Key benchmark indices edged lower in choppy trade, with market sentiment hit adversely by data showing that foreign funds were net sellers of Indian stocks on Monday, 6 January 2014. The barometer index, the S&P BSE Sensex, was provisionally down 96.80 points or 0.47%, off 200.04 points from the day's high and up 53.26 points from the day's low. Indian stocks edged lower for the fifth day in a row today, 7 January 2014.
Index heavyweight and cigarette major ITC edged higher in volatile trade. Another index heavyweight Reliance Industries extended intraday fall in late trade. ICICI Bank edgd higher in volatile trade. Metal stocks edged lower. Realty stocks also dropped.
The market breadth, indicating the overall health of the market, was positive.
Key benchmark indices edged higher in early trade on firm Asian stocks. A sudden slide took key benchmark indices to negative zone from positive zone in morning trade. Key benchmark indices trimmed losses after hitting their lowest level in nearly three weeks in morning trade. A brief intraday recovery proved short-lived as the key benchmark indices weakened once again in early afternoon trade. A recovery in mid-afternoon trade helped key benchmark indices recoup almost entire intraday losses. Intraday recovery in mid-afternoon trade proved short lived as the Sensex weakened again in late trade.
The market sentiment was hit adversely after data showed that foreign funds were net sellers of Indian stocks on Monday, 6 January 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 267.20 crore into the secondary equity markets on Monday, 6 January 2014, as per data from Securities & Exchange Board of India (Sebi).
As per provisional closing, the S&P BSE Sensex was down 96.80 points or 0.47% to 20,690.44. The index lost 150.12 points at the day's low of 20,637.18 in morning trade, its lowest level since 18 December 2013. The index jumped 103.18 points at the day's high of 20,890.48 in early trade.
The CNX Nifty was down 30.65 points or 0.5% to 6,160.80. The index hit a low of 6,144.75 in intraday trade, its lowest level since 18 December 2013. The index hit a high of 6,221.50 in intraday trade.
The total turnover on BSE amounted to Rs 2338 crore, lower than Rs 2387.70 crore on Monday, 6 January 2014.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,289 shares gained and 1,246 shares declined. A total of 144 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks declined and rest of them gained.
Index heavyweight and cigarette major ITC rose 0.32% to Rs 317 in volatile trade. The stock hit a high of Rs 317.50 and low of Rs 313.
Index heavyweight Reliance Industries slipped 1.64% to Rs 840.90, with the stock extending intraday fall in late trade. The stock hit a high of Rs 859.75 and low of Rs 840.20.
ICICI Bank rose 1.16% to Rs 1,052.80. The stock hit a high of Rs 1,059.10 and low of Rs 1,025.10.
Metal stocks edged lower. Sesa Sterlite (down 2.19%), JSW Steel (down 0.47%), Hindalco Industries (down 1.82%), Tata Steel (down 3.69%), Jindal Steel & power (down 1.06%), Hindustan Zinc (down 1.56%), Sail (down 3.68%), and Hindustan Copper (down 0.43%) declined.
NMDC fell 0.15%. The company today, 7 January 2014, said that based on favourable market condition and also due to untiring efforts by employees, the company has registered spectacular physical performance for Q3 December 2013. NMDC's iron ore production jumped about 37% at 73.05 lakh tonnes (LT) in Q3 December 2013 over Q3 December 2012. Production rose 23% in Q3 December 2013 over Q2 September 2013.
Iron ore dispatches jumped about 40% to 74.33 LT in Q3 December 2013 over Q3 December 2012. Dispatches rose 15% in Q3 December 2013 over Q2 September 2013.
C S Verma, CMD, NMDC observed that the company is geared up to not only sustain the uptrend in production but also improve its performance further in Q4 March 2014 to meet the rising demand of steel industry.
Realty stocks edged lower. DLF (down 1.98%), Indiabulls Real Estate (down 2%), HDIL (down 1.97%), and Unitech (down 2.3%) declined.
Shares of Financial Technologies (India) (FTIL) were locked at 10% upper circuit at Rs 271.45 on BSE.
The Reserve Bank of India on Monday, 6 January 2014, allowed Indian companies to issue non-convertible/redeemable preference shares or debentures to non-resident shareholders, including the depositories that act as trustees for the ADR/GDR holders, by way of distribution as bonus from its general reserves under a Scheme of Arrangement approved by a Court in India under the provisions of the Companies Act, as applicable, subject to no-objection from the Income Tax Authorities. This general permission to Indian companies is only for issue of non-convertible/redeemable preference shares or debentures to non-resident shareholders by way of distribution as bonus from the general reserves, the RBI said in a circular. The issue of preference shares (excluding non-convertible/redeemable preference shares) and convertible debentures (excluding optionally convertible/partially convertible debentures) under the Foreign Direct Investment (FDI) scheme would continue to be subject to A.P. (DIR Series) Circular Nos.73 and 74 dated 8 June 2007 as hitherto, the RBI said.
