPIRUS), for BOW015 -- a biosimilar version of infliximab. Capital goods stocks also declined. Most IT stocks rose on positive economic data in US.
Key benchmark indices edged higher amid initial volatility. Volatility continued as the key benchmark indices trimmed losses after reversing initial gains. Key benchmark indices alternately swung between positive and negative zone near the flat line in mid-morning trade. Key benchmark indices languished in red in early afternoon trade. Key benchmark indices extended losses and hit fresh intraday low in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 79.68 crore on Wednesday, 8 January 2014, as per provisional data from the stock exchanges.
At 13:20 IST, the S&P BSE Sensex was down 61.78 points or 0.3% to 20,667.60. 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 24.15 points or 0.39% to 6,150.45. 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, 1,316 shares dropped and 1,039 shares rose. A total of 144 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks declined and rest of them gained. AXIS Bank (down 2.61%), Maruti Suzuki India (down 1.26%) and Hindalco Industries (down 2.64%) edged lower from the Sensex pack.
Bank of Baroda shed 1.24%. The state-run bank said during market hours that a meeting of the board of directors of the bank will be held on 15 January 2014, inter alia, for considering a proposal to declare/pay interim dividend for the year ending 31 March 2014. The bank also said that 21 January 2014 has been fixed as the record date for the purpose of payment of interim dividend, if declared.
Dr Reddy's Laboratories was up 1.85% at Rs 2,578.70. The stock hit record high of Rs 2,585 in intraday trade.
Ranbaxy Laboratories edged lower in choppy trade after the company announced the signing of a licensing agreement with EPIRUS Switzerland GmbH, a wholly-owned subsidiary of Boston-based EPIRUS Biopharmaceuticals, Inc. (EPIRUS), for BOW015 -- a biosimilar version of infliximab. The stock was off 0.17% at Rs 473.20. The scrip hit high of Rs 482.55 and low of Rs 465.20 so far during the day. Under the terms of the agreement, EPIRUS will develop and supply the product, and upon regulatory approval Ranbaxy will market the product in India and other emerging markets.
Aurobindo Pharma shed 3.73%. In clarification to news reports about a boiler blast at one of Aurobindo Pharma's units, the company during market hours today, 9 January 2014, clarified that there has been no such incidence and cautioned all shareholders and investors not to take cognizance of these unverified reports.
Suven Life Sciences rose 4.33% after the firm said it has secured 3 product patents one each from Australia, Sri Lanka and South Korea for NCE's for the treatment of disorders associated with neurodegenerative diseases. The announcement was made during trading hours today, 9 January 2014.
Suven Life Sciences (Suven) announced today, 9 January 2014, the grant of three product patents one each from Australia, Sri Lanka and South Korea corresponding to the new chemical entities (NCEs) for the treatment of disorders associated with neurodegenerative diseases and these Patents are valid through 2029.
Capital goods stocks declined. Bhel (down 0.43%), Crompton Greaves (down 1.74%), L&T (down 2.35%) and Punj Lloyd (down 1.97%) dropped.
IT stocks rose on positive economic data in US. US is the biggest outsourcing market for the Indian IT firms. HCL Technologies (up 0.33%) and TCS (up 0.09%) gained.
Infosys rose 0.37% ahead of 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).
Wipro (down 0.88%) and Tech Mahindra (down 0.77%) declined.
Mastek rose 3.67% to Rs 206.30 after the company said its board approved buyback of shares. The company made the announcement after market hours on Wednesday, 8 January 2014. Mastek said its board approved buyback of maximum of 32 lakh equity shares and minimum of 9.50 lakh equity shares from the open market at a price not exceeding Rs 250 per equity share for an aggregate amount not exceeding Rs 54.50 crore. The buyback offer size represents 14.92% of the aggregate of the company's paid up equity capital and free reserves as on 31 March 2013, the company said in a statement.
In the foreign exchange market, the rupee reversed intraday losses against the dollar. The partially convertible rupee was hovering at 61.995, compared with its close of 62.07/08 on Wednesday, 8 January 2014.
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.
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 0.24% to 1.5%. In Indonesia, the Jakarta Composite rose 0.28%. 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 drop 3 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.
The European Central Bank holds a monetary policy meeting today, 9 January 2014. UK's central bank -- Bank of England -- also undertakes monthly monetary policy review tomorrow, 9 January 2014. The Bank of England and the European Central Bank are both expected to keep monetary policy on hold.
Powered by Capital Market - Live News
