Volatility ruled the roost as key benchmark indices reversed intraday losses and hit fresh intraday high in early afternoon trade. Gains in Asian stocks supported domestic bourses. The market breadth, indicating the overall health of the market, was negative. The S&P BSE Sensex was up 34.58 points or 0.18%, off close to 45 points from the day's high and up about 130 points from the day's low. Sun Pharmaceutical Industries and Bhel extended intraday gains. State Bank of India (SBI) reversed intraday losses.
Shares of two wheeler makers rose, shrugging off a hike in petrol price announced over the weekend. Shares of index heavyweight Reliance Industries (RIL) extended Friday's gains triggered by partner Niko Resources providing clarity on the companies' recent gas and condensate discovery at key KG-D6 block in India. Bharti Airtel rose after the company said that it has completed the allotment of 19.98 crore new shares, representing 5% equity stake in the company, to Qatar Foundation Endowment, in one of the largest private equity (PE) transactions in India.
A bout of volatility was witnessed in early trade as key benchmark indices slipped into the negative terrain after opening higher. Key benchmark indices trimmed intraday losses amid range bound trade as investors awaited the outcome of Reserve Bank of India's mid-quarter monetary policy review. Key benchmark indices edged lower to hit fresh intraday low in mid-morning trade after the Reserve Bank of India (RBI) kept its key policy rate viz. the repo rate unchanged at 7.25% after mid-quarter review of the monetary policy. The market reversed intraday losses to hit fresh intraday high in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was up 34.58 points or 0.18% to 19,212.51. The index rose 79.83 points at the day's high of 19,257.76 in early afternoon trade, its highest level since 11 June 2013. The index fell 93.25 points at the day's low of 19,084.68 in mid-morning trade.
The CNX Nifty was up 7.65 points or 0.13% to 5,816.05. The index hit a low of 5,770.25 in intraday trade. The index hit a high of 5,829.80 in intraday trade, its highest level since 11 June 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 978 shares fell and 915 shares rose. A total of 102 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and the rest of them rose. Sterlite Industries (down 2.45%), Hindalco Industries (down 1.3%) and Tata Motors (down 1.38%), edged lower.
State Bank of India (SBI) rose 0.35%, with the stock reversing intraday losses.
Wockhardt (up 5%), United Phosphorous (up 4.19%), Aurobindo Pharma (up 3.8%) and Ipca Laboratories (up 3.16%), were the major gainers from the BSE A Group.
Sun Pharmaceutical Industries jumped 3.12%, with the stock extending intraday gains.
Bhel gained 2.08%, with the stock extending intraday gains.
Shares of two wheeler makers rose, shrugging off a hike in petrol price announced over the weekend. Hero MotoCorp (up 1.89%) and Bajaj Auto (up 0.22%), edged higher. PSU OMCs hiked petrol price by Rs 2 a litre on Saturday, 15 June 2013
Shares of index heavyweight Reliance Industries (RIL) gained 0.91%, with the stock extending Friday's 3.15% gains. Niko Resources said on 13 June 2013 said its proved reserves increased by 160%, and that a recent gas discovery in the D6 block off India's east coast could add significantly to future reserves. RIL is the operator of the block with a 60% stake. BP Plc holds 30% and Niko the rest.
Bharti Airtel rose 1.59% after the company today, 17 June 2013, said that it has completed the allotment of 19.98 crore new shares, representing 5% equity stake in the company, to Qatar Foundation Endowment. The shares, having face value of Rs 5 each, have been issued at a price of Rs 340 each on a preferential basis for a total consideration of Rs 6796 crore. The allotment marks one of the largest private equity transactions in the history of India, Bharti said. On 3 May 2013, Bharti and Qatar Foundation Endowment had announced a binding agreement for the share sale. As part of the entitlement, QFE is entitled to one seat on the board of Bharti.
The Reserve Bank of India (RBI) kept its key policy rate viz. the repo rate unchanged at 7.25% after mid-quarter review of the monetary policy today, 17 June 2013. The central bank also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4%. The RBI said in a statement that the inflation outlook going forward will be determined by suppressed inflation being released through revisions in administered prices, including the minimum support prices (MSP) as well as the recent depreciation of the rupee. The rupee declined 6.6% during the period from 22 May 2013 to 11 June 2013 due to sell-off by foreign institutional investors, reflecting risk-off sentiment triggered by apprehensions of possible tapering off of quantitative easing by the US Federal Reserve.
The RBI's monetary policy stance will be determined by how growth and inflation trajectories and the balance of payments situation evolve in the months ahead, the central bank said. It is only a durable receding of inflation that will open up the space for monetary policy to continue to address risks to growth, the RBI said. While several measures have been taken to contain the current account deficit, we need to be vigilant about the global uncertainty, the rapid shift in risk perceptions and its impact on capital flows, the central bank said. The RBI stands ready to use all available instruments and measures to respond rapidly and appropriately to any adverse developments, it said.
The India Meteorological Department (IMD) said on 14 June 2013 that cumulative seasonal rainfall for the country as a whole during the period between 1-13 June 2013 was 28% above the Long Period Average (LPA).
On the political front, the 17-year long relationship between the BJP and Janata Dal (United) ended on Sunday, 16 June 2013, as Bihar Chief Minister Nitish Kumar remained adamant against elevation of Narendra Modi to the BJP's election campaign committee. The BJP on 9 June 2013 appointed Modi as the Chairman of BJP's Election Campaign Committee for 2014 Lok Sabha polls which could make him the party's candidate for Prime Minister.
Janata Dal (United) rules in Bihar state in a coalition with the BJP. The split is unlikely to bring down Bihar's state government. Mr. Kumar said on Sunday he had asked the state's governor to sack the BJP's ministers. He said his party would seek a vote of confidence in Bihar's state assembly on June 19 to show it has a majority even without the BJP.
Asian stocks rose for a second day on Monday as investors await this week's Federal Reserve meeting. Key benchmark indices in Hong Kong, Indonesia, Japan, Taiwan and Singapore rose by 0.29% to 2.73%. Key benchmark indices in China and South Korea shed by 0.12% to 0.32%.
Singapore's exports fell more than economists estimated in May as manufacturers shipped fewer electronics after an uneven global recovery hurt demand. Non-oil domestic exports slid 4.6% from a year earlier, after falling 1% in April, the trade promotion agency said in a statement today.
Trading in US index futures indicated that the Dow could gain 86 points at the opening bell on Monday, 17 June 2013. US stocks fell on Friday as the International Monetary Fund cut its 2014 outlook for the US and urged the central bank to carefully manage its exit from stimulus plans. The Washington-based IMF lowered its US growth forecast for 2014 to 2.7%, from 3% predicted in April. It left its predication for growth this year unchanged at 1.9%. The IMF sees the Federal Reserve maintaining large monthly bond purchases until at least the end of this year and urged the central bank to carefully manage its exit plan to avoid disrupting financial markets.
The Thomson Reuters/University of Michigan June preliminary index of consumer sentiment fell to 82.7 from a final reading of 84.5 the prior month. Other reports showed US industrial production was unchanged in May and wholesale prices climbed for the first time in three months.
The Federal Open Market Committee, the Fed's interest-rating setting body, is due to begin its two-day meeting on interest rates in the United States tomorrow, 18 June 2013. Uncertainty about whether the Fed will curtail the pace of its bond purchases, set at $85 billion a month, directed at encouraging US economic growth, has weighed on global stocks over the past few weeks. Federal Reserve Chairman Ben Bernanke said last month that the bank could start scaling back its aggressive easing program in coming months if data continue to improve.
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