A sell-off gripped bourses in late trade. The 50-unit CNX Nifty hit its lowest level in almost a week. The market breadth, indicating the overall health of the market, turned negative from positive in late trade. The barometer index, the S&P BSE Sensex, was provisionally down 305.69 points or 1.46%, off 310.17 points from the day's high and up 5.19 points from the day's low. Indian stocks dropped on caution ahead of the release of the minutes from the US Federal Reserve's last meeting, possibly providing clues to the timing of its plan to slow monetary stimulus to the US economy. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year. In the foreign exchange market, the rupee edged lower against the dollar on demand for greenbacks by state-run oil refiners and on weakness in domestic equities.
Index heavyweight and cigarette major ITC edged lower in volatile trade. Dabur India fell after a block deal was struck on the counter on BSE today, 20 November 2013. Index heavyweight Reliance Industries (RIL) edged lower in choppy trade. Banking pivotals declined. Jet Airways (India) edged higher in choppy trade after the company's board approved issue and allotment of shares on preferential basis to Abu Dhabi based Etihad Airways, thereby giving Etihad 24% equity in the Indian private carrier. IT stocks dropped.
Key benchmark indices cut losses after a lower start triggered by weak Asian stocks. Key benchmark indices extended intraday losses in mid-morning trade. Key benchmark indices cut losses in early afternoon trade. A bout of volatility was witnessed as key benchmark indices slipped into the red once again after briefly moving into the positive terrain from negative terrain in afternoon trade. Intraday volatility continued as key benchmark indices slipped into the red once again after briefly moving into the positive terrain from negative terrain in mid-afternoon trade. A sell-off gripped bourses in late trade. The 50-unit CNX Nifty hit its lowest level in almost a week.
As per provisional closing, the S&P BSE Sensex was down 305.69 points or 1.46% to 20,585.13. The index lost 310.88 points at the day's low of 20,579.94 in late trade, its lowest level since 18 November 2013. The index rose 4.48 points at the day's high of 20,895.30 in mid-afternoon trade.
The CNX Nifty was down 93.55 points or 1.51% to 6,109.80. The index hit a low of 6,106.95 in intraday trade, its lowest level since 14 November 2013. The index hit a high of 6,204.35 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On BSE, 1,268 shares declined and 1,247 shares rose. A total of 143 shares were unchanged.
The total turnover on BSE amounted to Rs 2126 crore, higher than Rs 1963 crore on Tuesday, 19 November 2013.
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Among the 30-share Sensex pack, 27 stocks declined and only three of them gained.
Index heavyweight and cigarette major ITC fell 0.8% to Rs 320.80 in volatile trade. The stock hit a high of Rs 325.75 and low of Rs 320.05.
Dabur India fell 1.34% to Rs 157.80. A block deal of 3.5 lakh shares was struck on the counter at Rs 157.50 per share at 12:49 IST on BSE today, 20 November 2013.
Index heavyweight Reliance Industries (RIL) lost 2.06% to Rs 858.65. The stock hit high of Rs 882.20 and low of Rs 857.25.
IT stocks dropped. Wipro (down 1.02%) and TCS (down 0.22%) declined.
IT major Infosys fell 1.4% to Rs 3,395.50. The stock had hit a 52-week high of Rs 3,447.90 in intraday trade on Tuesday, 19 November 2013.
Bank pivotals dropped. HDFC Bank fell 2.02%.
ICICI Bank lost 3.48% to Rs 1,044.95. ICICI Bank on Monday, 18 November 2013, said that the bank acting through its Dubai branch, priced an issuance of 5.5 year fixed rate notes of an aggregate principal amount of $750 million. The notes were sold under the Rule 144A/Reg S format. The notes carry a coupon of 4.8% and were offered at an issue price of 99.609. The announcement was made after market hours on Monday, 18 November 2013.
State Bank of India fell 2.23%
The Reserve Bank of India has reportedly asked state-run lenders to start offering loans to self-help groups of women at discounted interest rates under a government program announced in February.
Jet Airways (India) edged higher in choppy trade after the company's board approved issue and allotment of shares on preferential basis to Abu Dhabi based Etihad Airways, thereby giving Etihad 24% equity in the Indian private carrier. The stock rose 1.54% to Rs 325.50. The scrip hit high of Rs 338.80 and low of Rs 320.55. Jet Airways (India)'s board of directors at its meeting held today, 20 November 2013, approved the issue and allotment of 2.72 crore shares at Rs 754.7361607 per share to Abu Dhabi based Etihad Airways on a preferential basis in terms of the investment agreement entered between Etihad and the company on 24 April 2013 and amendments thereto and pursuant to the approval of the shareholders on 24 May 2013 by way of special resolution. The announcement was made during trading hours. Jet Airways will mop up Rs 2057.66 crore from the preferential allotment of shares to Etihad. Etihad will hold 24% of the post issue paid up share capital of the company, Jet Airways (India) said.
