Weakness continued on the bourses in afternoon trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently off 394.09 points or 1.33% at 29,287.68.
PSU OMCs edged higher on renewed buying. Cement shares declined. Power generation stocks were in demand.
Earlier, the Sensex and the 50-unit CNX Nifty, both, reversed direction after hitting record high at the onset of the trading session and hit one-week low.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged lower amid a supply glut.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1723.77 crore yesterday, 29 January 2015, as per provisional data.
In overseas markets, Asian stocks were mixed. US stocks registered broad-based gains yesterday, 29 January 2015, after weekly US jobless claims fell to the lowest level in 14 years.
At 13:18 IST, the S&P BSE Sensex was down 394.09 points or 1.33% at 29,287.68. The index lost 448.81 points at the day's low of 29,232.96 in early afternoon trade, its lowest level since 23 January 2015. The index jumped 162.39 points at the day's high of 29,844.16 at the onset of the trading session, a record high for the index.
The CNX Nifty was down 114.70 points or 1.28% at 8,837.65. The index hit a low of 8,820 in intraday trade, its lowest level since 23 January 2015. The index hit a high of 8,996.60 in intraday trade, a record high for the index
The market breadth indicating the overall health of the market was negative. On BSE, 1,496 shares declined and 1,163 shares gained. A total of 103 shares were unchanged.
The BSE Mid-Cap index was off 12.78 points or 0.12% at 10,758.30. The BSE Small-Cap index was off 16.86 points or 0.15% at 11,361.89. The fall in these two indices was lower than the Sensex's decline in percentage terms.
Coal India lost 3.63% to Rs 361.55. The stock was volatile. The stock hit high of Rs 364 and low of Rs 360.50 so far during the day. Bids were received for a total of 12.90 crore shares amounting to 40.88% of the base issue size for divestment of the government's 5% stake in the state-run coal major, till 13:05 IST, as per data from the stock exchanges. The government has put on block 31.58 crore shares of Coal India, constituting 5% equity with an option to sell additional up to 31.58 crore shares through the stock exchanges mechanism. The floor price for the offer for sale (OFS) of Coal India's shares has been set at Rs 358 per share. The OFS commenced today, 30 January 2015, at 9:15 IST and will close at 15:30 IST.
The government has reserved 20% of the size of the sale for retail investors. Retail investors will be offered a discount of 5% to the bid price entered by them in accordance with the Sebi OFS circulars.
Apollo Hospitals Enterprise fell 1.81%. The company announced during trading hours that Sanofi-Synthelabo (India) has invested in Apollo Sugar Clinics (ASCL). ASCL is a disease management clinic focused on providing integrated care across its clinics for people suffering with diabetes. ASCL is a subsidiary of Apollo Health Lifestyle. The latter is wholly owned subsidiary of Apollo Hospitals Enterprise. An amount of Rs 90 crore is being invested by Sanofi-Synthelabo (India) in ASCL through a combination of primary and secondary funding.
Cement shares declined. JK Lakshmi Cement (down 2.82%), India Cements (down 1.87%), J K Cement (down 1.8%), ACC (down 1.53%), UltraTech Cement (down 0.94%), Saurastra Cement (down 0.75%) and Birla Corporation (down 0.52%), edged lower. Prism Cement (up 0.10%), Mangalam Cement (up 0.25%), Kakatiya Cement (up 0.41%), The Ramco Cement (up 0.80%), Shree Cement (up 0.89%), HeidelbergCement India (up 1.66%) and Jaiprakash Associates (up 3.63%), edged higher.
Grasim Industries was down 0.35%. Grasim holds majority stake in UltraTech Cement.
Ambuja Cements fell 2.51% to Rs 249. The stock reversed direction after scaling a record high of Rs 256.60 in intraday trade.
Power generation stocks were in demand. GMR Infrastructure (up 9.86%), Reliance Infrastructure (up 5.09%), Jaiprakash Power Ventures (up 2.26%), NTPC (up 1.97%), Reliance Power (up 1.90%), Tata Power (up 1.14%), JSW Energy (up 1.04%), Torrent Power (up 0.61%) and Adani Power (up 0.48%), edged higher. CESC (down 0.24%) and NHPC (down 1.26%), edged lower.
PSU OMCs were in demand. Indian Oil Corporation gained 1.11%. BPCL rose 2.40%.
HPCL jumped 3.60% to Rs 658.75 after scaling a record high of Rs 664.75 in intraday trade.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.7850, compared with its close of 61.875 during the previous trading session.
Brent crude oil futures edged lower amid a supply glut. Brent for March settlement was off 31 cents at $48.82 a barrel. The contract had gained 66 cents a barrel or 1.36% to settle at $49.13 a barrel during the previous trading session.
The Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged at 7.75% after a monetary policy review next week. The sixth bi-monthly monetary review from the RBI is scheduled on Tuesday, 3 February 2015. The central bank may focus on the details of the upcoming Union Budget 2015-16 which is scheduled on 28 February 2015, before taking a call on further monetary policy easing. The RBI surprised financial markets by announcing a cut in the repo rate by 25 basis points in an unscheduled monetary policy review on 15 January 2015, citing easing of inflationary pressures in the economy. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose to 5% in December 2014 from 4.4% in November 2014. Over the long term, the RBI aims to restrict consumer price inflation to 4%, within a two-per-cent band.
Asian stocks were mixed today, 30 January 2015. Key benchmark indices in Japan, Singapore and Indonesia were up 0.04% to 0.49%. Key benchmark indices in China, Hong Kong, South Korea and Taiwan were off 0.09% to 1.59%.
Japan's industrial output rose a seasonally adjusted 1% in December from the previous month, government data showed today, 30 January 2015 signaling the economy may have started to recover slowly following last year's consumption tax hike. The rise in December came after a 0.5% fall in November.
Taiwan's economy expanded more slowly in the fourth quarter, as falling oil prices hurt petrochemical exports, though demand for electronics remained strong. Taiwan's gross domestic product rose 3.17% from a year earlier in the final quarter of 2014, the lowest rate in five quarters, and 1.17% from the previous quarter, an initial official reading showed today, 30 January 2015. The economy expanded 3.63% in the third quarter of 2014.
Trading in US index futures indicated that the Dow could fall 59 points at the opening bell today, 30 January 2015. US stocks closed higher yesterday, 29 January 2015 as an upturn in oil prices and a rally in Apple and Boeing shares helped offset some disappointing earnings and lingering questions over US monetary policy.
In economic news, the number of people who applied for US unemployment-insurance benefits plunged 43,000 to 265,000 in the week that ended Jan. 24, hitting the lowest tally in 14 years, according to Labor Department data released yesterday, 29 January 2015.
Separately, pending home sales cooled in December, which the National Association of Realtors attributed to fewer homes available for sale and a slight rise in prices. The pending home sales index fell 3.7% during December, though the year-on-year gain was 11.7%, the highest since June 2013.
The US Commerce Department releases its first estimate of fourth-quarter GDP today, 30 January 2015.
In Europe, German retail sales rose less than expected in December, but the annual figures suggest that consumption continued to act as a pillar to economic growth in the final quarter of last year.
Retail sales in December rose 0.2% in calendar- and inflation-adjusted terms compared with November, the Federal Statistics Office said Friday.
Compared with the year-earlier month, however, retail sales were 4.0% higher--the highest expansion since June 2013--although Destatis noted there was one more shopping day in December 2014 than the comparable period in 2013. For the full year, retail sales grew 1.4% in price-adjusted terms, Destatis said. German retail sales are a volatile indicator, however, and are prone to large revisions.
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