Market breadth turns negative from positive

Intraday volatility was the order of the day as key benchmark regained positive terrain after reversing intraday gains in early afternoon trade. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was currently up 41.64 points or 0.15% at 27,153.85. Asian stocks were in green after results showed that Scotland is voting against breaking from the United Kingdom. Overnight losses for Brent crude oil futures augur well for India as the country imports majority of its crude oil requirements. Meanwhile, on the second day of Chinese President Xi Jinping's three-day visit to India, China and India on Thursday, 18 September 2014, announced that China will invest $20 billion in India over the next 5 years. The two Asian countries also agreed that specific measures to enhance market access for Indian companies in China will be expedited in agricultural and pharmaceutical products and for export of services.

Shares of major Tata Group companies were mixed after upward revision in rating of Tata Group companies by global credit rating agency Moody's Investors Service. Shares of Tata Group IT major TCS scaled record high.

In overseas markets, Asian stocks rose as data overnight showed fewer Americans filed for jobless claims and after results showed that Scotland is voting against breaking from the United Kingdom. In the US, the S&P 500 and Dow Jones Industrial Average closed at record levels yesterday, 18 September 2014, as investors welcomed the Federal Reserve's commitment to low interest rates long after the ending of monetary stimulus.

Scotland has chosen to stay in the United Kingdom, spurning independence in a historic referendum that had worried allies and investors, results showed today, 19 September 2014. With 31 of 32 constituencies declared, unionists had won 55% of the vote while separatists were on 45%.

Intraday volatility has been the order of the day as key indices alternately swung between positive and negative zone so far during the day. Earlier, key indices had risen to their highest level in more than a week in mid-morning trade on higher Asian stocks.

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

Brent crude oil prices extended previous session's losses following a higher-than-expected crude oil inventory build.

At 12:15 IST, the S&P BSE Sensex was up 41.64 points or 0.15% at 27,153.85. The index jumped 134.96 points at the day's high of 27,247.17 in mid-morning trade, its highest level since 10 September 2014. The index fell 57.17 points at the day's low of 27,055.04 in early afternoon trade.

The CNX Nifty was up 21.20 points or 0.26% at 8,135.95. The index hit a high of 8,160.90 in intraday trade, its highest level since 9 September 2014 The index hit a low of 8,105.35 in intraday trade.

The market breadth indicating the overall health of the market turned negative from positive in early afternoon trade. On BSE, 1,357 shares fell and 1,338 shares rose. A total of 88 shares were unchanged.

The BSE Mid-Cap index was up 30.51 points or 0.31% at 9,891.73. The BSE Small-Cap index was up 47.91 points or 0.43% at 11,169.07. Both these indices outperformed the Sensex.

Shares of major Tata Group companies were mixed after upward revision in rating of Tata Group companies by global credit rating agency Moody's Investor Service.

Tata Motors declined 0.86% to Rs 522.55. The stock was volatile. The stock hit high of Rs 528.95 and low of Rs 520.65 so far during the day. Moody's Investor Service has upgraded corporate family ratings of Tata Motors to Ba2/Stable from Ba3/Stable. The ratings of Tata Motor's luxury car unit, Jaguar Land Rover Automotive plc has not been affected by the rating actions, Moody's said in a statement.

Tata Steel fell 0.15%. Moody's Investor Service has upgraded Tata Steel's rating to Ba2 from Ba3, Tata Steel UK Holdings' rating was upgraded to B2 from B3.

TCS rose 1.97% to Rs 2,715 after hitting record high of Rs 2,724 in intraday trade. Moody's has affirmed TCS' local currency issuer rating at A3/Stable.

Tata Power Company rose 0.62% after the company said after market hours on Thursday, 18 September 2014, that Moody's has upgraded the company's corporate family rating to Ba3/Stable from B1/Negative, and senior unsecured rating to Ba3/Stable from B2/Negative, thus no longer notching for subordination.

Upward ratings revision of Tata Group companies reflects agency's expectation of parental and systemic support in case of need, which has been exhibited both in the form of extraordinary financial support from Tata Sons, the ultimate parent, and ongoing support through their close association with the Tata brand, Moody's Investors Service said on Thursday, 18 September 2014.

Multiple rating actions are based on the track record of Tata Sons in providing timely support to investee companies and Moody's assessment of its ability to provide future support and on the need to protect the brand reputation of Tata from the consequences of an entity's distress, it said.

Manappuram Finance rose 2.18% after the company said its board will meet on 23 September 2014, to consider the diversification of business into micro finance and financing of commercial vehicles.

Indiabulls Power hit an upper circuit limit of 5% at Rs 12.89 on BSE after a domestic brokerage firm initiated coverage on the stock with a 'buy' rating. The brokerage firm cited capacity expansion and compelling valuations as key reasons for initiating coverage of Indiabulls Power.

Suzlon Energy was locked at 10% lower circuit at Rs 20.40 on BSE after fresh shares allotted on conversion of foreign currency convertible bonds of the company were admitted to trading today, 19 September 2014. Suzlon Energy had allotted 27.03 crore equity shares of Rs 2 each allotted at a price of Rs 15.46 per share pursuant to conversion of foreign currency convertible bonds (FCCBs) of the company.

In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 60.805, compared with its close of 60.85 during the previous trading session.

Brent crude oil prices extended losses registered in previous trading session following a higher-than-expected crude oil inventory build. Brent for November settlement was down 5 cents at $97.65 a barrel. The contract had fallen $1.27 a barrel or 1.28% to settle at $97.70 a barrel on Thursday, 18 September 2014.

Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.

Meanwhile, on the second day of Chinese President Xi Jinping's three-day visit to India, China and India on Thursday, 18 September 2014, announced that China will invest $20 billion in India over the next 5 years. Under a five year Trade and Economic Development Plan, China has also agreed to improve the trade balance between the two countries which is heavily skewed in China's favour. The two Asian countries agreed that specific measures to enhance market access for Indian companies in China will be expedited in agricultural and pharmaceutical products and for export of services. China will set up two industrial parks in India -- one in Gujarat and one in Maharashtra. India and China also agreed on specific steps to enhance cooperation in upgrading India's railways sector.

Asian stocks rose today, 19 September 2014, as data showed fewer Americans filed for jobless claims. Key benchmark indices in China, Singapore, Hong Kong, Indonesia, Taiwan, Japan and South Korea rose by 0.04% to 1.58%.

Trading in US index futures indicated that the Dow could gain 80 points at the opening bell on Friday, 19 September 2014. US stocks rose on Thursday, 18 September 2014, a day after the US Federal Reserve kept intact its pledge to keep interest rates low, providing a backstop for investors that helped lift both the Dow Jones Industrial Average and the S&P 500 index to record highs.

US housing starts and permits fell in August, but upward revisions to the prior month's data indicated gradual improvement in the housing market.

Separately, American jobless claims fell by 36,000 to 280,000 in the period ended 13 September 2014, the Labor Department said yesterday. Those already collecting unemployment benefits fell to a more than seven-year low.

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