Sensex snaps 2-day winning streak

Key benchmark indices edged lower, snapping their two-day winning streak. The barometer index, the S&P BSE Sensex, lost 68.32 points or 0.32%, up 22.06 points from the day's low and off 124.21 points from the day's high. The market breadth, indicating the overall health of the market, was positive.

The Sensex had garnered 392.41 points or 1.89% in two trading sessions to settle at 21,101.03 on Monday, 23 December 2013, from a recent low of 20,708.62 on 19 December 2013. The Sensex has risen 240.78 points or 1.16% in this month so far (till 24 December 2013). The Sensex has garnered 1,606 points or 8.27% in calendar 2013 so far (till 24 December 2013). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,584 points or 20.54%. From a record high of 21,483.74 hit on 9 December 2013, the Sensex is off 288.82 points or 1.35%.

Coming back to today's trade, metal and mining stocks edged lower. Shares of Sesa Sterlite dropped on reports Central Bureau of Investigation (CBI) has started a probe into possible irregularities in its stake buy in Hindustan Zinc. Most banking stocks edged lower. Index heavyweight and cigarette major ITC edged lower in volatile trade. Shares of biotechnology major, Biocon, scaled record high.

Bajaj Auto rose after three block deals were executed in the counter on BSE in early trade. Shares of Bosch, known for its technology prowess in the automotive market, hit record high. Larsen & Toubro and L&T Finance Holdings edged higher after L&T during market hours said it has completed the sale 1% stake in L&T Finance Holdings on Monday, 23 December 2013, to comply with the minimum public shareholding requirement. Shares of tyre major Apollo Tyres hit 52-week high. Realty stocks extended their recent gains triggered by ICICI Bank, State Bank of India and HDFC cutting interest rates on home loans last week. Shares of state-run oil marketing companies (PSU OMCs) extended Monday's gains triggered by hike in petrol and diesel prices.

The market may remain volatile on Thursday, 26 December 2013, as traders roll over positions in the futures & options (F&O) segment from the near month December 2013 series to January 2014 series. The near month December 2013 derivatives contracts expire on Thursday, 26 December 2013. The stock market remains closed tomorrow, 25 December 2013, on account of Christmas.

The S&P BSE Sensex lost 68.32 points or 0.32% to settle at 21,032.71, its lowest closing level since 19 December 2013. The index fell 90.38 points at the day's low of 21,010.65 in late trade. The index rose 55.89 points at the day's high of 21,156.92 in early trade.

The CNX Nifty shed 16.10 points or 0.26% to settle at 6,268.40, its lowest closing level since 19 December 2013. The index hit a low of 6,262 in intraday trade. The index hit a high of 6,301.50 in intraday trade.

The total turnover on BSE amounted to Rs 2036 crore, lower than Rs 2044.15 crore on Monday, 23 December 2013.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,424 shares gained and 1,043 shares fell. A total of 169 shares were unchanged.

The BSE Mid-Cap rose 0.53% and the BSE Small-Cap index gained 1.04%. Both these indices outperformed the Sensex.

The S&P BSE Capital Goods index (up 0.66%), the S&P BSE Consumer Durables index (up 0.38%), the S&P BSE Realty index (up 0.08%), the S&P BSE Healthcare index (up 0.07%), the S&P BSE IT index (down 0.02%), the S&P BSE Auto index (down 0.08%), the S&P BSE Teck index (down 0.08%), the S&P BSE FMCG index (down 0.17%), the S&P BSE Power index (down 0.22%) and the S&P BSE Oil & Gas index (down 0.23%) outperformed the BSE Sensex. The S&P BSE PSU index was unchanged.

The S&P BSE Bankex (down 0.43%) and S&P BSE Metal index (down 1.09%) underperformed the BSE Sensex.

Among the 30-share Sensex pack, 20 stocks declined and rest of them rose.

Index heavyweight and cigarette major ITC fell 0.22% to Rs 318.50 in volatile trade. The stock hit a high of Rs 320 and low of Rs 317.70.

