After a bout of volatility earlier during the day, key benchmark indices alternately moved between positive and negative zone near the flat line in mid-morning trade. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was currently was up 6.77 points or 0.03% at 26,475.13. Foreign portfolio investors (FPIs) sold shares worth a net Rs 851.24 crore yesterday, 25 September 2014, as provisional data. Asian stocks were weak after a steep slide in US stocks overnight.
Most PSU OMCs gained. HDFC Bank rose on reports Foreign Investment Promotion Board (FIPB) will decide on 1 October 2014 regarding the bank's fresh proposal seeking enhancement of foreign investment limit in the bank. State Bank of India (SBI) gained after Arundhati Bhattacharya, Chairman of the bank was quoted by media as saying she does not believe that the entire exposure to companies that will be impacted by the recent Supreme Court judgement quashing 214 coal blocks will be written off. Meanwhile, Prime Minister Narendra Modi will reach the United States today, 26 September 2014, for a five-day official visit.
Earlier, after languishing in red in early trade, key indices had bounced back later.
In overseas markets, 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 were a tad higher as hefty supplies capped price gains and outweighed concerns that rising tensions in the Middle East could disrupt supply.
At 11:15 IST, the S&P BSE Sensex was up 6.77 points or 0.03% at 26,475.13. The index jumped 110.19 points at the day's high of 26,578.55 in morning trade. The index lost 117.09 points at the day's low of 26,351.27 in early trade.
The CNX Nifty was up 2.75 points or 0.03% at 7,914.60. The index hit a high of 7,952.95 in intraday trade. The index hit a low of 7,884.85 in intraday trade.
The market breadth indicating the overall health of the market was turned negative from positive in mid-morning trade. On BSE, 1,197 shares fell and 1,174 shares rose. A total of 82 shares were unchanged.
The BSE Mid-Cap index was down 5.82 points or 0.06% at 9,344.90, underperforming the Sensex. The BSE Small-Cap index was up 24.51points or 0.23% at 10,469.30, outperforming the Sensex.
Most PSU OMCs gained. BPCL (up 0.25%) and HPCL (up 0.79%) gained. Indian Oil Corporation fell 0.57%.
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.
State Bank of India (SBI) gained 0.16% after Arundhati Bhattacharya, Chairman of the bank was quoted by the media as saying that she does not believe that the entire exposure to companies that will be impacted by the recent Supreme Court judgement quashing 214 coal blocks will be written off. The bank reportedly has more than Rs 4000 crore exposure to companies that will be impacted by the recent Supreme Court judgement quashing 214 coal blocks. On upcoming Reserve Bank policy on 30 September 2014, she is expecting a status quo, with maybe some tweaking on the CRR side, report said.
HDFC Bank rose 0.43% on reports that the Foreign Investment Promotion Board (FIPB) will decide on 1 October 2014 a fresh proposal seeking enhancement of foreign investment limit in the bank. On December last year the Reserve Bank of India (RBI) had stopped further foreign purchase of HDFC Bank's shares, saying overall foreign shareholding limit of 49% had been reached.
Hindustan Motors rose 3.4%. The board of Hindustan Motors would meet on 29 September 2014 to consider allotment of equity shares and non-convertible debentures to the lenders (banks and financial institutions) on preferential basis as approved by Corporate Debt Restructuring Empowered Group.
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 61.4625 compared with its close of 61.34 during the previous trading session.
Brent crude oil prices were a tad higher as hefty supplies capped price gains and outweighed concerns that rising tensions in the Middle East could disrupt supply. Brent for November settlement was up 1 cent at $97.01 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.
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 0.12% to 1.62%. China's Shanghai Composite was up 0.03%.
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 that the Dow could gain 20 points at the opening bell on Friday, 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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