Nifty hits lowest level in more than a week

Banking, metal and oil & gas stocks led decline as key benchmark indices extended losses and hit fresh intraday low in mid-afternoon trade. The barometer index, the S&P BSE Sensex, hit one-week low. The 50-unit CNX Nifty hit its lowest level in more than a week. The Sensex was currently down 203.28 points or 0.76% at 26,541.41. Foreign portfolio investors (FPIs) sold shares worth a net Rs 793.65 crore yesterday, 24 September 2014, as per provisional data. A number of side counters fell. There were more than three losers for every gainer on BSE. The BSE Mid-Cap index was off 1.66%. The BSE Small-Cap index was off 2.4%. Capital goods stocks edged lower. Shares of gas production firms fell after the government once again reportedly deferred a decision on revising gas prices. Hindalco Industries which has been hit adversely by yesterday's decision of the Supreme Court to cancel most coal block allocations since 1993 fell in volatile trade. Meanwhile, Reserve Bank of India Governor Raghuram Rajan reportedly said in a speech in Mumbai that India suffered from persistent inflation and we have got to break this persistence.

The market may remain volatile in last hour or so of trade today, 25 September 2014, 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 today, 25 September 2014.

Meanwhile, Prime Minister Narendra Modi today, 25 September 2014, launched the ambitious 'Make in India' campaign in the presence of global and domestic CEOs. The initiative is aimed at making the country a global manufacturing hub.

The 50-unit CNX Nifty continued to trade below the psychological 8,000 mark, having fallen below that level earlier during the day.

In overseas markets, European stocks edged higher after European Central Bank (ECB) President Mario Draghi said the ECB could use additional unconventional policy measures if it felt that its inflation target was under threat. Japanese stocks rose on the yen's weakness against the dollar while overall trend in Asian markets was mixed. US stocks jumped in a broad advance on Wednesday, 24 September 2014, with the S&P 500 index snapping a three-day losing streak after data showed new home sales jumped sharply in August.

Brent crude oil prices edged lower as abundant supply continued to drag on prices.

In the foreign exchange market, the rupee weakened past 61 mark against the dollar on month-end dollar demand from importers for paying month-end import bills.

At 14:15 IST, the S&P BSE Sensex was down 203.28 points or 0.76% at 26,541.41. The index fell 229.31 points at the day's low of 26,515.38 in mid-afternoon trade, its lowest level since 18 September 2014. The index rose 69.51 points at the day's high of 26,814.20 in early trade.

The CNX Nifty was down 52 points or 0.65% at 7,950.40. The index hit a low of 7,938.40 in intraday trade, its lowest level since 17 September 2014. The index hit a high of 8,019.30 in intraday trade.

The market breadth indicating the overall health of the market was weak, with more than three losers for every gainer on BSE. On BSE, 2,154 shares fell and 679 shares rose. A total of 79 shares were unchanged.

The BSE Mid-Cap index was off 158.78 points or 1.66% at 9,422.05. The BSE Small-Cap index was off 259.42 points or 2.4% at 10,532.02. Both these indices underperformed the Sensex.

Capital goods stocks edged lower. ABB (India) (down 1.35%), BEML (down 6.1%), Punj Lloyd (down 3.92%) and Siemens (down 2.73%) and Thermax (down 3.17%) declined. But, L&T rose 0.34%.

Bharat Heavy Electricals (Bhel) declined 4.48%. With respect to the media report titled "Bhel wins 2 power plant deals from Telangana", Bhel clarified after market hours on Wednesday, 24 September 2014, that it has not announced the same as no firm order has been placed with the company.

Hindalco Industries slumped 6.14%. The stock has been hit adversely by yesterday's decision of the Supreme Court to cancel most coal block allocations since 1993 as the company has operating coal blocks which stand cancelled. The Supreme Court in its verdict yesterday, 24 September 2014, cancelled the allocation of 214 out of 218 coal blocks it had already declared illegal due to irregularities in the allocation of the blocks. Of these, licenses for 172 coal blocks which weren't in production stand canceled immediately, while licenses for 42 blocks which were producing coal or were close to starting production would stand canceled after six months, the court said. The six months' time has been allowed to ensure coal supplies don't get affected until the government comes out with a fresh policy for auctioning the canceled coal blocks. Coal India will take over operations of the cancelled coal blocks until they are re-auctioned.

The court also slapped a penalty of Rs 295 per tonne on operating coal blocks for coal already extracted from the operating coal blocks.

With respect to the media report titled "Hindalco might sell land in Mumbai" the company clarified during market hours that it constantly evaluates various value optimization options with respect to the non-productive assets of the company including the land located at Kalwa, Thane.

Mahindra & Mahindra (M&M) dropped 1.1%. The company during market hours said it has unveiled a new generation Scorpio in Mumbai. It is competitively priced at Rs 7.98 lakhs (ex-showroom Mumbai for S2 variant).

In the foreign exchange market, the rupee edged lower against the dollar on month-end dollar demand from importers for paying month-end import bills. The partially convertible rupee was hovering at 61.1225, compared with its close of 60.97 during the previous trading session.

Brent crude oil prices edged lower as abundant supply continued to drag on prices. Brent for November settlement was off 1 cent at $96.94 a barrel. The contract had risen 10 cents a barrel or 0.1% to settle at $96.95 a barrel yesterday, 24 September 2014.

Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said in a speech in Mumbai that India suffered from persistent inflation and we have got to break this persistence. "Once we do it we can be much more comfortable," he said. His comments come just a few days ahead of a monetary policy review on 30 September 2014.

Prime Minister Narendra Modi leaves for a five-day visit to the United States today, 25 September 2014. The Indian Prime Minister will meet US President Barack Obama at the White House on 29-30 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.

European stocks edged higher after European Central Bank (ECB) President Mario Draghi said the ECB could use additional unconventional policy measures if it felt that its inflation target was under threat. Key indices in Germany, London and France were up 0.05% to 0.43%.

Draghi's comments, due to be published today, 25 September 2014, in a Lithuanian publication, leave the door open for the central bank to embark on large-scale purchases of government bonds, or quantitative easing, something it has largely resisted.

Japanese stocks rose today, 25 September 2014, on the yen's weakness against the dollar while overall trend in Asian markets was mixed. Key benchmark indices in Hong Kong, South Korea, Taiwan and Singapore fell 0.08% to 0.96%. Key benchmark indices in China, Indonesia, and Japan rose by 0.07% to 1.28%.

Trading in US index futures indicated that the Dow could fall 7 points at the opening bell on Thursday, 25 September 2014. US stocks jumped in a broad advance on Wednesday, 24 September 2014, with the S&P 500 index snapping a three-day losing streak after data showed new home sales jumped sharply in August.

The data showed yesterday, new-home sales in US surged in August to the highest level in more than six years.

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