Key benchmark indices edged higher in volatile trade as European stocks and US index futures rose after soothing words from China's central bank over the liquidity crunch in China. But, Indian stocks pared strong intraday gains. The market was 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 on Thursday, 27 June 2013. The barometer index, the S&P BSE Sensex, advanced 88.26 points or 0.48%, off close to 170 points from the day's high and up about 140 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
The Sensex has lost 1,131.15 points or 5.72% in this month so far (till 25 June 2013). The Sensex has fallen 797.56 points or 4.1% in calendar 2013 so far (till 25 June 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 1,814.47 points or 8.87%. From a 52-week low of 16,598.48 on 26 July 2012, the Sensex has surged 2,030.67 points or 12.23%.
Coming back to today's trade, index heavyweight and cigarette major ITC edged higher in volatile trade. Reliance Industries also edged higher amid intraday volatility. Oil India and Videocon Industries dropped while ONGC surged after ONGC Videsh and Oil India signed definitive agreements in Singapore today, 25 June 2013, with Videocon Mauritius Energy to acquire an interest in giant gas field in Mozambique for $2.475 billion. Crompton Greaves jumped after the company scheduled a board meeting to consider share buyback proposal.
The S&P BSE Sensex advanced 88.26 points or 0.48% to settle at 18,629.15, its highest closing level since 21 June 2013. The index jumped 261.42 points at the day's high of 18,802.31 in mid-afternoon trade. The index fell 53.59 points at the day's low of 18,487.30 in morning trade.
The CNX Nifty advanced 18.85 points or 0.34% to 5,609.10, its highest closing level since 21 June 2013. The index hit a high of 5,666.25 and a low of 5,570.25 in intraday trade.
The BSE Mid-Cap index fell 0.45% and the BSE Small-Cap index declined 0.42%. Both these indices underperformed the Sensex.
The BSE Oil & Gas index (up 1.53%), BSE Capital Goods index (up 0.68%), BSE FMCG index (up 0.54%) and BSE Auto index (up 0.51%), outperformed the Sensex. The BSE Power index (down 1.19%), BSE Consumer Durables index (down 0.69%), BSE Healthcare index (down 0.55%), BSE Metal index (down 0.52%), BSE IT index (down 0.48%), BSE PSU index (down 0.17%), BSE Bankex (up 0.12%), BSE Teck index (up 0.13%), and BSE Realty index (up 0.46%), underperformed the Sensex.
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The total turnover on BSE amounted to Rs 1924 crore, higher than Rs 1648 crore on Monday, 24 June 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,313 shares declined and 981 shares advanced. A total of 150 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC rose 1.84% to Rs 320.20. The stock hit a high of Rs 321.90 and low of Rs 311.05.
Reliance Industries (RIL) edged higher in volatile trade. The stock was up 1.32% at Rs 803.60. The stock hit a high of Rs 819.75 and low of Rs 795. 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.
Oil India and Videocon Industries dropped while ONGC surged after ONGC Videsh and Oil India signed definitive agreements in Singapore today, 25 June 2013, with Videocon Mauritius Energy to acquire an interest in giant gas field in Mozambique for $2.475 billion. Oil India lost 2.38% at Rs 542.65.
ONGC jumped 3.8% to Rs 310.20. OVL is the overseas investment subsidiary of ONGC.
OVL and Oil India signed definitive agreements in Singapore today, 25 June 2013, with Videocon Mauritius Energy to acquire 100% of shares in Videocon Mozambique Rovuma 1, the company holding a 10% participating interest in the Rovuma Area 1 offshore block in Mozambique for $ 2.475 billion. The acquisition is expected to be implemented via a newly incorporated special purpose vehicle jointly owned by Oil India and OVL. While OVL will acquire 6% stake in the block, Oil India will acquire 4% stake. The transaction is expected to close in the fourth quarter of 2013.
Shares of Videocon Industries fell 5.74%.
Sterlite Industries (India) fell 0.52% to Rs 77.05. The stock hit a 52-week low of Rs 75.90 in intraday trade today, 25 June 2013.
Realty stocks edged higher on renewed buying. Sobha Developers (up 1.25%), Unitech (up 1.5%), Parsvnath Developers (up 4.7%) and Godrej Properties (up 5.55%) gained.
DLF advanced 1.34% to Rs 166.50. The stock had hit a 52-week low of Rs 161.25 in intraday trade on Monday, 24 June 2013.
Bank stocks were mostly lower in volatile trade. ICICI Bank fell 1.56% to Rs 1,033.25. The stock hit a high of Rs 1,058 and low of Rs 1,028.15.
State Bank of India declined 1.75% to Rs 1,914.75. The stock hit high of Rs 1,952 and low of Rs 1,908.15.
HDFC Bank rose 1.43% to Rs 634.30. The stock hit a high of Rs 646.35 and low of Rs 623.70.
PSU OMCs gained. HPCL (up 0.29%) and BPCL (up 2.42%) gained.
Indian Oil Corporation (IOC) rose 1.53%. The government intends to divest 10% stake in Indian Oil Corporation (IOC) through an Offer for Sale (OFS) via the stock exchanges mechanism. The government currently holds 78.92% stake in IOC. The stock market regulator Securities & Exchange Board of India (Sebi) has set a deadline of 8 August 2013 for state-run listed companies to meet the mandatory minimum public shareholding of 10%.