Index heavyweight Reliance Industries was marginally higher by 0.02 % to Rs 895.60. The stock hit a high of Rs 904.50 and low of Rs 894.85.

Many capital goods stocks extended Monday's gains. Bhel (up 2.19%), BEML (up 2.22%), ABB (up 0.73%), gained.

Larsen & Toubro (L&T) rose 0.59% to Rs 1,075. L&T Finance Holdings rose 2.83% to Rs 74.50. L&T today, 24 December 2013, said that the company has completed the sale of 1.71 crore shares aggregating to 1% stake of L&T Finance Holdings on Monday, 23 December 2013, to comply with the minimum public shareholding requirement. L&T's total shareholding in L&T Finance Holdings now stands at 81.5%. Stock market regulator Securities & Exchange Board of India (Sebi) has made it mandatory for a minimum public holding of 25% in all listed companies. For state-run companies, a minimum 10% public holding has been made mandatory.

L&T separately said that the Scheme of Arrangement between the company and L&T Hydrocarbon Engineering -- a wholly owned subsidiary of the company -- and their respective shareholders and creditors for transfer of the HCIC undertaking of the company to L&T Hydrocarbon Engineering has been sanctioned by the Hon'ble High Court of Judicature at Bombay. The Scheme will be effective once the court order is received and filed with the Registrar of Companies, in due course.

L&T on 20 December 2013 said that L&T Infrastructure Development Projects (L&TIDPL) has submitted an application to the Foreign Investment Promotion Board (FIPB) seeking approval in relation to a proposed foreign direct investment in L&T IDPL. Subject to completion of the due diligence processes and necessary agreement on governance and other terms of the transaction with the investor, there is a contemplation of an initial infusion of Rs 1000 crore into L&T IDPL, followed by a second tranche of Rs 1000 crore (or such higher amount as may be agreed between L&T and investor) after twelve months from the date of initial investment. The proposed transactions are subject to various factors, and may or may not be completed, and parties have not yet entered into any agreement, L&T said in a statement. In the meantime, shareholders and any other investors are reminded to exercise caution when dealing in the company's securities, pending definitive announcement(s) from the company, if any, L&T said.

L&T IDPL is primarily engaged in public-private partnership projects in India, with business interests spread across sectors involving roads and bridges, ports, metro rail, wind energy and power transmission lines. It has experience in identifying and assessing viability of projects, achieving financial closure, project management, operations and maintenance of infrastructure assets across various sectors as well as divestiture.

Power Grid Corporation of India lost 1.1%. The company said during market hours that the board of directors of the company at its meeting held on 9 December 2013 has approved the investment approval for 'Eastern Region Strengthening Scheme-X (ERSS-X)' at an estimated cost of Rs 143.94 crore, with commissioning schedule of 24 months from the date of investment approval.

NHPC rose 0.53% after the company said after market hours on Monday, 23 December 2013, that a Promoters' Agreement was signed on 21 December 2013 between NHPC, Government of Odisha and Odisha Hydro Power Corporation for the formation of a joint venture company for implementation of six hydroelectric projects with an aggregate installed capacity of 1,020 megawatts (MW).

GMR Infrastructure rose 1.05% on reports Malaysia Airport Holding Berhard has offered 225 million euros to acquire GMR's 40% stake in Turkey's Sabiha Gokcen Airport and its operating company LGM Tourism. GMR Infrastructure (GMR) today, 24 December 2013, said that it has received a notice from Malaysia Airport Holding Berhard (MAHB) seeking to exercise its right of first refusal (ROFR) for acquisition of GMR's 40% equity stake in Sabiha Gokcen International Airport (ISGIA) and its operating company LGM Tourism (LGM). GMR said it is evaluating the exercise of ROFR by MAHB and will intimate the stock exchange further developments in this regard.

MAHB holds a 20% stake in ISGIA. Limak Holding, Turkey (LIMAK) is the third consortium partner in ISGIA. The consortium took over operations of the airport on 1 May 2008 and the new international terminal commenced commercial operations on 31 October 2009.

