A range bound movement was witnessed as key benchmark indices languished in red in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently hovering below the psychological 27,000 level, having alternately moved above and below that mark in mid-morning trade after falling below that level in early trade. The barometer index, the S&P BSE Sensex, was currently down 112.05 points or 0.41% at 26,978.37. Key indices dropped on weak global cues. The market breadth indicating the overall health of the market was positive. Meanwhile, falling global global crude oil prices augur well for India as the country imports almost 80% of its crude oil requirements. Cement stocks declined. Pharma stocks fell as an official at the National Pharmaceutical Pricing Authority (NPPA) was quoted as saying on Friday, 19 September 2014, that the government has capped the prices of 36 drugs, including those used to treat infections and diabetes to make essential medicines more affordable.
In overseas markets, Asian stocks and US index futures fell amid speculation China may accept slower growth and after officials from the world's biggest economies warned of rising financial risks. Group of 20 finance chiefs and central bankers said low interest rates could lead to a potential increase in financial-market risk, as major economies rely on monetary stimulus to bolster uneven growth. "We are mindful of the potential for a build-up of excessive risk in financial markets, particularly in an environment of low interest rates and low asset price volatility," the G-20 officials reportedly said yesterday, 21 September 2014 in Cairns, Australia, after a two-day meeting.
Brent crude oil prices edged lower as sluggish demand and abundant supplies outweighed a possible cut in oil output from the Organization of the Petroleum Exporting Countries (OPEC).
In the foreign exchange market, the rupee edged higher against the dollar.
At 11:16 IST, the S&P BSE Sensex was down 112.05 points or 0.41% at 26,978.37. The index lost 171.49 points at the day's low of 26,918.93 in early trade, its lowest level since 18 September 2014. The index fell 80.20 points at the day's high of 27,010.22 in early trade.
The CNX Nifty was down 42.10 points or 0.52% at 8,079.35. The index hit a low of 8,064.80 in intraday trade, its lowest level since 18 September 2014. The index hit a high of 8,089 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,411 shares gained and 1,126 shares fell. A total of 94 shares were unchanged.
The BSE Mid-Cap index was up 14.87 points or 0.15% at 9,880.13. The BSE Small-Cap index was up 57.87 points or 0.52% at 11,249.05. Both these indices outperformed the Sensex.
Cement stocks declined. ACC (down 1.74%), Ambuja Cements (down 1.4%), and UltraTech Cement (down 1.44%) declined.
Grasim Industries lost 1.01%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Shree Cement declined 0.24%. Shree Cement and Jaiprakash Associates said after market hours on Friday, 19 September 2014, that Shree Cement has entered into a business transfer agreement (BTA) with Jaiprakash Associates for acquisition of 1.50 million tonnes per annum (MTPA) cement grinding unit of Jaiprakash Associates situated at Panipat in Haryana on going concern basis. The two companies had first made the announcement of the transaction on 24 August 2014.
Shares of Jaiprakash Associates rose 0.3%.
Pharma stocks declined. Cipla (down 2.05%), Dr Reddy's Laboratories (down 1.71%), Ranbaxy Laboratories (down 0.53%) and Sun Pharmaceutical Industries (down 0.55%) declined. But, Lupin rose 0.44%.
The government has capped the prices of 36 drugs, including those used to treat infections and diabetes to make essential medicines more affordable, an official at the National Pharmaceutical Pricing Authority (NPPA) was quoted as saying on Friday, 19 September 2014. The medicines join the 348 drugs deemed essential and that are therefore subject to price caps, covering up to 30% of the total drugs sold.
Indian stocks may remain volatile this week 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 on Thursday, 25 September 2014.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.78, compared with its close of 60.83 during the previous trading session.
Brent crude oil prices edged lower as sluggish demand and abundant supplies outweighed a possible cut in oil output from the Organization of the Petroleum Exporting Countries (OPEC). Brent for November settlement was off 48 cents at $97.91 a barrel. The contract had risen 69 cents a barrel or 0.71% to settle at $98.39 a barrel on Friday, 19 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.
Prime Minister Narendra Modi is scheduled to launch the ambitious 'Make in India' campaign on Thursday, 25 September 2014. The initiative is one of the several steps which government has announced in order to improve ease of doing business in India and attract investments to boost manufacturing in the country. In his maiden independence day address, Modi invited the global business community to set up manufacturing facilities in India, giving the slogan 'come, make in India'.
Asian stocks fell today, 22 September 2014, amid speculation China may accept slower growth and after officials from the world's biggest economies warned of rising financial risks. Key benchmark indices in Singapore, Hong Kong, Indonesia, Taiwan, Japan and South Korea were off 0.12% to 1.66%.
China's Finance Minister Lou Jiwei said growth in Asia's largest economy faces downward pressure and reiterated that there won't be major changes in policy in response to individual economic indicators. China's economy is growing in a stable way and operating within a reasonable range, Lou said in a statement published on the People's Bank of China website. Macroeconomic policy will focus on comprehensive targets, particularly job growth and price stability, the statement said.
A preliminary reading on the HSBC Holdings Plc/Markit Economics China manufacturing purchasing managers' index is due tomorrow, 23 September 2014.
Trading in US index futures indicated that the Dow could fall 72 points at the opening bell on Monday, 22 September 2014. Most US stocks edged lower on Friday, 19 September 2014, after a three-day rally.
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