Key benchmark indices extended intraday losses and hit fresh intraday low in mid-morning trade as index heavyweights, Reliance Industries and ITC, both, extended intraday losses. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest level in more than a week. The market breadth, indicating the overall health of the market, turned negative from positive. The Sensex was down 157.82 points or 0.79%, off about 215 points from the day's high and up close to 55 points from the day's low.
PSU OMCs declined after the Minister of Petroleum & Natural Gas Dr. M. Veerappa Moily on Tuesday, 24 September 2013, ruled out any steep increase in diesel and cooking-fuel prices. IT stocks edged lower for the second day in a row.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between gains and losses. The market moved in a narrow range in morning trade. Key benchmark indices extended intraday losses and hit fresh intraday low in mid-morning trade as index heavyweights, Reliance Industries and ITC, both, extended intraday losses.
The market may remain volatile in the immediate future as traders roll over positions in the futures & options (F&O) segment from the near month September 2013 series to October 2013 series. The September 2013 F&O contracts expire tomorrow, 26 September 2013.
At 11:20 IST, the S&P BSE Sensex was down 157.82 points or 0.79% to 19,762.39. The index declined 214.43 points at the day's low of 19,705.78 in mid-morning trade, its lowest level since 17 September 2013. The index rose 58.28 points at the day's high of 19,978.49 in early trade.
The CNX Nifty was down 55.90 points or 0.95% to 5,836.55. The index hit a low of 5,821.15 in intraday trade, its lowest level since 17 September 2013. The index hit a high of 5,910.55 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in mid-morning trade. On BSE, 1,038 shares fell and 757 shares rose. A total of 127 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks rose and rest of them fell. HDFC Bank (down 3.11%), M&M (down 1.58%) and Bajaj Auto (down 1.85%), declined.
Index heavyweight and cigarette maker ITC dropped 3.07%.
Another index heavyweight Reliance Industries lost 2.07%.
PSU OMCs declined after the Minister of Petroleum & Natural Gas Dr. M. Veerappa Moily on Tuesday, 24 September 2013, ruled out any steep increase in diesel and cooking-fuel prices. HPCL (down 3.4%), Indian Oil Corporation (IOCL) (down 0.64%) and BPCL (down 3.85%), edged lower. PSU OMCs, which control more than 90% of the fuel-retail market in India, sell diesel and cooking fuels at government-set discounted prices. The government partially reimburses them for the discounted sales.
Dr. Moily on Tuesday, 24 September 2013, asked the people of India to conserve petroleum products to help the government's finances and reduce the country's oil-import bill. He said that the bulk of India's fuel consumption is in the transport sector. Consumers in the transport sector, agriculture sector as well as domestic consumers can adopt simple but effective conservation tips so as to reduce consumption of these products, he said. The oil ministry will be launching a nationwide campaign to generate awareness amongst the consumers for conserving petroleum products, with special focus on the transport sector. The total funds allocated for this campaign is over Rs 45 crore, to be shared by 6 Oil PSUs and the PCRA (Petroleum Conservation Research Association) budget. The objective will be to motivate the consumers in cities and towns to minimize their fuel bills, thereby helping the nation in reducing oil imports. India meets three-fourths of the crude oil it requires through imports, and it spent more than $144 billion on oil imports in the last fiscal year ended in March.
Dr. Moily said that PCRA has formulated benchmarking norms for LPG stoves, and diesel pumps, in consultation with Bureau of Energy Efficiency (BEE) and other stakeholders. This programme will facilitate availability of more fuel efficient appliances to the consumers, thereby reducing consumption of LPG and Diesel, he said.
PSU OMCs are marketing performance enhanced petrol and diesel. Some special additives are mixed in these fuels which enhance fuel efficiency, reduce maintenance cost and reduce pollution. However, these fuels are more costly due to higher statutory duties. The oil ministry will take up the issue with the finance ministry so that the duty structure is rationalized which will promote their mass consumption, Dr. Moily said.
He also said that the oil ministry has requested the Urban Development Minister to introduce "Free Cycle Scheme" in select cities for saving fuel and offered funding support from oil sector companies.
At present the state transport undertakings (STUs) are purchasing diesel at market driven prices without any subsidy. The oil ministry has received representation from various states on this issue. PSU OMCs have also reported that the dual pricing mechanism is not working since STU bus fleets are taking fuel from retail outlets causing hindrance in the smooth functioning of ROs and in the process wasting fuel. The oil ministry will consider allowing STUs to purchase diesel at the subsidized price in view of the need to encourage public transport but this would be subject to their active cooperation in the fuel conservation campaign, Dr. Moily said.
IT stocks edged lower for the second day in a row. HCL Technologies fell 1.23%.
TCS shed 0.79%. The company announced after market hours on Tuesday, 24 September 2013, that the company, Saudi Aramco and GE launched the first all-female business process services center in Riyadh, Kingdom of Saudi Arabia. The center will be staffed by Saudi females, with TCS and GE owning 76% and 24% equity in the new venture, which will initially serve Saudi Aramco and GE as anchor clients. The new business process services center will serve as a building block to localize the business process outsourcing (BP0) industry in the Kingdom. The three partners will work together with the intention of scaling up the new venture to create up to 3,000 jobs for Saudi professional females. GE will create up to 1,000 employment opportunities for this initiative.
Infosys dropped 0.03%.
Wipro rose 0.94%. Wipro becomes a part of the 50-unit CNX Nifty with effect from Friday, 27 September 2013. The IT major replaces Reliance Infrastructure in Nifty.
Cipla gained 1.14%. The company said during market hours today, 25 September 2013, that India Ratings & Research, a Fitch Group Company has assigned a Long-Term Issuer Rating of 'IND AAA' to the company.
Hexaware Technologies rose 1.5% to Rs 128.70. A block deal of 10 lakh shares was executed on BSE at Rs 127.65 per share at 9:30 IST.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.6350, compared with its close of 62.7525/7625 on Tuesday, 24 September 2013.
Asian stocks dropped on Wednesday, 25 September 2013, as concern that US lawmakers will fail to arrange a budget deal preventing a government shutdown next week weighed on sentiment. Key benchmark indices in Indonesia, Japan, Singapore, Taiwan and South Korea were off 0.08% to 1.5%. Key benchmark indices in China and Hong Kong rose 0.17% to 0.4%.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 25 September 2013. US stocks ended mostly lower on Tuesday, 24 September 2013, as a drop in consumer confidence and worries over a Washington debt-ceiling fight outweighed a rise in home prices and easing concerns over the Middle East.
Investors are worried about the latest squabbling in Washington over a new budget for the fiscal year that starts on 1 October 2013 and, more importantly, over whether to lift the debt ceiling. Ratings firm Moody's Investors Service on Tuesday said a failure by the US government to raise the country's debt limit would result in a worse outcome for financial markets than a government shutdown.
The Conference Board's index of US consumer confidence slumped in September to a four-month low and a separate report showed a gauge of manufacturing in the region covered by the Federal Reserve Bank of Richmond shrank in September. The Case-Shiller report on US home prices showed prices rose in July, but at a slower pace.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus.
US President Barack Obama on Tuesday said that the US is committed to finding diplomatic solutions for the Syria conflict and for the ongoing dispute with Iran over its nuclear program.
Powered by Capital Market - Live News
