Key benchmark indices cut losses after hitting intraday low in morning trade. Weakness in Asian stocks dampened sentiment. The S&P BSE Sensex was down 52.75 points or 0.25%, up 26.16 points from the day's low and off 41.96 points from the day's high. The market breadth, indicating the overall health of the market, was strong. In the foreign exchange market, the rupee depreciated against the dollar.
Tata Power Company extended initial gain. NTPC also extended initial rise. Bank stocks extended early fall. Sugar shares gained on reports that the Centre has reportedly convened a high-level meeting today, 20 November 2013 which is expected to discuss a relief-package for the crisis-ridden sugar industry in Uttar Pradesh and Maharashtra.
Key benchmark indices cut losses after a lower start triggered on negative Asian stocks. Key benchmark indices cut losses after extending initial fall triggered on negative Asian stocks.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1014.61 crore on Tuesday, 19 November 2013, as per provisional data from the stock exchanges.
At 10:15 IST, the S&P BSE Sensex was down 52.75 points or 0.25% to 20,838.07. The index fell 78.91 points at the day's low of 20,811.91 in morning trade, its lowest level since 18 November 2013. The index declined 10.79 points at the day's high of 20,880.03 in early trade.
The CNX Nifty was down 16.55 points or 0.27% to 6,186.80. The index hit a low of 6,176.70 in intraday trade, its lowest level since 18 November 2013. The index hit a high of 6,198.70 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 930 shares gained and 393 shares fell. A total of 49 shares were unchanged.
The total turnover on BSE amounted to Rs 456 crore by 10:20 IST compared to Rs 104 crore by 09:25 IST.
Among the 30-share Sensex pack, 16 stocks declined and rest of them gained.
Infosys (down 1.15%), L&T (down 0.8%) and Cipla (down 0.79%) edged lower from the Sensex pack.
Tata Power Company rose 1.97%, with the stock extending initial gain.
NTPC gained 1.03%, with the stock extending initial rise.
Bank stocks extended early fall. ICICI Bank fell 1.77%. ICICI Bank on Monday, 18 November 2013, said that the bank acting through its Dubai branch, priced an issuance of 5.5 year fixed rate notes of an aggregate principal amount of $750 million. The notes were sold under the Rule 144A/Reg S format. The notes carry a coupon of 4.8% and were offered at an issue price of 99.609. The announcement was made after market hours on Monday, 18 November 2013.
Among other private bank stocks, HDFC Bank (down 0.95%), Kotak Mahindra Bank (down 0.06%), Axis Bank (down 0.37%), Yes Bank (down 1.05%), declined.
Among PSU bank stocks, State Bank of India (SBI) (down 0.78%), Punjab National Bank (down 0.13%), Bank of Baroda (down 0.88%), Bank of India (down 1.74%) and Union Bank of India (down 0.5%) dropped.
Sugar shares gained on reports that the Centre has reportedly convened a high-level meeting today, 20 November 2013 which is expected to discuss a relief-package for the crisis-ridden sugar industry in Uttar Pradesh (UP) and Maharashtra, which could include interest-free loans from banks.
Bajaj Hindusthan (up 8.03%), Dhampur Sugar Mills (up 7.38%), Sakthi Sugars (up 13.07%), Balrampur Chini Mills (up 4.15%), Triveni Engineering & Industries (up 9.41%), Shree Renuka Sugars (up 6.31%), Dwarikesh Sugar Industries (up 16.34%), Oudh Sugar Mills (up 11.32%) gained.
Sugar industry in Uttar Pradesh and Maharashtra, the two largest producing states, have not yet started crushing sugarcane in the new crop year, which started in October, citing mounting cane arrears, huge unsold stocks and the inability to pay high price to farmers.
Meanwhile, sugar manufacturers based in Uttar Pradesh (UP) including Bajaj Hindusthan, Triveni Engineering & Industries, Oudh Sugar Mills, and Upper Ganges Sugar & Industries, among others, have reportedly announced suspension of operations, following an impasse over announcement of state sugarcane price. Sugar mills officially declared that the sugar industry of the state would stand non-operative till the Rangarajan formula is adopted to fix the cane price.
In the foreign exchange market, the rupee depreciated against the dollar on demand for greenbacks by state-run oil refiners and weakness in domestic shares. The partially convertible rupee was hovering at 62.42, compared with its close of 62.36/37 on Tuesday, 19 November 2013.
Paris-based Organisation for Economic Co-operation and Development (OECD) said Indian economy will grow just 3.4% in the current financial year and 5.1% in 2014, down from 5.7% and 6.6% forecasted earlier.
The OECD cut its global growth forecasts for this year and next as emerging-market economies including India and Brazil cool. The world economy will probably expand 2.7% this year and 3.6% next year, instead of the 3.1% and 4% predicted in May, the OECD said in a semi-annual report on Tuesday.
On the political front, an unprecedented 78.50% of the nearly 1.40 crore electors voted in the second phase of polling for the Assembly elections in Chhattisgarh on Tuesday, 19 November 2013. The first phase of elections in the 90-member assembly on 11 November 2013 had seen polling of 75.53%.
Asian shares declined on Wednesday as investors adopt a cautious stance ahead of the Fed meeting minutes. Key benchmark indices in Taiwan, China, Japan, Indonesia and South Korea fell by 0.08% to 0.53%. Key benchmark indices in Hong Kong and Singapore rose 0.02% to 0.33%.
Japanese exports rose 18.6% from a year earlier in October to 6.105 trillion yen, the Ministry of Finance said Wednesday, marking the eighth straight month of expansion. In September, exports rose 11.5% on year.
Trading in US index futures indicated that the Dow could rise 3 points at the opening bell on Wednesday, 20 November 2013. US stocks pulled back on Tuesday, as investors showed caution after the Dow Jones Industrial Average and S&P 500 failed to hold above milestone levels in the prior session.
Investors will closely watch US Federal Reserve's FOMC minutes due to be released today, 20 November 2013 for any fresh clues on Fed monetary policy moves upcoming. The minutes will be from the October 29-30 meeting.
Federal Reserve Chairman Ben Bernanke indicated Tuesday that the US central bank would like to move away from using its balance sheet to help the economy and focus more on forward guidance about keeping short-term rates low, but the timing of this shift remains an open question.
Bernanke said the timing of the Fed's tapering of monetary stimulus still depends on further improvement in employment data and a pickup in inflation toward the central bank's 2% target.
The Federal Reserve would like to move away from using its balance sheet to help the economy and focus more on "forward guidance" about keeping short-term rates low, but the timing of this shift remains an open question, said Federal Reserve Chairman Ben Bernanke on Tuesday. Bernanke was much clearer about the central bank's plan for short-term rates, saying the Fed would likely hold short-term rates near zero well after the economy reaches the 6.5% unemployment rate that is the threshold for considering a rate increase. In new language, Bernanke said rates could even stay near zero until "the preponderance of the data supports the beginning" of tightening.
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