Volatility ruled the roost as key benchmark indices recouped a lion's portion of the losses after hitting 5-1/2-week low in afternoon trade. The market breadth indicating the overall health of the market was weak. The barometer index, the S&P BSE Sensex, was currently down 53.96 points or 0.2% at 26,414.40. Foreign portfolio investors (FPIs) sold shares worth a net Rs 851.24 crore yesterday, 25 September 2014, as provisional data. Global cues were negative.
Auto stocks edged lower. Capital goods stocks also declined. PSU OMCs edged lower on media reports that the government may announce a cut in diesel prices by about Rs 2 per litre when PSU OMCs review fuel prices next week. Sun Pharma and Ranbaxy Laboratories surged on reports that Sun Pharma has received a Form 483 from the US Food and Drug Administration (FDA) on a Gujarat facility. Shares of JSW Energy surged while shares of Jaiprakash Power Ventures tumbled after the two companies announced the signing of binding memorandum of understanding for the 100% acquisition by JSW Energy of three operational plants of the latter.
Earlier, key indices had alternately swung between positive and negative zone near the flat line after bouncing back from initial slide.
In overseas markets, European stocks edged lower as investors awaited data on US gross domestic product to gauge the outlook for interest rates in the world's largest economy. Asian stocks dropped after steep losses for US stocks overnight. US stocks fell sharply yesterday, 25 September 2014, on a report that Russian lawmakers are drafting legislation that would allow the government to seize foreign assets in response to sanctions by US and the European Union imposed on account of Russia's aggression in Ukraine.
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.
Brent crude oil prices edged lower as hefty supplies capped price gains and outweighed concerns that rising tensions in the Middle East could disrupt supply.
At 13:21 IST, the S&P BSE Sensex was down 53.96 points or 0.2% at 26,414.40. The index lost 247.87 points at the day's low of 26,220.49 in afternoon trade, its lowest level since 18 August 2014. The index jumped 110.19 points at the day's high of 26,578.55 in morning trade.
The CNX Nifty was down 11.60 points or 0.14% at 7,900.25. The index hit a low of 7,841.80 in intraday trade, its lowest level since 18 August 2014. The index hit a high of 7,952.95 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,729 shares fell and 1,003 shares rose. A total of 88 shares were unchanged.
The BSE Mid-Cap index was down 47.81 points or 0.51% at 9,302.91. The BSE Small-Cap index was down 80.90 points or 0.77% at 10,363.89.
Auto stocks edged lower. Maruti Suzuki India (down 2.55%), Eicher Motors (down 3.07%), and Tata Mtors (down 0.8%) declined. Mahindra & Mahindra (up 1.15%) gained.
Two-wheeler stocks also declined. Hero MotoCorp (down 2.73%), Bajaj Auto (down 1.75%) and TVS Motor Company (down 0.79%) edged lower.
Capital goods stocks declined. Thermax (down 3.59%), Siemens (down 2.61%), Crompton Greaves (down 3.56%), Bharat Heavy Electricals (down 0.64%) and L&T (down 0.12%) declined.
PSU OMCs edged lower. BPCL (down 2.55%), HPCL (down 1.38%), Indian Oil Corporation (down 2.08%) declined.
The government reportedly plans a big cut in diesel prices while state oil firms are preparing to slash petrol rates ahead of elections scheduled in Maharashtra and Haryana scheduled next month. Diesel prices may fall about Rs 2 per litre when PSU OMCs review fuel prices next week, according to reports. It will be the first rate cut for diesel since January 2009. PSU OMCs review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight. PSU OMCs have over recovery of 35 paise per litre on sale of diesel for the current fortnight, as per data released by the Petroleum Planning & Analysis Cell on 16 September 2014. PSU OMCs are currently incurring daily under-recovery of Rs 190 crore on the sale of Diesel, PDS Kerosene and Domestic LPG.
PSU OMCs suffer under-recoveries on domestic sale of LPG and kerosene at government controlled prices.
Sun Pharmaceutical Industries (Sun Pharma) jumped 4.34% at Rs 807.40.
A foreign brokerage reportedly said that Sun Pharma has received a Form 483 from the US Food and Drug Administration (FDA) on a Gujarat facility. FDA's Form 483 is a letter that notifies company of objectionable conditions. The brokerage noted that the letter given to Sun Pharma contained "no data integrity issues" and said chances of an import alert are "low", as per reports.
Ranbaxy Laboratories surged 5.57% at Rs 605.50.
In April 2014, Sun Pharmaceutical Industries acquired Ranbaxy Laboratories in a $4 billion landmark transaction.
JSW Energy lost 5.6%% to Rs 68.25 after the company after market hours on Thursday, 25 September 2014, said it has signed a Memorandum of Understanding with Jaiprakash Power Ventures for buying three operational plants of the latter.
Shares of Jaiprakash Power Ventures (JPVL) jumped 8.09% to Rs 12.70.
JSW Energy and JPVL on Thursday, 25 September 2014 announced the signing of binding memorandum of understanding (MoU), for the 100% acquisition by JSW Energy of three operational plants of JPVL, namely 300 megawatt (MW) Baspa-II Hydro Electric Plant, 1091 MW Karcham Wangtoo Hydro Electric Plant and 500 MW Bina Thermal Power Plant.
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 61.462 compared with its close of 61.34 during the previous trading session.
Brent crude oil prices edged lower as hefty supplies capped price gains and outweighed concerns that rising tensions in the Middle East could disrupt supply. Brent for November settlement was off 14 cents at $96.86 a barrel. The contract had risen 5 cents a barrel or 0.05% to settle at $97 a barrel yesterday, 25 September 2014.
Prime Minister Narendra Modi will reach the United States today, 26 September 2014, for a five-day official visit. 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 lower in earlyt trade today, 26 September 2014, as investors awaited data on US gross domestic product to gauge the outlook for interest rates in the world's largest economy. Key indices in Germany, France and UK were off 0.2% to 0.41%.
In Germany, a sentiment survey released today, 26 September 2014, showed that consumer confidence in Europe's biggest economy is expected to deteriorate for a second consecutive month in October. The monthly survey of GfK market research group showed consumer confidence falling to 8.3 points for October from an unrevised 8.6 points in September. Nonetheless, confidence remains "at a good level," GfK said.
French consumer confidence remained stable as expected in September, survey data from the statistical office Insee showed today, 26 September 2014. The consumer confidence remained at 86 for the third consecutive month in September.
Asian stocks dropped today, 26 September 2014, after steep losses for US stocks overnight. Key benchmark indices in Indonesia, Japan, South Korea, Hong Kong, Taiwan and Singapore were off 0.09% to 1.82%. China's Shanghai Composite was up 0.14%.
Japan's annual core consumer inflation eased in August, in another sign that the Bank of Japan could be forced into additional easing steps to meet its 2% price goal sometime next fiscal year.
Trading in US index futures indicated a flat opening of US stocks later in the global day today, 26 September 2014. US stocks fell sharply on Thursday, 25 September 2014, on a report that Russian lawmakers are drafting legislation that would allow the government to seize foreign assets in response to sanctions by US and the European Union imposed on account of Russia's aggression in Ukraine.
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