Key benchmark indices hovered in a small range near the flat line in mid-morning trade. At 11:23 IST, the barometer index, the S&P BSE Sensex was down 20.22 points or 0.08% at 26,376.55. The Nifty 50 index was currently down 11.65 points or 0.14% at 8,098.95.
The Sensex rose 88.68 points or 0.33% at the day's high of 26,485.45 at onset of the day's trading session. The index dropped 71.50 points or 0.27% at the day's low of 26,325.27 in morning trade. The Nifty rose 24.35 points or 0.3% at the day's high of 8,134.95 at onset of the day's trading session. The index fell 22.55 points or 0.27% at the day's high of 8,088.05 in morning trade.
In overseas markets, most Asian stocks declined following a lower finish in US stocks as investors looked ahead to central bank meetings in the US and Japan. The US Federal Open Market Committee will begin its two-day meeting today, 14 June 2016 while the Bank of Japan will start its two-day meeting tomorrow, 15 June 2016. US stocks declined yesterday, 13 June 2016 as investors turned increasingly jittery ahead of a Federal Reserve policy meeting and a looming vote on 23 June 2016 on Britain's membership in the European Union.
Closer home, the broad market depicted strength. There were over two gainers for every loser on BSE. 1,441 shares gained and 692 shares declined. A total of 113 shares were unchanged. The BSE Mid-Cap index was currently up 0.29%. The BSE Small-Cap index was currently up 0.73%. Both these indices outperformed the Sensex.
Most IT stocks fell. TCS (down 0.81%), Infosys (down 0.88%), HCL Technologies (down 0.22%), Tech Mahindra (down 0.8%) and Hexaware Technologies (down 0.21%) declined. MphasiS (up 1.62%), Wipro (up 0.09%) and Oracle Financial Services Software (up 0.08%) rose.
KPIT Technologies lost 5.07% after an erstwhile client of a 100% subsidiary of the company made fresh claims for damages on allegations of misappropriation of its trade secrets. Giving details about the background of the dispute between Sparta Consulting Inc (Sparta), a 100% subsidiary of KPIT Technologies, and Copart Inc, an erstwhile client of Sparta, KPIT said that Sparta was hired by Copart to design a replacement for its legacy Enterprise Resource Planning system. Thereafter, Copart hired Sparta to build the new system between 2011 and 2013. The contract was terminated by Copart "without cause". Under the relevant contractual provision, Copart invited Sparta to provide the amount it was owed for the services performed and completed as of the termination date. Sparta responded to Copart's request with a detailed analysis of the amount it believed it was owed and it requested a response from Copart. Following a dispute between the parties on the amount of fees payable to Sparta, Copart filed a suit against Sparta alleging that it is entitled to seek damages amounting to not less than $50 million for, among other things, breach of contract, fraudulent inducement and negligent misrepresentation. Copart also prayed for other relief such as indirect damages, punitive damages, attorney's fees, etc for an unquantified amount. Later, Sparta filed a suit against Copart seeking damages for, among other things, breach of contract, promissory estoppel and unjust enrichment. Sparta also prayed for other relief such as restitution and legal costs.
Recently, Copart amended its suit to seek fresh claims for damages for, among other things, misappropriation of its trade secrets and has added parent KPIT Technologies and its subsidiary, KPIT infosystems Inc, as parties to the dispute. KPIT said in a statement that it has made adequate provision in its books of accounts against the amount receivable from Copart. The company further said that it intends to vigorously defend against Copart's alleged claims and pursue any available claims against Copart. The matters are pending before a California court.
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Cement stocks slipped. UltraTech Cement (down 0.9%), Ambuja Cements (down 0.3%), ACC (down 0.5%) and Shree Cement (down 0.01%) fell. Grasim Industries was off 0.62% at Rs 4,281.95. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
IVRCL rose 6% to Rs 5.12 after the company said that it has allotted 6.46 lakh equity shares Rs 8.76 each to Bank of Nova Scotia. IVRCL said that the allotment is pursuant to provisions of Companies Act, 2013 and SEBI (Issue of Capital Disclosure Requirement) Regulations, 2009 and implementation of Strategic Debt Restructuring (SDR). The announcement was made after market hours yesterday, 14 June 2016.
Delta Corp rose 1.83% after the company said that its wholly-owned subsidiary, Delta Pleasure Cruise Company, has been granted license by the Government of Goa to operate a vessel M V Royale Flotel - Deltin Caravela in the Mandovi River in Goa. The announcement was made after market hours yesterday, 13 June 2016.
On the macro front, data released by the government after market hours yesterday, 13 June 2016 showed that the all-India general consumer prices index (CPI) inflation increased to 21-months high of 5.76% in May 2016 (new base 2012=100), while recording rise for second straight month. The CPI inflation had stood at 5.47% in April 2016. The corresponding provisional inflation rate for rural area was 6.45% and urban area 4.89% in May 2016 as against 6.17% and 4.68% in April 2016. However, the core CPI inflation declined to 4.49% in May 2016 from 4.71% in April 2016.
Meanwhile, the government will today, 14 June 2016 release the inflation based on wholesale price index (WPI) for the month of May 2016. WPI inflation came in at 0.3% in April 2016. WPI turned positive following 17 consecutive months of negative growth.
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