Key benchmark indices alternately swung between positive and negative zone within a narrow range in early afternoon trade. The barometer index, the S&P BSE Sensex, was down 12.38 points or 0.05%, off 73.69 points from the day's high and up 38.87 points from the day's low. The market breadth indicating the overall health of the market was positive.
India's largest dedicated housing finance lender HDFC dropped after a bulk deal was executed on the counter on BSE. India's largest small-car maker by sales Maruti Suzuki India extended intraday gain. Aviation stocks rose on reports the aviation ministry has drawn up a plan to push infrastructure development, e-governance and air connectivity during the first 100 days of the new government. Tyre stocks were in demand on renewed buying, with shares of Balkrishna Industries scaling record high. Sugar stocks rose on fresh buying.
At 12:15 IST, the S&P BSE Sensex was down 12.38 points or 0.05% to 25,178.10. The index gained 61.31 points at the day's high of 25,251.79 in morning trade. The index fell 51.25 points at the day's low of 25,139.23 in early trade.
The CNX Nifty was down 1.15 points or 0.02% to 7,532.40. The index hit a high of 7,553.50 in intraday trade, its highest level since 13 June 2014. The index hit a low of 7,516.25 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,522 shares gained and 1,124 shares fell. A total of 112 shares were unchanged.
The BSE Mid-Cap index was up 17.62 points or 0.2% at 8,984.50. The BSE Small-Cap index was up 70.69 points or 0.73% at 9,775.08. Both these indices outperformed the Sensex.
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The total turnover on BSE amounted to Rs 1698 crore by 12:15 IST, compared with Rs 1266 crore by 11:15 IST.
Among the 30-share Sensex pack, 16 stocks declined and rest of them gained.
Hindalco Industries (down 1.86%), Mahindra & Mahindra (down 1.64%) and Tata Power Company (down 1.52%) edged lower from the Sensex pack.
India's largest dedicated housing finance lender HDFC lost 2.06% to Rs 943 on volume of 5.31 lakh shares. A bulk deal of 4.76 lakh shares was executed on the counter at Rs 949.70 per share at 09:18 IST on BSE today, 17 June 2014.
India's largest small-car maker by sales Maruti Suzuki India gained 1.52% to Rs 2,413, with the stock extending intraday gain. The stock hit high of Rs 2,421 and low of Rs 2,380.10 so far during the day.
Aviation stocks rose on reports the aviation ministry has drawn up a plan to push infrastructure development, e-governance and air connectivity during the first 100 days of the new government. Jet Airways (India) (up 2.37%) and SpiceJet (up 2.2%) edged higher.
Reports suggested that last fortnight the aviation ministry followed up on a string of consultations to hand over a list of over a dozen action points to the Prime Minister's Office (PMO) to be achieved in the next 100 days. State-owned Airports Authority of India (AAI) has identified 50 airports across the country to be built on the low-cost model, as per reports. The strategic Port Blair airport is also likely to be modernized, the contract for which will be awarded within 100 days, reports added.
Tyre stocks were in demand on renewed buying. CEAT (up 4.35%), Goodyear India (up 1.79%), JK Tyre & Industries (up 1.59%), MRF (up 1.26%) and TVS Srichakra (up 1.2%) gained. Apollo Tyres fell 1.09%.
Balkrishna Industries advanced 3.87% to Rs 752.10 after hitting record high of Rs 768 in intraday trade.
Sugar stocks rose on fresh buying. Dwarikesh Sugar Industries (up 4.92%), Balrampur Chini Mills (up 3.9%), Dhampur Sugar Mills (up 3.84%), Simbhaoli Sugar Mills (up 3.72%), Triveni Engineering & Industries (up 3.5%), Sakthi Sugars (up 2.12%), Shree Renuka Sugars (up 2.05%), Bajaj Hindusthan (up 1.43%) gained.
A bout of volatility was witnessed in early trade as the key benchmark indices turned negative after reversing initial decline. Key benchmark indices moved into positive zone in morning trade. Key benchmark indices slipped in negative zone from positive zone in mid-morning trade. Key benchmark indices alternately swung between positive and negative zone within a narrow range in early afternoon trade.
