Key benchmark indices provisionally registered small losses after witnessing volatility at the onset of the trading session and during late trade. High volatility was witnessed in late trade as key indices recouped a lion's portion of intraday losses after a sudden slide took them into the red from green. High volatility in late trade materialized after media reports said Finance Minister Arun Jaitley was moved to an isolation ward of a government-run hospital to help him recover from an infection that followed a stomach operation early this month to treat diabetes. The barometer index, the S&P BSE Sensex, was provisionally down 4.73 points or 0.02% at 26,621.50.
The market breadth was strong. The BSE Mid-Cap index was up 1%. The BSE Small-Cap index was up 1.48%. Both these indices outperformed the Sensex. Asian and European stocks were in red. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1133.64 crore during the previous trading session on Friday, 26 September 2014, as per provisional data.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms and on weak rupee. Shares of travel companies jumped after Prime Minister Narendra Modi in his address to Indian community at Madison Square Garden, New York on Sunday, 28 September 2014, announced sweeping changes in procedures to facilitate travel between America and India.
Barring volatility at the beginning of the trading session and during late trade, key indices moved within a narrow range.
A major near term event is a monetary policy review from the Reserve Bank of India (RBI) tomorrow, 30 September 2014. Meanwhile, Prime Minister Narendra Modi will hold talks with US President Barack Obama at the White House tomorrow, 30 September 2014. Modi is on a five-day visit to US.
In overseas market, European stocks edged lower as a measure of euro-area economic confidence declined this month. Hong Kong led decline in Asian stocks after clashes between police and pro-democracy protesters in the Chinese city.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar after US economic data bolstered the outlook for higher interest rates in the world's biggest economy.
Brent crude oil prices edged lower due to weak data from major buyer China and a stronger US dollar.
As per provisional figures, the S&P BSE Sensex was down 4.73 points or 0.02% at 26,621.50. The index rose 89.45 points at the day's high of 26,715.77 in mid-afternoon trade. The index lost 108.31 points at the day's low of 26,518.01 in late trade.
The CNX Nifty was down 9.95 points or 0.12% at 7,958.90, as per provisional figures. The index hit a high of 7,991.75 in intraday trade. The index hit a low of 7,934.70 in intraday trade.
The total turnover on BSE amounted to Rs 2728 crore, lower than Rs 4436.77 crore on Friday, 26 September 2014.
The market breadth indicating the overall health of the market was strong. On BSE, 1,857 shares rose and 1,085 shares fell. A total of 94 shares were unchanged.
The BSE Mid-Cap index was up 94.11 points or 1% at 9,515.51. The BSE Small-Cap index was up 155.14 points or 1.48% at 10,666.13. Both these indices outperformed the Sensex.
Kotak Mahindra Bank declined 1.58%. The bank said during market hours that the bank today, 29 September 2014, has completed the purchase of 76.49 lakh shares aggregating 15% stake in Multi Commodity Exchange of India (MCX India) from Financial Technologies for Rs 459 crore.
MCX (India) rose 3.47%. Financial Technologies surged 4.81%.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Tech Mahindra (up 0.56%), TCS (up 3.47%), Wipro (up 1.71%) and Infosys (up 1.9%) gained. HCL Technologies fell 0.38%.
Weakness in rupee also supported IT stocks. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Hindustan Unilever (HUL) declined 0.7%. A foreign brokerage firm has reportedly downgraded the stock to underweight from "equalweight", citing lofty valuations despite weak earnings growth.
Tata Power Company fell 0.71%. The company's defence engineering unit, Tata Power SED, has reportedly signed an agreement with Honeywell International to produce the US company's "TALIN" navigator in India. Honeywell will license the design and hardware to assemble, test and eventually build the production kits for the navigation system in India. The agreement was announced during Indian Prime Minister Narendra Modi's visit to the United States.
ABB (India) lost 0.37%. The company said during market hours that it has won an order worth Rs 172 crore from Power Grid Company of Bangladesh (PGCB), the country's leading transmission utility, to provide four new turnkey substations and help expend six others, to enhance transmission capacity and boost power supply to meet growing demand for electricity in Bangladesh.
