Key benchmark indices edged lower in what was a volatile trading session. Benchmark indices trimmed losses soon after hitting fresh intraday low in late trade. The barometer index, the S&P BSE Sensex, provisionally closed above the psychological 27,000 level after alternately moving above and below that mark in intraday trade. The Sensex was provisionally down 70.51 points or 0.26% at 27,015.42. Strength in dollar has raised concerns that it could spur capital outflows from emerging markets including India. The market breadth indicating the overall health of the market was positive. The Small-Cap index rose more than 1%. Steel stocks rose on slide in global iron ore prices. Shares of other metal companies were mixed. JSW Steel rose after the company reported good growth of production in August. Most auto stocks declined.
Earlier, key benchmark indices had recouped most of the intraday losses in mid-afternoon trade. Before that key indices had slipped into the red from green in mid-morning trade after giving up almost entire initial gains after opening higher.
European stocks were mixed before US jobs data and cease-fire talks in Ukraine. Asian stocks fell as investors awaited the influential US non-farm payroll data for August. 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.
The Sensex dropped for the second day in a row today, 5 September 2014, after hitting a string of record highs recently.
As per provisional figures, the S&P BSE Sensex was down 70.51 points or 0.26% at 27,015.42. The index fell 165.37 points at the day's low of 26,920.56 trade in late 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 11.85 points or 0.15% at 8,084.10, as per provisional figures. The index hit a low of 8,049.85 in intraday trade, its lowest level since 2 September 2014. The index hit a high of 8,122.70 in intraday trade, its highest level since 3 September 2014.
The total turnover on BSE amounted to Rs 3588 crore, lower than Rs 4958.70 crore on Thursday, 4 September 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1,729 shares gained and 1,265 shares fell. A total of 88 shares were unchanged.
The BSE Mid-Cap index was up 39.65 points or 0.41% at 9,654.72. The BSE Small-Cap index was up 122.17 points or 1.17% at 10,618.17. Both these indices outperformed the Sensex.
Most auto stocks edged lower. Tata Motors (down 1.34%), and Mahindra & Mahindra (M&M) (down 0.4%) edged lower. Ashok Leyland rose 2.41%.
Maruti Suzuki India fell 0.33%. 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.
Most two wheeler makers declined. TVS Motor Company (down 3.41%) and Hero MotoCorp (down 2.51%) declined. Bajaj Auto rose 1.07%.
Steel stocks rose on slide in global iron ore prices. Jindal Steel & Power (up 1.97%), Bhushan Steel (up 5%), Tata Steel (up 0.62%), and Steel Authority of India (Sail) (up 0.18%) gained.
Iron ore producers also gained. NMDC (up 4.54%) and Sesa Sterlite (up 0.84%) rose.
JSW Steel rose 2.2% after the company reported good growth of production in August. The company said during market hours its crude steel production rose 13% to 11.16 lakh tonnes in August 2014 over August 2013. The production of flat rolled products rose 7% to 8.8 lakh tonnes in August 2014 over August 2013. The production of long rolled products jumped 53% to 1.96 lakh tonnes in August 2014 over August 2013.
Shares of other metal stocks were mixed. Hindalco Industries (down 0.98%) and Hindustan Copper (down 0.11%) declined. Hindustan Zinc (up 3.89%) and National Aluminum Company (Nalco) (up 8.73%) gained.
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 50 cents at $102.33 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.
Ukrainian President Petro Poroshenko will hold talks today, 5 September 2014, with pro-Russian rebels in Minsk, Belarus.
Australia's Prime Minister Tony Abbott reportedly said today, 5 September 2014, he would sign a civil nuclear deal with Indian counterpart Prime Minister Narendra Modi later today, 5 September 2014, clearing the way for uranium sales to India.
In the foreign exchange market, the rupee edged lower against the dollar on dollar's broad strength. The partially convertible rupee was hovering at 60.425, compared with its close of 60.36 during the previous trading session.
European stocks were mixed today, 5 September 2014, ahead of the influential US non-farm payroll data for August. France's CAC 40 was flat. Germany's DAX was up 0.15%. In UK, the FTSE 100 was off 0.25%.
German industrial output grew more than forecast in July, signaling that Europe's largest economy is headed for a third-quarter rebound. Production, adjusted for seasonal swings, rose 1.9% from June, when it expanded a revised 0.4% the Economy Ministry in Berlin said today, 5 September 2014.
In Brussels today, representatives of the 28 European Union (EU) governments will consider tightening the economic sanctions that were imposed on Russia in July.
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.
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 0.33%. Key indices in Indonesia and China rose 0.23% to 0.85%.
Trading in US index futures indicated that the Dow could fall 29 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.
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