Key benchmark indices slumped in early trade as Asian stocks declined sharply and as US stocks witnessed a steep slide on Friday, 24 January 2014, as concern that the global economic recovery is faltering spurred investors to sell riskier assets. The barometer index, the S&P BSE Sensex, fell below the psychological 21,000 mark. All the 30 members of the Sensex pack were in red. The Sensex was down 315.31 points or 1.49%, off 80.78 points from the day's high and up 20.02 points from the day's low. The market breadth, indicating the overall health of the market, was extremely weak with more than four losers for every gainer. The BSE Small-Cap and Mid-Cap indices were off more than 1.5% each.
Tata Motors edged lower after the company before market hours today, 27 January 2014, announced the demise of its Managing Director, Karl Slym. TCS slipped after turning ex-dividend today, 27 January 2014. FMCG major Hindustan Unilever declined ahead of its Q3 results today, 27 January 2014.
The market sentiment was hit adversely by data showing that foreign funds were net sellers of Indian stocks on Friday, 24 January 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 230.96 crore on Friday, 24 January 2014, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire on Thursday, 30 January 2014.
At 9:25 IST, the S&P BSE Sensex was down 315.31 points or 1.49% to 20,818.25. The index lost 335.33 points at the day's low of 20,798.23 in early trade. The index fell 234.53 points at the day's high of 20,899.03 in early trade.
The CNX Nifty was down 91.60 points or 1.46% to 6,175.15. The index hit a low of 6,171.15 in intraday trade. The index hit a high of 6,188.55 in intraday trade.
The market breadth, indicating the overall health of the market, was extremely weak. On BSE, 1,019 shares declined and 245 shares gained. A total of 40 shares were unchanged. Both these indices underperformed the Sensex.
The BSE Mid-Cap index was off 117.79 points or 1.82% at 6,337.47. The Small-Cap index was off 103.31 points or 1.6% at 6,341.15.
The total turnover on BSE amounted to Rs 116 crore by 09:25 IST.
All the 30 members of the Sensex pack declined. Sesa Sterlite (down 3.06%), ICICI Bank (down 2.86%) and Mahindra & Mahindra (down 2.38%) edged lower from the Sensex pack.
Tata Motors lost 2.79%. The company before market hours today, 27 January 2014, announced the demise of its Managing Director, Karl Slym. "Tata Motors deeply regrets to announce the untimely and tragic demise of its Managing Director, Karl Slym, in Bangkok on Sunday, 26 January 2014. Karl Slym was in Bangkok to attend a meeting of the Board of Directors of Tata Motors Thailand. Karl Slym joined Tata Motors in October 2012, and was providing leadership to the company through a challenging market environment. The company shares in the grief of Karl Slym's wife and family at their irreparable loss," Tata Motors said in a statement.
TCS shed 0.1%. The stock turned ex-dividend today, 27 January 2014, for third interim dividend of Rs 4 per share for the year ending 31 March 2014.
FMCG major Hindustan Unilever declined 0.7% ahead of its Q3 results today, 27 January 2014.
Shares of Cairn India fell 0.63%. London Stock Exchange listed Cairn Energy PLC on Friday, 24 January 2014, said it has been contacted by the Income Tax Department of India to discuss income tax assessments for the year ended 31 March 2007. Cairn Energy is co-operating to provide the necessary documentation and information as requested, the company said in a statement. While discussions are ongoing, the Income Tax Department has instructed Cairn Energy to hold its shares in Cairn India. Cairn Energy will update the market in due course, it said.
Reliance Infrastructure lost 2.5%. Reliance Power declined 2.03%. Reliance Infrastructure informed on Saturday, 25 January 2014, that the company on Friday, 24 January 2014, acquired 9.5 crore equity shares at Rs 68 per share of face value Rs 10 each of Reliance Power from Reliance Enterprises and Ventures in a bulk deal on BSE by way of an inter se transfer.
Glenmark Pharmaceuticals rose 1.17%. The company's consolidated net profit rose 1.55% to Rs 216.23 crore on 15.92% growth in revenue to Rs 1601.22 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 24 January 2014.
Glenmark Pharmaceuticals (Glenmark) said that the net profit for the quarter is not comparable due to out-licensing income of Rs 49.30 crore received in Q3 December 2012. EBITDA (earnings before interest, taxation, depreciation and amortization) excluding out-licensing income surged 34.75% to Rs 364.97 crore in Q3 December 2013 over Q3 December 2012.
Revenue from the Generics business rose 24.73% to Rs 737.26 crore in Q3 December 2013 over Q3 December 2012. The Specialty Formulation business excluding out-licensing revenue rose 16.62% to Rs 863.95 crore in Q3 December 2013 over Q3 December 2012.
Commenting on the company's Q3 performance, Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals said, "Despite challenges in the operating environment, we have registered good growth in both our Speciality and Generics Businesses across the globe. We are reasonably confident of maintaining our growth trajectory with our emerging markets businesses being a key growth driver going ahead. Our Innovation R&D Business has also been making steady progress with our 4 NCE and 3 NBE molecules at various stages of clinical development".
GMR Infrastructure lost 3.7%. The company's board of directors at a meeting held on Friday, 24 January 2014, accorded approval for raising of funds through issue of foreign currency convertible bonds and/or other securities up to an amount of Rs 2500 crore through follow on offer, further public offer and/or private placement etc.
The Ministry of Consumer Affairs, Food & Public Distribution on Friday, 24 January 2014, said that as per data monitored by the Ministry of Consumer Affairs and Food, prices of rice, wheat and sugar during the week - 16 January 2014 to 23 January 2014 - remained steady in wholesale markets across the country. The Price Monitoring Cell of the Ministry monitors prices of twenty two essential commodities regularly at 55 wholesale centers. During the period, prices of rice remained steady at all wholesale centers and decreased at one center (Aizwal). Prices of wheat also were steady at all wholesale centers except one centre at Ludhiana. While sugar prices decreased at eight centers and remain steady at rest of the reporting centers, the Ministry of Consumer Affairs and Food said in a statement.
Prices of twenty two essential commodities are regularly monitored by Department of Consumer Affairs for taking suitable action to keep the prices under check. Price data is collected on daily basis from the State Civil Supplies Departments of the respective State Governments.
The Reserve Bank of India announces Third Quarter Review of Monetary Policy for 2013-14 at 11:00 IST tomorrow, 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
Asian stocks slumped on Monday, 27 January 2014, as concern that the global economic recovery is faltering spurred investors to sell riskier assets. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea were off 0.69% to 2.99%.
Japan reported a record annual trade deficit for last year as energy shipments and weakness in the yen pumped up the nation's import bill. The shortfall was 11.5 trillion yen ($113 billion), almost double the previous year's 6.9 trillion yen, a finance ministry report showed in Tokyo today, 27 January 2014. Imports rose 25% in December from a year earlier and exports gained 15%, leaving a monthly deficit of 1.3 trillion yen.
US stocks tumbled on Friday, 24 January 2014, as investors fled equities and emerging-markets currencies on concerns about a contagion effect from China's manufacturing slowdown. The CBOE Volatility Index, known as the Vix, surged 32%, its steepest rise since the April 15 Boston Marathon bombings.
The Federal Open Market Committee's (FOMC) two-day monetary policy meeting begins tomorrow, 28 January 2014. 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.
Global stocks tumbled the most since June on Friday, 24 January 2014, as a sell-off in emerging-market currencies prompted investors to seek havens in Treasuries, gold and the yen.
Powered by Capital Market - Live News
