Volatility ruled the roost in early afternoon trade as the key benchmark indices edged lower once again after staging an intraday recovery after the latest data showed easing of inflation based on the wholesale price index (WPI) in June 2014 and upward revision in WPI inflation for April 2014. The barometer index, the S&P BSE Sensex, was currently hovering below the psychological 25,000 level, having alternately moved above and below that level so far during the day. The Sensex was down 62.31 points or 0.25%, off 133.72 points from the day's high and up 46.11 points from the day's low. The market breadth indicating the overall health of the market was weak.
Metal and mining stocks gained ahead of Chinese gross domestic product (GDP) data for the second quarter due to be released on Wednesday, 16 July 2014. Steel stocks rose across the board on hopes that the government's infrastructure thrust would improve domestic steel demand. Gruh Finance scaled record high.
At 12:15 IST, the S&P BSE Sensex was down 62.31 points or 0.25% to 24,962.04. The index rose 71.41 points at the day's high of 25,095.76 at the onset of the trading session. The index fell 108.42 points at the day's low of 24,915.93 in early trade, its lowest level since 23 June 2014.
The CNX Nifty was down 18.10 points or 0.24% to 7,441.50. The index hit a high of 7,471.65 in intraday trade. The index hit a low of 7,426.45 in intraday trade, its lowest level since 5 June 2014.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,492 shares declined and 942 shares rose. A total of 100 shares were unchanged.
The BSE Mid-Cap index was down 21.52 points or 0.24% at 8,853.72, outperforming the Sensex. The BSE Small-Cap index was off 51.06 points or 0.53% at 9,637.05, underperforming the Sensex.
The total turnover on BSE amounted to Rs 1193 crore by 12:15 IST compared to Rs 948 crore by 11:15 IST.
Among the 30-share Sensex pack, 16 stocks declined and rest of them gained.
Infosys (down 2.94%), Bharti Airtel (down 1.98%) and Wipro (down 2.09%) edged lower from the Sensex pack.
TCS (up 1.38%), Tata Power Company (up 1.62%) and Axis Bank (up 1.36%) edged higher from the Sensex pack.
Metal and mining stocks gained ahead of Chinese gross domestic product (GDP) data for the second quarter due to be released on Wednesday, 16 July 2014. China is the world's largest consumer of copper and aluminum.
NMDC (up 0.62%), National Aluminium Company (up 0.16%), Hindustan Zinc (up 4.42%) edged higher. Hindustan Copper fell 1.99%.
Hindalco Industries surged 3.3%. Shares of Hindalco Industries had gained 3.16% on Thursday, 10 July 2014, after the goverment raised export duty on bauxite increased from 10% to 20% in Union Budget 2014-15. However, the stock fell 5.59% on Friday, 11 July 2014. Increase in export duty on bauxite will be favourable for aluminium smelters like Hindalco and Sesa Sterlite who will benefit from the resultant increase in domestic bauxite supply.
Shares of Sesa Sterlite fell 2.67%. The stock had declined 0.25% on Thursday, 10 July 2014. It shed 0.12% on Friday, 11 July 2014.
Steel stocks rose across the board as significant thrust on improving as higher outlay for housing, road, port, urban and rural housing and infrastructure development Union Budget 2014-15 would help improve steel consumption.
Jindal Steel & Power rose 1.02%. The stock had gained 1.6% on the day of Budget on Thursday, 10 July 2014. The scrip had plunged 7.08% on Friday, 11 July 2014.
JSW Steel rose 1.76%. The stock had gained 0.76% on Thursday, 10 July 2014. The scrip had lost 5.33% on Friday, 11 July 2014.
Tata Steel advanced 1.28%. The stock had gained 0.89% on Thursday, 10 July 2014. The scrip had lost 4.01% on Friday, 11 July 2014.
Steel Authority of India (Sail) gained 1.22%. The stock had declined 1.91% on Thursday, 10 July 2014. The scrip lost 6.06% on Friday, 11 July 2014.
Gruh Finance gained 2.84% to Rs 212 after scaling a record high of Rs 215.85 in intraday trade. Gruh Finance is a subsidiary of housing finance major HDFC.
Key benchmark indices reversed direction after a higher opening triggered by gains in Asian stocks. The Sensex hit its lowest level in three weeks. The 50-unit CNX Nifty hit its lowest level in 5-1/2 weeks. Key benchmark indices reversed intraday fall to regain positive zone in morning trade. Volatility continued on the bourses as the key benchmark indices reversed intraday gain in mid-morning trade. Volatility ruled the roost in early afternoon trade as the key benchmark indices edged lower once again after staging an intraday recovery after the latest data showed easing of inflation based on the wholesale price index (WPI) in June 2014 and upward revision in WPI inflation for April 2014.
Revenue Secretary Shaktikanta Das was quoted by the media as saying on Saturday, 12 July 2014, that the government would shortly take a view on whether tax law General Anti-Avoidance Rules (GAAR) should be implemented from the scheduled date of April 2015. Reports that the government has reiterated that General Anti Avoidance Rules (GAAR) will be applicable from 1 April 2015 spooked the market on Friday, 11 July 2014 -- a day after the presentation of the Union Budget 2014-15 on 10 July 2014. GAAR is a tool to curb tax avoidance. There was an expectation that the new government will postpone the implementation of GAAR to a future date. The Sensex lost 1.37% on Friday, 11 July 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 59.9950, compared with its close of 59.93/94 on Friday, 11 July 2014.
On the macro front, inflation based on the wholesale price index eased to 5.43% in June 2014, from 6.01% in May 2014, data released by the government during trading hours today, 14 July 2014, showed. Core inflation or non-food manufacturing inflation edged up to 3.9% in June 2014, from 3.8% in May 2014. Meanwhile, WPI inflation for April 2014 was revised upwards to 5.55%, from 5.2% reported earlier.
On the macro front, the government is scheduled to announce the data of inflation based on consumer price index (CPI) for the month of June 2014 today, 14 July 2014.
Industrial output grew at its strongest pace in 19 months at 4.7% in May 2014, higher than 3.4% growth in April 2014, data released by the government after market hours on Friday, 11 July 2014, showed.
Asian markets edged higher on Monday, 14 July 2014, as euro zone banking jitters faded. Key benchmark indices in South Korea, China, Taiwan, Hong Kong and Japan were up 0.26% to 0.88%. Key benchmark indices in Indonesia and Singapore were off 0.13% to 0.14%.
The Bank of Japan concludes a two-day monetary policy meeting tomorrow, 15 July 2014.
Singapore's economy unexpectedly contracted in the second quarter as a tight labor supply and company moves to shift production overseas hurt manufacturing. Gross domestic product fell an annualized 0.8% in the three months through June from the previous quarter, when it expanded a revised 1.6%, the trade ministry said in a statement today, 14 July 2014.
Trading in US index futures indicated that the Dow could rise 29 points at the opening bell on Monday, 14 July 2014. US stocks rose on Friday, 11 July 2014 as a rally in Amazon.com Inc. and EBay Inc. led an intraday rebound from declines spurred by concern over financial stress in Europe.
European markets rose on Friday, 11 July 2014, as investors decided that losses associated with the founding family of Banco Espirito Santo were unlikely to disrupt Portugal's financial system or revive broader worries about the bloc's weaker economies.
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