High volatility was witnessed in late trade as key benchmark indices trimmed losses after hitting fresh intraday low in late trade. The barometer index, the S&P BSE Sensex, hit its lowest level in more than two weeks. The S&P BSE Sensex was provisionally down 97.33 points or 0.39%, up 48.29 points from the day's low and off 171.84 points from the day's high. The market breadth indicating the overall health of the market was negative. Increase in crude oil prices and provisional data showing selling by foreign funds yesterday, 19 June 2014, weighed on sentiment.
State Bank of India (SBI) fell in volatile trade. Mahindra & Mahindra (M&M) dropped on worries below normal monsoon this year may impact its tractor sales. Pharmaceutical shares reversed intraday gains. Shares of jewellery retailers rose as increase in gold prices will boost valuation of their gold holdings. Among FMCG stocks, Colgate Palmolive (India) reversed direction after scaling record high. Among tyre stocks, CEAT scaled record high.
As per provisional closing, the S&P BSE Sensex was down 97.33 points or 0.39% to 25,104.47. The index lost 145.62 points at the day's low of 25,056.18 in late trade, its lowest level since 5 June 2014. The index gained 74.51 points at the day's high of 25,276.31 in early afternoon trade.
The CNX Nifty was down 29.25 points or 0.39% to 7,511.45. The index hit a low of 7,497.30 in intraday trade, its lowest level since 16 June 2014. The index hit a high of 7,560.55 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,670 shares declined and 1,300 shares gained. A total of 93 shares were unchanged.
The BSE Mid-Cap index was off 32.08 points or 0.36% at 8,965.27, outperforming the Sensex. The BSE Small-Cap index was down 64.69 points or 0.66% at 9778.29, underperforming the Sensex.
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The total turnover on BSE amounted to Rs 3038 crore, lower than Rs 3883.53 crore on Thursday, 19 June 2014.
Among the 30 Sensex shares, 21 stocks declined and the rest of them gained.
Tata Power (down 2.69%), Hindalco Industries (down 2.21%) and Tata Motors (down 1.01%) edged lower from the Sensex pack.
Bajaj Auto (up 0.7%), Bharti Airtel (up 0.52%) and Tata Steel (up 0.42%) edged higher from the Sensex pack.
Mahindra & Mahindra (M&M) dropped 2.62% on worries below normal monsoon this season may impact its tractor sales.
State Bank of India (SBI) fell 1.27% to Rs 2,573. The stock was volatile. The stock hit high of Rs 2,622 and low of Rs 2,567.20.
Pharmaceutical shares reversed intraday gains. Cipla (down 0.19%), Wockhardt (down 1.07%), Dr Reddy's Laboratories (down 0.16%), Cadila Healthcare (down 0.51%), Glenmark Pharmaceuticals (down 0.82%), Lupin (down 1.34%), Ranbaxy Laboratories (down 2.2%) and Sun Pharmaceutical Industries (down 2.01%) declined.
Colgate Palmolive (India) fell 1.57% to Rs 1,550.35, with the stock reversing direction after scaling record high of Rs 1,600 in intraday trade.
Shares of jewellery retailers rose as increase in gold prices will boost valuation of their gold holdings. On Thursday, 19 June 2014, gold for August delivery, the most actively traded contract, rose 3.3%, the biggest one-day percentage gain since September 2013. The contract rose $41.40 to $1,314.10 a troy ounce, its highest level since 14 April 2014.
Rajesh Exports (up 20%), Tara Jewels (up 7.01%), Tribhovandas Bhimji Zaveri (TBZ) (up 5.22%), Gitanjali Gems (up 4.66%), Titan Company (up 4.53%), Shree Ganesh Jewellery House (up 2.68%) gained.
CEAT galloped 10.88% to Rs 594.20, also its record high.
Volatility struck bourses in early trade as the key benchmark indices reversed initial gains only to regain positive zone later. Volatility continued in morning trade as the key benchmark indices reversed intraday gain. Key benchmark indices regained positive zone after hitting intraday low in mid-morning trade. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in early afternoon trade. Key benchmark indices further trimmed gains afternoon trade. Key benchmark indices recovered after reversing gains to hit fresh intraday low in mid-afternoon trade. High volatility was witnessed in late trade as key benchmark indices trimmed losses after hitting fresh intraday low in late trade.
Increase in crude oil prices has sparked worries about India's macroeconomic situation as India imports majority of its crude oil requirements. Increase in crude oil prices has raised concerns of increase in fuel price inflation and increase in India's current account deficit and fiscal deficit.
Militant violence in Iraq which is a key oil exporter in the world, has sent crude prices higher over the past few days. Brent crude futures for August delivery were down 15 cents at $114.91 a barrel today, 20 June 2014. The contract gained 80 cents to settle at $115.06 a barrel yesterday, 19 June 2014, the highest close since 6 September 2013.
The United States on Thursday, 19 June 2014, said it will send military advisers to Iraq to support Iraqi security forces and create joint operation centers in Baghdad and northern Iraq. The United States is prepared to make targeted air strikes in Iraq, he said, maintaining that ground troops would not be returning to the country.
Closer home, India's Ministry of Petroleum & Natural Gas on Thursday, 19 June 2014, said that there is no disruption in supply of crude oil from Iraq to India so far. Crude supplies to India from Iraq come from the Basra oilfields which are situated well away from the conflict zone in the north-eastern part of Iraq and loading of crude oil shipments from the Basra oil terminal continues normally, the oil ministry said. Nonetheless, the PSU OMCs have been asked to prepare a contingency plan both for the short and medium term including diversification of their resources for import of crude oil in order to minimize the impact of any geo-political instability in the middle-east, the oil ministry said.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 420.51 crore on Thursday, 19 June 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar as crude rose on Thursday, 19 June 2014. The partially convertible rupee was hovering at 60.19, compared with its close of 60.08/09 on Thursday, 19 June 2014.
The monsoon has covered half of the country four days behind the usual schedule. Meanwhile, all India seasonal rainfall from 1 to 18 June 2014 was 45% below long period average, the India Meteorological Department said on its website on Thursday, 19 June 2014. The weather office has forecast below average rainfall in 2014 due to fears of El Nino, a weather event marked by the warming of sea surface temperatures in the Pacific Ocean that can lead to droughts in the Asia Pacific region including India.
European market edged higher today, 20 June 2014, as dovish comments from Federal Reserve Chairwoman Janet Yellen earlier in the week continued to push indexes closer to multiyear highs. Key benchmark indices in France, Germany and UK were up by 0.06% to 0.39%.
Asian stocks edged lower on Friday, 20 June 2014. Key benchmark indices in Japan, Indonesia, Singapore, Taiwan and South Korea fell by 0.08% to 1.20%. Key benchmark indices in China and Hong Kong rose 0.11% to 0.15%.
Trading in US index futures indicated that the Dow could rise 6 points at the opening bell on Friday, 20 June 2014. Most US stocks ended with modest gains on Thursday, 19 June 2014. With miniscule gains, the S&P 500 finished at a record level for the 21st time this year.
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