India's largest power equipment maker by capacity Bhel fell 1.15% to Rs 163.60. The stock hit 52-week low of Rs 162.40 in intraday trade today, 25 June 2013.
Crompton Greaves jumped 10.02% after the company during market hours today, 25 June 2013, said its board will meet on Friday, 28 June 2013, to consider share buyback proposal.
Shares of two wheeler makers gained. Bajaj Auto (up 0.5%) and Hero MotoCorp (up 0.08%), edged higher.
Ranbaxy Laboratories fell 0.26% to Rs 324.65 in volatile trade. The stock had fallen as much as 7.29% to 52-week low of Rs 301.75 in intraday trade. The Supreme Court of India today, 25 June 2013, dismissed a public interest lawsuit against the company for allegedly manufacturing and selling substandard medicines due to lack of evidence against the company.
Telecom stocks were mostly higher on renewed buying. Bharti Airtel (up 4.34%), Idea Cellular (up 3.89%) and Reliance Communications (up 3.3%) edged higher. MTNL fell 3.11%. Tata Teleservices (Maharashtra) shed 3.48%.
Tech Mahindra rose 1.02% and Mahindra Satyam gained 1.09% after the two IT companies announced the formal amalgamation of Mahindra Satyam with Tech Mahindra. The merged entity is amongst the top 5 Indian IT services companies, with revenue of $2.7 billion, a team of 84,000 professionals servicing 540 customers across 46 countries, the two companies said.
MMTC fell by the maximum permissible 5% level at Rs 119.85, also its 52-week low, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake at a huge discount to the stock's ruling market price this month. The government sold 9.33% stake in MMTC via Offer for Sale through stock exchanges mechanism at an indicative price of Rs 60.86 per share. The divestment was done to make the company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR). Sebi has mandated minimum public shareholding of 10% for state-run firms by 8 August 2013.
Shares of Jaypee group companies were mostly lower. Jaiprakash Power Ventures dropped 6.23%, with the stock extending Monday's steep slide triggered by the company's announcement that power generation from its 400 MW Vishnuprayag Hydro-power plant situated at district Chamoli in Uttarakhand has been stopped with effect from 16 June 2013 due to floods. The company said that the unprecedented floods in river Alaknanda has resulted in Force Majeure event for the power unit. While the company is taking effective steps to restore generation, assessment of damages due to the flood conditions shall be made on restoration of commutation and connectivity to Barrage site, the company said.
As prudent practice, 400 megawatt Vishnuprayag project is also covered under Industrial All Risk Insurance Policy, the company said.
Jaypee Infratech fell 3.36%. Jaiprakash Associates rose 0.1%.
Shares of gold finance companies tumbled on recent steep slide in gold prices in the commodities markets. Manappuram Finance (down 14.23%) and Muthoot Finance (down 14.02%) declined.
Shares of diamond jewellery maker Gitanjali Gems were locked at 20% lower circuit at Rs 324.30 on BSE. The stock had dropped 20% on Monday.
The All India Gems and Jewellery Trade Federation (AIGJTF), which represents about 90% of jewellers, on Monday, 24 June 2013, asked its members to stop selling gold bars and coins, about 35% of their business, adding its weight to government efforts to cut gold imports.
European stock markets rebounded from a five-day losing streak on Tuesday, 25 June 2013, with investors awaiting a raft of US data later in the global day to gauge if the economy is recovering. Key benchmark indices in France, Germany and UK rose by 0.91% to 1.52%.
In Asia, Chinese shares erased most of heavy intraday losses and Hong Kong stocks turned positive on Tuesday, 25 June 2013, on speculation that policy makers in China would elaborate on the ongoing credit crunch in China. The Shanghai Composite index ended 0.19% lower after tumbling almost 6% earlier in the day. Hong Kong's Hang Seng advanced 0.21%. The volatility in mainland Chinese bourses came a day after the Shanghai Composite Index plunged 5.3% for its worst finish in nearly four years, sparking a selloff in global equities, including on Wall Street.
Ling Tao, deputy director of the People's Bank of China's (PBOC) Shanghai branch, said at a briefing in Shanghai today, 25 June 2013, that China's central bank will keep money-market rates at a reasonable level. China's liquidity risks are controllable and the central bank will closely monitor rates going forward, Ling said. The comments build on a PBOC statement released on Monday, 24 June 2013, saying there's a reasonable amount of liquidity in the system and urging banks to control risks from lending.
Most other Asian stocks were in red on Tuesday, 25 June 2013. Key benchmark indices in Japan, Indonesia, South Korea and Taiwan were off 0.24% to 1.22%. In Singapore, the Straits Times index was up 0.51%.
Trading in US index futures indicated that the Dow could gain 58 points at the opening bell on Tuesday, 25 June 2013. US stocks dropped Monday, 24 June 2013, as a 5.3% tumble in the Shanghai stock market overnight spurred by worries over China's economy and banking system.
Some Fed officials on Monday, 24 June 2013, sought to soften worries about the end of monetary stimulus from the US central bank. Federal Reserve Chairman Ben Bernanke said last week the central bank may start dialing down its stimulus effort if the economy achieves sustainable growth.
US economic data on durable goods, consumer confidence and housing numbers are due later in the global day today, 25 June 2013.
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