A choppy trading session was witnessed in late trade as key benchmark indices trimmed losses soon after extending intraday decline. The recovery materialized as international crude oil prices reversed gains. Higher global crude oil prices and hike in railway freight rates have triggered worries of higher inflation in India. The government after trading hours on Friday, 20 June 2014, announced 6.5% hike in railway freight rate and 14.2% increase in railway passenger fare to boost revenue of the railways to meet its annual expenditure. The barometer index, the S&P BSE Sensex, regained the psychological 25,000 level in late trade after alternately moving above and below that mark during the session. The Sensex was provisionally down 41.99 points or 0.17%, up about 185 points from the day's low and off close to 135 points from the day's high. The market breadth indicating the overall health of the market turned positive from negative in late trade.
Today's decline marked fourth straight day of decline for Indian stocks.
Index heavyweight and cigarette maker ITC slumped on reports that Union health minister Harsh Vardhan has urged Finance Minister Arun Jaitley to raise tax on cigarettes in the upcoming final Union Budget for 2014-15 to deter people from smoking. Shares of power generation firms were mixed after the government raised freight rates on Friday, 20 June 2014. Tyre stocks rallied, with CEAT hitting record high.
As per provisional figures, the S&P BSE Sensex was down 41.99 points or 0.17% to 25,063.52. The index shed 226.85 points at the day's low of 24,878.66 in late trade, its lowest level since 5 June 2014. The index jumped 91.99 points at the day's high of 25,197.50 in early trade.
The CNX Nifty was down 12.15 points or 0.16% to 7,499.30, as per provisional figures. The index hit a low of 7,441.60 in intraday trade, its lowest level since 5 June 2014. The index hit a high of 7,534.80 in intraday trade.
The total turnover on BSE amounted to Rs 3006 crore, lower than Rs 3056.97 crore on Friday, 20 June 2014.
The market breadth indicating the overall health of the market turned positive from negative in late trade. On BSE, 1,556 shares rose and 1,390 shares fell. A total of 126 shares were unchanged. Earlier, the breadth had turned negative from positive in afternoon trade.
The BSE Mid-Cap index was up 59.03 points or 0.66% at 9,020.99. The BSE Small-Cap index was up 62.18 points or 0.64% at 9,823.40. Both these indices outperformed the Sensex.
Index heavyweight and cigarette maker ITC dropped on reports that Union health minister Harsh Vardhan has urged Finance Minister Arun Jaitley to raise tax on cigarettes in the upcoming final Union Budget for 2014-15 to deter people from smoking. The stock was off 5.92% at Rs 316. The stock hit high of Rs 335 and low of Rs 312.40. In a letter to the Finance Minister, Vardhan has sought an increase in tax on cigarettes of all lengths by Rs 2 to Rs 3.5 per stick, as per reports.
Shares of power generation firms were mixed after the government raised freight rates on Friday, 20 June 2014. The cost of transport of coal will rise after a freight rate hike. Coal is a primary raw material used in thermal power generation process. Reliance Power (down 0.73% to Rs 102.05), JSW Energy (down 1.63% to Rs 72.25) and Reliance Infrastructure (down 3.12% to Rs 705.30) declined. NTPC (up 0.73% to Rs 152.80), Tata Power Company (up 0.39% to Rs 101.75) and Adani Power (up 0.34% to Rs 58.95), gained.
Shares of state-run oil marketing companies (PSU OMCs) rose as increase in railway passenger fare and freight rates signaled that the government may take pro-reform measures such as deregulation of diesel prices. Among PSU OMCs, Indian Oil Corporation (up 1.6% at Rs 327.90), HPCL (up 1.1% at Rs 391.15) and BPCL (up 0.42% at Rs 556.30) edged higher.
Among upsteam oil firms ONGC (up 5.15% to Rs 439.20) and Oil India (up 3.07% to Rs 585) surged.
Tyre stocks rallied. Apollo Tyres (up 2.97% to Rs 197.80), JK Tyre & Industries (up 4.6% to Rs 311.85), and MRF (up 1.76% to Rs 23,600) gained.
CEAT surged 12.59% to Rs 658.95 after hitting record high of Rs 677 in intraday trade.
Praj Industries jumped on reports that the government has decided to raise the level of mandatory blending of ethanol in petrol to 10% from 5%, as a part of measures for the revival of the sugar industry. The stock was up 5.82% at Rs 71.80. Praj Industries undertakes implementation of projects for installing plants based on a variety of sugar based feed stocks for 1st generation ethanol production. Ethanol is produced by the fermentation of molasses. Molasses is a by-product of the refining of sugarcane into sugar.
