FMCG stocks gain

After a bout of initial volatility, key benchmark indices alternately swung between positive and negative zone near the flat line in morning trade. The barometer index, the S&P BSE Sensex was currently down 7.95 points or 0.03% at 26,767.74. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1185.17 crore yesterday, 23 September 2014, as per provisional data. The market breadth indicating the overall health of the market was negative. The BSE Mid-Cap and Small-Cap indices were in the red. Asian stocks were in green. Meanwhile, falling global crude oil prices augur well for India as the country imports almost 80% of its crude oil requirements. FMCG stocks gained. Index heavyweight and cigarette maker ITC gained. Meanwhile, the Supreme Court will reportedly deliver its verdict at 14:00 IST today, 24 September 2014, on how 193 coal blocks allocated between 1993 and 2010 should be treated. Meanwhile, Prime Minister Narendra Modi leaves for a five-day visit to the US on 26 September 2014.

In overseas markets, Asian stocks rose today, 24 September 2014, with a rally in Hong Kong offsetting declines in Australia and Japan. US stocks declined for the third straight session yesterday, 23 September 2014, as a weak report on Europe's economy fueled more investor jitters about global growth.

Brent crude oil prices extended losses for a third day as inflated supplies and weak economic data outweighed rising geopolitical tensions in the Middle East.

In the foreign exchange market, the rupee was almost unchanged against the dollar.

At 10:15 IST, the S&P BSE Sensex was down 7.95 points or 0.03% at 26,767.74. The index lost 34.31 points at the day's low of 26,741.38 in morning trade. The index rose 50.79 points at the day's high of 26,826.48 in early trade.

The CNX Nifty was down 6.50 points or 0.08% at 8,011.05. The index hit a low of 8,007.60 in intraday trade, its lowest level since 18 September 2014. The index hit a high of 8,042.05 in intraday trade.

The market breadth indicating the overall health of the market was weak. On BSE, 1,281 shares fell and 821 shares rose. A total of 71 shares were unchanged.

The BSE Mid-Cap index was down 57.17 points or 0.59% at 9,638.98. The BSE Small-Cap index was down 36.30 points or 0.33% at 10,933. Both these indices underperformed the Sensex.

FMCG stocks gained. Colgate Palmolive (India) (up 0.56%), Dabur India (up 0.41%), Godrej Consumer Products (up 0.96%), Hindustan Unilever (up 1.96%), Nestle India (up 0.14%), and Tata Global Beverages (up 0.33%) gained.

Index heavyweight and cigarette maker ITC gained 1.02% to Rs 374.70. The stock hit high of Rs 375.95 and low of Rs 370 so far during the day. With respect to a news item captioned "ITC to expand 'puja' Products Range" ITC clarified after market hours on Tuesday, 23 September 2014, that the news refers to routine marketing activities in an already existing category of the company's Agarbatti business. The product range, including Dhoop and Sambrani, are all existing categories and finds mention in the company's report and accounts. From time to time, the business offers different limited edition packs of existing products to promote the category and generate consumer interest during special festivals and other occasions. The said activity in any event does not have any significant material impact on the company's operations/performance, company said.

Bajaj Electricals rose 0.81% after the company said its engineering & project business unit secured a turnkey contract for Rs 108.63 crore from Maharashtra State Electricity Transmission Co. The contract completion period is 12 months from the date of letter of award (LoA).

The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month September 2014 series to October 2014 series. The near-month September 2014 F&O contracts expire tomorrow, 25 September 2014.

Provisional data released by the stock exchanges after trading hours on Tuesday, 23 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1185.17 crore on that day.

In the foreign exchange market, the rupee was almost unchanged against the dollar. The partially convertible rupee was hovering at 60.96, compared with its close of 60.955 during the previous trading session.

Brent crude oil prices extended losses for a third day as inflated supplies and weak economic data outweighed rising geopolitical tensions in the Middle East. Brent for November settlement was down 25 cents at $96.60 a barrel. The contract had fallen 12 cents a barrel or 0.12% to settle at $96.85 a barrel yesterday, 23 September 2014.

Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation.

Meanwhile, the Supreme Court will reportedly deliver its verdict at 14:00 IST today, 24 September 2014, on how 193 coal blocks allocated between 1993 and 2010 should be treated. In a ruling on 25 August 2014, the apex court had declared the allocation of these blocks as illegal. The verdict is expected to clear the air on whether these blocks would be re-allocated or let off the hook with a penalty. Out of the 193 blocks termed illegal by the court, 40 are operational and 6 blocks are in position to start operations. Companies that could take a hit from the court ruling include Jindal Steel and Power and Hindalco Industries among others.

India made history today, 24 September 2014, by successfully placing its spacecraft, Mangalyaan, in orbit around Mars, becoming the first country in the world to succeed in such an inter-planetary mission in the maiden attempt itself.

Prime Minister Narendra Modi is scheduled to launch the ambitious 'Make in India' campaign tomorrow, 25 September 2014. The initiative is one of the several steps which government has announced in order to improve ease of doing business in India and attract investments to boost manufacturing in the country. In his maiden independence day address, Modi invited the global business community to set up manufacturing facilities in India, giving the slogan 'come, make in India'.

Modi leaves for a five-day visit to the US on 26 September 2014. The Indian Prime Minister will meet US President Barack Obama at the White House on 30 September 2014. The two leaders will discuss a range of issues of mutual interest in order to expand and deepen the US-India strategic partnership. They will discuss ways to accelerate economic growth, bolster security cooperation, and collaborate in activities that bring long-term benefits to both countries and the world.

Asian stocks rose today, 24 September 2014, with a rally in Hong Kong offsetting declines in Australia and Japan. Key benchmark indices in China, Hong Kong, Indonesia, Taiwan, and South Korea rose by 0.17% to 0.79%. Key benchmark indices in Japan and Singapore fell 0.04% to 0.36%.

Trading in US index futures indicated that the Dow could gain 13 points at the opening bell on Wednesday, 24 September 2014. US stocks declined Tuesday, 23 September 2014, as a weak report on Europe's economy fueled more investor jitters about global growth.

In economic news, US manufacturing activity hovered at a near 4-1/2-year high in September and factory employment surged, supporting views of sturdy economic growth this quarter. The growth picture was also boosted by other data showing an acceleration in services industry growth this month. Markit said its preliminary or flash US Manufacturing Purchasing Managers Index was at 57.9, unchanged from August's reading when it touched its highest level since April 2010. A reading above 50 signals expansion in manufacturing. Factory employment increased for a second straight month, with a gauge of labor market conditions touching its highest level since March 2012. Separately, the Federal Reserve Bank of Philadelphia said its general activity index for non-manufacturing firms jumped to 35.7 this month from 27.3 in August.

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