Key benchmark indices languished in red in early afternoon trade .The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 35.39 points or 0.17%, off 84.14 points from the day's high and up 24.19 points from the day's low. Weakness in Asian stocks dampened investor sentiment. In the foreign exchange market, the rupee edged lower against the dollar as better-than-expected US private sector jobs numbers strengthened the case for further tapering of the Federal Reserve's bond-buying program.
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. PSU OMCs edged higher as US crude oil futures traded near the lowest level in six weeks after Energy Information Administration data showed fuel stockpiles increased more than forecast in the US, the world's biggest oil consumer. Tata Steel rose after the company said it has won a two-year contract to supply more than 200,000 tonnes of track to French rail operator SNCF. Realty stocks edged lower. MCX fell on profit booking. Shares of Financial Technologies (India) surged.
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.
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 12:18 IST, the S&P BSE Sensex was down 35.39 points or 0.17% to 20,693.99. The index gained 48.75 points at the day's high of 20,778.13 in early trade. The index fell 59.58 points at the day's low of 20,669.80 in morning trade, its lowest level since 7 January 2014.
The CNX Nifty was down 16.35 points or 0.26% to 6,158.25. The index hit a high of 6,188.05 in intraday trade. The index hit a low of 6,154.10 in intraday trade, its lowest level since 7 January 2014.
The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. On BSE, 1,197 shares dropped and 1,040 shares rose. A total of 143 shares were unchanged.
The total turnover on BSE amounted to Rs 1097 crore by 12:15 IST, compared with Rs 789 crore by 11:15 IST.
Among the 30-share Sensex pack, 18 stocks declined and rest of them gained.
AXIS Bank (down 2.79%), L&T (down 2.14%) and Hindalco Industries (down 2.34%) edged lower. Sesa Sterlite (up 3.52%), NTPC (up 2.28%) and Dr Reddy's Laboratories (up 2.1%) gained.
Reliance Industries (RIL) rose 0.19% to Rs 849.90 in volatile trade. The stock hit a high of Rs 853.10 and low of Rs 844.95 so far during the day. 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.
PSU OMCs edged higher as US crude oil futures traded near the lowest level in six weeks after Energy Information Administration data showed fuel stockpiles increased more than forecast in the US, the world's biggest oil consumer. HPCL (up 1.27%), BPCL (up 2.51%) and Indian Oil Corporation (up 1.84%) gained.
US crude oil futures for February delivery were at $92.67 a barrel, up 34 cents. The contract fell $1.34 to settle at $92.33 yesterday, 8 January 2014, the lowest close since 27 November 2013.
Oil secretary Vivek Rae today, 9 January 2014, said that the oil ministry is considering a partial rollback of bulk diesel prices as sales have dropped significantly. "We are circulating the Kirit Parikh report for inter-ministerial consultation," Rae told reporters on the sidelines of an industry event. He also said there is a need to review the subsidy sharing mechanism to ensure that upstream companies get about $65 a barrel on sale of crude oil.
PSU OMCs, or public sector oil marketing companies, suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.
Tata Steel rose 0.32%. Tata Steel on Wednesday, 8 January 2014, said it has won a two-year contract to supply more than 200,000 tonnes of track to French rail operator SNCF. The contract will see Tata Steel supply the majority of SNCF's rail requirements in lengths of up to 108 metres from its plant in Hayange, Northern France, the company said in a statement. The order was secured following a euro 35 million investment by Tata Steel in 2011 which allowed the Hayange mill to produce 108 metre lengths of rail that SNCF will use throughout France's standard and high-speed networks. The new order is an extension of a previous contract with SNCF, Tata Steel said.
Henrik Adam, Tata Steel's Chief Commercial Officer, said: "We know that by working with customers we are able to innovate and develop products they want. We made a significant investment in Hayange to be able to produce the 108 metre long rail required by SNCF. Our heat-treatment facility means we are also now able to produce highly wear-resistant rail in lengths up to 108 metre - a key requirement of most of our European customers."
The Hayange rolling mill is supplied with steel from Tata Steel's Scunthorpe steelworks in the UK.
Gard Glas, Rail Sector Head, Tata Steel, said: "We are committed to serving the needs of our customers and SNCF is Hayange's largest and most important customer. We have worked closely with SNCF to understand their requirements and have invested in both our plant and technical areas to ensure we can continue to meet their needs. This contract helps to justify the confidence Tata Steel placed in the Hayange mill when the company invested in 108m rail and more recently in 108m 'stress-free' heat-treated rail."
Realty stocks edged lower. DLF (down 1.79%), Indiabulls Real Estate (down 2.1%), HDIL (down 4.69%), Unitech (down 1.68%), Oberoi Realty (down 2.84%) declined.
Aurobindo Pharma shed 0.8%. 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.
MCX fell 1.58% to Rs 586.90 on profit booking after the stock rose 22.20% in the preceding four trading sessions to Rs 596.65 on 8 January 2014 from a recent low of Rs 488.25 on 2 January 2014.
Shares of Financial Technologies (India) jumped 7% to Rs 319.45.
Suzlon Energy fell 2.37% to Rs 11.55 on profit booking after the stock rose 12.24% in the preceding four trading sessions to Rs 11.83 on 8 January 2014, from a recent low of Rs 10.54 on 2 January 2014.
Suven Life Sciences rose 4.46% 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.
In the foreign exchange market, the rupee edged lower against the dollar as better-than-expected US private sector jobs numbers strengthened the case for further tapering of the Federal Reserve's bond-buying program. The partially convertible rupee was hovering at 62.1125, 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 0.1% to 1.5%. In Indonesia, the Jakarta Composite rose 0.26%. 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 7 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.
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