Key benchmark indices edged lower in early trade on weak Asian stocks. The S&P BSE Sensex was down 115 points or 1.14%, off about 115 points from the day's high and up close to 55 points from the day's low. The market breadth, indicating the overall health of the market, was weak. Bank stocks declined across the board. Shares of Sesa Goa declined after its inclusion in the 30-share benchmark S&P BSE Sensex from today, 27 August 2013.
Asian stocks fell on Tuesday after US Secretary of State John Kerry said the US President will hold Syria's government accountable for using chemical weapons against Syrian civilians.
The market sentiment was also affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Monday, 26 August 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 607.43 crore on Monday, 26 August 2013, as per provisional data from the stock exchanges.
The market is expected to remain volatile in the near term as traders roll over positions in the futures & options (F&O) segment from the near month August 2013 series to September 2013 series. The near month August 2013 derivatives contract expire on Thursday, 29 August 2013.
At 9:30 IST, the S&P BSE Sensex was down 211.43 points or 1.14% to 18,346.70. The index fell 267.72 points at the day's low of 18,290.41 in early trade. The index declined 97.41 points at the day's high of 18,460.72 in early trade.
The CNX Nifty was down 73.25 points or 1.34% to 5,403.25. The index hit a low of 5,391.05 in intraday trade. The index hit a high of 5,427.40 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 496 shares fell and 236 shares rose. A total of 26 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks fell and rest of them rose. HDFC (down 3.73%), ONGC (down 2.28%) and Coal India (down 2.05%), declined.
Bank stocks declined across the board. From private sector banks, Axis Bank, Yes Bank, Kotak Mahindra Bank and ICICI Bank shed by 2.09% to 3.08%.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank dropped by 1.11% to 2.42%.
NTPC was flat. The company said after market hours on Monday, 26 August 2013 that the 500 megawatts (MW) Unit-II of 1500 MW Vallur Thermal Power Project of NTPC Tamil Nadu Energy (NTECL), a JV of NTPC and TANGEDCO, is declared on commercial operation from 25 August 2013. With this the total commercial capacity of Vallur Thermal Power Project has become 1000 MW and that of NTPC Group to 40184 MW.
Shares of Sesa Goa declined 3.74% after its inclusion in the 30-share benchmark S&P BSE Sensex from today, 27 August 2013. Sesa Goa will replace Sterlite Industries (India) in the Sensex following the scheme of amalgamation between the two Vedanta group firms whereby Sterlite Industries (India) has been merged with Sesa Goa. Trading in Sterlite will stop from 27 August 2013.
Lok Sabha on Monday passed the Food Security Bill after considering all the amendments, with the Opposition saying they will support the bill even though it is half-baked. The bill seeks to provide cheap foodgrains to 82 crore people in the country, ushering in the biggest programme in the world, to fight hunger. The ambitious bill was adopted by the House through a voice vote after a nine-hour combined discussion on the measure and a statutory resolution seeking to disapprove the ordinance promulgated on 5 July. Over 300 amendments moved by the opposition were rejected. The bill proposes subsidised foodgrain for up to 75% of the rural and up to 50% of the urban population. It proposes meal entitlement to specific groups. Eligible households would get five kg of foodgrain per person every month at Rs 3 per kilo of rice, Rs 2 per kilo of wheat and Rs 1 per kilo of coarse grains.It still needs to be passed by the upper house, the Rajya Sabha, to become law.
Meanwhile, the government has reportedly extended the monsoon session of parliament by seven days until September 6, giving the Congress party-led ruling coalition more time to pass economic reforms after weeks of disruptions in the house. The government will try to pass a bill to allow foreign investment in the pension sector during the extended session, a law seen as a first step to building a viable private pension industry in India. Also up for debate is a bill setting rules for compensation for land acquired for infrastructure projects and industry, a move seen as raising costs but potentially reducing protests that have plagued India's industrialization drive.
Based on the current assessment of prevailing and evolving market conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the government securities for an aggregate amount of Rs 8000 crore on 30 August 2013 through multi-security auction using the multiple price method.
Asian stocks fell on Tuesday after US Secretary of State John Kerry said the US President will hold Syria's government accountable for using chemical weapons against Syrian civilians. Key benchmark indices in China, Singapore, Taiwan, Hong Kong, Indonesia and Japan fell by 0.19% to 1.92%. South Korea's Kospi rose 0.29%.
Economic data in South Korea showed the nation's consumer confidence was unchanged in August.
US stocks closed lower on Monday after Secretary of State John Kerry warned that the United States would demand accountability after an obscene chemical weapons attack on Syrian civilians. More than 100,000 people have died in clashes between forces loyal to Assad and rebels trying to oust him from power in Syria over the past two and a half years.
Among the US economic data, the Commerce Department reported new orders for durable manufactured goods plunged 7.3% in July, much sharper than the 5% drop expected.
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