A bout of volatility was witnessed as key benchmark indices trimmed losses in mid-afternoon trade. The market breadth, indicating the overall health of the market, was negative. The barometer index, the S&P BSE Sensex, was down 11.51 points or 0.06%, up 65.18 points from the day's low and off 60.26 points from the day's high.
Shares of state-run coal miner Coal India extended Wednesday's gains triggered by speculation that the company may announce a hefty interim dividend next week. ONGC extended intraday gains on rumours that the company will announce a hefty interim dividend. Cadila Healthcare extending Wednesday's gain triggered by a foreign brokerage upgrade. Shares of auto components maker Motherson Sumi Systems hit record high.
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. A bout of volatility was witnessed as key benchmark indices trimmed losses in mid-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 14:20 IST, the S&P BSE Sensex was down 11.51 points or 0.06% to 20,717.87. 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 7.25 points or 0.12% to 6,167.35. 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, 1,343 shares dropped and 1,073 shares rose. A total of 159 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks declined and rest of them gained.
Hindalco Industries (down 2.21%), AXIS Bank (down 2.12%) and L&T (down 2.12%) declined.
Sesa Sterlite (up 4.8%), NTPC (up 3.16%) and Tata Power Company (up 0.93%) gained.
Shares of state-run coal miner Coal India extended Wednesday's gains triggered by speculation that the company may announce a hefty interim dividend next week. The stock was up 1.99%. The scrip had surged 4.77% on Wednesday, 8 January 2014, after the company said during trading hours on that day that a meeting of the board of directors of the company will be held on 14 January, 2014, to consider payment of interim dividend, if any, for the year ending 31 March 2014.
The market has been abuzz with rumours that the government may force cash rich state-run firms to declare hefty interim dividend to enable the government to meet the fiscal deficit target for the current year.
ONGC extended intraday gain on rumours that the company will announce a hefty interim dividend. The stock was up 2.23% at Rs 279.35. The stock hit a high of Rs 281.40 and low of Rs 271.25 so far during the day.
Cadila Healthcare rose 2.75% to Rs 869, with the stock extending Wednesday's 4.91% gain triggered by a foreign brokerage upgrade. The foreign brokerage raised its target on Cadila Healthcare stock to Rs 1,000 from Rs 705, saying the worst is behind and earnings will accelerate from fiscal 2015. The foreign brokerage said it expects Cadila to get 20 or more drug approvals from the US Food and Drug Administration (US FDA) and that it expects Cadila's domestic sales to recover in fiscal 2015.
Motherson Sumi Systems gained 4.01% to Rs 206 after hitting a record high of Rs 208 in intraday trade.
Aban Offshore lost 2.9% to Rs 419.60, with the stock sliding on profit booking after recent rally. Shares of Aban Offshore had rallied 17.19% in three trading sessions to settle at Rs 432.15 on Wednesday, 8 January 2014, from a recent low of Rs 368.75 on 3 January 2014.
SREI Infrastructure Finance (up 9.73%), Financial Technologies (India) (up 7.82%), Asahi India (up 6.81%), GVK Power & Infrastructure (up 5.73%) and Nirlon (up 5.44%) were among the major gainers from the BSE Small-Cap index.
India Infoline (up 6.81%), Cholamandalam Investment and Finance Company (up 3.52%), Edelweiss Financial Services (up 3.2%), Vakrangee (up 2.73%) and Supreme Industries (up 2.48%) were among the major gainers from the BSE Mid-Cap index.
In the foreign exchange market, the rupee reversed intraday losses against the dollar. The partially convertible rupee was hovering at 61.99, 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.
European stocks edged lower on Thursday, 9 January 2014, as investors readied for policy decisions from both the European Central Bank and the Bank of England. Key benchmark indices in France and Germany were off 0.13% to 0.33%. In UK, the FTSE 100 was up 0.05%.
The European Central Bank (ECB) holds a monetary policy meeting today, 9 January 2014. The ECB is seen retainting its key interest rate at a record low of 0.25%. The ECB last cut its rate in November 2013.
UK's central bank -- Bank of England -- also undertakes monthly monetary policy review tomorrow, 9 January 2014. The Bank of England is expected to keep the key rate unchanged at 0.5% and maintain the asset-purchase target at 375 billion pounds ($617 billion).
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 0.3% to 1.5%. In Indonesia, the Jakarta Composite rose 0.14%. 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 advance 15 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.
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