Key benchmark indices edged lower in early trade tracking cautious mood in Asian markets ahead of policy decision in Europe. The barometer index, the S&P BSE Sensex was currently down 22.37 points or 0.08% at 27,117.57. The market breadth indicating the overall health of the market was negative. Reliance Industries declined after the company announced a mutual and amicable separation in an agreement for strategic pact with Infrastructure Leasing and Financial Services to co-promote the model economic township (MET) project of Reliance Haryana SEZ (RHSL). L&T fell after clarification with regard to Hyderabad metro rail project. United Spirits rose after reporting Q4 and FY 2014 results. DLF slumped.
Asian markets were trading mostly lower today, 4 September 2014, as investors awaited central bank decision in Europe.
At 9:19 IST, the S&P BSE Sensex was down 22.37 points or 0.08% at 27,117.57. The index fell 38.43 points at the day's low of 27,101.51 in early trade. The index gained 29.18 points at the day's high of 27,169.12 in early trade.
The CNX Nifty was down 8.90 points or 0.11% at 8,105.70. The index hit a low of 8,098 in intraday trade. 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, 651 shares declined and 603 shares advanced. A total of 45 shares were unchanged.
The BSE Mid-Cap index was up 2.44 points or 0.03% at 9,607.31, outperforming the Sensex. The BSE Small-Cap index was down 14.57 points or 0.14% at 10,519.15, underperforming the Sensex.
Among 30-share Sensex pack, 17 stocks declined while remaining declined.
Reliance Industries (RIL) lost 0.38% after the company before market hours announced mutual and amicable separation in the agreement for strategic partnership between Reliance Ventures (RVL), a wholly owned subsidiary of RIL and Infrastructure Leasing and Financial Services (IL&FS) to co-promote the model economic township (MET) project of Reliance Haryana SEZ (RHSL).
The MET project is being developed by RHSL, a wholly owned subsidiary of RVL, in the industrial model township framework. IL&FS became a strategic partner in this project in January 2011.
The MET project will continue to be developed in the industrial model township framework on the directly purchased land. Development work has been started over 290 acres of land as an industrial colony, RIL said. Some Japanese majors have established their manufacturing units in the MET project, RIL said in a statement.
DLF tumbled 5.16% after the company before market hours said that in a judgement passed on Wednesday, 3 September 2014 by the Punjab and Haryana High Court in a writ petition filed before it challenging the acquisition by Haryana Government with respect to 350 acres of land in Wazirabad Village, Gurgaon, the Court, upheld the acquisition and has passed certain observations regarding the allotment of the said land to DLF. The company is awaiting a copy of the order and can offer detailed comments only pursuant to 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.
United Spirits rose 1.01%. The company reported a net loss of Rs 5380.10 crore in Q4 March 2014 compared with net profit of Rs 56.02 crore in Q4 March 2013. Total income from operations rose 3.84% to Rs 1943.34 crore in Q4 March 2014 over Q4 March 2013. The result was announced before market hours today, 4 September 2014.
The company reported a net loss of Rs 5102.82 crore for the year ended 31 March 2014 (FY 2014) compared with net profit of Rs 320.80 crore in the year ended 31 March 2013 (FY 2013). Total income from operations rose 1.58% to Rs 8516.60 crore in FY 2014 over FY 2013.
On consolidated basis, the company reported a net loss of Rs 4489.08 crore in FY 2014, higher than net loss of Rs 101.20 crore in FY 2013. Total income from operations rose 1.11% to Rs 10615.41 crore in FY 2014 over FY 2013.
L&T fell 0.68%. The company in a clarification after market hours on Wednesday, 3 September 2014 with regard to news item titled "L&T faces cost overrun of Rs 3000 crore" said that the Hyderabad metro rail project is being implemented by a special purpose vehicle ( SPV)---L&T Metro rail (Hyderabad) (L&TMRHL). This SPV is a 99% subsidiary of L&TIDPL. L&TIDPL is a 97.5% subsidiary of L&T. L&T holds directly 1% in the SPV. The debt financing for L&TMRHL is non recourse to L&TIDPL & consequently to L&T, the company said. Commissioning of stage 1 is on schedule, it added. The anticipated amount of cost over runs mentioned in the article is an approximate amount over the entire period of the project of 3 to 5 years, after considering several issues including delay in progress of acquisition of right of way, full impact of inflation, possible impact of re-organisation of AP State, possible non completion of project in time, etc, L&T said. Several of these issues may be addressed favourably during the execution of the project, the company added. The Govt is seized of the matter & is actively looking into the issues & a positive solution can emerge, L&T said.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1288.57 crore on Wednesday, 3 September 2014, as per provisional data from the stock exchanges.
Most Asian stocks edged lower today, 4 September 2014, as investors awaited central bank decision in Europe. Key indices in Japan, Hong Kong, Taiwan, and Singapore fell 0.25% to 0.5%. Key indices in South Korea, China, and Indonesia were up 0.08% to 0.29%.
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.
US stock markets closed mostly lower on Wednesday, 3 September 2014, pulled down by a fall in Apple and other technology companies.
Among economic data, 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.
US President Obama on Wednesday, 3 September 2014, called the conflict in Ukraine a moment of testing for the United States and Europe, and condemned Russia's intervention as a brazen assault on the nation's territorial integrity that warrants a unified response. On a day of conflicting reports of a cease-fire agreement between President Petro O. Poroshenko of Ukraine and President Vladimir V. Putin of Russia, Obama said Moscow had violated the post-World War II international order.
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