Shares of travel companies jumped after Prime Minister Narendra Modi in his address to Indian community at Madison Square Garden, New York on Sunday, 28 September 2014, announced sweeping changes in procedures to facilitate travel between America and India. Cox & Kings (up 10.73%) and Thomas Cook (up 5.39%) surged.
The Prime Minister unveiled a series of facilitation initiatives aimed at making travel from America to India easier. Noting that there are certain differences between the PIO (Person of Indian Origin) and OCI (Overseas Citizens of India) schemes, the Prime Minister said PIO cardholders will be granted visa for life, and a new scheme will be announced soon, merging the two schemes. He said there would be no need for long-stay visitors to India to visit police stations. He also announced long term tourist visas for American citizens and said visa on arrival for American tourists will be announced soon.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar after US economic data bolstered the outlook for higher interest rates in the world's biggest economy. The partially convertible rupee was hovering at 61.485, compared with its close of 61.15 during the previous trading session. An increase in borrowing costs by the Fed could reduce the allure of emerging-market assets.
Brent crude oil prices edged lower due to weak data from major buyer China and a stronger US dollar. Brent for November settlement was down 43 cents at $96.57 a barrel. The contract had settled unchanged at $97 a barrel on Friday, 26 September 2014.
Prime Minister, Narendra Modi, while addressing to Indian Community at Madison Square Garden, New York on Sunday, 28 September 2014, exhorted Indians to join in the development effort as a mass movement. The Prime Minister unveiled a series of facilitation initiatives aimed at making travel from America to India easier. He said one of his key initiatives was to remove redundant laws, and he would be happy if he could do so at a pace of one a day.
Modi will hold talks with US President Barack Obama at the White House tomorrow, 30 September 2014. Modi is on a five-day visit to US.
Meanwhile, media reports today, 29 September 2014, said that Finance Minister Arun Jaitley may have to cancel a trip to the United States in October after he was moved to an isolation ward of a government-run hospital to help him recover from an infection that followed a stomach operation to treat diabetes. Jaitley is due to attend a World Bank meeting on 10-12 October in Washington. He was due to leave on 8 October 2014.
The Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged after its fourth bi-monthly monetary policy review tomorrow, 30 September 2014. The central bank may reduce the statutory liquidity ratio (SLR) -- the portion of deposits that banks are required to keep in government bonds -- to support credit demand as the economy recovers from two years of tepid growth. The central bank's policy stance after the review could provide cues on the direction of interest rates in the coming months. The central bank is targeting consumer price inflation at 8% by end January 2015 and 6% by end January 2016.
European stocks edged lower in volatile trade today, 29 September 2014, as a measure of euro-area economic confidence declined this month. Key benchmark indices in UK, Germany and France were off 0.37% to 0.42%.
Asian stocks declined today, 29 September 2014, after clashes between police and pro-democracy protesters in the Chinese city. Key benchmark indices in Singapore, Hong Kong, South Korea and Taiwan were off 0.08% to 1.9%. Key benchmark indices in Japan and China were up 0.43% to 0.5%.
The Hong Kong government reportedly said today, 29 September 2014, that it has withdrawn riot police from city streets after pro-democracy protests began to calm down. Hong Kong police used pepper spray, tear gas and baton charges in an attempt to disperse thousands of pro-democracy protesters in the centre of the global financial hub at the weekend, reports said.
Chinese industrial profits fell 0.6% in August from a year earlier, reversing from July's 13.5% rise, the government said on Saturday, 27 September 2014, adding to problems such as unsteady exports, a housing downturn and cooling investment growth in the world's second largest economy.
Trading in US index futures indicated that the Dow could fall 73 points at the opening bell on Monday, 29 September 2014. US stocks closed higher on Friday, 26 September 2014, after a read on second-quarter GDP showed that the economy grew at its fastest pace in 2-1/2 years. The US government on Friday raised the estimate of US Q2 June 2014 GDP growth rate to 4.6% from 4.2% reported earlier.
The influential US monthly non-farms payroll data is due on Friday, 3 October 2014. The data pertains to September 2014.
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