Key benchmark indices regained positive zone in mid-morning trade after sliding to an intraday low. The S&P BSE Sensex was up 8.88 points or 0.05%, up 53.73 points from the day's low and off 52.47 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Reliance Industries pared intraday gain. Telecom stocks declined on reports of likely Empowered Group of Ministers (EGoM) on telecom meeting today, 26 June 2013 to decide on spectrum price for the proposed third round of auction of airwaves. Bharti Airtel dropped on reports the Department of Telecom (DoT) has decided to slap a Rs 650 crore penalty on the company for violating roaming norms in 13 circles between 2003-2005.
Auto stocks declined. Bajaj Auto dropped after the company after market hours on Tuesday, 25 June 2013 said workmen at its Chakan plant in Pune have stopped coming to work. Bharat Heavy Electricals (Bhel) recovered on bargain hunting.
Key benchmark indices opened higher on mostly positive Asian stocks only to pare gains later. Market once again pared gains in morning trade after staging a recovery from intraday low. Key benchmark indices regained positive zone in mid-morning trade after sliding to an intraday low.
The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expire tomorrow, 27 June 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1285.86 crore on Tuesday, 25 June 2013, as per provisional data from the stock exchanges.
At 11:18 IST, the S&P BSE Sensex was up 8.88 points or 0.05% to 18,638.03. The index gained 61.35 points at the day's high of 18,690.50 in morning trade. The index fell 44.85 points at the day's low of 18,584.30 in mid-morning trade.
The CNX Nifty was up 8.80 points or 0.16% to 5,617.90. The index hit a high of 5,635.25 in intraday trade. The index hit a low of 5,600.35 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 995 shares gained and 901 shares fell. A total of 117 shares were unchanged.
The total turnover on BSE amounted to Rs 489 crore by 11:20 IST compared to Rs 286 crore by 10:20 IST.
Among the 30-share Sensex pack, 18 stocks gained and rest of them declined.
Reliance Industries (RIL) rose 0.46% at Rs 807.50, with the stock paring intraday gain. The stock hit a high of Rs 814.55 and low of Rs 805.10 so far during the day. As per reports, the Cabinet Committee on Economic Affairs (CCEA) will consider a proposal this week for a steep hike in natural gas prices. The CCEA last week deferred a decision on a proposal to hike natural gas prices as Oil Minister M Veerappa Moily was away on an official tour. The oil ministry has proposed an increase in gas prices to $6.775 million British thermal unit (mbtu) from current $4.2 mbtu. The Oil Ministry has proposed raising gas price for state-run firms immediately and that for Reliance Industries (RIL) from April 2014 when it is contractually due.
Auto stocks declined. Bajaj Auto fell 1.2% after the company after market hours on Tuesday, 25 June 2013 said workmen at its Chakan plant in Pune have stopped coming to work. Bajaj Auto said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift of 28 June 2013. The workmen have, however, stopped coming to the Chakan plant from 25 June 2013, itself, without assigning any reason for this stoppage, the company said in a filing.
The company said it had earlier received a notice from the workmen's union of its Chakan plant -- Vishwa Kalyan Kamgar Sanghatana -- stating that they propose to call for a stoppage of work by all the workmen employed in Chakan plant from the morning shift of 28 June 2013.
The reason for the strike was that management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share, Bajaj Auto added.
Hero MotoCorp rose 1.13%.
Maruti Suzuki India (down 0.35%), M&M (down 1.43%) and Tata Motors (down 2.91%) declined.
Telecom stocks declined on reports of likely Empowered Group of Ministers (EGoM) on telecom meeting today, 26 June 2013 to decide on spectrum price for the proposed third round of auction of airwaves. The EGoM may also take a call on revision of conditions that were finalised by it for previous auctions.
Idea Cellular (down 0.63%), MTNL (down 0.09%), and Reliance Communications (down 0.43%) declined. Tata Teleservices (Maharashtra) rose 1.57%.
Bharti Airtel lost 4.71% to Rs 281.50 on reports the Department of Telecom (DoT) has decided to slap a Rs 650 crore penalty on Bharti Airtel for violating roaming norms in 13 circles between 2003-2005. It was the top loser from the Sensex pack.
Meanwhile, the Reserve Bank of India (RBI) on Tuesday extended the scheme for telecom companies to refinance their rupee loans taken for funding 3G spectrum with long-term overseas borrowing till 31 March 2014.
The payment for spectrum allocation may initially be met out of the rupee resources by successful bidders, to be refinanced with a long-term external commercial borrowing (ECB) is subject to the condition that ECB should be raised within 12 months from the date of payment of the final installment to the government, the RBI said.
Bharat Heavy Electricals (Bhel) rose 1.19% to Rs 165.55, with the stock recovering on bargain hunting. Shares of Bhel had declined 10.28% in six trading sessions to settle at Rs 163.60 on Tuesday, 25 June 2013, from a recent high of Rs 182.35 on 17 June 2013.
Meanwhile, market regulator Securities & Exchange Board of India (Sebi) on Tuesday approved changes to buyback of shares or other specified securities from the open market through stock exchange mechanism as part of its constant endeavour to align regulatory requirements with the changing market realities as well as to enhance efficiency of the buy-back process.
Sebi said after a board meeting that the mandatory minimum buy-back has been increased to 50% of the amount earmarked for the buy-back, as against existing 25%, failing which amount in the escrow account would be forfeited subject to a maximum of 2.5% of the total amount earmarked. The maximum buy-back period has been reduced to 6 months from 12 months, it added.
Sebi's new rules will require companies to not raise further capital for a period of one year from the closure of the buy-back except in discharge of subsisting obligations as against the existing 6 months. The company shall not make another buy-back offer within a period of one year from the date of closure of the preceding offer. The companies can buy-back 15% or more of capital (paid-up capital and free reserves) only by way of tender offer, it added.
Approving a Sebi committee report on the rationalization of foreign investment routes, Sebi also introduced uniform entry norms for existing foreign institutional investors (FIIs), sub-accounts and qualified foreign investors (QFIs) and combined these entities under a category known as foreign portfolio investors (FPIs).
In another key move, the regulator approved the proposal to put in place a single self-regulatory organization (SRO) for mutual fund distributors. In order to speed up the process, Sebi decided to have a cut-off time for accepting applications from potential SROs.
Asian stocks edged higher to reverse a four-day losing streak on Wednesday as investors took comfort from firm U.S. data underscoring an American recovery, and assurances from China's central bank to provide funds to institutions if needed. Key benchmark indices in Hong Kong, Japan, South Korea, Indonesia, Taiwan and Singapore were up by 0.19% to 2.83%. China's Shanghai Composite index fell 1.12%, extending recent losses on fears of a credit crunch and slower loan growth.
Trading in US index futures indicated that the Dow could fall 31 points at the opening bell on Wednesday, 26 June 2013. US stocks rose sharply on Tuesday cheered by upbeat economic data showing increases in durable-goods orders, new-home sales and consumer confidence.
The Commerce Department said orders for goods built to last at least three years rose 3.6% in May.
Another report from the Commerce Department indicated new-home sales rising 2.1% last month. Separately, the S&P/Case-Shiller index of home values rose 12.1% in April from a year earlier, the biggest jump in more than seven years. The Conference Board's consumer-confidence index rose to 81.4 in June from 74.3 in May.
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