After extending initial losses which took it below the psychological 27,000 mark, the barometer index, the S&P BSE Sensex, regained that level in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently down 128.84 points or 0.47% at 27,004.41. Weakness in Asian stocks and an overnight rally in Brent crude oil prices dampened the sentiment. The market breadth indicating the overall health of the market was weak with more than two losers for every gainer on BSE. The BSE Small-Cap index was off 1.14%. Idea Cellular fell after witnessing multiple block deals in opening trade on BSE. Metal and power generation stocks tumbled. Meanwhile, India's Intelligence Bureau has reportedly issued an all-India alert after Al Qaeda leader Ayman al Zawahri announced the formation of an Indian branch of his militant group.
Earlier, the Sensex had slipped into the red soon after opening a tad higher.
Asian markets edged lower in choppy trade as financial shares declined.
At 11:15 IST, the S&P BSE Sensex was down 128.84 points or 0.47% at 27,004.41. The index fell 152.67 points at the day's low of 26,987.27 in mid-morning trade, its lowest level since 2 September 2014. The index gained 29.18 points at the day's high of 27,169.12 in early trade.
The CNX Nifty was down 23.25 points or 0.29% at 8,091.35. The index hit a low of 8,062.65 in intraday trade, its lowest level since 2 September 2014. The index hit a high of 8,114.80 in intraday trade.
The market breadth indicating the overall health of the market was weak with more than two losers for every gainer on BSE. On BSE, 1,661 shares declined and 810 shares advanced. A total of 57 shares were unchanged.
The BSE Mid-Cap index was down 78.96 points or 0.82% at 9,525.91. The BSE Small-Cap index was down 119.90 points or 1.14% at 10,413.82. Both these indices underperformed the Sensex.
Among 30-share Sensex pack, 24 stocks declined while remaining gained.
Metal shares dropped. Jindal Steel & Power (down 5.05%), Hindalco Industries down 4.4%), Steel Authority of India (down 2.43%), Tata Steel (down 1.95%), JSW Steel (down 0.97%), Sesa Sterlite (down 0.73%), NMDC (down 0.14%), and Hindustan Zinc (down 0.39%) declined.
Power generation stocks dropped. Jaiprakash Power Ventures (down 6.6%), GMR Infrastructure (down 5.85%), Reliance Power (down 3.01%), Adani Power (down 1.52%), NHPC (down 2.09%), Tata Power (down 1.89%), and NTPC (down 0.18%) declined.
Idea Cellular lost 3.08% at Rs 167.05 after multiple block deals were executed on the counter in opening trade on BSE today, 4 September 2014. Reportedly US-based private equity (PE) investor Providence Equity Partners has reduced its stake in Idea Cellular through block deals today, 4 September 2014. On BSE, a staggering 9.66 crore shares changed hands in the counter so far as against average daily volume of 7.78 lakh shares in the past one quarter. As of end of 30 June 2014, Providence Equity Partners held 33 crore shares or 9.31% stake in Idea Cellular through P5 Asia Investments (Mauritius). The Idea Cellular stock had settled at Rs 172.35 on Wednesday, 3 September 2014.
Power Grid Corporation of India rose 0.45%. The stock turned ex-dividend today, 4 September 2014, for final dividend of Rs 1.31 per share for the year ended 31 March 2014.
Meanwhile, India's Intelligence Bureau has reportedly issued an all-India alert after Al Qaeda leader Ayman al Zawahri announced the formation of an Indian branch of his militant group. The government has asked all the states to be on high alert for any possible attack, as per media reports. In a 55-minute video posted online Zawahri described the formation of Al-Qaeda in the Indian subcontinent as a glad tidings for Muslims in Burma, Bangladesh, Assam, Gujarat, Ahmedabad, and Kashmir and said that the new wing would rescue Muslims there from injustice and oppression.
Brent crude oil futures rallied Wednesday, 3 September 2014, on expectations that steps toward a cease-fire in eastern Ukraine could boost economic growth in Europe. Brent for October settlement surged $2.43 a barrel or 2.4% to settle at $102.77 a barrel yesterday, 3 September 2014. In today's trading, Brent for October settlement was down 64 cents at $102.13 a barrel.
Higher crude oil prices could increase fiscal deficit and current account deficit and stoke fuel price inflation. India imports 80% of its crude oil requirement.
Russian President Vladimir Putin on Wednesday, 3 September 2014, said he and his Ukrainian counterpart Petro Poroshenko had agreed to the outlines of a cease-fire for eastern Ukraine, calling for the separatists there to end their offensive and Kiev to pull its forces back.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.4175, compared with its close of 60.4825 during the previous trading session.
Asian markets edged lower in choppy trade today, 4 September 2014, as financial shares declined. Key indices in Japan, China, Hong Kong, Taiwan, Indonesia and Singapore were off 0.14% to 0.33%. In South Korea, the Seoul Composite index was up 0.27%
The Bank of Japan kept its record stimulus unchanged today, 4 September 2014 as Governor Haruhiko Kuroda looks to keep stoking inflation and boost economic momentum that's been sapped by a higher sales tax. The central bank kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen ($667 billion), the bank said in a statement today, 4 September 2014.
Trading in US index futures indicated that the Dow could fall 7 points at the opening bell on Thursday, 4 September 2014. US stock markets closed mostly lower on Wednesday, 3 September 2014, pulled down by a fall in Apple and other technology companies.
The US economy expanded at a modest to moderate pace over the past six weeks as a booming auto industry and tourism continued to drive growth, the Federal Reserve said in its Beige Book on Wednesday, 3 September 2014.
In Europe, a monthly meeting of the European Central Bank (ECB) is scheduled today, 4 September 2014. There are expectations that the European Central Bank (ECB) will announce quantitative easing in the coming months to bolster growth and counter downward pressures on prices in the euro zone. At US Federal Reserve's annual symposium in the United States on 22 August 2014, ECB President Mario Draghi said that expectations of future inflation in Europe exhibited significant declines at all horizons this month.
Bank of England will also announce its monetary-policy decision later in the global day today, 4 September 2014.
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