Lanco Infratech rose 0.29% after the company said that its board has accepted the letter of approval issued by Corporate Debt Restructuring Empowered Group approving the CDR proposal submitted by the company. The announcement was made after market hours on Monday, 23 December 2013.

Lanco Infratech's board of directors at a meeting held on Monday, 23 December 2013, accepted the Letter of Approval (LOA) dated 20 December 2013, issued by Corporate Debt Restructuring Empowered Group (CDR EG) approving the Corporate Debt Restructuring proposal submitted by the company. The CDR EG approved the CDR proposal at its meeting held on 11 December 2013. Lanco Infratech's board of directors has passed necessary resolutions for the implementation of the approved CDR scheme.

Kirloskar Electric Company fell 1%. The company said it has successfully exported a generator duty transformer of 24/30 MVA, 115/38.5/10.5 kV for a hydro-electric project in Song-Giang, Vietnam. The announcement was made after market hours on Monday, 23 December 2013. Separately, Kirloskar Electric Company said that the lay-off at the company's factory situated in Mysore has been extended till 24 January 2014.

Kirloskar Electric Company had on 2 December 2013 said that as a part of its continued efforts to improve the operating efficiency and to optimize the productivity of the resources, the company has announced lay-off for 53 workmen at Electronic unit at its factory situated in Mysore with effect from 25 November 2013 till 24 December 2013. The turnover of this unit in the total turnover of the company is less than 1.5%, the company said at that time.

Grasim Industries rose 0.95%. The company said at the fag end of trading session that the operations of the company's chemical plant at Vilayat in Gujarat have resumed. The company has also commenced the operations of the downstream Epoxy Plant at Vilayat. The full capacity at both these plants will be achieved in a phased manner, Grasim said. The company had announced on 7 October 2013 that operations of the company's chemical plant were suspended due to unexpected floods affecting the plant/power supply.

Metal and mining stocks edged lower. Hindalco Industries (down 1.21%), JSW Steel (down 0.3%), SAIL (down 0.63%), NMDC (down 0.61%), National Aluminum Company (down 1.04%), Jindal Steel & Power (down 1.44%), Bhushan Steel (down 0.08%) and Tata Steel (down 1.35%) declined. Hindustan Copper rose 1.59%.

Shares of Sesa Sterlite fell 2.46% on reports Central Bureau of Investigation (CBI) has started a probe into possible irregularities in its stake buy in Hindustan Zinc. Shares of Hindustan Zinc dropped 2.37%. A Sterlite unit bought a 26% stake in Hindustan Zinc from the government in 2006. The unit now owns 64.92% while the government has a 29.54% stake in Hindustan Zinc.

London-listed Vedanta Resources Plc, owner of Sesa Sterlite, said in October it won the backing of its shareholders to offer up to $3.48 billion to buy the Indian government's minority stakes in Hindustan Zinc and Bharat Aluminium Co.

Most bank stocks edged lower. AXIS Bank dropped 0.64%.

HDFC Bank shed 1.07%. The private sector bank after market hours said that the board of directors of the bank at its meeting held today, 24 December 2013, has appointed Mr. Paresh Sukthankar as the Deputy Managing Director of the bank for a period of 3 years from 24 December 2013 to 23 December 2016 subject to the approval of the shareholders and Reserve Bank of India. Mr. Sukthankar currently holds 6.87 lakh equity shares of the bank, HDFC Bank said.

HDFC Bank also said that it has appointed Mr. Kaizad Bharucha as an Additional Director and as an Executive Director of the bank for a period of 3 years from 24 December 2013 to 23 December 2016 subject to the approval of the shareholders and Reserve Bank of India. Mr. Bharucha currently holds 7.66 lakh equity shares of the bank, HDFC Bank said.

