Weakness continued on the bourses in afternoon trade. The barometer index, the S&P BSE Sensex, regained the psychological 21,000 mark, having alternately moved above and below that level since early afternoon trade. The Sensex was down 161.46 points or 0.76%, off 93.85 points from the day's high and up 12.71 points from the day's low. The market breadth, indicating the overall health of the market, was negative. Weakness in Asian stocks hit sentiment on the domestic bourses adversely. In the foreign exchange market, the rupee edged lower against the dollar on speculation a US budget agreement will boost prospects for the Federal Reserve to start tapering its monetary stimulus for the US economy.
Wipro slipped on profit booking. Tyre stocks extended Wednesday's gains. Cadila Healthcare rose after the company said it has settled a patent litigation with US-based Warner Chilcott Company LLC.
The market edged lower in early trade on weak Asian stocks. Key benchmark indices extended initial losses and hit fresh intraday low in morning trade. The Sensex, and the 50- unit CNX Nifty, both, hit their lowest level in almost a week. The Sensex hovered in negative terrain in mid-morning trade. Key benchmark indices extended intraday losses and hit fresh intraday low in early afternoon trade. Weakness continued on the bourses in afternoon trade. The Sensex regained the psychological 21,000 mark, having alternately moved above and below that level since early afternoon trade.
Asian stocks dropped on Thursday, 12 December 2013, on heightened expectations the Federal Reserve may act sooner than later to unwind its stimulus after a provisional budget deal in Washington eased some of the fiscal drag on the US economy.
At 13:16 IST, the S&P BSE Sensex was down 161.46 points or 0.76% to 21,009.95. The index fell 174.17 points at the day's low of 20,997.24 in afternoon trade, its lowest level since 6 December 2013. The index declined 67.61 points at the day's high of 21,103.80 in early trade.
The CNX Nifty was down 46.65 points or 0.74% to 6,261.25. The index hit a low of 6,254.50 in intraday trade, its lowest level since 6 December 2013. The index hit a high of 6,286.85 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,301 shares fell and 967 shares rose. A total of 151 shares were unchanged.
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The total turnover on BSE amounted to Rs 1017 crore by 13:15 IST.
From the 30-share Sensex pack, 24 stocks fell and rest rose. Tata Motors (down 3.41%), ONGC (down 1.63%) and Coal India (down 1.54%) declined. Tata Power Company (up 3.49%), GAIL (India) (up 0.84%) and HDFC (up 0.78%) gained.
Wipro fell 1.31% to Rs 511.45 on profit booking after gaining 10.04% in prior eight trading days to Rs 518.25 on 11 December 2013 from a recent low of Rs 470.95 on 29 November 2013.
Many pharmaceutical shares edged lower. Cipla (down 0.81%), Dr Reddy's Laboratories (down 1.35%), Glenmark Pharmaceuticals (down 1.42%), Sun Pharmaceutical Industries (down 1%) and Wockhardt (down 0.73%) declined. Lupin rose 0.34%. Ranbaxy Laboratories gained 0.67%.
Cadila Healthcare rose 1.87% after the company said it has settled a patent litigation with US-based Warner Chilcott Company LLC. The announcement was made after market hours on Wednesday, 11 December 2013.
Cadila Healthcare said it along with Zydus Pharmaceuticals (USA) Inc, have entered into an agreement with Warner Chilcott Company to settle all outstanding patent litigation related to Asacol HD (mesalamine) delayed-release tablets. The agreement remains subject to preparation and execution of definitive documentation, Cadila Healthcare said in a statement.
As part of the agreement, Warner Chilcott will grant Cadila and Zydus a royalty-bearing license to market a generic version of Asacol HD beginning on 15 November 2015 or earlier under certain circumstances, following receipt by Zydus of final approval from the USFDA of its ANDA for generic Asacol HD, the company said.
Alternatively, if Zydus does not receive FDA approval of its generic Asacol HD by 1 July 2016, Zydus will be permitted to launch an authorised generic version of Asacol HD beginning on 1 July 2016, it added. Asacol is used to treat ulcerative colitis, proctitis and proctosigmoiditis.
Tyre stocks extended Wednesday's gains. Apollo Tyres (up 0.54%), CEAT (up 2.31%), Goodyear India (up 1.69%), JK Tyre & Industries (up 0.45%), MRF (up 2.13%) gained.
Adani Enterprises (down 5.01%), CRISIL (down 2.81%), Ambuja Cements (down 2.45%), Power Finance Corporation (down 2.4%) and The Ramco Cements (down 2.13%) were among the top losers from the BSE's 'A' group.
