Sensex falls below 26,000

Key benchmark indices extended losses in mid-afternoon trade as weakness in European stocks weighed on sentiment. The barometer index, the S&P BSE Sensex fell below the psychological 26,000 mark. The Sensex was currently down 126.31 points or 0.48% at 25,961.11. The slide in mid-afternoon came after the key benchmark indices moved in a relatively narrow range until that time. Bank stocks declined. ICICI Bank fell in choppy trade as the bank's net non-performing assets ratio rose in Q1 June 2014. Maruti Suzuki India edged in volatile trade after announcing strong Q1 results. The market breadth indicating the overall health of the market was positive.

At 14:20 IST, the S&P BSE Sensex was down 126.31 points or 0.48% to 25,961.11. The index rose 31.46 points at the day's high of 26,118.88 in mid-morning trade, its highest level since 28 July 2014. The index fell 135.49 points at the day's low of 25,951.93 in mid-afternoon trade.

The CNX Nifty was down 39.80 points or 0.51% to 7,751.60. The The index hit a low of 7,747.80 in intraday trade. The index hit a high of 7,791.85 in intraday trade.

The market breadth indicating the overall health of the market was positive. On BSE, 1,418 shares rose and 1,309 shares fell. A total of 120 shares were unchanged.

The BSE Mid-Cap index was up 46.73 points or 0.51% at 9,218.24. The BSE Small-Cap index was up 39.74 points or 0.4% at 10,004.87. Both these indices outperformed the Sensex.

Hindalco Industries (down 1.35%), Wipro (down 1.21%) and Axis Bank (down 1% edged lower from the Sensex pack.

ICICI Bank fell 0.1% to Rs 1,488.05 after announcing Q1 results. The stock hit high of Rs 1,505 and low of Rs 1,481.95 so far during the day. The bank's net profit rose 16.75% to Rs 2655.30 crore on 13.26% rise in total income to Rs 14,616.71 crore in Q1 June 2014 over Q1 June 2013. The net non-performing assets ratio was 0.87% as on 30 June 2014, higher than 0.82% as on 31 March 2014 and 0.69% as on 30 June 2013. The result was announced during market hours.

Maruti Suzuki India rose 0.2% to Rs 2,557 after announcing strong Q1 results. The stock hit high of Rs 2.589 and low of Rs 2,527 so far during the day. The company's net profit rose 20.7% to Rs 762.30 crore on 10.8% rise in net sales (net of excise) to Rs 11073.50 crore in Q1 June 2014 over Q1 June 2013. The car major said that cost reduction and localization initiatives, growth in volumes and favourable foreign exchange helped improve the bottom line during the quarter. The result was announced during market hours.

Navin Fluorine International lost 3.8% after net profit dropped 36.6% to Rs 8.50 crore on 10.5% rise in total income to Rs 133.91 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Wednesday, 30 July 2014.

Aban Offshore rose 5.27% after consolidated net profit rose 104.32% to Rs 152.69 crore on 15.67% increase in total income to Rs 1027.78 crore in Q1 June 2014 over Q1 June 2013. The result was announced during trading hours today, 31 July 2014.

Astra Microwave Products rose 2.2% after net profit surged 784.26% to Rs 19.10 crore on 404.73% increase in net sales to Rs 187.86 crore in Q1 June 2014 over Q1 June 2013. The result was announced during trading hours today, 31 July 2014.

The market may remain volatile in the last one hour or so of trade today, 31 July 2014, as traders roll over positions in the futures & options (F&O) segment from the near month July 2014 series to August 2014 series. The near-month July 2014 F&O contracts expire today, 31 July 2014.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.43, compared with its close of 60.07 on Wednesday, 30 July 2014.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 381.66 crore on Wednesday, 30 July 2014, as per provisional data from the stock exchanges.

A group of World Trade Organization (WTO) members has reportedly informally discussed adopting a global overhaul of customs rules without India if New Delhi goes ahead with threats to block the deal. India has demanded the deal, which must be approved in Geneva today, 31 July 2014, be accompanied by a parallel agreement giving it more freedom to subsidise and stockpile food grains than currently allowed under WTO rules.

Finance Minister Arun Jaitley said on Wednesday, 30 July 2014, said that the government is yet to decide the implementation date of the general anti-avoidance rules (GAAR) and whether any changes are needed to the existing provisions of GAAR. GAAR is scheduled to come into effect from 1 April 2015 or assessment year 2016-17. GAAR announced by the previous government had sparked alarm among foreign investors because of provisions that included tightening rules on investments from countries that have double taxation treaties with India. The implementation of GAAR was deferred by two years until 1 April 2015.

European stocks edged lower today, 31 July 2014, as Adidas AG lowered its profit forecast, outweighing better-than-expected earnings at companies from Enel SpA to Royal Dutch Shell Plc. Key benchmark indices in UK, Germany and France were down 0.03% to 0.85%.

German unemployment fell for the first time in three months in a sign that Europe's largest economy is gathering pace after a second-quarter slowdown. The number of people out of work dropped a seasonally adjusted 12,000 to 2.9 million in July, the Nuremberg-based Federal Labor Agency said today.

Asian stocks were mixed today, 31 July 2014, after global credit rating agency Standard & Poor's declared Argentina in default on its foreign-currency obligations after the government missed a deadline for paying interest on $13 billion of restructured bonds. Key benchmark indices in China, Hong Kong and Singapore were up 0.1% to 0.93%. Key benchmark indices in Japan, South Korea and Taiwan were off 0.16% to 1.39%.

A breakdown in talks between Argentina and US creditors late Wednesday has sent the country tumbling into its second default in 13 years.

Trading in US index futures indicated that the Dow could fall 82 points at the opening bell on Thursday, 31 July 2014.

The Federal Reserve after two-day policy meeting on Wednesday, 30 July, said it would reduce its purchases of mortgage and Treasury bonds by $10 billion to $25 billion monthly from $35 billion earlier, as widely expected. The Fed retained a dovish monetary policy stance. To support continued progress toward maximum employment and price stability, the Federal Open Market Committee (FOMC) reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate, the FOMC said in a statement.

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