Key benchmark indices edged lower in choppy trade as a steep slide in rupee against the dollar hit investor sentiment adversely. The S&P BSE Sensex was provisionally down 97.58 points or 0.5%, off about 155 points from the day's high and up close to 40 points from the day's low. The market breadth, indicating the overall health of the market, was almost even. Capital goods stocks edged lower. Pharma stocks also declined. Shares of index heavyweight Reliance Industries declined in choppy trade.
Interest rate sensitive banking stocks edged lower after the Reserve Bank of India (RBI) kept repo rate and cash reserve ratio unchanged after mid-quarter review of the monetary policy on Monday, 17 June 2013. Shares of two wheeler makers rose for the second day in a row, shrugging off a hike in petrol price announced over the weekend.
Indian stocks snapped two-day winning streak today, 18 June 2013.
A steep slide in rupee against the dollar hurt investor sentiment. The rupee was hovering at 58.66 against the dollar, sharply lower than Monday's close of 57.87/88. The Reserve Bank of India (RBI) on Monday, 17 June 2013, refrained from cutting its key policy rate further despite sluggish economic growth due to the recent steep slide in rupee against the dollar. The central bank after a monetary policy review said that the weakness in rupee could adversely impact inflation which has been slowing in the past few months. A weak rupee makes the cost of oil and other imported goods higher in rupee terms, adding to inflationary pressure.
Key benchmark indices slipped into the negative terrain after opening slightly higher. The Sensex hovered in red in morning trade. The Sensex trimmed intraday losses in mid-morning trade. Key benchmark indices traded off intraday lows in early afternoon trade. Volatility ruled the roost in afternoon trade as the key benchmark indices cut losses after sliding to intraday low. The Sensex reversed direction and moved into positive zone in mid-afternoon trade. The market once again slipped into the red in late trade.
As per provisional figures, the S&P BSE Sensex was down 97.58 points or 0.5% to 19,228.29. The index fell 134.50 points at the day's low of 19,191.37 in late trade. The index rose 57.74 points at the day's high of 19,383.61 in mid-afternoon trade, its highest level since 11 June 2013.
The CNX Nifty was down 39.80 points or 0.68% to 5,810.25, as per provisional figures. The index hit a low of 5,804.30 in intraday trade. The index hit a high of 5,863.40 in intraday trade, its highest level since 11 June 2013.
More From This Section
The total turnover on BSE amounted to Rs 1627 crore, higher than Rs 1548.66 crore on Monday, 17 June 2013.
The market breadth, indicating the overall health of the market, was almost even. On BSE, 1,162 shares gained and 1,164 shares declined. A total of 140 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks fell and the rest of them rose. NTPC (down 2.2%), GAIL (India) (down 1.94%) and ONGC (down 1.94%), edged lower.
Capital goods stocks edged lower. L&T (down 1.57%) and Bhel (down 1.23%), declined.
Pharma stocks declined. Cipla (down 0.04%), Sun Pharmaceutical Industries (down 0.5%) and Dr Reddy's Laboratories (down 0.85%), edged lower.
Shares of two wheeler makers rose for the second day in a row, shrugging off a hike in petrol price announced over the weekend. Hero MotoCorp (up 1.4%) and Bajaj Auto (up 1.81%), edged higher. PSU OMCs hiked petrol price by Rs 2 a litre on Saturday, 15 June 2013.
Shares of index heavyweight Reliance Industries (RIL) declined 0.52% to Rs 820.80 in volatile trade. The stock hit high of Rs 836.90 and low of Rs 817.70. RIL shares had risen recently after Niko Resources on 13 June 2013 said its proved reserves increased by 160%, and that a recent gas discovery in the D6 block off India's east coast could add significantly to future reserves. RIL is the operator of the block with a 60% stake. BP Plc holds 30% and Niko the rest.
Interest rate sensitive banking stocks edged lower after the Reserve Bank of India (RBI) kept repo rate and cash reserve ratio unchanged after mid-quarter review of the monetary policy on Monday, 17 June 2013. HDFC Bank (down 1.27%), State Bank of India (down 0.92%) and ICICI Bank (down 0.74%), edged lower.
Bharti Airtel fell 1.32% with the stock reversing intraday gain in late trade. The stock had risen 2.53% on Monday, 17 June 2013, after the company's announcement that it has completed the allotment of 19.98 crore new shares, representing 5% equity stake in the company, to Qatar Foundation Endowment. The shares have been issued at a price of Rs 340 each on a preferential basis for a total consideration of Rs 6796 crore. The allotment marks one of the largest private equity transactions in the history of India, Bharti said. On 3 May 2013, Bharti and Qatar Foundation Endowment had announced a binding agreement for the share sale. As part of the entitlement, QFE is entitled to one seat on the board of Bharti.
VA Tech Wabag rose 3.84% after the company said during market hours today, 18 June 2013 that the company in a joint venture with Pratibha Industries has won a Rs 262 crore order from Melamchi Water Supply Development Board, Nepal. Shares of Pratibha Industries declined 1.52%. VA Tech Wabag said the project involves construction of 85 million liter per day (MLD) water treatment plant at Sundarijal, Nepal, with options to expand up to 510 MLD at a later stage.
Finance Minister P. Chidambaram on Monday, 17 June 2013, said that the government is proactively working towards operationalisation of 215 stalled projects involving investment of about Rs 7 lakh crore with a view to give a push to the production activity in the country. The only way to contain Current Account Deficit (CAD) is to increase the domestic production of oil and coal and restraining the consumption of gold. Chidambaram made the comments while addressing a meeting of the Parliamentary Consultative Committee of the Ministry of Finance on India's high CAD and measures to contain the deficit.
On political front, the ruling Congress government ahead of 2014 Lok Sabha elections appointed eight new ministers on Monday. In all, eight ministers -- four Cabinet and four ministers of state -- were sworn in on Monday evening. Mallikarjun Kharge became new minister for railways, and Oscar Fernandes was sworn in as minister for roads and highways.
European stock markets edged higher on Tuesday, 18 June 2013, as German investor confidence rose in June amid signs the recovery in Europe's largest economy is gathering pace. Key benchmark indices in France, Germany and UK rose by 0.02% to 0.85%.
German investor confidence rose in June amid signs the recovery in Europe's largest economy is gathering pace. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, increased to 38.5 from 36.4 in May.
Most Asian stocks rose on Tuesday, 18 June 2013. Key benchmark indices in China, Indonesia, Taiwan, Singapore and South Korea rose by 0.14% to 1.45%. Hong Kong's Hang Seng was flat. Japan's Nikkei Average fell 0.2%.
Foreign direct investment in China rose in May by the least in four months, a sign of concern that growth is slowing in the world's second-biggest economy. Inbound non-financial investment increased 0.3% from a year earlier to $9.26 billion, the Ministry of Commerce said today in a statement in Beijing, after a 0.4% gain in April.
Trading in US index futures indicated that the Dow could gain 43 points at the opening bell on Tuesday, 18 June 2013. US stocks surged on Monday as investors await Wednesday's monetary-policy decision by the Federal Open Market Committee.
A two-day meeting of the Federal Open Market Committee, the Fed's interest-rating setting body, begins today, 18 June 2013. Fed Chairman Ben Bernanke said last month that the bank could start scaling back its aggressive easing program in coming months if data continue to improve. The Fed's monthly bond purchases of $85 billion a month is aimed at encouraging US economic growth.
Powered by Capital Market - Live News