Key benchmark indices opened higher on mostly positive Asian stocks only to pare gains later. Index heavyweight and cigarette major ITC was slightly lower in early trade. Reliance Industries gained in early trade. The S&P BSE Sensex was up 8.48 points or 0.05%, off 45.98 points from the day's high and up 14.53 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Bajaj Auto dropped after the company after market hours on Tuesday, 25 June 2013 said workmen at its Chakan plant in Pune have stopped coming to work. Aditya Birla Nuvo rose after the company's board approved the proposal of making an application to the Reserve Bank of India (RBI) for obtaining licence for setting up a bank.
The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expire tomorrow, 27 June 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1285.86 crore on Tuesday, 25 June 2013, as per provisional data from the stock exchanges.
At 9:25 IST, the S&P BSE Sensex was up 8.48 points or 0.05% to 18,637.63. The index gained 54.56 points at the day's high of 18,683.61 in early trade. The index fell 6.05 points at the day's low of 18,623.10 in early trade.
The CNX Nifty was up 10.45 points or 0.19% to 5,619.55. The index hit a high of 5,633.65 in intraday trade. The index hit a low of 5,612.65 in intraday trade.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 511 shares gained and 341 shares fell. A total of 41 shares were unchanged.
The total turnover on BSE amounted to Rs 98 crore by 09:30 IST.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined. NTPC (up 1.05%), Sterlite Industries (India) (up 1.04%) and Tata Power Company (up 1.06%) edged higher from the Sensex pack.
Bharti Airtel (down 1.83%), Tata Motors (down 1.76%) and HDFC (down 0.51%) edged lower from the Sensex pack.
Index heavyweight and cigarette major ITC shed 0.28% to Rs 319.30.
Reliance Industries (RIL) rose 0.97% at Rs 811.60. As per reports, the Cabinet Committee on Economic Affairs (CCEA) will consider a proposal this week for a steep hike in natural gas prices. The CCEA last week deferred a decision on a proposal to hike natural gas prices as Oil Minister M Veerappa Moily was away on an official tour. The oil ministry has proposed an increase in gas prices to $6.775 million British thermal unit (mbtu) from current $4.2 mbtu. The Oil Ministry has proposed raising gas price for state-run firms immediately and that for Reliance Industries (RIL) from April 2014 when it is contractually due.
Bajaj Auto dropped 1.94% after the company after market hours on Tuesday, 25 June 2013 said workmen at its Chakan plant in Pune have stopped coming to work. Bajaj Auto said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift of 28 June 2013. The workmen have, however, stopped coming to the Chakan plant from 25 June 2013, itself, without assigning any reason for this stoppage, the company said in a filing.
The company said it had earlier received a notice from the workmen's union of its Chakan plant -- Vishwa Kalyan Kamgar Sanghatana -- stating that they propose to call for a stoppage of work by all the workmen employed in Chakan plant from the morning shift of 28 June 2013.
The reason for the strike was that management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share, Bajaj Auto added.
Aditya Birla Nuvo rose 1.51%. The company's board has approved the proposal of making an application to the Reserve Bank of India (RBI) for obtaining licence for setting up a bank.
Meanwhile, market regulator Securities & Exchange Board of India (Sebi) on Tuesday approved changes to buyback of shares or other specified securities from the open market through stock exchange mechanism as part of its constant endeavour to align regulatory requirements with the changing market realities as well as to enhance efficiency of the buy-back process.
Sebi said after a board meeting that the mandatory minimum buy-back has been increased to 50% of the amount earmarked for the buy-back, as against existing 25%, failing which amount in the escrow account would be forfeited subject to a maximum of 2.5% of the total amount earmarked. The maximum buy-back period has been reduced to 6 months from 12 months, it added.
Sebi's new rules will require companies to not raise further capital for a period of one year from the closure of the buy-back except in discharge of subsisting obligations as against the existing 6 months. The company shall not make another buy-back offer within a period of one year from the date of closure of the preceding offer. The companies can buy-back 15% or more of capital (paid-up capital and free reserves) only by way of tender offer, it added.
Asian stocks were mostly higher on Wednesday after goods and housing data bolstered the US economic outlook. Key benchmark indices in Hong Kong, Indonesia, Taiwan and Singapore were up 0.52% to 2.52%. Key benchmark indices in China, Japan and South Korea were off 0.14% to 1.32%.
US stocks rose sharply on Tuesday cheered by upbeat economic data showing increases in durable-goods orders, new-home sales and consumer confidence.
The Commerce Department said orders for goods built to last at least three years rose 3.6% in May.
Another report from the Commerce Department indicated new-home sales rising 2.1% last month. Separately, the S&P/Case-Shiller index of home values rose 12.1% in April from a year earlier, the biggest jump in more than seven years. The Conference Board's consumer-confidence index rose to 81.4 in June from 74.3 in May.
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