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After a bout of initial volatility, key benchmark indices trimmed losses in morning trade. The barometer index, the S&P BSE Sensex, was hovering just a tad below the psychological 27,000 level after falling below that mark in early trade. The Sensex was currently down 91.59 points or 0.34% at 26,998.83. Key indices dropped on weak global cues. The market breadth indicating the overall health of the market was positive.
Punjab National Bank rose after the bank said its board has decided to explore the avenues for raising capital through QIP/FPO/rights issue and raise Basel III compliant additional Tier-I capital bonds. Hotel Leelaventure declined after the company said that it did not pay Rs 22.50 crore towards first installment of interest, which was due on 31 March 2014.
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 10:15 IST, the S&P BSE Sensex was down 91.59 points or 0.34% at 26,998.83. 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 37.70 points or 0.46% at 8,083.75. 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 8,088.50 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,253 shares gained and 917 shares fell. A total of 70 shares were unchanged.
The BSE Mid-Cap index was up 30.66 points or 0.31% at 9,895.92. The BSE Small-Cap index was up 58.39 points or 0.52% at 11,249.57. Both these indices outperformed the Sensex.
L&T declined 0.33%. The company said during market hours that its construction division has won new orders worth Rs 1577 crore across various business segments in September 2014.
Punjab National Bank rose 1.53% after the bank said before market hours that the board of directors of the bank at its meeting held on 19 September 2014 decided to explore the avenues for raising capital through QIP/FPO/rights issue and raise Basel III compliant additional Tier-I capital bonds. The board also considered and granted in-principle approval for a 5-for-1 stock split.
Hotel Leelaventure declined 2.97% after the company said that it did not pay Rs 22.50 crore towards first installment of interest, which was due on 31 March 2014. Further, the company has also not paid the quarterly interest, which fell due on 19 June 2014 and 19 September 2014. The company did not give further details. The debt is reportedly serviceable to state-owned life insurer Life Insurance Corporation of India (LIC) and the company is seeking more time for repayment, media report said.
HCL Infosystems gained 4.07% to Rs 93.30. US investment management firm Van Eck Associates Corporation A/c Market Vectors Vietnam bought 18.19 lakh shares of HCL Infosystems at an average price of Rs 88.64 per share in a bulk deal on NSE on Friday, 19 September 2014.
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 60.765, 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 50 cents at $97.89 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 0.07% to 1.48%.
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, Finance Minister 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 81 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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