Key benchmark indices extended intraday gains to hit fresh intraday high in afternoon trade as Asian and European stocks rose on speculation the Federal Reserve will hold off on tapering its monetary stimulus program after a monetary policy review this week. The S&P BSE Sensex was up 87.97 points or 0.46%, up 181.22 points from the day's low and off 3.74 points from the day's high. The market breadth, indicating the overall health of the market, was negative
Shares of Sun Pharmaceutical Industries extended intraday gain. Shares of Bhel turned positive after sliding to a 52-week low. Sterlite Industries (India) hit a 52-week low. JSW Steel rose after announcing May 2013 crude steel production during market hours today.
Reliance Industries (RIL) extended Friday's gains triggered by partner Niko Resources providing clarity on the companies' recent gas and condensate discovery at key KG-D6 block in India. Bharti Airtel advanced after the company said that it has completed the allotment of 19.98 crore new shares, representing 5% equity stake in the company, to Qatar Foundation Endowment in one of the largest private equity (PE) transactions in India.
A bout of volatility was witnessed in early trade as key benchmark indices slipped into the negative terrain after opening higher. Key benchmark indices trimmed intraday losses amid range bound trade as investors awaited the outcome of Reserve Bank of India's mid-quarter monetary policy review. Key benchmark indices edged lower to hit fresh intraday low in mid-morning trade after the Reserve Bank of India (RBI) kept its key policy rate viz. the repo rate unchanged at 7.25% after mid-quarter review of the monetary policy. The market reversed intraday losses to hit fresh intraday high in early afternoon trade. Key benchmark indices strengthened further to hit fresh intraday high in afternoon trade as European markets edged higher in early trade.
At 13:20 IST, the S&P BSE Sensex was up 87.97 points or 0.46% to 19,265.90. The index rose 91.71 points at the day's high of 19,269.64 in afternoon trade, its highest level since 11 June 2013. The index fell 93.25 points at the day's low of 19,084.68 in mid-morning trade.
The CNX Nifty was up 24.70 points or 0.43% to 5,833.10. The index hit a low of 5,770.25 in intraday trade. The index hit a high of 5,834.50 in intraday trade, its highest level since 11 June 2013.
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The market breadth, indicating the overall health of the market, was negative. On BSE, 1,065 shares fell and 1,007 shares rose. A total of 121 shares were unchanged.
The total turnover on BSE amounted to Rs 873 crore by 13:20 IST.
Among the 30-share Sensex pack, 16 stocks rose and the rest of them fell. Hindalco Industries (down 1.54%), GAIL (India) (down 1.01%) and TCS (down 0.89%) edged lower from the Sensex pack. M&M (up 2.96%), HDFC (up 2.1%) and Hero MotoCorp (up 1.89%) edged higher from the Sensex pack.
Shares of index heavyweight Reliance Industries (RIL) gained 1.09% to Rs 822.90, with the stock extending Friday's 3.15% gains. Niko Resources said on 13 June 2013 said its proved reserves increased by 160%, and that a recent gas discovery in the D6 block off India's east coast could add significantly to future reserves. RIL is the operator of the block with a 60% stake. BP Plc holds 30% and Niko the rest.
Sun Pharmaceutical Industries advanced 3.24% to Rs 983.75, with the stock extending intraday gain. It was the top gainer from the Sensex pack.
Bharti Airtel rose 2.78% after the company today, 17 June 2013, said that it has completed the allotment of 19.98 crore new shares, representing 5% equity stake in the company, to Qatar Foundation Endowment. The shares, having face value of Rs 5 each, have been issued at a price of Rs 340 each on a preferential basis for a total consideration of Rs 6796 crore. The allotment marks one of the largest private equity transactions in the history of India, Bharti said. On 3 May 2013, Bharti and Qatar Foundation Endowment had announced a binding agreement for the share sale. As part of the entitlement, QFE is entitled to one seat on the board of Bharti.
Bhel gained 2.3% to Rs 180.45, with the stock recovering from a 52-week low of Rs 174.20 hit in intraday trade today, 17 June 2013.
Sterlite Industries (India) lost 1.69% to Rs 81.60 after hitting a 52-week low of Rs 81 in intraday trade today, 17 June 2013. It was the top loser from the Sensex pack.
JSW Steel rose 0.17%. JSW Steel during market hours today announced that its May 2013 crude steel production stood at 10.13 tonne. The company reported its monthly production from its three manufacturing locations viz Vijaynagar, Salem and Dolvi together. May 2013 crude steel production shot up 40% as compared to production in 2012, the company said.
The company's crude steel production rose 40% to 10.13 million tonne in May 2013 over May 2012. The production of flat rolled products rose 57% to 8.06 million tonne in May 2013 over May 2012. The production of long rolled products rose 13% to 1.68 million tonne in May 2013 over May 2012. The rise was production was due to merger of JSW ISPAT Steel with the company.
