Key benchmark indices weakened once again after trimming losses after hitting fresh intraday low in mid-morning trade. Weakness in Asian stocks weighed on sentiment adversely. The barometer index, the S&P BSE Sensex, was down 46.07 points or 0.2%, up about 45 points from the day's low and off close to 80 points from the day's high. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in 1-1/2 weeks. The market breadth, indicating the overall health of the market, was positive. Capital goods stocks edged lower.
The market edged lower amid initial volatility. It slipped into the red after swing between gains and losses near the flat line in morning trade. It weakened once again after trimming losses after hitting fresh intraday low in mid-morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in 1-1/2 weeks.
Asian stocks fell on Monday as investors weighed company earnings amid prospects for additional sanctions against Russia over the Ukraine crisis.
Foreign institutional investors (FIIs) bought shares worth a net Rs 295.01 crore on Friday, 25 April 2014, as per provisional data from the stock exchanges.
At 11:25 IST, the S&P BSE Sensex was down 46.07 points or 0.2% to 22,642. The index fell 90.88 points at the day's low of 22,597.19 in mid-morning trade, its lowest level since 17 April 2014. The index gained 33.29 points at the day's high of 22,721.36 in early trade.
The CNX Nifty was down 19.40 points or 0.29% to 6,763.45. The index hit a low of 6,750.30 in intraday trade, its lowest level since 17 April 2014. The index hit a high of 6,783.20 in intraday trade.
The BSE Mid-Cap index rose 28.42 points or 0.39% to 7,402.06. The BSE Small-Cap index rose 14.55 points or 0.19% to 7,611.89. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,085 shares gained and 1,021 shares fell. A total of 97 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks declined and rest of them rose. GAIL (India) (down 1.61%), Coal India (down 1.55%) and Tata Motors (down 1.16%) edged lower from the Sensex pack.
Capital goods stocks edged lower. ABB (India) (down 0.25%), Bharat Heavy Electricals (down 1.81%), BEML (down 0.66%), L&T (down 1.1%) and Punj Lloyd (down 1.27%) declined.
Siemens gained 2.24% after net profit jumped 194.7% to Rs 88.27 crore on 8.6% fall in net sales to Rs 2657.74 crore in Q2 March 2014 over Q2 March 2013. The company announced Q2 results after market hours on Friday, 25 April 2014.
Siemens registered new orders of Rs 2620.10 crore in Q2 March 2014 compared to Rs 2806.50 crore in Q2 March 2013.
Sunil Mathur, Managing Director and Chief Executive Officer, Siemens, said, The volumes are stable when viewed in the backdrop of the macro-economic fundamentals. The improved profitability is a clear indication that internal measures aimed at increasing competitiveness have begun to take effect.
Esab India rose 2.21% after net profit declined 8.1% to Rs 8.45 crore on 0.5% growth in net sales to Rs 110.42 crore in the quarter ended 31 March 2014 over the quarter ended 31 March 2013. The result was announced after market hours on Friday, 25 April 2014. Esab India's board of directors at its meeting held on Friday, 25 April 2014, inter alia, has resolved that the current financial year would be for a period of 15 months from 1 January 2014 to 31 March 2015, to fall in line with Section 2 sub-section (41) of the Companies Act, 2013.
Opto Circuits (India) advanced 0.67% after the company scheduled a board meeting on 6 May 2014 to consider fund raising through different options for various purposes. Opto Circuits (India) announced after market hours on Friday, 25 April 2014 that a meeting of the board of directors of the company will be held on 6 May 2014, to discuss various options like FCCB/GDR/preferential allotment/private placement/issue of convertible debentures offering and any other form of raising funds for Opto Circuits (India) and/or for its Indian/overseas subsidiaries for its future expansion, growth, joint ventures, acquisition of technologies and Research and development activities.
In the foreign exchange market, the rupee reversed initial losses against the dollar. The partially convertible rupee was hovering at 60.58, compared with its close of 60.60/61 on Friday, 25 April 2014.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Asian stocks fell on Monday as investors weighed company earnings amid prospects for additional sanctions against Russia over the Ukraine crisis. Key benchmark indices in Japan, China, Indoensia, Hong Kong and Singapore were off 0.13% to 1.23%. Key benchmark indices in South Korea and Taiwan were up 0.18% to 0.4%.
Asian policy makers must push ahead with structural changes to ensure the region continues to lead global growth and withstand volatility as the US reduces monetary stimulus, the International Monetary Fund said. Asian economies will face higher interest rates and bouts of volatility in capital flows and asset prices as global liquidity tightens amid a recovery in advanced nations, the Washington-based lender said in its Regional Economic Outlook for Asia and Pacific released today. Tightening of global liquidity is one of the four main risks confronting Asia this year and next year, the IMF said. Other dangers include a sharper-than-envisaged slowdown in China, waning effectiveness of growth-supporting policies in Japan, and political and geopolitical tensions that disrupt trade, it said.
Trading in US index futures indicated that the Dow could gain 4 points at the opening bell on Monday, 28 April 2014. US stocks declined on Friday, 25 April 2014 as investors tracked escalating tension in Ukraine, with the geopolitical strife overshadowing upbeat results from Microsoft.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
The US and European Union will impose new sanctions on Russia amid the detention of international observers by pro-Russian separatists. Russia is one of the world's biggest nickel producers and is the fifth-largest wheat exporter, followed by Ukraine.
Russia has stoked tensions in Ukraine by threatening military maneuvers and by taking "no concrete steps" to implement an April 17 accord meant to diffuse the crisis, the Group of Seven nations -- the US, Japan, Canada, the UK, France, Germany and Italy -- said in an April 25 statement.
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