Key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade. The barometer index, the S&P BSE Sensex, was down 17.38 points or 0.08%, up about 35 points from the day's low and off close to 110 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Steel stocks gained on renewed buying. Ranbaxy Laboratories rose on bargain hunting after recent losses. Auto stocks dropped. But, shares of most two-wheeler makers gained.
A bout of volatility was witnessed in initial trade as key benchmark indices pared gains after a firm start triggered by higher Asian stocks. The Sensex hit its highest level in more than five weeks at the onset of the trading session. The 50-unit CNX Nifty hit 2-week high at the onset of the trading session. Key benchmark indices reversed initial gains and hit fresh intraday low in morning trade. Key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 713.29 crore on Wednesday, 15 January 2014, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was down 17.38 points or 0.08% to 21,272.11. The index fell 52.54 points at the day's low of 21,236.95 in mid-morning trade. The index rose 89.80 points at the day's high of 21,379.29 in early trade, its highest level since 9 December 2013.
The CNX Nifty was down 0.85 points or 0.01% to 6,320.05. The index hit a low of 6,308.90 in intraday trade. The index hit a high of 6,346.50 in intraday trade, its highest level since 2 January 2014.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,106 shares dropped and 985 shares rose. A total of 143 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and rest fell. Bharti Airtel (down 4.34%), ONGC (down 1.79%) and ITC (down 0.88%) edged lower from the Sensex pack.
Steel stocks gained on renewed buying. Jindal Steel & Power (2.33%), JSW Steel (up 2.2%), Tata Steel (up 2.05%) and Steel Authority of India (up 1.35%) edged higher.
Among metal and mining stocks, Sesa Sterlite (up 1.47%), Hindalco Industries (up 0.95%), Hindustan Zinc (up 0.92%),and Hindustan Copper (up 0.22%) gained. National Aluminum Company fell 0.13%.
Auto stocks dropped. M&M (down 1.27%), Maruti Suzuki India (down 0.13%), Tata Motors (down 1.32%) and Ashok Leyland (down 0.19%), declined.
Shares of most two-wheeler makers gained. Hero MotoCorp (up 0.41%) and Bajaj Auto (up 0.24%) gained. TVS Motor Company fell 1.36%.
Ranbaxy Laboratories rose 0.67% to Rs 422.65, with the stock recovering on bargain hunting after recent steep slide triggered by the company's announcement that the US Food and Drug Administration found possible violations at the generic-drug maker's active pharmaceuticals ingredient (API) plant at Toansa, Punjab, India. Shares of Ranbaxy Laboratories had declined 9.4% in three trading sessions to settle at Rs 419.85 on Wednesday, 15 January 2014, from Rs 463.45 on 10 January 2014, after the company said it has received the form 483 with certain observations as a result of the recent US FDA inspection at its active pharmaceuticals ingredient (API) plant at Toansa, Punjab, India. An FDA Form 483 is issued when an investigator observes conditions that might constitute a violation of the FDA's rules or standards.
Ranbaxy said that the company is assessing the US FDA observations, and will respond to the US FDA in accordance with the agency's procedure to resolve the concerns at the earliest. Ranbaxy said it continues to improve its systems and processes, and remains fully committed to upholding the highest standards that patients, prescribers, regulators and all other stakeholders expect from the company. The company added that it stays firmly committed to its philosophy of quality and patients first.
The Toansa factory is the fourth Ranbaxy plant to receive negative observations from the US drug regulator; its plants in Paonta Sahib in Himchal Pradesh, Dewas in Madhya Pradesh and Mohali in Punjab had come under the FDA scanner earlier. Imports from the three plants have been stopped by the US regulator.
Agro Tech Foods lost 3.28% after net profit rose 0.2% to Rs 13.08 crore on 10.4% decline in net sales to Rs 197.06 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Wednesday, 15 January 2014.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 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 edged higher on Thursday, 16 January 2014, as better-than-projected bank earnings boosted investor confidence and drove US stock gauges to record highs on Wednesday, 15 January 2014. Key benchmark indices in China, Hong Kong, South Korea and Taiwan were up 0.15% to 0.38%. Key benchmark indices in Indonesia, Japan and Singapore fell 0.08% to 0.27%.
Trading in US index futures indicated that the Dow could advance 8 points at the opening bell on Thursday, 16 January 2014. The S&P 500 index closed at a record high Wednesday, narrowly beating its previous peak reached on December 31, as investors took upbeat manufacturing data, Bank of America Corp. earnings, and Apple Inc.'s China deal as signs economic growth was on solid ground.
The Federal Reserve said "moderate" growth across most of the US last month was buoyed by gains in holiday spending by consumers, an improving labor market and strength in manufacturing. "The economic outlook is positive in most districts, with some reports citing expectations of 'more of the same' and some expecting a pickup in growth," the Fed said yesterday in its Beige Book business survey, based on reports gathered on or before 6 January 2014.
The Federal Reserve Bank of New York said that its general business conditions index jumped to 12.51 in January from an upwardly revised 2.22 in December.
The US producer price index rose 0.4% in December, the biggest increase since June, recovering from a 0.1% decline in November and was 1.2% higher from a year earlier. Core PPI was up 0.3% in December and rose 1.4% on a year-over year basis, compared to expectations for a monthly increase of 0.1% and an annual gain of 1.3%.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 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.
International Monetary Fund Managing Director Christine Lagarde said yesterday that momentum in the world economy in the second half of last year should continue in 2014. The Washington-based fund plans to raise its forecast for global growth when it releases a report later this month.
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