Weakness prevailed in afternoon trade as key benchmark indices continued trading lower in a range bound market. The Sensex was down 279.02 points or 1.44%, off close to 257 points from the day's high and up about 41 points from the day's low. Today's decline on the bourses was broad based. The market breadth, indicating the overall health of the market, was extremely weak. A run on the rupee and weakness in global stocks weighed on sentiment. KSK Energy Ventures, Bajaj Finance, India Infoline, EID Parry (India), Jindal Steel & Power saw a surge in volumes on BSE today, 11 June 2013.
Jindal Steel & Power dropped on heavy volumes 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. Shares of other metal stocks extended intraday losses. Shares of power generation companies fell across the board.
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 Sensex trimmed losses after hitting 7-week low in early afternoon trade. The Nifty trimmed losses after hitting its lowest level in almost 8 weeks. Weakness prevailed in afternoon trade as key benchmark indices continued trading lower in a range bound market.
The partially convertible rupee was trading at 58.84 after hitting record low of 58.96 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 13:20 IST, the S&P BSE Sensex was down 279.02 points or 1.44% to 19,162.05. The index declined 319.89 points at the day's low of 19,121.18 in early afternoon trade, its lowest level since 23 April 2013. The index fell 22.33 points at the day's high of 19,418.74 in early trade.
The CNX Nifty was down 85.65 points or 1.46% to 5,792.35. The index hit a low of 5,781.80 in intraday trade, its lowest level since 18 April 2013. The index hit a high of 5,868.05 in intraday trade.
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The BSE Mid-Cap index was down 1.80% and the BSE Small-Cap index was down 1.89%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was extremely weak. On BSE, 1,656 shares fell and 477 shares rose. A total of 119 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks fell and rest of them rose. M&M (down 3.77%), ICICI Bank (down 3.69%), ONGC (down 2.74%), Bharti Airtel (down 2.36%), HDFC (down 2.32%), Tata Motors (down 2.29%) and Coal India (down 2.17%), edged lower from the Sensex pack.
Cipla (up 1.15%), GAIL (India) (up 0.49%), Infosys (up 0.44%), NTPC (up 0.27%), Dr. Reddy's Laboratories (up 0.22%), Hindustan Unilever (up 0.19%) and Bajaj Auto (up 0.08%), edged higher from the Sensex pack.
Shares of power generation companies fell across the board. JSW Energy (down 12.42%), Lanco Infratech (down 8.15%), Adani Power (down 6.23%), Tata Power (down 5.19%), Reliance Infrastructure (down 3.3%), Reliance Power (down 3.02%), Torrent Power (down 2.56%) and GMR Infrastructure (down 1.95%), edged lower.
KSK Energy Ventures clocked volume of 12.47 lakh shares, a 120.27-times surge over two-week average daily volume of 10,000 shares. The stock surged 6.48% to Rs 53.40.
Bajaj Finance notched up volume of 2.02 lakh shares, a 96.63-fold surge over two-week average daily volume of 2,000 shares. The stock fell 0.50% to Rs 1,488.55.
India Infoline saw volume of 15.29 lakh shares, a 67.15-fold surge over two-week average daily volume of 23,000 shares. The stock fell 1.31% to Rs 60.45.
EID Parry (India) clocked volume of 4.76 lakh shares, a 38.73-fold surge over two-week average daily volume of 12,000 shares. The stock fell 0.50% to Rs 138.
Jindal Steel & Power saw volume of 31.12 lakh shares, a 16.77-fold rise over two-week average daily volume of 1.86 lakh shares. The stock slumped 17.54% to Rs 220.05, 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 stock recovered after hitting 52-week low of Rs 202 in intraday trade today, 11 June 2013.
The FIR has accused Navin Jindal and 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 reports, CBI officials are conducting raids at 15 places in Delhi, Hyderabad and Kolkata. The CBI has also filed an FIR against former Minister of State for Coal Dasari Narayan Rao.
Among other metal shares, Hindalco Industries (down 6.51%), National Aluminium Company (down 3.91%), Tata Steel (down 3.36%), JSW Steel (down 3.21%), Sesa Goa (down 2.9%), Sterlite Industries (India) (down 2.8%), NMDC (down 2.41%), Hindustan Zinc (down 1.95%), Sail (down 1.79%) and Bhushan Steel (down 0.29%), edged lower.
Metal stocks extended Monday's losses triggered by weak Chinese economic data released over the weekend. China is the world's largest consumer of copper and aluminum.
European markets were trading lower in early trade ahead of a two-day public hearing in Germany's constitutional court examining the legality of the ECB's bond-buying scheme. Key benchmark indices in UK, France and Germany were down by 0.58% to 0.81%.
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 0.54% to 3.55%. 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 40 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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