Key benchmark indices hovered in red in afternoon trade as European markets edged lower. The barometer index, the S&P BSE Sensex, was down 39.88 points or 0.2%, up 22.18 points from the day's low and off 101.52 points from the day's high. Index heavyweight and cigarette major ITC hovered in red ahead of its Q4 results. Another index heavyweight Reliance Industries (RIL) was also in the red. Pharmaceutical shares edged lower. The market breadth, indicating the overall health of the market, was negative.
The market reversed direction after a positive start. The 50-unit CNX Nifty reversed direction after hitting over 30-month high. Key benchmark indices were a tad lower in morning trade, having alternately swung between gains and losses so far during the day. The Sensex hovered in negative terrain in mid-morning trade. The market trimmed losses after hitting fresh intraday low in early afternoon trade. The market hovered in red in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1070.33 crore on Thursday, 16 May 2013, as per provisional data from the stock exchanges.
At 13:24 IST, the S&P BSE Sensex was down 39.88 points or 0.2% to 20,207.45. The index rose 61.64 points at the day's high of 20,308.97 in early trade. The index fell 62.06 points at the day's low of 20,185.27 in early afternoon trade.
The CNX Nifty was down 11.55 points or 0.19% to 6,158.35. The index hit a high of 6,188.60 in intraday trade, its highest level since 12 November 2010. The index hit a low of 6,149.30 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,238 shares declined and 1,038 shares rose. A total of 174 shares were unchanged.
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The total turnover on BSE amounted to Rs 1123 crore by 13:20 IST.
Among the 30-share Sensex pack, 19 stocks fell and the rest of them rose. ONGC (up 0.87%), ICICI Bank (up 1.14%) and NTPC (up 2.27%) edged higher from the Sensex pack. Sterlite Industries (India) (down 1.21%), Bharti Airtel (down 1.26%), and Wipro (down 1.3%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) fell 1.02% to Rs 831.55. The stock hit a high of Rs 844.70 and low of Rs 829 so far during the day.
Index heavyweight and cigarette major ITC fell 0.83% to Rs 334. The stock hit a high of Rs 341.20 and low of Rs 333.50 so far during the day. The company announces its Q4 results today, 17 May 2013. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013.
The Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14.
Pharmaceutical shares edged lower. Dr Reddy's Laboratories (down 1.28%), Glenmark Pharma (down 1.96%), Lupin (down 1.38%), Ranbaxy Laboratories (down 1.21%), Sun Pharmaceutical Industries (down 0.66%) and Wockhardt (down 0.71%) declined.
Cipla rose 1.11%, with the stock extending recent gain. The company on Wednesday, 15 May 2013, said that shareholders of Cipla Medpro South Africa have approved Cipla's cash offer to acquire 100% of Cipla Medpro through itself or through its nominated subsidiary.
JM Financial surged 14.44% to Rs 26.95, after striking a 52-week high of Rs 27.50 in intraday trade today, 17 May 2013, after the company's board of directors approved issue of equity warrants to former Citigroup Chief Executive Vikram Pandit.
JM Financial's board of directors at a meeting held on Thursday, 16 May 2013, approved issue of 2.32 crore warrants equivalent to 3% stake in the post issue equity capital of the company at Rs 19.05 per warrant on preferential basis to various investors. Vikram Pandit will be issued 1.16 crore warrants. Hari Aiyar and Aparna Murthy Aiyar will be issued 58.23 lakh warrants each.
JM Financial's board also approved making an application for banking license by JM Financial group. JM Financial said that the company will nominate Vikram Pandit as the non-executive chairman of the proposed bank. Vikram Pandit and Hari Aiyar will have the right to purchase shares of the proposed bank upto the amount prescribed by RBI.
JM Financial also announced an expansion of the lending and financing businesses of the company by issuance of $100 million of capital to global funds raised and managed by a firm led by Vikram Pandit. JM Financial will nominate Vikram Pandit as the non-executive chairman of the NBFC.
JM Financial's board of directors also approved the formation of a distressed asset fund to be set up jointly by JM Financial and Vikram Pandit's firm with an initial target capitalization of $100 million.
ABB (up 8.56%), GMR Infrastructure (up 3.68%), Jaiprakash Associates (up 3.62%), Unitech (up 3.37%) and HDIL (up 3.19%) edged higher from BSE's 'A' group.
As per the Q4 results calendar, Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on Wednesday, 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts.
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
European stock markets nudged lower at the open on Friday, although most indexes were still looking at weekly gains after solid performances earlier in the week. Key benchmark indices in UK, France and Germany were down by 0.18% to 0.28%.
Most Asian stocks edged higher on Friday, 17 May 2013. Key benchmark indices in China, Indonesia, Singapore and Japan were up by 0.01% to 1.38%. Taiwan's Taiwan Weighted fell 0.26%. Stock markets in Hong Kong and South Korea were closed for holidays.
Trading in US index futures indicated that the Dow could gain 24 points at the opening bell on Friday, 17 May 2013. US stocks fell on Thursday, 16 May 2013, after a Federal Reserve official tipped a pullback in the central bank's easing programs could come as soon as this summer. Media reports had last week suggested that Fed officials have mapped out a strategy for winding down quantitative easing, although the timing hasn't been decided.
Meanwhile, the data from the Philadelphia Federal Reserve showed factory activity in the mid-Atlantic region contracted, while the Commerce Department reported that US housing starts plummeted 16.5% in April. New claims for jobless benefits unexpectedly jumped last week.
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