A bout of volatility was witnessed in afternoon trade as the key benchmark indices cut losses after hitting fresh intraday low. The S&P BSE Sensex was down 37.03 points or 0.19%, up 75.37 points from the day's low and off 45.23 points from the day's high. The market breadth, indicating the overall health of the market, turned negative from positive in afternoon trade. Index heavyweight Reliance Industries (RIL) turned volatile.
Private sector bank stocks fell across the board. Shares of state-run bank stocks were mixed. Shares of IPCA Laboratories hit record high. Mahindra & Mahindra Financial Services struck record high. Shares of Idea Cellular scaled 52-week high. Bharti Infratel hit record low.
A steep slide in rupee against the dollar weighed on investor sentiment. The rupee was hovering at 58.45 against the dollar, sharply lower than Monday's close of 57.87/88. The Reserve Bank of India (RBI) on Monday, 17 June 2013, refrained from cutting its key policy rate further despite sluggish economic growth due to the recent steep slide in rupee against the dollar. The central bank after a monetary policy review said that the weakness in rupee could adversely impact inflation which has been slowing in the past few months. A weak rupee makes the cost of oil and other imported goods higher in rupee terms, adding to inflationary pressure.
A bout of volatility was witnessed in early trade as key benchmark indices slipped into the negative terrain after opening slightly higher. The Sensex hovered in red in morning trade. The Sensex trimmed intraday losses in mid-morning trade. Key benchmark indices traded off intraday lows in early afternoon trade. Volatility ruled the roost in afternoon trade as the key benchmark indices cut losses after sliding to intraday low.
At 13:20 IST, the S&P BSE Sensex was down 37.03 points or 0.19% to 19,288.84. The index fell 112.40 points at the day's low of 19,213.47 in afternoon trade. The index rose 8.20 points at the day's high of 19,334.07 in opening trade.
The CNX Nifty was down 20.55 points or 0.35% to 5,829.50. The index hit a low of 5,808.30 in intraday trade. The index hit a high of 5,843.95 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in afternoon trade. On BSE, 1,067 shares declined and 1,049 shares gained. A total of 150 shares were unchanged.
The total turnover on BSE amounted to Rs 881 crore by 13:20 IST.
Among the 30-share Sensex pack, 18 stocks fell and the rest of them rose.
Private sector bank stocks fell across the board. ICICI Bank (down 0.91%), HDFC Bank (down 1.04%), Yes Bank (down 1.72%), Axis Bank (down 1.67%) and IndusInd Bank (down 1.47%) declined. Kotak Mahindra Bank rose 1.44%.
Shares of state-run bank stocks were mixed. State Bank of India (down 0.41%), Punjab National Bank (down 1.13%) and Canara Bank (down 0.75%) Bank of India (down 0.21%), Bank of Baroda (down 2.23%) declined.
Union Bank of India (up 1.25%), Indian Overseas Bank (up 1.03%) and Vijaya Bank (up 0.98%) gained.
The Reserve Bank of India (RBI) kept repo rate and cash reserve ratio unchanged after mid-quarter review of the monetary policy on Monday, 17 June 2013.
Shares of index heavyweight Reliance Industries (RIL) gained 0.53% to Rs 829.80, off day's high of Rs 836.90 in volatile trade. The stock came off the day's low of Rs 817.70. RIL shares had risen recently after Niko Resources 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.
Shares of IPCA Laboratories rose 0.98% to Rs 678.05 after striking a record high of Rs 691.30 in intraday trade today, 18 June 2013.
Shares of Idea Cellular rose 1.79% to Rs 142.20 after striking a 52-week high of Rs 142.50 in intraday trade today, 18 June 2013.
Mahindra & Mahindra Financial Services advanced 1.1% to Rs 267 after striking a record high of Rs 271.60 in intraday trade today, 18 June 2013.
Bharti Infratel slipped 1.34% to Rs 151.25 after striking a record low of Rs 148 in intraday trade today, 18 June 2013.
Ranbaxy Laboratories lost 3.38% to Rs 353.80 after hitting a 52-week low of Rs 342.75 in intraday trade today, 18 June 2013. The Supreme Court will reportedly hear on 24 June 2013 a petition seeking probe against Ranbaxy Laboratories for allegedly manufacturing and selling adulterated medicines. Ranbaxy on 31 May 2013 had said all Ranbaxy products currently in the Indian and global markets are safe and efficacious. The company stands by the quality of every medicine that the company makes and distributes in India and every country around the world, it had said. The company's India facilities are routinely inspected by Drug Controller General of India and many other global regulatory agencies, Ranbaxy said at that time.
Adani Enterprises (up 4.08%), Reliance Communications (up 4%), Cadila Healthcare (up 3.65%), GMDC (up 3.37%) and Wockhardt (up 3.24%) were the top gainers from the BSE's 'A' group.
Finance Minister P. Chidambaram on Monday, 17 June 2013, said that the government is proactively working towards operationalisation of 215 stalled projects involving investment of about Rs 7 lakh crore with a view to give a push to the production activity in the country. The only way to contain Current Account Deficit (CAD) is to increase the domestic production of oil and coal and restraining the consumption of gold. Chidambaram made the comments while addressing a meeting of the Parliamentary Consultative Committee of the Ministry of Finance on India's high CAD and measures to contain the deficit.
On political front, the ruling Congress government ahead of 2014 Lok Sabha elections appointed eight new ministers on Monday. In all, eight ministers -- four Cabinet and four ministers of state -- were sworn in on Monday evening. Mallikarjun Kharge became new minister for railways, and Oscar Fernandes was sworn in as minister for roads and highways.
European stock markets were mostly lower at the open on Tuesday, as investors remained cautious ahead of the U.S. Federal Reserve's policy meeting, which could signal a potential slowdown in the bank's asset purchases. Key benchmark indices in France and Germany were down by 0.31% to 0.36%. UK's FTSE 100 rose 0.09%.
Most Asian stocks rose on Tuesday, 18 June 2013. Key benchmark indices in China, Indonesia, Taiwan, Singapore and South Korea rose by 0.23% to 1.74%. Key benchmark indices in Hong Kong and Japan fell by 0.2% to 0.31%.
Foreign direct investment in China rose in May by the least in four months, a sign of concern that growth is slowing in the world's second-biggest economy. Inbound non-financial investment increased 0.3% from a year earlier to $9.26 billion, the Ministry of Commerce said today in a statement in Beijing, after a 0.4% gain in April.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Tuesday, 18 June 2013. US stocks surged on Monday as investors await Wednesday's monetary-policy decision by the Federal Open Market Committee.
A two-day meeting of the Federal Open Market Committee, the Fed's interest-rating setting body, begins today, 18 June 2013. Fed 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. The Fed's monthly bond purchases of $85 billion a month is aimed at encouraging US economic growth.
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