In the foreign exchange market, the rupee edged lower against the dollar on caution ahead of the outcome of this week's meeting of the Federal Open Market Committee on US monetary policy. The partially convertible rupee was hovering at 60.36, compared with its close of 60.155/60.165 on Monday, 16 June 2014.
Commenting on the wholesale price index (WPI) data on Monday, 16 June 2014, which showed that WPI inflation jumped to five-month high in May 2014, Finance Minister Arun Jaitley was quoted by the media as saying that the rising inflation was due to the hoarding of food stocks. He said that the Centre is committed to ease supply side bottlenecks and has also asked states to take firm measures against hoarders to check speculation. The Finance Minister reportedly said that the government is committed to take measures which will positively impact the GDP and result in higher growth than expected. The Finance Minister said inflation which is moving upward now would eventually come down.
The annual rate of inflation based on the monthly wholesale price index (WPI) accelerated to 6.01% for the month of May 2014, from 5.2% in April 2014, data released by the government on Monday, 16 June 2014, showed.
Meanwhile, crude oil prices eased after recent gains triggered by unrest in Iraq. Brent crude oil futures for August delivery were down 28 cents at $112.66 a barrel. The contract had risen 48 cents to settle at $112.94 a barrel on Monday, 16 June 2014, after touching an intraday high of $113.28 a barrel.
The recent increase in crude oil price and fall in rupee against the dollar have stoked concerns of fuel price inflation and increase in India's current account deficit and fiscal deficit. India imports majority of its crude oil requirements.
Reserve Bank of India Governor Raghuram Rajan today, 17 June 2014, said that the country is watching the Iraq situation, but despite the uncertainty the domestic economy is currently better prepared to deal with any shocks on the external front compared to last year. Rajan reportedly said on the sidelines of an industry event that since India has sufficient foreign reserves and the current account deficit is low, one shouldn't worry too much about the external side at this point.
Asian stocks fell on Tuesday, 17 June 2014, as the double-whammy of a deepening conflict in Iraq and a gas dispute between Ukraine and Russia sapped investors' appetite for risk. Key benchmark indices in Hong Kong, China, Singapore and Indonesia were off 0.06% to 0.94%. Key benchmark indices in Japan, South Korea and Taiwan were up 0.29% to 0.41%.
China attracted $8.6 billion of foreign direct investment in May, down 6.7% from a year earlier, the Ministry of Commerce said in a statement Tuesday. The figure was down from April's $8.7 billion, which was 3.4% higher from a year earlier. FDI in the January-May period rose 2.8% on year to $48.91 billion.
Japan's government late Monday, 16 June 2014, released a draft of Prime Minister Shinzo Abe's long-awaited growth strategy. This included already-flagged policies such as a plan to cut the corporate tax rate and other steps like a promise to ease regulation in agriculture and allow more foreign workers to be employed in the housekeeping and nursing sectors.
Trading in US index futures indicated that the Dow could rise 17 points at the opening bell on Tuesday, 17 June 2014. US stocks rose on Monday, 16 June 2014, as corporate deals and growth in American manufacturing overshadowed escalating tension in Iraq.
Fresh data from the factory sector showed that manufacturing remained a bright spot in the US economy at the end of the second quarter. Manufacturing activity in the New York region held steady in June after hitting an almost four-year high in May, the Federal Reserve Bank of New York said Monday.
Another data showed that industrial production in the US climbed in May. Output at factories, mines and utilities rose 0.6% after a revised 0.3% drop in April, a report from the Federal Reserve showed.
Home builders' confidence rose in June to the highest level in five months, but respondents were still a bit pessimistic, according to the National Association of Home Builders/Wells Fargo housing-market index released Monday.
A two-day meeting of the Federal Open Market Committee on US monetary policy begins today, 17 June 2014. The FOMC after a monetary policy review on 30 April 2014 reduced its monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve. The Fed also said at that time that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends.
The International Monetary Fund (IMF) cut its growth forecast for the US economy this year and said the Fed may have scope to keep interest rates at zero for longer than investors expect. The institution now sees the world's largest economy growing 2% in 2014, down from an April estimate of 2.8%. The IMF left a 2015 prediction unchanged at 3%, and said it doesn't expect the US to see full employment until the end of 2017, amid low inflation.
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