Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade, with the barometer index, the S&P BSE Sensex, falling below the psychological 27,000 mark. The Sensex was currently down 93.21 points or 0.34% at 26.992.72. Weakness in Asian stocks weighed on key indices. The market breadth was positive. Auto stocks edged lower. Shares of most two wheeler makers gained rose on expectations of pick up in demand during the upcoming festive season. Shares of power generation and distribution companies dropped.
Earlier, key benchmark indices had slipped into the red from green in mid-morning trade after giving up almost entire initial gains after opening higher.
Asian stocks fell as shares of material companies slid and as investors awaited the influential US non-farm payroll data for August. Meanwhile, strength in dollar has raised concerns that it could spur capital outflows from emerging markets. The European Central Bank (ECB) unexpectedly moved to cut its main policy rates and announced additional measures after a monetary policy review yesterday, 4 September 2014, in an attempt to stimulate the flagging economy in the 18-country region. Brent crude oil prices rose after previous day's losses.
At 12:15 IST, the S&P BSE Sensex was down 93.21 points or 0.34% at 26.992.72. The index fell 127.42 points at the day's low of 26,958.51 in mid-morning trade, its lowest level since 2 September 2014. The index gained 92.87 points at the day's high of 27,178.80 in early trade, its highest level since 3 September 2014.
The CNX Nifty was down 24.55 points or 0.3% at 8,071.40. The index hit a low of 8,060.95 in intraday trade. The index hit a high of 8,122.70 in intraday trade, its highest level since 3 September 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1,332 shares gained and 1,231 shares fell. A total of 103 shares were unchanged.
The BSE Mid-Cap index was up 7.39 points or 0.08% at 9,622.46. The BSE Small-Cap index was up 51.81 points or 0.49% at 10,547.27. Both these indices outperformed the Sensex.
Auto stocks edged lower. Tata Motors (down 0.11%), Ashok Leyland (down 0.28%) and Mahindra & Mahindra (M&M) (down 0.27%) edged lower.
Maruti Suzuki India fell 0.63%. The company announced during market hours that production rose 19.63% to 1.09 lakh units in August 2014 over August 2013. Maruti's total sales surged 26.9% to 1.10 lakh units in August 2014 over August 2013. The sales numbers were announced during market hours on 1 September 2014.
Shares of most two wheeler makers rose on expectations of pick up in demand during the upcoming festive season. Bajaj Auto (up 0.76%) and TVS Motor Company (up 0.36%) gained. Hero MotoCorp fell 1.49%.
Shares of power generation and distribution companies dropped. JSW Energy (down 3.31%), Power Grid Corporation of India (down 0.41%), Reliance Power (down 0.27%), Adani Power (down 1.22%), NTPC (down 0.63%), NHPC (down 0.94%), Reliance Infrastructure (down 1.61%) declined.
Tata Power dropped 1.46%. The company said after market hours on Thursday, 4 September 2014, that in its pronouncement on 4 September 2014, the Appellate Tribunal for Electricity has stayed Maharashtra Electricity Regulatory Commission's order which had no restrictions for consumers of all categories to make a choice of switching to Tata Power distribution services in Mumbai. The choice of multiple distributors in Mumbai was to facilitate consumers to get the benefit of competitive services available through different service providers. The detailed order is awaited. The company looks forward to continue to serve Mumbaikars with choice of reliable and superior customer services, Tata Power said.
United Spirits (USL) lost 3.11% to 2,316, with the stock extending Thursday's losses triggered by weak Q4 results. The stock hit a high of Rs 2,381 and low of Rs 2,307.85 so far during the day. The company reported a net loss of a massive Rs 5380.10 crore in Q4 March 2014, compared with net profit of Rs 56.02 crore in Q4 March 2013. USL incurred extra-ordinary expenses of Rs 5334.38 crore in Q4 March 2014 of which Rs 1012.75 crore is provision for doubtful debts, advances & deposits and Rs 4321.63 crore is intra-USL group loan of Rs 3614.24 crore and the remaining is diminution in the value of investment in USL Holding, Palmer Investment Group & Montrose International.
United Spirits' total income from operations rose 3.84% to Rs 1943.34 crore in Q4 March 2014 over Q4 March 2013. The result was announced before market hours on Thursday, 4 September 2014.
Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 4 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1697.74 crore on that day.
Brent crude oil futures edged higher after previous day's losses. Brent for October settlement was up 14 cents at $101.97 a barrel. The contract fell 94 cents a barrel to settle at $101.83 a barrel yesterday, 4 September 2014, as a surprise cut in interest rates by the European Central Bank led to a spike in the dollar, making it more expensive for holders of other currencies to buy the dollar-denominated commodity.
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.
In the foreign exchange market, the rupee edged lower against the dollar on dollar's broad strength. The partially convertible rupee was hovering at 60.44, compared with its close of 60.36 during the previous trading session.
Asian stocks fell today, 5 September 2014, led by fall in material companies. Key indices in Hong Kong, Japan, South Korea, Taiwan, and Singapore were off 0.05% to 0.55%. Key indices in China and Indonesia were up 0.12% to 0.52%.
Trading in US index futures indicated that the Dow could fall 12 points at the opening bell on Friday, 5 September 2014. US stocks edged lower on Thursday, 4 September 2014, as energy producers sank with oil prices to overshadow the ECB announcement.
The influential US non-farm payroll data for August is due later in the global day today, 5 September 2014.
In Europe, the European central Bank (ECB) unexpectedly lowered all its interest rates to all-time low on Thursday, 4 September 2014. ECB President Mario Draghi announced two new programs under which the institution will buy asset-backed securities and covered bonds issued by eurozone banks. In a news conference, Draghi said the aim was to expand the bank's balance sheet back to the heights reached in early 2012, which equates to a rise of around 50% or 1 trillion euros in new assets.
The Bank of England's Monetary Policy Committee at its meeting on Thursday, 4 September 2014, left its Bank Rate at 0.5%, where it has been since the depths of the financial crisis more than five years ago.
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