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Sensex reverses direction after striking intraday high above 20,000

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Capital Market
Last Updated : Sep 12 2013 | 11:55 PM IST

Key benchmark indices reversed initial gains triggered by mostly higher Asian stocks. The barometer index, BSE Sensex dropped below the psychological 20,000 mark after hitting an intraday high above that level in early trade. The S&P BSE Sensex was down 95.45 points or 0.48%, off 150.05 points from the day's high and up 4.57 points from the day's low. The market breadth, indicating the overall health of the market, was strong.

Foreign institutional investors (FIIs) bought shares worth a net Rs 586.50 crore on Wednesday, 11 September 2013, as per provisional data from the stock exchanges.

At 9:25 IST, the S&P BSE Sensex was down 95.45 points or 0.48% to 19,902. The index lost 100.02 points at the day's low of 19,897.43 in early trade. The index rose 54.60 points at the day's high of 20,052.05 in opening trade.

The CNX Nifty was down 19 points or 0.32% to 5,894.15. The index hit a high of 5,932 in intraday trade. The index hit a low of 5,883.35 in intraday trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 577 shares gained and 224 shares fell. A total of 27 shares were unchanged.

Among the 30-share Sensex pack, 18 stocks gained and rest of them declined. Tata Power Company (up 2.42%), GAIL (India) (up 1.89%) and Bhel (up 1.28%) edged higher from the Sensex pack.

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ICICI Bank (down 1.74%), HDFC Bank (down 1.35%) and TCS (down 1.25%) edged lower from the Sensex pack.

Jaiprakash Associates lost 3.57% after Jaypee Cement Corporation (JCCL), a wholly-owned subsidiary of the company, executed an agreement to sell its cement plant in Gujarat to UltraTech Cement at an enterprise value of Rs 3800 crore. JCCL's cement project in Gujarat consists of an integrated 2.4 million tons per annum (MTPA) cement plant at Kutch and a 2.4 MTPA cement grinding unit at Wanakbori.

Shares of UltraTech Cement rose 1.14%.

The proposed transaction is subject to the approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India and all other statutory approvals. Jaiprakash Associates said it anticipates the transaction to close in 7 to 9 months.

Oil India fell 0.73%. The stock turned ex-dividend today, 12 September 2013, for final dividend of Rs 7 per share for the year ended 31 March 2013.

Sun TV Network rose 1.84%. The stock turned ex-dividend today, 12 September 2013, for final dividend of Rs 2 per share for the year ended 31 March 2013.

Industrial production is seen contracting 0.8% in July 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production registered a contraction of 2.2% in June 2013. The government will unveil data on industrial production for July 2013 after trading hours today, 12 September 2013.

Consumer price inflation is expected to remain high at 9.6% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. Inflation based on the combined consumer price index (CPI) for urban and rural India had decelerated to 9.64% in July 2013 from 9.87% in June 2013. The government will unveil data on combined consumer price index (CPI) for urban and rural India for August 2013 after trading hours today, 12 September 2013.

Most Asian stock markets saw modest gains Thursday, with energy stocks offering a bright spot after an increase for oil futures, though Japanese shares lagged. Key benchmark indices in Taiwan, Hong Kong, China, South Korea and Singapore rose by 0.05% to 0.6%. Key benchmark indices in Indonesia and Japan fell by 0.26% to 0.47%.

US stocks ended mostly higher on Wednesday, with the Dow industrials tallying a third day of triple-digit gains, as reduced worry about Syria countered Apple Inc.'s sharp drop.

In an address from Washington Tuesday night, President Barack Obama said he was putting off a request that Congress authorize U.S. strikes targeting the Syrian regime after a deadly chemical-weapons attack last month. Obama said his administration will pursue a Russian proposal for Syria to turn over its chemical weapons to the international community.

Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.

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First Published: Sep 12 2013 | 9:38 AM IST

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