Deepak Nitrite rose 3.31% to Rs 99.80 after the company said that its board of directors at a meeting held today, 23 June 2014, approved the sale of parcel of land admeasuring 12,141 sq. mt at Sinhagad Road, Pune, Maharashtra. The announcement was made during mrket hours today, 23 June 2014. The proposal to sell the said land is with a view to monetize the value of its unutilized assets and improve shareholders value by freeing up capital to facilitate growth, Deepak Nitrite said. The company will continue to make additional disclosures as and when definitive material events in this process takes place, Deepak Nitrite added.
Indian stocks witnessed high intraday volatility today, 23 June 2014. The market edged higher amid initial volatility as the government's announcement after trading hours on Friday, 20 June 2014, to raise passenger fare and railway freight fuelled expectations that the Centre has started taking tough decisions which are required to bring the economy back on growth path. But, the initial gains proved short lived as firm global crude oil prices and hike in railway freight rates stoked inflation worries. The Sensex and the 50 Nifty, both, hit their lowest level in 2-1/2 weeks in morning trade. A bout of volatility was witnessed as key benchmark indices weakened once again after trimming losses after hitting fresh intraday low in mid-morning trade as firm global crude oil prices and hike in railway freight rates stoked inflation worries. The Sensex regained the psychological 25,000 level after falling below that mark in intraday trade. Key benchmark indices weakened once again after trimming intraday losses in early afternoon trade. Key benchmark indices extended losses and hit fresh intraday low in afternoon trade after European market opened lower. The Sensex fell below the psychological 25,000 mark. Key benchmark indices trimmed losses in mid-afternoon trade. A choppy trading session was witnessed in late trade as key benchmark indices trimmed losses soon after extending intraday decline. The Sensex regained 25,000 level.
Indian stocks may continue to remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month June 2014 series to July 2014 series. The near-month June 2014 F&O contract expire on Thursday, 26 June 2014.
The government on Friday, 20 June 2014, raised passenger fare and freight rates. A flat 10% increase in passenger fare was announced for all classes. In addition, there will be an increase of 4.2% in fares on account of FAC (Fuel Adjustment Component) which is due from April 2014. The overall increase in passenger fare is 14.2%.
There has been a flat 5% increase in freight rates. In addition there will be an increase of 1.4% in fares on account of FAC (Fuel Adjustment Component) which is due from April 2014. The overall increase in freight rates will be about 6.5% for major commodities. The revised passenger fare and freight rates and freight structure rationalization will come into effect from 25 June 2014.
Brent crude oil prices reversed intraday gains. Brent oil futures for August delivery were off 3 cents at $114.78 a barrel. The contract had risen past $115 a barrel earlier during the day. Brent had dropped on Friday, 20 June 2014, after settling at its highest level in more than nine months at $115.06 a barrel on Thursday, 19 June 2014.
The recent spike in crude oil has sparked worries about India's macroeconomic situation as India imports majority of its crude oil requirements. Increase in crude oil prices has raised concerns of increase in India's current account deficit and fiscal deficit. Firm global crude oil prices and the latest hike in railway freight rate have also stoked inflation worries.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.215, compared with its close of 60.185/195 on Friday, 20 June 2014.
European markets edged lower on Monday, 23 June 2014, after data showed Euro-area manufacturing and services activity weakened in June. Key benchmark indices in UK, France and Germany were off 0.3% to 0.6%.
Euro-area manufacturing and services activity weakened in June amid a further slowdown in France's economy, underscoring the fragility of the recovery in the 18-nation region. A Purchasing Managers Index for both industries slipped to 52.8 in June from 53.5, Markit Economics said today. That's the 12th month the gauge has exceeded 50, the mark that signals expansion.
Most Asian stocks edged lower in choppy trade on Monday, 23 June 2014. Key benchmark indices in Indonesia, China, Singapore, Hong Kong and Taiwan were down by 0.04% to 1.68%. Key benchmark indices in Japan and South Korea were up by 0.13% and 0.35%.
Activity in China's factory sector expanded in June for the first time in six months as new orders surged, a preliminary HSBC survey showed on Monday, offering new signs the economy is stabilising thanks to Beijing's measures to shore up growth. The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index rose to 50.8 in June from May's final reading of 49.4. It was the first time since December that the PMI was in growth territory, and the highest reading since November, when it was also 50.8.
Trading in US index futures indicated that the Dow could gain 4 points at the opening bell on Monday, 23 June 2014. The Dow Jones Industrial Average and the S&P 500 index closed at record highs on Friday, helped by the prospect of the Federal Reserve keeping interest rates low for a long period of time.
Powered by Capital Market - Live News
