Key indices turn negative; breadth positive

Volatility ruled the roost as key benchmark indices sharply pared early gains and turned negative in morning trade. The barometer index, the S&P BSE Sensex was currently down 8.90 points or 0.03% at 27,497.56. The market breadth indicating the overall health of the market was positive. The BSE Mid-Cap index and the BSE Small-Cap index, both, outperformed the Sensex. Most metal shares were trading lower. Most capital goods shares rose.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 444.93 crore yesterday, 23 December 2014, as per provisional data.

In the global market, Asian stocks were trading higher after US equities climbed to all-time highs as the world's biggest economy grew at the fastest pace in 11 years.

In the foreign exchange market, the rupee edged lower against the dollar.

Brent crude oil futures gave up some of the previous session's gains, as the US dollar held near its highest level in nearly nine years on strong data.

Trading could be volatile today, 24 December 2014, as traders roll over positions in the futures & options (F&O) segment from December 2014 series to January 2015 series. The near month December 2014 derivatives contracts expire today, 24 December 20014. The stock market remains closed on Thursday, 25 December 2014, on account of Christmas.

At 10:19 IST, the S&P BSE Sensex was down 8.90 points or 0.03% at 27,497.56. The index jumped 64.79 points at the day's high of 27,571.25 in morning session. The index fell 38.55 points at the day's low of 27,467.91 at the onset of trading session, its lowest level since 22 December 2014.

The CNX Nifty was down 3.15 points or 0.04% at 8,263.85. The index hit a high of 8,286.40 in intraday trade. The index hit a low of 8,255.35 in intraday trade.

The BSE Mid-Cap index was up 25.16 points or 0.25% at 10,084.45. The BSE Small-Cap index was up 13.90 points or 0.13% at 10,904.34. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1033 shares rose and 938 shares fell. A total of 73 shares were unchanged.

ONGC fell 0.88%. With respect to news titled "ONGC awards 100mn Euro contract to French firm Technip," ONGC clarified that on 29 May 2013, ONGC issued a press release in which it stated that ONGC board approved an investment of $751.65 million (Rs 4124.35 crore) for integrated development of Vashista S-1 Fields for production of Natural Gas from KG Offshore. ONGC said it awarded execution of Vashishta and S1 Onshore Terminal through International Competitive Bidding (ICB) to M/s Technip on 9 May 2014 on Lump Sum Turn Key (LSTK) basis, including taxes and duties of Rs 669.60 crore + $11,302,220+ 5,287,590 euros with total financial impact of Rs 786.08 crore. The clarification was issued during trading hours today, 24 December 2014.

Most metal shares were trading lower. Hindalco Industries (down 1.17%), Sesa Sterlite (down 1.13%), Tata Steel (down 0.89%), Jindal Steel & Power (down 0.55%), JSW Steel (down 0.55%) and Steel Authority of India (down 0.3%), edged lower. NMDC (up 0.17%), Bhushan Steel (up 0.46%) and Hindustan Zinc (up 1.34%), edged higher.

Most capital goods shares rose. BEML (up 3.70%), AIA Engineering (up 1.39%), Jindal Saw (up 1.36%), Alstom T&D India (up 1.32%), Suzlon Energy (up 1.20%), Siemens (up 0.70%), SKF India (up 0.61%), Thermax (up 0.41%), Punj Lloyd (up 0.27%), ABB India (up 0.22%), Larsen & Toubro (up 0.16%), Praj Industries (up 0.08%), Crompton Greaves (up 0.06%), Bharat Heavy Electricals (up 0.04%) and Lakshmi Machine Works (up 0.04%), edged higher. However, Havells India (down 0.22%) and Bharat Electronics (down 0.66%), edged lower.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 63.4075, compared with its close of 63.29 during the previous trading session.

Brent crude oil futures gave up some of the previous session's gains, as the US dollar held near its highest level in nearly nine years on strong data. Brent for February settlement was down 45 cents at $61.24 a barrel. The contract had jumped $1.58 a barrel or 2.63% to settle at $61.69 a barrel during the previous trading session.

On the political front, the results for Jammu & Kashmir (J&K) and Jharkhand assembly polls came out yesterday, 23 December 2014, with the People's Democratic Party (PDP) emerging as the single-largest party in Jammu & Kashmir and the BJP with its ally the All Jharkhand Students Union (AJSU) getting simple majority in Jharkhand. PDP got 28 seats in Jammu & Kashmir with the BJP coming second with 25 seats in the states. With no party getty clear majority in the northern state, J&K opens up the possibility all kinds of combinations to form the new government.

Jharkhand, a state that was formed 14 years ago, got its first stable government with the BJP winning in 37 in the 81-seat assembly. It ally AJSU has won five seats giving the alliance 42 seats, one more than the required majority of 41.

Asian stocks were trading higher after US equities climbed to all-time highs as the world's biggest economy grew at the fastest pace in 11 years. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.07% to 1.19%. China's Shanghai Composite was down 1.88%.

Trading in US index futures indicated that the Dow could gain 20 points at the opening bell today, 24 December 2014. US stocks soared Tuesday, 23 December 2014, with the blue-chip Dow Jones Industrial Average smashing the psychologically important 18,000 milestone for the first time, after the US economy grew at its quickest pace in more than a decade last quarter.

The final estimate of the US gross domestic product (GDP) for the third quarter was revised up to a 5% annual pace, its quickest in 11 years, from 3.9% reported last month, on stronger consumer and business spending, Commerce Department said in its third and final estimate Tuesday.

Meanwhile, data Tuesday showed consumer spending, which accounts for nearly two-thirds of the US economy, jumped to its largest gain in three months in November as falling gasoline prices has left more discretionary income in consumers' pockets during the holiday shopping season. Consumer spending rose 0.6% last month while October was upwardly revised to a 0.3% increase, the Commerce Department said Tuesday.

Further, US consumer sentiment jumped to its highest level in nearly eight years as cheaper gasoline prices boosted consumer optimism. Consumer sentiment rose to 93.6, its highest reading since January 2007, according to the University of Michigan's final December reading.

Separate data on Tuesday painted a mixed picture on the US housing market as sales of new single-family homes fell for a second straight month in November. Sales fell 1.6% to a seasonally adjusted annual rate of 438,000 units, the Commerce Department said Tuesday. Last months figures declined 1.6% from October's report, which was revised down to 445,000 units from 458,000 units.

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