A bout of volatility was witnessed as key benchmark indices slipped into the red once again after briefly moving into the positive terrain from negative terrain in afternoon trade. The barometer index, the S&P BSE Sensex, was down 47.59 points or 0.23%, up close to 75 points from the day's low and off about 50 points from the day's high. The market breadth, indicating the overall health of the market, was positive. In the foreign exchange market, the rupee edged lower against the dollar on demand for greenbacks by state-run oil refiners and on weakness in domestic equities.
Bharat Heavy Electricals (Bhel) extended Tuesday's gains triggered by the company bagging a main plant package contract worth Rs 1300 crore for setting up thermal unit from NTPC. Auto stocks edged lower. Index heavyweight Reliance Industries (RIL) edged higher in choppy trade. ICICI Bank fell on profit booking after recent gains.
Key benchmark indices cut losses after a lower start triggered by weak Asian stocks. Key benchmark indices extended intraday losses in mid-morning trade. Key benchmark indices cut losses in early afternoon trade. A bout of volatility was witnessed as key benchmark indices slipped into the red once again after briefly moving into the positive terrain from negative terrain in afternoon trade.
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 13:20 IST, the S&P BSE Sensex was down 47.59 points or 0.23% to 20,843.23. The index lost 126 points at the day's low of 20,764.82 in mid-morning trade, its lowest level since 18 November 2013. The index rose 0.03 points at the day's high of 20,890.85 in afternoon trade.
The CNX Nifty was down 15.10 points or 0.24% to 6,188.25. The index hit a low of 6,163.50 in intraday trade, its lowest level since 18 November 2013. The index hit a high of 6,204.25 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,271 shares gained and 1,044 shares fell. A total of 135 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks declined and rest of them gained. Cipla (down 1.59%), Bharti Airtel (down 1.22%) and Hindalco Industries (down 0.97%), edged lower.
Bharat Heavy Electricals (Bhel) extended Tuesday's gains triggered by the company bagging a main plant package contract worth Rs 1300 crore for setting up thermal unit from NTPC. The stock was up 1.34%.
Bhel said during trading hours on Tuesday, 19 November 2013, that it received a major order from NTPC for supply and installation of the main plant package for a power project in Uttar Pradesh, involving one thermal power generating unit of 500 megawatts (MW). Valued at Rs 1300 crore, the order for the supply and installation of the steam generator, steam turbine generator and electrics package for the upcoming 500 MW Feroze Gandhi Unchahar Thermal Power Project (TPP), was received from NTPC BHEL Power Projects (NBPPL), a joint venture between NTPC and Bhel.
L&T dropped 0.98%.
Auto stocks edged lower. Tata Motors shed 0.36%. The company is reportedly planning to launch a new hatchback and a sub-4 metre sedan powered by an all-new 1.2 litre turbocharged petrol engine in 2014 to cash in on the popularity of petrol cars. These two new products will be the first few major product offerings from Tata Motors in the last 3-4 years since the launch of the Aria crossover in 2010-11, the media report added.
Maruti Suzuki India declined 0.4%. M&M dropped 0.47%.
Shares of two-wheeler makers declined. Hero MotoCorp (down 0.31%) and Bajaj Auto (down 0.92%), fell.
Index heavyweight Reliance Industries (RIL) rose 0.29% to Rs 878.50. The stock hit high of Rs 882.20 and low of Rs 872.25 so far during the day.
Most bank pivotals dropped. HDFC Bank fell 0.7%.
ICICI Bank fell 1.16% to Rs 1,070.05, with the stock sliding on profit booking after recent gains. The stock had risen 6.92% in four trading sessions to settle at Rs 1,082.60 on Tuesday, 19 November 2013, from a recent low of Rs 1012.45 on 12 November 2013.
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.
State Bank of India rose 0.26%
The Reserve Bank of India has reportedly asked state-run lenders to start offering loans to self-help groups of women at discounted interest rates under a government program announced in February.
In the foreign exchange market, the rupee edged lower against the dollar on demand for greenbacks by state-run oil refiners and on weakness in domestic equities. The partially convertible rupee was hovering at 62.61, compared with its close of 62.36/37 on Tuesday, 19 November 2013.
Bond prices dropped on concerns that higher diesel prices will fan inflation. Oil Minister Veerappa Moily today, 20 November 2013, said that the Centre will likely free up diesel pricing from government control over the next six months with gradual price increases. The yield on most traded federal paper, 8.28% GS 2027, was hovering at 9.0483%, higher than its close of 8.9942% on Tuesday, 19 November 2013. The yield on 10-year benchmark federal paper, 7.16% GS 2023, was hovering at 9.0631%, higher than its close of 9.0093% on Tuesday, 19 November 2013.
Increasing the price of diesel at this time will be tricky for the government with general elections just a few months away. Higher diesel prices will fan inflation. Also, the fuel is used by farmers, who form a big chunk of voters in India, to run their water pumps to irrigate crops. Mr. Moily said he wasn't worried about any political repercussions of freeing up diesel pricing.
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, 20 November 2013, on caution ahead of the release of the minutes from the US Federal Reserve's last meeting, possibly providing clues to the timing of its plan to slow monetary stimulus to the US economy. Key benchmark indices in Taiwan, Japan, Indonesia, Singapore and South Korea fell by 0.06% to 1.41%. Key benchmark indices in China and Hong Kong rose 0.35% to 0.62%.
Bank of Japan Governor Haruhiko Kuroda and his board gather for a two-day policy meeting starting today, 20 November 2013.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 20 November 2013. US stocks dropped on Tuesday, 19 November 2013, as investors weighed rising valuations and disappointing earnings forecasts.
Later in the day, the Federal Reserve is slated to release the minutes from its last meeting, possibly providing clues to the timing of its plan to slow monetary stimulus to the US economy. The minutes will be from the October 29-30 meeting.
Federal Reserve Chairman Ben S. Bernanke on Tuesday, 19 November 2013, said the central bank's main interest rate will probably remain near zero for a considerable time after asset purchases end. Bernanke said the Fed is committed to highly accommodative policies, echoing recent comments from other Fed officials including Janet Yellen, who has been nominated to succeed him. The labor market has shown meaningful improvement since the Fed's bond-buying program started, Bernanke said in remarks prepared for a speech to economists in Washington. A "preponderance of data" would be needed to begin removing accommodation, he said. Benchmark interest rates may remain low perhaps well after the jobless rate falls below the Fed's 6.5% threshold, he said.
The US central bank buys $85 billion of Treasuries and mortgage-backed securities each month to put downward pressure on borrowing costs.
The Organization for Economic Cooperation and Development cut its global growth forecasts on Tuesday, 19 November 2013, citing a slowdown in developing nations. The world economy will probably expand 2.7% this year and 3.6% in 2014, instead of the 3.1% and 4% predicted in May, the Paris-based OECD said in a semi-annual report.
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