Key benchmark indices edged lower in choppy trade as data showing a muted 2% growth in industrial production in April 2013 weighed on sentiment. The S&P BSE Sensex provisionally settled above the psychological 19,000 mark after alternately moving above and below that mark during the trading session. The Sensex was provisionally down 87.75 points or 0.46%, up about 85 points from the day's low and off close to 90 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Indian stocks fell for the second straight day today, 12 June 2013.
Shares of Tata Group companies declined. Tata Steel hit 52-week low. Titan Industries extended Tuesday's sharp losses triggered by the company's announcement 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. Shares of two wheeler makers declined on reports oil marketing companies, which are under tremendous pressure on account of weakening rupee, are looking to increase petrol prices by Rs 1.5-2/litre from Friday, 14 June 2013.
Jindal Steel & Power surged on bargain hunting after Tuesday's 15.18% losses triggered by 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. A bout of volatility was witnessed as the Sensex trimmed intraday losses in morning trade. The market hit fresh intraday low in mid-morning trade. The market extended losses to hit fresh intraday low in early afternoon trade. The Sensex hit over 7-week below the psychological 19,000 mark. The CNX Nifty hit its lowest level in nearly 8 weeks. High volatility was witnessed as key benchmark indices trimmed losses in afternoon trade. The S&P BSE Sensex regained the psychological 19,000 mark. The Sensex trimmed losses after weakening once again in mid-afternoon trade. The Sensex pared losses after weakening once again in late trade.
The market sentiment was affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Tuesday, 11 June 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 885.85 crore on Tuesday, 11 June 2013, as per provisional data from the stock exchanges.
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As per provisional figures, the S&P BSE Sensex was down 87.75 points or 0.46% to 19,055.25. The index declined 173.92 points at the day's low of 18,969.08 in afternoon trade, its lowest level since 18 April 2013. The index rose 0.24 points at the day's high of 19,143.24 in afternoon trade.
The CNX Nifty was down 23.65 points or 0.41% to 5,765.15, as per provisional figures. The index hit a low of 5,738.60 in intraday trade, its lowest level since 18 April 2013. The index hit a high of 5,792.90 in intraday trade.
The total turnover on BSE amounted to Rs 1927 crore, lower than Rs 2035.04 crore on Tuesday,11 June 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,398 shares fell and 967 shares rose. A total of 125 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell and rest of them rose. Cipla (up 1%), M&M (up 0.78%) and Reliance Industries (RIL) (up 0.65%), edged higher.
Two wheeler makers edged lower on reports oil marketing companies, which are under tremendous pressure on account of weakening rupee, are looking to increase petrol prices by Rs 1.5-2/litre with effect from Friday, 14 June 2013. Hero MotoCorp (down 2.37%) and Bajaj Auto (down 2.19%), edged lower.
Jindal Steel & Power rose 3.8% to Rs 234.95 on bargain hunting after Tuesday's 15.18% losses triggered by 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 was volatile. The stock hit high of Rs 240.50 and low of Rs 219. The stock had hit 52-week low of Rs 202 in intraday trade on Tuesday, 11 June 2013.
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.
The CBI has also filed an FIR against former Minister of State for Coal Dasari Narayan Rao.
Shares of Tata Group companies declined. Tata Coffee (down 20%), Tata Teleservices Maharashtra (down 19.74%), Tata Power Company (down 3.03%), Tata Communications (down 2.63%), TCS (down 2.06%) and Rallis India (down 0.35%), edged lower.
Tata Steel lost 2.61% to Rs 274.15, with the stock extending recent slide. The stock hit 52-week low of Rs 273.15 in intraday trade today, 12 June 2013.
Titan Industries tumbled 13.32% to Rs 204.90, with the stock extending Tuesday's 10.86% losses triggered by the company's announcement 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. The stock hit 52-week low of Rs 201.20 in intraday trade today, 12 June 2013. The 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 during trading hours on Tuesday, 11 June 2013. 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.
Industrial production rose 2% in April 2013, lower than a revised growth of 3.4% in March 2013, data released by the government today, 12 June 2013, showed. The manufacturing sector registered a growth of 2.8% and electricity generation rose 0.7%. The mining sector registered a decline of 3%. As per use-based classification, production of basic goods rose 1.3%, capital goods production rose 1%, production of intermediate goods rose 2.4% and production of consumer non-durables jumped 12.3%. Production of consumer durables declined 8.3%.
Meanwhile, industrial production growth for March 2013 was revised upwards to 3.4% from 2.5% growth reported earlier.
Inflation based on the combined consumer price index (CPI) for urban and rural India eased to 9.31% in May 2013 from 9.39% in April 2013, another data released by the government today, 12 June 2013, showed. With the CPI, inflation based on the category food and beverages stood at 10.65% in May 2013.
The Reserve Bank of India (RBI) on Tuesday took measures to increase the supply of dollars in the market including asking exporters to realise their dollar earnings and get them back into the country within one year to support a plunging rupee. The RBI also hastened the process of dollar inflows through online payment channels by increasing the amount that exporters can bring back to $10,000 from $3000. The new norms will be applicable with immediate effect, the Reserve Bank of India said. The rupee hit record low of 58.98 per dollar in intraday trade on Tuesday.
Dr. Raghuram G. Rajan, Chief Economic Adviser, Ministry of Finance, on Tuesday, 11 June 2013, said that the government continues to undertake measures to ensure the Current Account Deficit (CAD) is safely financed. Dr. Rajan issued the statement after a recent steep slide in rupee against the dollar. "In the coming weeks, we will be recommending the policies to enhance foreign direct investment (FDI) limits in a number of areas", he said. All this will help not just in the short term objective of financing the CAD but also in the longer term objective of ensuring sustainable growth, Dr. Rajan said.
European markets were mostly higher on Wednesday after data showed Euro-area industrial output unexpectedly increased in April. Key benchmark indices in France and UK were up by 0.02% to 0.34%. However, Germany's DAX fell 0.09%.
Factory production in the 17-nation euro area rose 0.4% from March, when it increased a revised 0.9%, the European Union's statistics office in Luxembourg said today.
On Tuesday, Germany's constitutional court began hearing debate on whether the European Central Bank's Outright Monetary Transactions -- a yet-to-be-used program to buy bonds from struggling euro-bloc nations -- is allowable under German law. A ruling isn't expected until later this year, however.
Asian stocks fell on Wednesday as Japanese machinery orders declined more than expected and concern grew that central banks from Tokyo to Washington are increasingly reluctant to add stimulus. Key benchmark indices in Japan, Singapore and South Korea shed by 0.21% to 0.56%. Indonesia's Jakarta Composite rose 1.91%. Stock markets in Hong Kong, Taiwan and the Philippines were closed for holidays. Mainland Chinese markets are closed from Monday, 10 June 2013 till today, 12 June 2013, for the Dragon Boat Festival.
Japan's machinery orders, an indicator of future capital spending dropped 8.8% in April, more than estimated.
Trading in US index futures indicated that the Dow could gain 61 points at the opening bell on Wednesday, 12 June 2013. US stocks dropped on Tuesday after the Bank of Japan's status-quo policy decision revived concerns about the winding down of central bank stimulus measures. The restraint in Japan also raised questions about the US Federal Reserve's future direction of policy measures ahead of next week's Federal Open Market Committee meeting.
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