Amid weakness in Asian stocks and an overnight rally in Brent crude oil prices, Key benchmark indices in India languished in red in morning trade. The barometer index, the S&P BSE Sensex was currently down 73.18 points or 0.27% at 27,066.76. The market breadth indicating the overall health of the market was negative. DLF slumped after the announcement of a court ruling regarding land allotted to the company in Gurgaon. Other realty stocks also declined. PSU OMCs declined as Brent crude oil futures surged yesterday, 3 September 2014.
Asian markets edged lower in choppy trade as financial shares declined.
At 10:13 IST, the S&P BSE Sensex was down 73.18 points or 0.27% at 27,066.76. The index fell 94.23 points at the day's low of 27,045.71 in early trade, its lowest level since 2 September 2014. The index gained 29.18 points at the day's high of 27,169.12 in early trade.
The CNX Nifty was down 23.25 points or 0.29% at 8,091.35. The index hit a low of 8,081 in intraday trade, its lowest level since 2 September 2014. The index hit a high of 8,114.80 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,120 shares declined and 896 shares advanced. A total of 60 shares were unchanged.
The BSE Mid-Cap index was up 21.56 points or 0.22% at 9,583.31. The BSE Small-Cap index was down 24.57 points or 0.23% at 10,509.15. Both these indices outperformed the Sensex.
Among 30-share Sensex pack, 17 stocks declined while remaining gained.
Realty stocks tumbled. Oberoi Realty (down 4.79%), Unitech (down 4.17%), D B Realty (down 2.13%), Indiabulls Real Estate (down 1.96%), Housing Development & Infrastructure (down 1.87%), Godrej Properties (down 1.05%), Prestige Estates Projects (down 0.86%), and Anant Raj (down 0.7%) declined.
DLF tumbled 5.19%. The company before market hours said that in a judgement passed on Wednesday, 3 September 2014, a judgement was passed by the Punjab and Haryana High Court in a writ petition filed before it challenging the acquisition by Haryana state government with respect to 350 acres of land in Wazirabad Village, Gurgaon. The court while upholding the acquisition has passed certain observations regarding the allotment of the land to DLF. DLF said it is awaiting a copy of the order and can offer detailed comments only after that. However, at this juncture the company would only like to clarify that the said land was awarded to DLF by two rounds of international competitive bidding process, DLF said. The company further clarified that the above stated project is an independent project to be developed in the future and has no correlation whatsoever with any of the ongoing, existing or completed projects of the company including DLF 5, the company said.
PSU OMCs declined as oil prices rebounded yesterday, 3 September 2014, from Tuesday's sharp slide. BPCL (down 0.24%), HPCL (down 0.7%), and Indian Oil Corporation (down 1.33%) declined.
Higher crude oil prices could increase under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.
Brent crude oil futures rallied Wednesday, 3 September 2014, on expectations that steps toward a cease-fire in eastern Ukraine could boost economic growth in Europe. Brent for October settlement surged $2.43 a barrel or 2.4% to settle at $102.77 a barrel yesterday, 3 September 2014. In today's trading, Brent for October settlement was down 56 cents at $102.21 a barrel. India imports 80% of its crude oil requirement. Higher crude oil prices could increase fiscal deficit and current account deficit and stoke fuel price inflation.
Russian President Vladimir Putin on Wednesday, 3 September 2014, said he and his Ukrainian counterpart Petro Poroshenko had agreed to the outlines of a cease-fire for eastern Ukraine, calling for the separatists there to end their offensive and Kiev to pull its forces back.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.46, compared with its close of 60.4825 during the previous trading session.
Asian markets edged lower in choppy trade today, 4 September 2014, as financial shares declined. Key indices in Japan, Hong Kong, Taiwan, and Singapore were off 0.24% to 0.55%. Key indices in South Korea, China, and Indonesia were up 0.03% to 0.26%.
The Bank of Japan kept its record stimulus unchanged today, 4 September 2014 as Governor Haruhiko Kuroda looks to keep stoking inflation and boost economic momentum that's been sapped by a higher sales tax. The central bank kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen ($667 billion), the bank said in a statement today, 4 September 2014.
Trading in US index futures indicated that the Dow could fall 3 points at the opening bell on Thursday, 4 September 2014. US stock markets closed mostly lower on Wednesday, 3 September 2014, pulled down by a fall in Apple and other technology companies.
The US economy expanded at a modest to moderate pace over the past six weeks as a booming auto industry and tourism continued to drive growth, the Federal Reserve said in its Beige Book on Wednesday, 3 September 2014.
In Europe, a monthly meeting of the European Central Bank (ECB) is scheduled today, 4 September 2014. There are expectations that the European Central Bank (ECB) will announce quantitative easing in the coming months to bolster growth and counter downward pressures on prices in the euro zone. At US Federal Reserve's annual symposium in the United States on 22 August 2014, ECB President Mario Draghi said that expectations of future inflation in Europe exhibited significant declines at all horizons this month.
Bank of England will also announce its monetary-policy decision later in the global day today, 4 September 2014.
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