Key benchmark extended losses to hit fresh intraday low in mid-morning trade as the rupee extended Monday's steep slide to hit record low against the dollar. Weakness in Asian stocks weighed on sentiment as the S&P BSE Sensex hit its lowest level in nearly seven weeks. The 50-unit CNX Nifty hit 7-week low. Jindal Steel & Power slumped over 23% after media reports the Central Bureau of Investigation (CBI) has registered an FIR against Congress MP and company's Chairman Naveen Jindal in the coal scam case. The Sensex was down 213.95 points or 1.1%, off close to 190 points from the day's high and up about 5 points from the day's low. The market breadth, indicating the overall health of the market, was extremely weak.
Capital goods stocks declined on worries slowdown in the economy could crimp new orders. NTPC extended intraday gains. Hindalco Industries extended intraday losses
The market edged lower in early trade. The Sensex extended initial losses to hit fresh intraday low in morning trade. The market weakened further to hit fresh intraday low in mid-morning trade.
The partially convertible rupee was trading at 58.85 after hitting record low of 58.90 versus Monday's close of 58.15/16 per dollar. The rupee had lost 1.9% on Monday, 10 June 2013, weighed down by broad gains in the dollar. A weak rupee makes imports costlier, stoking inflation concerns, thereby capping the Reserve Bank of India's scope to extend monetary easing and counter the slowest economic growth in a decade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 114 crore on Monday, 10 June 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was down 213.95 points or 1.1% to 19,227.12. The index declined 219.59 points at the day's low of 19,221.48 in mid-morning trade, its lowest level since 25 April 2013. The index fell 22.33 points at the day's high of 19,418.74 in early trade.
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The CNX Nifty was down 60.10 points or 1.02% to 5,817.90. The index hit a low of 5,813.80 in intraday trade, its lowest level since 23 April 2013. The index hit a high of 5,868.05 in intraday trade.
The market breadth, indicating the overall health of the market, was extremely weak. On BSE, 1,461shares fell and 401 shares rose. A total of 106 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell and rest of them rose. Tata Steel, Bharti Airtel and ICICI Bank dropped by 2.99% to 3.29%.
Jindal Steel & Power slumped 23.18%, with the stock extending Monday's 4.46% losses after media reports the Central Bureau of Investigation (CBI) has registered an FIR against Congress MP and company's Chairman Naveen Jindal in the coal scam case. The FIR has accused Jindal and his company Jindal Power and Steel of misrepresentation of networth and concealing previous coal allotment. They are also charged with cheating and forgery. The Naveen Jindal group was allotted a total of 11 blocks, making it the single largest beneficiary of the controversial coal block allotment.
As per repors, CBI officials are conducting raids at 15 places in Delhi, Hyderabad and Kolkata. The CBI has also filed an FIR against former Minsiter of State for Coal Dasari Narayan Rao.
Shares of JSW group companies dropped. JSW Energy was off 13.3% at Rs 48.15. Shares of JSW Steel were off 4% at Rs 695.90.
Hindalco Industries fell 3.53%, with the stock extending intraday losses.
Capital goods stocks declined on worries slowdown in the economy could crimp new orders. Bhel, Siemens and L&T shed by 0.05% to 0.65%.
NTPC rose 0.77%, with the stock extending intraday gains.
Max India (down 5.4%), Thermax (down 5.03%), Jaypee Infratech (down 3.97%), and Jaiprakash Power Ventures (down 3.61%), dropped.
Elder Pharmaceuticals was locked at 5% upper circuit at Rs 357.15 on reports that the Mumbai-based pharmaceutical firm has been put on the block as it grapples with mounting debts and rising competition. As per reports, Elder Pharmaceuticals has mandated a multinational consultancy firm and a Japanese investment banking firm to manage a formal process to find a buyer through a negotiated transaction. The company's advisors are currently doing a vendor due-diligence at the corporate office in Mumbai to review the business ahead of offering assets to a potential buyer, the reports added.
Asian stocks edged lower on Tuesday after the Bank of Japan kept its policy unchanged. Key benchmark indices in Taiwan, Hong Kong, Indonesia, Japan, Singapore and South Korea shed by 0.34% to 2.57%. Mainland Chinese markets are closed from Monday, 10 June 2013 till tomorrow, 12 June 2013, for the Dragon Boat Festival.
The Bank of Japan (BOJ) on Tuesday kept monetary policy steady and revised up its assessment of the economy, unfazed by recent market turbulence which has yet to inflict severe damage on a gradually improving economy. As widely expected, the central bank voted unanimously to maintain its pledge of increasing base money, or cash and deposits at the BOJ, at an annual pace of 60 trillion to 70 trillion yen.
Trading in US index futures indicated that the Dow could fall 24 points at the opening bell on Tuesday, 11 June 2013. US stocks ended a choppy session little changed on Monday after Standard & Poor's Ratings Services revised its US credit-rating outlook to stable from negative and consumer shares lost ground.
Global credit rating agency Standard & Poor's revised its credit-rating outlook for the US to stable from negative citing receding fiscal risks, indicating the likelihood of a near-term downgrade is less than one in three. S&P also affirmed its AA+/A-1+ sovereign-credit ratings for the US.
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