The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Q3 earnings season begins later this week when IT major Infosys and private sector bank IndusInd Bank unveil their earnings on Friday, 10 January 2014.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Markit Economics today, 7 January 2014, said that the HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, signalled overall growth of output across global emerging markets in December 2013. But, the EMI fell to 51.6, from 52.1 in November, signalling a weaker rate of expansion. Manufacturing output continued to rise at a faster pace than services activity, and the rate of growth was only fractionally weaker than November's eight-month high. Meanwhile, service sector output rose at the slowest rate in three months.
Goods output growth was broad-based across emerging market economies at the end of 2013, with the strongest expansions indicated in Taiwan, the Czech Republic and Turkey. Chinese manufacturing output growth eased from November's eight-month high.
New business inflows in global emerging markets rose for the fifth month running, albeit at the weakest rate since September. Backlogs continued to expand marginally, in line with the broad trend shown throughout the fourth quarter. Inflationary pressures in emerging markets remained muted in the final month of 2013, with average input prices rising at the slowest pace since July. This led to the weakest increase in output prices in the current five-month sequence of inflation.
The HSBC Emerging Markets Future Output Index fell to a six-month low in December, reflecting weaker sentiment in both manufacturing and services. But, the index's average in Q4 was higher than those in the previous two quarters. Among the largest emerging markets, Brazil continued to post the strongest sentiment regarding anticipated output growth in 2014, but the extent of optimism continued to ease sharply from October's peak. Russian firms remained less optimistic, on average, than their counterparts in China and India.
European stocks edged higher on Tuesday, 7 January 2014, as German unemployment fell the most in two years. Key benchmark indices in UK, France and Germany rose by 0.23% to 0.3%.
Unemployment in Germany declined the most since December 2011, data showed today. The number of people out of work in Europe's largest economy decreased by a seasonally-adjusted 15,000 to 2.965 million in December 2013 , after increasing a revised 9,000 in November 2013, the Nuremberg-based Federal Labor Agency said. The adjusted jobless rate remained unchanged at 6.9%.
British businesses plan to hire more staff and invest in new equipment this year, signaling the UK's economic revival is likely to gather strength through 2014. A survey of nearly 8,000 businesses by the British Chambers of Commerce, published Tuesday, said a gauge of manufacturing firms' hiring intentions reached a record high at the close of 2013, while firms in Britain's services sector reported their strongest hiring intentions since the end of 2007.
French consumer confidence rose slightly in December, although it remains at a level below its long-term average, statistics showed Tuesday. Consumer confidence measures by national statistics agency Insee rose to 85 in December from 84 in November. The long-term average reading is 100.
The European Central Bank holds a monetary policy meeting on Thursday, 9 January 2014. UK's central bank -- Bank of England -- also undertakes monthly monetary policy review on the same day.
Asian stocks edged higher on Tuesday, 7 January 2014, after Janet Yellen won US Senate confirmation on Monday, 6 January 2014, to become the 15th chairman of the Federal Reserve and the first woman to head the central bank in its 100-year history. Key benchmark indices in China, Taiwan, Hong Kong and South Korea were up 0.08% to 0.32%. Key benchmark indices in Singapore, Japan and Indonesia were off 0.09% to 0.59%.
China is due to publish December trade data tomorrow, 8 January 2014, and December inflation figures on Thursday, 9 January 2014.
Trading in US index futures indicated that the Dow could advance 37 points at the opening bell on Tuesday, 7 January 2014. US stocks closed lower on Monday, with the S&P 500 index falling for a third consecutive session after weaker-than-expected services-sector data. The Institute for Supply Management said Monday its services index for December decelerated to 53% from 53.9% in November. In a separate report, orders for goods produced in US factories jumped 1.8% in November. The increase, led by orders for durable goods, suggests the manufacturing sector enjoyed stronger growth than the services side of the economy toward the end of last year.
Meanwhile, the Senate on Monday approved Janet Yellen to be the first woman to run the Federal Reserve in the central bank's 100-year history. Yelllen's four-year term will begin on 1 Feburary 2014. Currently Fed vice chairman, Yellen has backed Fed chairman Ben Bernanke's efforts to steer the US economy through its most severe crisis since the 1930s with record-low interest rates and three rounds of bond buying that have swelled Fed assets to $4.02 trillion. She pledged in a Nov. 14 confirmation hearing to press on with accommodation until achieving a "strong recovery."
The US Federal Reserve will release minutes of its December Federal Open Market Committee policy meeting tomorrow, 8 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually this year.
The US government will unveil the influential non-farm payroll report for December 2013 on Friday, 10 January 2014.
Powered by Capital Market - Live News