United Phosphorus (up 4.91%), Godrej Consumer Products (up 4.44%), ABB (up 4.35%), Aurobindo Pharma (up 4.07%) and Crompton Greaves (up 3.93%) were the top gainers in BSE's 'A' group.
The Reserve Bank of India (RBI) kept its key policy rate viz. the repo rate unchanged at 7.25% after mid-quarter review of the monetary policy today, 17 June 2013. The central bank also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4%. The RBI said in a statement that the inflation outlook going forward will be determined by suppressed inflation being released through revisions in administered prices, including the minimum support prices (MSP) as well as the recent depreciation of the rupee. The rupee declined 6.6% during the period from 22 May 2013 to 11 June 2013 due to sell-off by foreign institutional investors, reflecting risk-off sentiment triggered by apprehensions of possible tapering off of quantitative easing by the US Federal Reserve.
The RBI's monetary policy stance will be determined by how growth and inflation trajectories and the balance of payments situation evolve in the months ahead, the central bank said. It is only a durable receding of inflation that will open up the space for monetary policy to continue to address risks to growth, the RBI said. While several measures have been taken to contain the current account deficit, we need to be vigilant about the global uncertainty, the rapid shift in risk perceptions and its impact on capital flows, the central bank said. The RBI stands ready to use all available instruments and measures to respond rapidly and appropriately to any adverse developments, it said.
India's exports declined 1.11% to $24.505 billion in May 2013 over May 2012, as per latest data released by the government. Imports rose 6.99% to $44.649 billion. Oil imports rose 3.05% to $15.022 billion and non-oil imports rose 9.1% to $29.627 billion. The trade deficit widened sharply to $20.143 billion in May 2013 from $16.953 billion in May 2012.
The India Meteorological Department (IMD) said on 14 June 2013 that cumulative seasonal rainfall for the country as a whole during the period between 1-13 June 2013 was 28% above the Long Period Average (LPA).
On the political front, the 17-year long relationship between the BJP and Janata Dal (United) ended on Sunday, 16 June 2013, as Bihar Chief Minister Nitish Kumar remained adamant against elevation of Narendra Modi to the BJP's election campaign committee. The BJP on 9 June 2013 appointed Modi as the Chairman of BJP's Election Campaign Committee for 2014 Lok Sabha polls which could make him the party's candidate for Prime Minister.
Janata Dal (United) rules in Bihar state in a coalition with the BJP. The split is unlikely to bring down Bihar's state government. Mr. Kumar said on Sunday he had asked the state's governor to sack the BJP's ministers. He said his party would seek a vote of confidence in Bihar's state assembly on June 19 to show it has a majority even without the BJP.
European stock markets opened higher on Monday, tracking Asia stocks higher and with investors speculating whether the US Federal Reserve will make any changes to its monetary policy when it meets later this week. Key benchmark indices in UK, France and Germany were up by 0.51% to 0.74%.
Asian stocks rose for a second day on Monday as investors await this week's Federal Reserve meeting. Key benchmark indices in Hong Kong, Indonesia, Japan, Taiwan and Singapore rose by 0.08% to 2.73%. Key benchmark indices in China and South Korea shed by 0.27% to 0.32%.
Singapore's exports fell more than economists estimated in May as manufacturers shipped fewer electronics after an uneven global recovery hurt demand. Non-oil domestic exports slid 4.6% from a year earlier, after falling 1% in April, the trade promotion agency said in a statement today.
Trading in US index futures indicated that the Dow could gain 103 points at the opening bell on Monday, 17 June 2013. US stocks fell on Friday as the International Monetary Fund cut its 2014 outlook for the US and urged the central bank to carefully manage its exit from stimulus plans. The Washington-based IMF lowered its US growth forecast for 2014 to 2.7%, from 3% predicted in April. It left its predication for growth this year unchanged at 1.9%. The IMF sees the Federal Reserve maintaining large monthly bond purchases until at least the end of this year and urged the central bank to carefully manage its exit plan to avoid disrupting financial markets.
The Thomson Reuters/University of Michigan June preliminary index of consumer sentiment fell to 82.7 from a final reading of 84.5 the prior month. Other reports showed US industrial production was unchanged in May and wholesale prices climbed for the first time in three months.
The Federal Open Market Committee, the Fed's interest-rating setting body, is due to begin its two-day meeting on interest rates in the United States tomorrow, 18 June 2013. As per reports last week, Fed Chairman Ben Bernanke this week will try to calm fears that the central bank plans to end its bond-buying program all at once. The Fed's monthly bond purchases of $85 billion a month is aimed at encouraging US economic growth. Uncertainty about whether the Fed will curtail the pace of its bond purchases has triggered volatility in global stocks over the past few weeks. Bernanke said last month that the bank could start scaling back its aggressive easing program in coming months if data continue to improve.
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