A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in mid-afternoon trade. The market breadth, indicating the overall health of the market, was weak. The barometer index, the S&P BSE Sensex, was down 194.64 points or 0.98%, up close to 70 points from the day's low and off about 250 points from the day's high. The market sentiment was hit adversely by the government's failure to raise fuel prices. Weakness in European and Asian stocks also affected sentiment. The government's decision on Tuesday not to raise fuel prices sparked concerns about the government's fiscal deficit. 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.
Some pharma stocks rose on defensive buying. Most auto stocks declined. Index heavyweight Reliance Industries extended intraday losses.
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. Key benchmark indices trimmed losses in early afternoon trade after hitting their lowest level in more than a week. Weakness continued on the bourses in afternoon trade as European stocks opened lower. The market trimmed losses after hitting fresh intraday low in mid-afternoon trade.
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 14:20 IST, the S&P BSE Sensex was down 194.64 points or 0.98% to 19,725.57. The index declined 261.47 points at the day's low of 19,658.74 in mid-afternoon 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 62.90 points or 1.07% to 5,829.55. The index hit a low of 5,811.10 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, was weak. On BSE, 1,306 shares fell and 851 shares rose. A total of 156 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. HDFC Bank (down 3.11%), Hindustan Unilever (down 2.77%) and ITC (down 2.42%), edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) fell 3.24%, with the stock extending intraday losses.
Some pharma stocks rose on defensive buying. Dr Reddy's Laboratories (up 0.15%) and Sun Pharmaceutical Industries (up 0.73%), gained.
Cipla gained 0.56%. 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.
But, Ranbaxy Laboratories declined 0.98%.
Most auto stocks declined. Mahindra & Mahindra (M&M) (down 3.4%), Ashok Leyland (down 1.47%), and Maruti Suzuki India (down 1.89%), dropped.
Tata Motors gained 1.77%. The company's British luxury car unit Jaguar Land Rover (JLR) on Tuesday, 24 September 2013, unveiled details of its future plans for advanced research and development in the UK which will now be focused on a new cutting-edge technology, innovation and education centre in Warwick. The National Automotive Innovation Campus (NAIC) is designed to create a large-scale collaborative research environment, JLR said in a statement. JLR is the lead partner in the project investing 50 million pounds, along with Tata Motors European Technical Centre (TMETC), WMG (Warwick Manufacturing Group) and the UK Government's Higher Education Funding Council England (HEFCE).
Two wheeler stocks were mostly lower. TVS Motor Company was down 1.72%. Bajaj Auto dropped 1.7%. Hero MotoCorp gained 0.52%.
Power Grid Corporation of India rose 0.25% after the company said during market hours today, 25 September 2013, that the board of directors of the company at its meeting held on 19 September 2013 has approved expansion proposals involving a total outlay of Rs 2255.99 crore. One investment approval was for Transmission System associated with Mauda Stage-II (2x660 MW) generation project at an estimated cost of Rs 1575.30 crore, with commissioning schedule of 32 months progressively from the date of investment approval and second for the Northern Region System Strengthening Scheme-XXV at an estimated cost of Rs 680.69 crore, with commissioning schedule of 30 months progressively from the date of investment approval.
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. The government's decision on Tuesday, 24 September 2013, not to raise fuel prices has sparked concerns about the government's fiscal deficit. 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.
In an effort to woo Central government employees before the next Lok Sabha elections, Prime Minister Dr. Manmohan Singh constituted the 7th Pay Commission on Wednesday, 25 September 2013. The new pay scale recommended by the Pay Commission will be implemented from 1 January 2016 as the government has given about two years to the 7th Pay Commission to submit its report. The Pay Commission will give its recommendation on the salaries, allowances and pensions of about 80 lakh central employees and pensioners.
The setting up of the Commission, whose recommendations will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners, comes ahead of the Assembly elections in 5 states in November and the general elections in 2014.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.555, compared with its close of 62.7525/7625 on Tuesday, 24 September 2013.
European shares edged lower on Wednesday, 25 September 2013, tracking prior-day losses in the US, where discussions about raising the debt ceiling weighed on sentiment. Key benchmark indices in UK, France and Germany were off 0.39% to 0.45%.
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 China, Indonesia, Japan, Singapore, Taiwan and South Korea were off 0.01% to 2.28%. Hong Kong's Hang Seng rose 0.13%.
Trading in US index futures indicated that Dow could slide 8 points at opening bell 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. The US Treasury is set to reach its $16.7 trillion borrowing limit around mid-October, unless legislators move to raise 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.
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