Jet Airways (India) also said that at a board meeting held today, 20 November 2013, Mr. James Hogan and Mr. James Rigney, both nominees of Etihad Airways PJSC, have been appointed as additional directors on the board of the Jet Airways (India).
In the foreign exchange market, the rupee edged lower against the dollar on demand for greenbacks by state-run oil refiners and on weakness in domestic equities. The partially convertible rupee was hovering at 62.555, compared with its close of 62.36/37 on Tuesday, 19 November 2013.
Bond prices dropped on concerns that higher diesel prices will fan inflation. Oil Minister Veerappa Moily today, 20 November 2013, said that the Centre will likely free up diesel pricing from government control over the next six months with gradual price increases. The yield on most traded federal paper, 8.28% GS 2027, was hovering at 9.0369%, higher than its close of 8.9942% on Tuesday, 19 November 2013. The yield on 10-year benchmark federal paper, 7.16% GS 2023, was hovering at 9.0631%, higher than its close of 9.0093% on Tuesday, 19 November 2013.
Increasing the price of diesel at this time will be tricky for the government with general elections just a few months away. Higher diesel prices will fan inflation. Also, the fuel is used by farmers, who form a big chunk of voters in India, to run their water pumps to irrigate crops. Mr. Moily said he wasn't worried about any political repercussions of freeing up diesel pricing.
On the political front, an unprecedented 78.50% of the nearly 1.40 crore electors voted in the second phase of polling for the Assembly elections in Chhattisgarh on Tuesday, 19 November 2013. The first phase of elections in the 90-member assembly on 11 November 2013 had seen polling of 75.53%.
European stocks edged lower on Wednesday, 20 November 2013, ahead of a busy day for US economic data and minutes of the October US Federal Reserve meeting. Key benchmark indices in UK, Germany and France were off 0.03% to 0.13%.
Asian shares declined on Wednesday, 20 November 2013, on caution ahead of the release of the minutes from the US Federal Reserve's last meeting, possibly providing clues to the timing of its plan to slow monetary stimulus to the US economy. Key benchmark indices in Taiwan, Japan, Indonesia, Singapore and South Korea fell by 0.25% to 1.08%. Key benchmark indices in China and Hong Kong rose 0.18% to 0.62%.
China's central bank today, 20 November 2013, elaborated on plans to free up foreign-exchange controls. The People's Bank of China will "basically" end normal intervention in the currency market and broaden the yuan's daily trading limit, Governor Zhou Xiaochuan said, without giving a time frame. The daily range will be widened in an "orderly way" as China seeks to enhance the currency's two-way flexibility, Zhou wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting.
Bank of Japan Governor Haruhiko Kuroda and his board gather for a two-day policy meeting starting today, 20 November 2013.
Trading in US index futures indicated that the Dow could advance 7 points at the opening bell on Wednesday, 20 November 2013. US stocks dropped on Tuesday, 19 November 2013, as investors weighed rising valuations and disappointing earnings forecasts.
Later in the day, the Federal Reserve is slated to release the minutes from its last meeting, possibly providing clues to the timing of its plan to slow monetary stimulus to the US economy. The minutes will be from the October 29-30 meeting.
Federal Reserve Chairman Ben S. Bernanke on Tuesday, 19 November 2013, said the central bank's main interest rate will probably remain near zero for a considerable time after asset purchases end. Bernanke said the Fed is committed to highly accommodative policies, echoing recent comments from other Fed officials including Janet Yellen, who has been nominated to succeed him. The labor market has shown meaningful improvement since the Fed's bond-buying program started, Bernanke said in remarks prepared for a speech to economists in Washington. A "preponderance of data" would be needed to begin removing accommodation, he said. Benchmark interest rates may remain low perhaps well after the jobless rate falls below the Fed's 6.5% threshold, he said.
The US central bank buys $85 billion of Treasuries and mortgage-backed securities each month to put downward pressure on borrowing costs.
The Organization for Economic Cooperation and Development cut its global growth forecasts on Tuesday, 19 November 2013, citing a slowdown in developing nations. The world economy will probably expand 2.7% this year and 3.6% in 2014, instead of the 3.1% and 4% predicted in May, the Paris-based OECD said in a semi-annual report.
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