Nifty hits two-week low

Key benchmark indices reversed gains and hit fresh intraday low in mid-afternoon trade as weakness in European stocks weighed on investor sentiment adversely. Investors remained wary ahead of the announcement of Federal Reserve's monetary policy review later in the global day today, 30 April 2014. The barometer index, the S&P BSE Sensex, was down 123.84 points or 0.55%, off close to 340 points from the day's high. The market breadth, indicating the overall health of the market, was weak. The 50-unit CNX Nifty hit two-week low. The Sensex hit lowest level in almost two weeks. The BSE Mid-Cap index and the BSE Small-Cap index, both, fell 1.5% each. Capital goods stocks edged lower.

The market surged in early trade. It held firm in morning trade. It continued to trade firm in mid-morning trade. It trimmed intraday gains in early afternoon trade. Key benchmark indices sharply pared intraday gains in afternoon trade. It reversed gains and hit fresh intraday low in mid-afternoon trade.

Foreign institutional investors (FIIs) bought shares worth a net Rs 287.98 crore on Tuesday, 29 April 2014, as per provisional data from the stock exchanges.

The stock market remains closed tomorrow, 1 May 2014, on account of May Day.

At 14:20 IST, the S&P BSE Sensex was down 123.84 points or 0.55% to 22,342.35. The index dropped 126.23 points at the day's low of 22,339.96 in mid-afternoon trade, its lowest level since 17 April 2014. The index rose 214.27 points at the day's high of 22,680.46 in mid-morning trade.

The CNX Nifty was down 33.85 points or 0.5% to 6,681.40. The index hit a low of 6,673.25 in intraday trade, its lowest level since 16 April 2014. The index hit a high of 6,780.15 in intraday trade, its highest level since 28 April 2014.

The BSE Mid-Cap index fell 113.06 points or 1.53% to 7,293.06. The BSE Small-Cap index dropped 140.12 points or 1.84% to 7,475.54. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 1,669 shares declined and 910 shares rose. A total of 138 shares were unchanged.

Among the 30-share Sensex pack, 17 stocks declined and rest of them rose. Sesa Sterlite (down 4.04%), Tata Power Company (down 2.97%), and Hindalco Industries (down 2.7%) edged lower from the Sensex pack.

Capital goods stocks edged lower. Bharat Heavy Electricals (Bhel) (down 2.45%), BEML (down 2.43%), Bharat Electronics (down 2.24%), Punj Lloyd (down 5.26%), and L&T (down 2.23%) declined.

BASF India lost 3.97% after net profit dropped 50.8% to Rs 6.56 crore on 30.3% growth in net sales to Rs 1067.32 crore in Q4 March 2014 over Q4 March 2013. The company announced the results after trading hours on Tuesday, 29 April 2014.

BASF India's net profit rose 12.1% to Rs 127.87 crore on 12.4% growth in net sales to Rs 4418.69 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

BASF India said that the directors have recommended a dividend of Rs 4 per share for the financial year ended 31 March 2014, subject to the approval of the shareholders at the forthcoming 70th Annual General Meeting of the company to be held on 27 August 2014. The dividend, if approved, by the shareholders will absorb Rs 17.31 crore and will be payable on or before 1 September 2014. The dividend distribution tax would amount to Rs 2.94 crore and the same will be borne by the company, BASF India said.

United Spirits declined 0.66%. The company said during market hours that the Board of Directors of the company at is meeting held on today, 30 April 2014, have appointed Mr. Anand Kripalu (Mr. Kripalu) as the Chief Executive Officer of the company with effect from 1 May 2014. Mr. Kripalu is presently the Chief Executive Officer - Designate of the company, with effect from 1 October 2013. as announced in the company's press release dated 24 September 2013.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.385, compared with its close of 60.42 on Tuesday, 29 April 2014.

The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.

A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.

European shares lost ground on Wednesday after sharp gains in the previous session as tensions in Ukraine continued to dog sentiment. Key benchmark indices in France and Germany were down by 0.12% to 0.38%. UK's FTSE 100 rose 0.03%.

Asian stocks rose on Wednesday as investors weighed corporate earnings before Federal Reserve's report on monetary policy. Key benchmark indices in China, Japan, Singapore, and Indonesia rose 0.11% to 0.73%. Key benchmark indices in South Korea, Taiwan and Hong Kong were off 0.15% to 1.42%.

The Chinese Academy of Social Sciences (CASS), one of Beijing's top government think tanks, has revised its 2014 GDP growth forecast down to 7.4%, below the official 7.5% target, and says that growth could slow to as low as 7%, state media reported on Wednesday.

The Bank of Japan kept monetary policy steady on Wednesday and is set to lay out projections underscoring its conviction that inflation will head steadily towards its 2 percent target, suggesting no additional stimulus is on the near-term horizon. As widely expected, the BOJ maintained its pledge to increase base money, its key policy gauge, at an annual pace of 60 trillion to 70 trillion yen ($588-$686 billion).

Data today showed Japan's industrial output grew less than forecast in March, while factory output growth in South Korea missed estimates.

Trading in US index futures indicated that the Dow could fall 22 points at the opening bell on Wednesday, 30 April 2014. US stocks rose on Tuesday as Internet stocks rallied for the first time in five days and results from Merck & Co. to Sprint Corp. topped estimates before a Federal Reserve decision on monetary policy.

A report showed home prices in 20 US cities rose at a slower pace in the year ended February as the residential real-estate market cooled. The S&P/Case-Shiller index of property values increased 12.9% from February 2013, the smallest 12-month gain since August, after rising 13.2% in the year ended in January, a report from the group showed in New York.

The Conference Board's index of US consumer confidence decreased to 82.3 in April from 83.9 a month earlier, the New York-based private research group said.

A two-day meet of the Federal Open Market Committee (FOMC) on monetary policy review concludes today, 30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.

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