Key benchmark trimmed losses after hitting fresh intraday low in mid-morning trade. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was currently down 63.54 points or 0.23% at 27.143.20. Realty stocks edged lower. Asian stocks were in red.
In overseas markets, Asian stocks edged lower in choppy trade after a preliminary reading of China's manufacturing sector showed activity making a surprise improvement this month while the subindexes for the flash manufacturing Purchasing Managers' Index (PMI) report painted a mixed picture. US stocks closed sharply lower yesterday, 22 September 2014, on concerns about global growth amid falling commodity prices.
Earlier, key indices had drifted lower after alternately swinging between positive and negative zone in early trade.
Brent crude oil prices rebounded from a one-week low after a survey showed China's factory activity unexpectedly picked up in September.
In the foreign exchange market, the rupee edged lower against the dollar on month-end dollar demand from importers to pay month-end bills.
At 11:15 IST, the S&P BSE Sensex was down 63.54 points or 0.23% at 27.143.20. The index lost 104.91 points at the day's low of 27,101.83 in mid-morning trade. The index rose 50.13 points at the day's high of 27,256.87 in early trade, its highest level since 9 September 2014.
The CNX Nifty was down 22.40 points or 0.27% at 8,123.90. The index hit a low of 8,113.80 in intraday trade. The index hit a high of 8,159.75 in intraday trade.
The market breadth indicating the overall health of the market was turned negative from positive in mid-morning trade. On BSE, 1,336 shares declined and 1,101 shares rose. A total of 95 shares were unchanged.
The BSE Mid-Cap index was down 8.08 points or 0.06% at 9,876.74. The BSE Small-Cap index was up 15.16 points or 0.13% at 11,263.85. Both these indices outperformed the Sensex.
Realty stocks edged lower. Housing Development & Infrastructure (HDIL) (down 0.11%), D B Realty (down 0.71%), Anant Raj (down 1.63%), Sobha (down 0.12%) and Unitech (down 2.44%) declined.
DLF declined 2.52%. A foreign brokerage has reportedly downgraded the stock to reduce from hold and cut its target price. The brokerage cited limited upside potential for shares and no major potential catalysts in the near-term. It highlighted DLF's weak operational data and negative newsflow from ongoing legal cases.
Tata Motors declined 0.41%. A foreign brokerage has reportedly upgraded the stock to outperform from neutral, citing abating near-term concerns on factors such as volume. It said shares have under-performed the auto sector recently and the company's long-term story remains promising.
Mahindra and Mahindra (M&M) declined 1.17%. A foreign brokerage has reportedly downgraded the stock to neutral from outperform, saying valuations are no longer attractive.
IFCI rose 2.62% after the company said it will partially disinvest its shareholding in Tourism Finance Corporation of India during the current financial year that ends on 31 March 2015. IFCI, which is a promoter group entity in Tourism Finance Corporation of India (TFC), holds 42.50% stake in TFC (as on 30 June 2014).
Kitex Garments rose 3.18% after the company said its board of directors at a meeting held on Monday, 22 September 2014, approved opening a merchandising office in USA as a limited liability company (LLC) with 50% investment and other modalities are being worked out.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month September 2014 series to October 2014 series. The near-month September 2014 F&O contracts expire on Thursday, 25 September 2014.
Provisional data released by the stock exchanges after trading hours on Monday, 22 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 186.41 crore on that day.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.875, compared with its close of 60.825 during the previous trading session.
Brent crude oil prices rebounded from a one-week low after a survey showed China's factory activity unexpectedly picked up in September, helping brighten the demand outlook in a market that has been weighed by a supply glut. Brent for November settlement was up 33 cents at $97.30 a barrel. The contract had fallen $1.1 a barrel or 1.12% to settle at $96.97 a barrel yesterday, 22 September 2014, the lowest close since 15 September 2014.
Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Prime Minister Narendra Modi is scheduled to launch the ambitious 'Make in India' campaign on Thursday, 25 September 2014. The initiative is one of the several steps which government has announced in order to improve ease of doing business in India and attract investments to boost manufacturing in the country. In his maiden independence day address, Modi invited the global business community to set up manufacturing facilities in India, giving the slogan 'come, make in India'.
Asian stocks edged lower today, 23 September 2014, after a preliminary reading of China's manufacturing sector showed activity making a surprise improvement this month while the subindexes for the flash manufacturing Purchasing Managers' Index (PMI) report painted a mixed picture. Key benchmark indices in Indonesia, Hong Kong, Taiwan, and South Korea were off 0.03% to 0.64%. Key benchmark indices in China and Singapore were up 0.22% to 0.78%.
A Chinese manufacturing gauge unexpectedly increased this month. The preliminary Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics was at 50.5, up from August's final reading of 50.2. The data was released today, 23 September 2014. Subindexes for the flash PMI report painted more of a mixed picture, however, with new export orders and overall new orders both showing gains at a faster rate than in August, but with the employment subindex falling at a faster rate. Likewise, prices for both inputs and outputs saw further weakness. HSBC chief China economist Hongbin Qu said in remarks accompanying the PMI data that economic activity in the manufacturing sector showed signs of stabilization in September. However, overall, the data still point to modest expansion, he said.
Trading in US index futures indicated that the Dow could gain 5 points at the opening bell on Tuesday, 23 September 2014. US stocks closed sharply lower on Monday, 22 September 2014, with the S&P 500 index suffering its biggest one-day decline since early August, as the latest housing data came in much weaker than expected, raising new concerns about the rate of growth in the economy. Sales of existing homes unexpectedly declined in August, for the first time in five months, the National Association of Realtors (NAR) reported. NAR attributed the drop to fewer all-cash sales to investors.
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