Weakness persisted on the bourses in morning trade. The barometer index, the S&P BSE Sensex, was down 324.21 points or 1.53%, off 89.68 points from the day's high and up 22.10 points from the day's low. The market breadth, indicating the overall health of the market, was extremely weak with more than three losers for every gainer. The BSE Mid-Cap index was off 1.8%. The BSE Small-Cap index was off 1.72%. Weakness in Asian stocks and a steep slide in US stocks on Friday, 24 January 2014, hit sentiment on the domestic bourses adversely.
Asian stocks dropped on Monday, 27 January 2014, as concern that the global economic recovery is faltering spurred investors to sell riskier assets.
Bank stocks declined ahead of the Reserve Bank of India (RBI) Third Quarter Review of Monetary Policy for 2013-14 tomorrow, 28 January 2014. Index heavyweight Reliance Industries (RIL) fell in volatile trade. Shares of state-run oil marketing companies (PSU OMCs) declined as weakness in rupee raised concerns about increased costs of importing oil. Tata Motors extended initial slide as the company, before market hours today, 27 January 2014, announced the demise of its Managing Director, Karl Slym.
Key benchmark indices slumped in early trade on weak Asian stocks. The barometer index, the S&P BSE Sensex, fell below the psychological 21,000 mark. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in over two weeks. Weakness persisted on the bourses in morning trade.
The market sentiment was hit adversely by data showing that foreign funds were net sellers of Indian stocks on Friday, 24 January 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 230.96 crore on Friday, 24 January 2014, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire on Thursday, 30 January 2014.
At 10:18 IST, the S&P BSE Sensex was down 324.21 points or 1.53% to 20,809.35. The index lost 346.31 points at the day's low of 20,787.25 in early trade, its lowest level since 10 January 2014. The index fell 234.53 points at the day's high of 20,899.03 in early trade.
The CNX Nifty was down 95.85 points or 1.53% to 6,170.90. The index hit a low of 6,162.90 in intraday trade, its lowest level since 10 January 2014. The index hit a high of 6,188.55 in intraday trade.
The market breadth, indicating the overall health of the market, was extremely weak. On BSE, 1,358 shares declined and 367 shares gained. A total of 66 shares were unchanged.
The BSE Mid-Cap index was off 115.92 points or 1.8% at 6,339.34. The Small-Cap index was off 111.07 points or 1.72% at 6,333.39. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 423 crore by 10:20 IST compared to Rs 116 crore by 09:25 IST.
All the 30 members of the Sensex pack declined.
Bank stocks declined ahead of the Reserve Bank of India (RBI) Third Quarter Review of Monetary Policy for 2013-14 tomorrow, 28 January 2014.
Among private bank stocks, ICICI Bank (down 3.51%), AXIS Bank (down 3.11%), HDFC Bank (down 2.3%), Kotak Mahindra Bank (down 1.7%), declined.
Among PSU bank stocks, State Bank of India (down 1.95%), Union Bank of India (down 2.33%), Bank of India (down 4.39%), Bank of Baroda (down 3.16%), Punjab National Bank (down 2.79%) and Canara Bank (down 3.77%) declined.
Reserve Bank of India (RBI) governor Raghuram Rajan on Thursday, 23 January 2014, called inflation a "destructive disease" that was forcing the central bank to keep interest rates high.
Index heavyweight Reliance Industries (RIL) fell 1.01% to Rs 858.20 in volatile trade. The stock hit a high of Rs 860.55 and low of Rs 855.05 so far during the day. The company's net profit rose 0.2% to Rs 5511 crore on 10.5% growth in revenue to Rs 106383 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced on 17 January 2014.
Shares of state-run oil marketing companies (PSU OMCs) declined as weakness in rupee raised concerns about increased costs of importing oil.
BPCL (down 1.94%), HPCL (down 0.88%) and Indian Oil Corporation (down 1.43%) edged lower.
Public sector oil marketing companies (PSU OMCs) import about 70-75% of their crude oil needs and rely heavily on foreign currency borrowings, which largely remain unhedged.
Tata Motors slumped 4.72% to Rs 353, with the stock extending initial decline. The company before market hours today, 27 January 2014, announced the demise of its Managing Director, Karl Slym. "Tata Motors deeply regrets to announce the untimely and tragic demise of its Managing Director, Karl Slym, in Bangkok on Sunday, 26 January 2014. Karl Slym was in Bangkok to attend a meeting of the Board of Directors of Tata Motors Thailand. Karl Slym joined Tata Motors in October 2012, and was providing leadership to the company through a challenging market environment. The company shares in the grief of Karl Slym's wife and family at their irreparable loss," Tata Motors said in a statement.
Torrent Power lost 3.46% after the company reported consolidated net loss of Rs 35.51 crore in Q3 December 2013 as against net profit of Rs 95.66 crore in Q3 December 2012. Torrent Power's total income rose 6.44% to Rs 2068.47 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced on Saturday, 25 January 2014.
In the foreign exchange market, the rupee edged lower against the dollar on global risk off sentiment. The partially convertible rupee was hovering at 62.765, compared with its close of 62.66/67 on Friday, 24 January 2014.
The Ministry of Consumer Affairs, Food & Public Distribution on Friday, 24 January 2014, said that as per data monitored by the Ministry of Consumer Affairs and Food, prices of rice, wheat and sugar during the week - 16 January 2014 to 23 January 2014 - remained steady in wholesale markets across the country. The Price Monitoring Cell of the Ministry monitors prices of twenty two essential commodities regularly at 55 wholesale centers. During the period, prices of rice remained steady at all wholesale centers and decreased at one center (Aizwal). Prices of wheat also were steady at all wholesale centers except one centre at Ludhiana. While sugar prices decreased at eight centers and remain steady at rest of the reporting centers, the Ministry of Consumer Affairs and Food said in a statement.
Prices of twenty two essential commodities are regularly monitored by Department of Consumer Affairs for taking suitable action to keep the prices under check. Price data is collected on daily basis from the State Civil Supplies Departments of the respective State Governments.
The Reserve Bank of India announces Third Quarter Review of Monetary Policy for 2013-14 at 11:00 IST tomorrow, 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
Asian stocks slumped on Monday, 27 January 2014, as concern that the global economic recovery is faltering spurred investors to sell riskier assets. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea were off 0.69% to 3.03%.
Japan reported a record annual trade deficit for last year as energy shipments and weakness in the yen pumped up the nation's import bill. The shortfall was 11.5 trillion yen ($113 billion), almost double the previous year's 6.9 trillion yen, a finance ministry report showed in Tokyo today, 27 January 2014. Imports rose 25% in December from a year earlier and exports gained 15%, leaving a monthly deficit of 1.3 trillion yen.
Trading in US index futures indicated that the Dow could gain 8 points at the opening bell today, 27 January 2014. US stocks tumbled on Friday, 24 January 2014, as investors fled equities and emerging-markets currencies on concerns about a contagion effect from China's manufacturing slowdown. The CBOE Volatility Index, known as the Vix, surged 32%, its steepest rise since the April 15 Boston Marathon bombings.
The Federal Open Market Committee's (FOMC) two-day monetary policy meeting begins tomorrow, 28 January 2014. 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.
Global stocks tumbled the most since June on Friday, 24 January 2014, as a sell-off in emerging-market currencies prompted investors to seek havens in Treasuries, gold and the yen.
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