Key benchmark indices pared intraday losses in mid-afternoon trade as the rupee recovered after a steep intraday slide. The S&P BSE Sensex was down 183.94 points or 0.95%, up about 135 points from the day's low and off close to 160 points from the day's high. The market breadth, indicating the overall health of the market, was weak. Cipla and GAIL (India) extended intraday gains. Shares of two wheeler makers edged higher. Reliance Anil Dhirubhai Ambani (ADA) Group shares dropped. Index heavyweight Reliance Industries (RIL) pared intraday losses.
Jewellery retailer Titan Industries dropped after the company said that the Reserve Bank of India (RBI) has clarified that all imports of gold for domestic consumption, either through banks, nominated agencies or directly can be made only with 100% cash margin
Jindal Steel & Power dropped on heavy volumes after media reports the Central Bureau of Investigation (CBI) has registered an FIR against Congress MP and company's Chairman Naveen Jindal in the coal scam case.
The market edged lower in early trade. The Sensex extended initial losses to hit fresh intraday low in morning trade. The market weakened further to hit fresh intraday low in mid-morning trade. The Sensex trimmed losses after hitting 7-week low in early afternoon trade. The Nifty trimmed losses after hitting its lowest level in almost 8 weeks. Weakness prevailed in afternoon trade as key benchmark indices continued trading lower in a range bound market. The market pared intraday losses in mid-afternoon trade.
The partially convertible rupee pared losses and was trading at 58.45 after hitting record low of 58.96 versus Monday's close of 58.15/16 per dollar. The rupee had lost 1.9% on Monday, 10 June 2013, weighed down by broad gains in the dollar. A weak rupee makes imports costlier, stoking inflation concerns, thereby capping the Reserve Bank of India's scope to extend monetary easing and counter the slowest economic growth in a decade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 114 crore on Monday, 10 June 2013, as per provisional data from the stock exchanges.
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At 14:20 IST, the S&P BSE Sensex was down 183.94 points or 0.95% to 19,257.13. The index declined 319.89 points at the day's low of 19,121.18 in early afternoon trade, its lowest level since 23 April 2013. The index fell 22.33 points at the day's high of 19,418.74 in early trade.
The CNX Nifty was down 54.65 points or 0.93% to 5,823.35. The index hit a low of 5,781.80 in intraday trade, its lowest level since 18 April 2013. The index hit a high of 5,868.05 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,631 shares fell and 605 shares rose. A total of 121 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell and rest of them rose. Hindalco Industries, ICICI Bank and ONGC shed by 2.97% to 4.87%.
Index heavyweight Reliance Industries (RIL) fell 0.06% to Rs 788.95, off the day's low of Rs 776.50.
Reliance Anil Dhirubhai Ambani (ADA) Group shares declined. Reliance Communications, Reliance Infrastructure, Reliance Broadcast Network, Reliance Capital, Reliance MediaWorks and Reliance Power dropped by 1.15% to 6.06%.
Cipla rose 1.33%, with the stock extending intraday gains.
GAIL (India) gained 0.79%, with the stock extending intraday gains.
Shares of two wheeler makers gained. Hero MotoCorp and Bajaj Auto rose by 0.49% to 0.76%.
Jindal Steel & Power slumped 15.53% to Rs 222.75, with the stock extending Monday's 4.46% losses after media reports the Central Bureau of Investigation (CBI) has registered an FIR against Congress MP and company's Chairman Naveen Jindal in the coal scam case. The stock recovered after hitting 52-week low of Rs 202 in intraday trade today, 11 June 2013. On BSE, 34.46 lakh shares changed hands on the counter, compared with average daily volume of 2.42 lakh shares in the past one quarter.
The FIR has accused Navin Jindal and Jindal Power and Steel of misrepresentation of networth and concealing previous coal allotment. They are also charged with cheating and forgery. The Naveen Jindal group was allotted a total of 11 blocks, making it the single largest beneficiary of the controversial coal block allotment.
As per reports, CBI officials are conducting raids at 15 places in Delhi, Hyderabad and Kolkata. The CBI has also filed an FIR against former Minister of State for Coal Dasari Narayan Rao.
Lanco Infratech tumbled 8.42%. The company today, 11 June 2013, said in reply to queries made by a news channel that the company is not considering corporate debt restructuring proposal. The company also said that that the management is not considering any other debt restructuring proposal including bond issue. The debt of Lanco group excluding working capital of power companies and Griffin acquisition debt is Rs 34249 crore as at March 31, 2013. This debt is the total of 21 companies of the group. There are 15 operating companies which constitute around 50% of the debt which is serviced by them from their operations. The balance 50% debt is to projects under construction where the interest is part of project funding and part of the approved project cost, Lanco Infratech said.
Titan Industries dropped 5.84% to Rs 250.25 after the company said that the Reserve Bank of India (RBI) has clarified that all imports of gold for domestic consumption, either through banks, nominated agencies or directly can be made only with 100% cash margin. RBI has also clarified that credit of any kind from suppliers or bullion banks for import of gold for domestic use is prohibited, Titan said. This will affect import of gold through all non consignment routes like gold on lease/loan, Titan Industries said. Titan imports gold for its retail gold jewellery business.
Titan said it had sought some clarifications on gold imports after the Reserve Bank of India issued a notification on 4 June 2013 on changes to the current terms governing import of gold in India.
European markets edged lower ahead of a two-day public hearing in Germany's constitutional court examining the legality of the ECB's bond-buying scheme. Key benchmark indices in UK, France and Germany were down by 0.69% to 0.74%.
Asian stocks edged lower on Tuesday after the Bank of Japan kept its policy unchanged. Key benchmark indices in Taiwan, Hong Kong, Indonesia, Japan, Singapore and South Korea shed by 0.54% to 4.21%. Mainland Chinese markets are closed from Monday, 10 June 2013 till tomorrow, 12 June 2013, for the Dragon Boat Festival.
The Bank of Japan (BOJ) on Tuesday kept monetary policy steady and revised up its assessment of the economy, unfazed by recent market turbulence which has yet to inflict severe damage on a gradually improving economy. As widely expected, the central bank voted unanimously to maintain its pledge of increasing base money, or cash and deposits at the BOJ, at an annual pace of 60 trillion to 70 trillion yen.
Trading in US index futures indicated that the Dow could fall 42 points at the opening bell on Tuesday, 11 June 2013. US stocks ended a choppy session little changed on Monday after Standard & Poor's Ratings Services revised its US credit-rating outlook to stable from negative and consumer shares lost ground.
Global credit rating agency Standard & Poor's revised its credit-rating outlook for the US to stable from negative citing receding fiscal risks, indicating the likelihood of a near-term downgrade is less than one in three. S&P also affirmed its AA+/A-1+ sovereign-credit ratings for the US.
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