Market pares gains in late trade

Key benchmark indices pared gains in late trade after striking extending intraday gains in mid-afternoon trade. 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, was provisionally up 62.53 points or 0.34%, off 198.89 points from the day's high and up 116.12 points from the day's low. The market breadth, indicating the overall health of the market, was negative.

Index heavyweight and cigarette major ITC edged higher in volatile trade. Reliance Industries pared intraday gains in late trade. 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.

Key benchmark indices edged higher amid initial volatility. Key benchmark indices alternately moved between positive and negative zone near the flat line in morning trade. Key benchmark indices saw divergent trend in mid-morning trade. Key benchmark indices surged in early afternoon trade as Chinese shares erased most of heavy intraday losses. The Sensex extended gains to hit fresh intraday high in afternoon trade as European stocks rose in early trade. Key benchmark indices held firm after striking fresh intraday high in mid-afternoon trade. The market pared gains in late trade.

As per provisional closing, the S&P BSE Sensex was up 62.53 points or 0.34% to 18,603.42. The index jumped 261.42 points at the day's high of 18,802.31 in mid-afternoon trade, its highest level since 21 June 2013. The index fell 53.59 points at the day's low of 18,487.30 in morning trade.

The CNX Nifty was up 15.20 points or 0.27% to 5,605.45. The index hit a high of 5,666.25 in intraday trade, its highest level since 21 June 2013. The index hit a low of 5,570.25 in intraday trade.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,342 shares declined and 1,006 shares advanced. A total of 159 shares were unchanged.

The total turnover on BSE amounted to Rs 1924 crore, higher than Rs 1648 crore on Monday, 24 June 2013.

Among the 30-share Sensex pack, 23 stocks gained and rest of them declined. Tata Power (down 2.68%), NTPC (down 2.29%) and Coal India (down 2.02%) edged lower from the Sensex pack.

Bharti Airtel (up 4.91%), M&M (up 3.46%) and L&T (up 1.34%) edged higher from the Sensex pack.

Index heavyweight and cigarette major ITC rose 2.08% to Rs 320.95. The stock hit a high of Rs 321.80 and low of Rs 311.05.

Reliance Industries (RIL) pared gains in late trade. The stock was up 1.05% at Rs 801.65. 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 3.73% to Rs 310. 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 3.4%.

Sterlite Industries (India) fell 0.39% to Rs 77.15. 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%), Parsvnath Developers (up 4.7%), Godrej Properties (up 5.55%) and Unitech (up 1.5%) gained.

DLF advanced 1.92% to Rs 167.45. 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 1.86% to Rs 1,030.10. The stock hit a high of Rs 1,058 and low of Rs 1,028.15.

State Bank of India declined 1.92% to Rs 1,911.40. The stock hit high of Rs 1,952 and low of Rs 1,908.15.

HDFC Bank rose 1.22% to Rs 633. The stock hit a high of Rs 646.35 and low of Rs 623.70.

Crompton Greaves jumped 10.83% 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.

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 1.51%.

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 0.72% to 1.22%. In Singapore, the Straits Times index was up 0.51%.

Trading in US index futures indicated that the Dow could gain 75 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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