Key benchmark indices recovered from lower level after trimming intraday gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 81.06 points or 0.32%, off close to 55 points from the day's high and up close to 145 points from the day's low. The market breadth indicating the overall health of the market was positive.
Auto stocks edged higher. Tata Motors rose in volatile trade after its British luxury car unit Jaguar Land Rover on Wednesday, 11 June 2014, reported strong growth in retail sales for May 2014. Bajaj Finance edged higher in choppy trade after the company said that an early detection and quick investigation of a fraud by few senior employees of the company's mortgage business has resulted in the incidence having no material financial loss for the company.
A bout of volatility was witnessed in early trade as key benchmark indices alternately swung between gains and losses. The Sensex extended gains in morning trade. Key benchmark indices retained positive zone in mid-morning trade. Key benchmark indices trimmed gains after extending intraday gains in early afternoon trade. Key benchmark indices recovered from lower level after trimming intraday gains in mid-afternoon trade.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 313.40 crore on Wednesday, 11 June 2014, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 81.06 points or 0.32% to 25,554.95. The index jumped 137.43 points at the day's high of 25,611.32 in early trade. The index fell 64.20 points at the day's low of 25,409.69 in early trade.
The CNX Nifty was up 15.60 points or 0.2% to 7,642.45. The index hit a high of 7,656.15 in intraday trade. The index hit a low of 7,593.80 in intraday trade.
The BSE Mid-Cap index was up 42.24 points or 0.46% at 9,161.13. The BSE Small-Cap index was up 52.66 points or 0.53% at 10,002.69. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,687 shares rose and 1,338 shares fell. A total of 98 shares were unchanged.
Hindalco Industries (up 3.23%), Sun Pharmaceutical Industries (up 2.04%) and HDFC Bank (up 2.5%) edged higher from the Sensex pack.
Auto stocks edged higher. Maruti Suzuki India (up 0.87% to Rs 2,468), and Ashok Leyland (up 3.87% to Rs 33.55) edged higher. Mahindra & Mahindra (M&M) fell 0.53% to Rs 1,218.
Tata Motors rose in volatile trade after its British luxury car unit Jaguar Land Rover (JLR) on Wednesday, 11 June 2014, reported strong growth in retail sales for May 2014. The stock was up 0.67% at Rs 448.60. The scrip hit high of Rs 451.30 and low of Rs 442.25 so far during the day. JLR's retail sales rose 20% to 38,831 vehicles in May 2014 over May 2013.
Sales of the Jaguar brand rose 4% to 6,450 vehicles in May 2014 over May 2013. Sales of the Land Rover brand jumped 23% to 32,381 vehicles in May 2014 over May 2013, with strong performances across the range.
Commenting on the May performance Andy Goss, Jaguar Land Rover Group Sales Operations Director said: "This has been another solid month for Jaguar Land Rover with continued strong demand for models across the range in our international markets. The continued success of F-Type convertible, coupled with the launch of Coupe, has supported Jaguar sales momentum. For Land Rover, the Range Rover Sport and Evoque continue to deliver impressive sales performance".
Shares of two wheeler makers gained. Bajaj Auto (up 0.13% to Rs 2,178.05) and Hero MotoCorp (up 1.02% to Rs 2,732.90) edged higher. TVS Motor Company dropped 1.06% to Rs 130.80.
Bajaj Finance edged higher in choppy trade after the company said that an early detection and quick investigation of a fraud by few senior employees of the company's mortgage business has resulted in the incidence having no material financial loss for the company. The stock was up 0.7% at Rs 2,040. The scrip hit high of Rs 2,127.40 and low of Rs 1,979 so far during the day. Bajaj Finance said that based on a whistleblower complaint, the company had identified fraudulent connivance between a few senior employees and some delinquent customers in its mortgage business. This resulted in manipulation of a few customer EMI payments and consequent mis-reporting of delinquencies. The RBI NPA provisioning standards require NBFCs to provision at 180 DPD. Based on RBI norms, there is additional Rs 15 lakh provision to be made on account of the fraud detected in the mortgage business, Bajaj Finance said. However, there is no change in gross and net NPA figures, it said. Since, the company maintains a more stringent provisioning policy over RBI norms, an additional provision of up to Rs 5 crore may be required in Q1 June 2014, Bajaj Finance said.
Post the investigation of fraud, the company has separated with the concerned employees, Bajaj Finance said. The company also said that the management conducted a rapid portfolio review across all other SME businesses and has not found anything adverse.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 59.305, compared with its close of 59.27/28 on Wednesday, 11 June 2014.
In his reply on motion of thanks on President's address in Lok Sabha, Prime Minister Narendra Modi on Wednesday, 11 June 2014, said his promise to reduce inflation is not an empty slogan but a resolve. Just like the way Mahatma Gandhi had turned India's freedom struggle into a mass movement, India needs to make the quest for good governance a mass movement, the Prime Minister said. He urged all elected members of parliament (MPs) to resolve to ensure that every family in India has a house, with basic amenities of water, power and sanitation, on India's 75th anniversary of independence in 2022. The Prime Minister said a way would be found to achieve this, and he would seek the help and cooperation of all senior leaders in this endeavour.
Industrial production is expected to register a growth of 1.7% in April 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government is due to release industrial production data for April 2014 after trading hours today, 12 June 2014. Industrial production shrank for a second straight month in March 2014. Industrial production declined 0.5% in March 2014, compared with a contraction of 1.8% in February 2014.
The rate of inflation based on the combined consumer price index (CPI) for rural and urban India is seen easing at 8.4% in May 2014, from 8.59% in April 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government is due to release CPI inflation for May 2014 after trading hours today, 12 June 2014. CPI inflation accelerated to 8.59% (provisional) in April 2014, from 8.31% (final) in March 2014. Core CPI which excludes food and energy prices eased to 7.8% in April 2014, from 7.81% in March 2014.
European stocks edged higher on Thursday, 12 June 2014, as investors awaited data on US retail sales and jobless claims to gauge the health of the world's largest economy. Key benchmark indices in France and Germany were up 0.12% to 0.23%. UK's FTSE 100 was off 0.02%.
French consumer prices were unchanged in May from April and rose only 0.7% on the year, statistics agency Insee said Thursday. A fall in energy and manufactured goods prices offset rising food prices, Insee said.
Asian shares slipped on Thursday, 12 June 2014, after US stocks stepped back from record levels on Wednesday while civil war in Iraq supported oil prices. Key benchmark indices in China, Indonesia, Japan, Taiwan, South Korea and Hong Kong were off 0.15% to 0.99%. Singapore's Straits Times rose 0.15%.
Japanese machinery orders fell in April from the previous month. Core machinery orders fell 9.1% in April from a month ago, the Cabinet Office said Thursday.
South Korea's central bank Thursday kept its benchmark interest rate steady at 2.5%. The bank last moved the rate in May 2013 with a quarter-percentage-point cut.
Trading in US index futures indicated that the Dow could gain 8 points at the opening bell on Thursday, 12 June 2014. US stocks fell on Wednesday, with the Dow Jones Industrial Average breaking a four-day string of record closing highs, following the World Bank's reduction of its global growth forecast.
Adding to the sour tone, the defeat in a primary election of House Majority Leader Eric Cantor, a Republican, further dampened expectations of Washington passing any significant legislation before the November elections.
The US posted a $130 billion budget deficit in May and the smallest shortfall for the first eight months of a fiscal year since 2008, as a stronger economy and rising employment bolster revenue. The deficit last month was about $9 billion less than the $139 billion shortfall in May 2013, the Treasury Department said in Washington.
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