With small losses for the day, key benchmark indices continued to languish in red in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently down 63.94 points or 0.25% at 25,844.07. Even as the key indices languished in red, the broad market depicted strength. The market breadth indicating the overall health of the market was strong. Interest rate sensitive realty stocks gained for the second day in a row after the Reserve Bank of India (RBI) after a monetary policy review on Tuesday, 5 August 2014, kept the policy rates unchanged. Shares of companies that run insurance business were mixed on reports deadlock continued between the government and the opposition over clearance of insurance bill in the Rajya Sabha.
Key indices have been in red since the beginning of the trading session on weak Asian stocks and after drop in US stocks on Tuesday, 5 August 2014.
At 11:17 IST, the S&P BSE Sensex was down 63.94 points or 0.25% to 25,844.07. The index fell 6.33 points at the day's high of 25,901.68 in morning trade. The index declined 86.42 points at the day's low of 25,821.59 in mid-morning trade.
The CNX Nifty was down 24.10 points or 0.31% to 7,722.45. The index hit a high of 7,739.60 in intraday trade. The index hit a low of 7,715.80 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,461 shares rose and 864 shares fell. A total of 94 shares were unchanged.
The BSE Mid-Cap index was up 25.75 points or 0.28% at 9,298.29. The BSE Small-Cap index was up 77.07 points or 0.76% at 10,188.34. Both these indices outperformed the Sensex.
Shares of companies that run insurance business were mixed on reports deadlock continued between the government and the opposition over clearance of insurance bill in the Rajya Sabha. ICICI Bank (down 2.49%), HDFC (down 0.33%), State Bank of India (down 0.89%) and Bajaj Finserve (down 0.45%) declined. Aditya Birla Nuvo (up 1.84%), Max India (up 1.03%) and Reliance Capital (up 0.14%), gained.
Over the past week, the government has reportedly twice sought to introduce legislation in the upper house of parliament permitting 49% foreign participation in an insurance venture, up from 26%, but it has been blocked by the opposition. Finance Minister Arun Jaitely had in the Union Budget 2014-15 announced hike in foreign investment in insurance sector. The BJP government is in a minority in the Rajya Sabha and needs the Congress's help to pass the Bill.
Interest rate sensitive realty stocks gained for the second day in a row after the Reserve Bank of India (RBI) after a monetary policy review on Tuesday, 5 August 2014, kept the policy rates unchanged. Purchases of both residential and commercial property are largely driven by finance. D B Realty (up 0.54%), DLF (up 0.83%), Sobha Developers (up 1.93%), and Godrej Properties (up 1.53%) gained.
Unitech rose 1.99%. With respect to the news article in the media that "Unitech to off-load 17.5 acre Noida plot for Rs 400 crore", the company clarified after market hours on Tuesday, 5 August 2014, that being a real estate developer, the company, in its normal and ordinary course of business, buys and sell real estate on a regular basis and it is not possible to verify or negate every news article that appears in media in connection with Unitech as majority of them are speculative and unfounded. As regards the news article in question, it is factually misleading as Unitech does not own the land which is the subject matter of the said news article, the company said.
Suven Life Sciences rose 3.14% after the company said it has secured two product patents, one each in Australia and Eurasia. The company made the announcement during market hours today, 6 August 2014. The company said it has secured two product patents, one each in Australia and Eurasia corresponding to the new chemical entities (NCEs) for the treatment of disorders associated with neurodegenerative diseases and these patents are valid through 2030 and 2029 respectively.
Gateway Distriparks rose 2.42% after consolidated net profit rose 23.03% to Rs 36.91 crore on 13.52% growth in total income from operations to Rs 279.87 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Tuesday, 5 August 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.32, compared with its close of 60.84 on Tuesday, 5 August 2014.
Asian stocks dropped today, 6 August 2014, after US stocks fell yesterday, 5 August 2014, amid escalating tensions in Ukraine. Key benchmark indices in Japan, Indonesia, Hong Kong, Singapore, South Korea, China and Taiwan were off 0.24% to 1.08%. Taiwan's Taiwan Weighted rose 0.11%.
Trading in US index futures indicated that the Dow could fall 8 points at the opening bell on Wednesday, 6 August 2014. US stocks fell on Tuesday, 5 August 2014, as energy shares tumbled and concern increased over escalating tensions in Ukraine.
Service industries in the US expanded in July at the fastest pace since December 2005, according to data from the Institute for Supply Management, indicating the economy was building more momentum at the start of the second half of 2014. Another release showed factory orders rose 1.1% in June, which was higher than market expectations.
Poland's foreign minister warned that a renewed buildup of Russian troops on Ukraine's border may signal an invasion as Russian President Vladimir Putin ordered a response to US and European sanctions. Putin is showing no sign of backing down over Ukraine since the US and the European Union tightened sanctions last week, with Russia amassing forces on its neighbor's border in the biggest military buildup since troops were withdrawn from the area in May.
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