ICICI Bank gained 0.11%. ICICI Bank on 21 December 2013 said it has cut its home loan rates for new customers by 15 basis points or 0.15 percentage points, as a part of a special scheme. It will be valid till 31 January 2014. Under the scheme, the bank will offer home loans up to Rs. 75 lakh at an interest rate of 10.25%, while loans above Rs. 75 lakh will be charged 10.50%.

State Bank of India (SBI) dropped 0.01%. SBI on 19 December 2013 slashed home loan rates by up to 35 basis points for new borrowers and has unveiled a further discount of 5 basis points for women customers. Loans of up to Rs 75 lakh would be available to fresh borrowers at 10.15% against the existing rate of 10.50%. For women borrowers, the rate of interest after an additional concession of 0.05% would be 10.10% for home loans of up to Rs 75 lakh. With regard to loans of above Rs 75 lakh, the new rate would be 10.30%. For women borrowers it is 10.25%.

UltraTech Cement was up 1.72%. The company on Monday, 23 December 2013, said that the Competition Commission of India (CCI) has cleared the company's acquisition of the cement unit of Jaypee Cement Corporation (JCCL) located in Gujarat.

It may be recalled that UltraTech Cement had on 11 September 2013 reached an agreement with Jaypee Cement Corporation (JCCL), a 100% owned subsidiary of Jaiprakash Associates, to sell its 4.8 million tonnes per annum (MTPA) Gujarat cement plant to UltraTech Cement for an enterprise value of Rs 3800 crore, besides the actual net working capital. The Gujarat cement project consists of an integrated cement plant at Kutch and a 2.4 MTPA cement grinding unit at Wanakbori.

Shares of Jaiprakash Associates rose 0.18%.

Housing Development Finance Corporation (HDFC) fell 1.06%. The company on Monday, 23 December 2013, said that its mutual fund unit -- HDFC Mutual Fund -- has signed a definitive agreement to acquire all eight schemes of Morgan Stanley Mutual Fund in India. The average combined assets under management of the eight schemes of Morgan Stanley Mutual Fund totaled at Rs 3290 crore for quarter ended 30 September 2013.

Auto stocks were mostly lower. Tata Motors (down 0.63%), Mahindra & Mahindra (M&M) (down 0.26%) and Maruti Suzuki India (down 0.52%) declined. Ashok Leyland rose 2.16%.

Among two-wheeler makers, Hero MotoCorp (down 1.43%) and TVS Motor Company (down 2.25%) declined.

Bajaj Auto rose 1.91% to Rs 1981.35. Three block deals were executed in the counter on BSE in early trade. First block deal was of 2.81 lakh shares at Rs 1951 per share at 9:15 IST, the second block deal was of 13,060 shares at Rs 1951 per share at 9:15 IST and the third block deal was of 13,060 shares at Rs 1946 per share at 9:15 IST.

Bosch rose 3.99% to Rs 9,880 after hitting record high of Rs 9,900 in intraday trade.

Apollo Tyres jumped 7.81% to Rs 100.75 after hitting 52-week high of Rs 101.80 in intraday trade. The stock rose on high volumes. On BSE, 40.16 lakh shares changed hands on the counter so far during the day, compared with average daily volume of 8.73 lakh shares in the past one quarter.

Realty stocks extended their recent gains triggered by ICICI Bank, State Bank of India and HDFC cutting interest rates on home loans last week. The reduction in home loan rates by these three major lenders could lead to a revival of interest in the real estate sector, which has been hit by high prices amid a sluggish economy. Purchases of both residential and commercial property are largely driven by finance. DLF (up 0.53%), Indiabulls Real Estate (up 1.72%), Omaxe (up 0.12%), Sobha Developers (up 0.48%) gained. Unitech shed 0.63%. HDIL ended unchanged at Rs 54.85

Shares of state-run oil marketing companies (PSU OMCs) extended Monday's gains triggered by hike in petrol and diesel prices. BPCL (up 0.13%), HPCL (up 2.82%) and Indian Oil Corporation (up 2.08%) gained.