The Securities and Exchange Board of India (SEBI) unveiled new proposals on Wednesday, 11 December 2013, broadening the scope of who can be held liable for insider trading violations, as it steps up its fight against securities fraud. India's financial market regulator plans to include company employees, directors and their immediate relatives and other stakeholders such as founders, handling market sensitive information under its purview. Under current rules only senior executives are liable for trading violations.
Officials with access to sensitive information will also be required to submit planned trades in company shares ahead of time to resolve any potential conflict of interest. The new proposals also mandate that every listed company and market intermediary formulate a code of conduct to regulate, monitor and report trading in securities by its employees or connected persons. Trades by stakeholders, employees, directors and their immediate relatives would need to be disclosed internally to the company.
In the foreign exchange market, the rupee edged lower against the dollar on speculation a US budget agreement will boost prospects for the Federal Reserve to start tapering its monetary stimulus for the US economy. The partially convertible rupee was hovering at 61.54, compared with its close of 61.245/255 on Wednesday, 11 December 2013.
Indian government bond prices dropped on speculation a US budget agreement will boost prospects for the Federal Reserve to start tapering its monetary stimulus for the US economy. The yield on the new 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.8283%, higher than its close of 8.8265% on Wednesday, 11 December 2013. Bond yield and bond prices are inversely related.
The Reserve Bank of India on Wednesday, 11 December 2013, said it has decided to provide additional liquidity of Rs 10000 crore through the 14-day term repo scheduled to be conducted on Friday, 13 December 2013. Accordingly, the notified amount for the 14-day term repo auction to be conducted on that day will be adjusted upwards by Rs 10000 crore. The RBI said it has announced this additional liquidity support for the banking sector so as to ensure that adequate liquidity is available to support the flow of credit to the productive sectors of the economy. The RBI said that the liquidity conditions are expected to tighten in the immediate future on account of advance tax payments commencing from mid-December 2013.
The government will unveil industrial production data for October 2013 after trading hours today, 12 December 2013. Industrial output is estimated to fall 1.5% in October 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production rose 2% in September 2013, showing increase in growth from 0.4% growth recorded in August 2013.
Data on inflation based on the general consumer price index (CPI) for November 2013 will also be unveiled after trading hours today, 12 December 2013. CPI (combined) for November 2013 is estimated at 10%, as per the median estimate of a poll of economists carried out by Capital Market. The CPI inflation (combined) for October 2013 stood at 10.09% (y-o-y), higher than 9.84% (y-o-y) seen in September 2013.
The government will unveil data on inflation based on the wholesale price index (WPI) for November 2013 on 16 December 2013. WPI is seen easing a bit at 6.9% in November 2013, from 7% in October 2013, as per the median estimate of a poll of economists carried out by Capital Market.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
President Pranab Mukherjee has given the Andhra Pradesh Assembly six weeks to decide on Telangana. The President had on Wednesday sent the Telangana Bill to the Andhra Pradesh Assembly for consideration. Earlier, Pranab Mukherjee held consultations with legal experts on various provisions of the draft Telangana Bill proposing splitting of Andhra Pradesh.
Asian shares slipped to a four-week low on Thursday, 12 December 2013, on heightened expectations the Federal Reserve may act sooner than later to unwind its stimulus after a provisional budget deal in Washington eased some of the fiscal drag on the US economy. Key benchmark indices in China, Taiwan, South Korea, Indonesia, Singapore, Japan and Hong Kong were off 0.06% to 1.12%.
South Korea's central bank on Thursday kept its benchmark interest rate steady at 2.5%, standing pat for a seventh straight month amid a tentative economic recovery. The last rate move was a surprise quarter-percentage-point rate cut in May. At that time, the government also introduced a $16 billion extra budget, seeking to revive the economy that grew just 2% in 2012, the slowest in three years.
Chinese policy makers are meeting this week to set economic growth targets for 2014. China's central economic work conference, which is expected to end today or tomorrow, will set the tone for macroeconomic policy and decide major targets for 2014.
Trading in US index futures indicated that the Dow could drop 9 points at the opening bell on Thursday, 12 December 2013. US stocks posted their biggest drop in a month on Wednesday as traders locked in recent gains after Congress announced the provisional budget deal. The bipartisan budget agreement reached late on Tuesday, though modest in spending cuts, would end three years of political squabbling in Washington that climaxed in October with a two-week partial government shutdown. The US House of Representatives could vote on the deal tomorrow, 13 December 2013.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. 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. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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