PSU OMCs hiked the petrol price on Friday, 20 December 2013, by 41 paise a litre following the government's decision to raise commission paid to petrol pump dealers and firming global oil rates. Simultaneously, diesel rates were increased by 10 paise per litre due to a hike in dealers' commission. The two increases, which are excluding local sales tax or VAT, became effective from midnight Friday.

PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.

Biocon rose 0.98% to Rs 471.20 after hitting record high of Rs 486.10 in intraday trade. The company, last week, said it has entered into a licensing and collaboration agreement with Quark Pharmaceuticals, Inc. for the development of a range of small interfering RNA based novel therapeutics. The collaboration will enable Biocon to co-develop, manufacture & commercialize QPI-1007, a novel small interfering RNA (siRNA) drug candidate for ophthalmic conditions, for India and other key markets, Biocon said on 18 December 2013. Biocon will have access to Quark's innovative and proprietary siRNA technology platform that can be leveraged for the development of novel therapeutics for various unmet medical needs.

Century Textiles & Industries (up 13.14%), FDC (up 8.14%), DB Corp (up 5.04%), Alstom T&D India (up 4.29%) and CMC (up 4.17%) were among the major gainers from the BSE Mid-Cap index.

Gitanjali Gems (up 17.01%), Gabriel India (up 11.7%), Orchid Chemicals & Pharmaceuticals (up 11.41%), Jai Corp (up 11%) and Aban Offshore (up 9.76%) were among the major gainers from the BSE Small-Cap index.

In foreign exchange market, rupee edged higher against the dollar on global risk on sentiment. The partially convertible rupee was hovering at 61.80, compared with its close of 61.9525/9625 on Monday, 23 December 2013.

Petroleum Minister Veerappa Moily, who took charge as the Environment and Forest Minister, today, 24 December 2013, said that Congress Vice President Rahul Gandhi is the party's Prime Ministerial candidate for 2014 Lok Sabha elections. Moily took charge as the Environment and Forest Minister after Jayanthi Natarajan resigned last week to help with the party's preparations for the coming 2014 Lok Sabha elections.

European stocks edged higher on Tuesday, 24 December 2013, amid shortened trading hours for Christmas Eve and before reports on US durable-goods orders and new house sales later in the global day today, 24 December 2013. Key benchmark indices in France and UK rose 0.18% to 0.33%. Germany's stock market was closed for Christmas holidays.

Most Asian stocks edged higher on Tuesday, 24 December 2013, after data showed the US economic recovery gaining momentum. US economy is the world's biggest economy. Key benchmark indices in China, Hong Kong, Japan, Indonesia, Singapore and South Korea rose by 0.12% to 1.13%. Taiwan's Taiwan Weighted fell 0.07%.

China's central bank conducted the first reverse-repurchase agreements in three weeks, helping to ease the tightest financing conditions since a record cash crunch in June.

In Japan, the Cabinet Office released its December economic report today, 24 December 2013. The report dropped a reference to the word deflation for the first time since October 2009, saying "prices are holding firm."

Indonesia announced on Tuesday it will allow increased levels of foreign investment in the country's power plants, advertising, and pharmaceutical industries as part of government efforts to boost the slowing economy. Under the new policy, the government increased the maximum foreign investment in pharmaceutical companies to 85% from 75%, and in advertising agencies to 51% from 49%. Indonesia also allowed foreign investment of up to 100% from 95% for power plant projects carried out as a public-private partnership. Under the partnership terms, a foreign investor now can own an entire power-plant during a concession period, after which some equity transfers to the government.

Trading in US index futures indicated that the Dow could advance 13 points at the opening bell on Tuesday, 24 December 2013. US stocks on Monday jumped to new records after strong economic data gave new momentum to last week's rally. US household purchases, which account for almost 70 percent of the economy, rose 0.5% after a 0.4% gain in October that was larger than previously estimated, the Commerce Department reported in Washington. A separate report showed consumer confidence increased in December. The Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 82.5 from 75.1 a month earlier.

The US Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually over the next year.

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