Key benchmark indices edged lower in early trade on weak Asian stocks. The S&P BSE Sensex was down 61.53 points or 0.32%, off close to 75 points from the day's high and up about 10 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Shares of index heavyweight Reliance Industries (RIL) edged lower in early trade.
IDFC edged higher after the company said that its board has approved a resolution for making an application to the Reserve Bank of India (RBl) for obtaining a banking license. Bharat Heavy Electricals (Bhel) rose after the company said it has won an order worth Rs 450 crore for the Energy Efficient Renovation & Modernisation (EE R&M) of a 210 MW thermal unit in Maharashtra. MMTC was locked at 5% lower circuit at Rs 147 on BSE, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake at a huge discount to the stock's ruling market price last week.
The rupee was off session lows in early trade on Wednesday, but still remained close to its record low ahead of the outcome of the Federal Reserve meeting that may signal a tapering down of the US stimulus programme. The rupee was trading at 58.69 per dollar. The rupee hit a record closing low of 58.77/78 on Tuesday, and remains within touch of an all-time low of 58.98 last week. 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.
Foreign institutional investors (FIIs) sold shares worth a net Rs 597.37 crore on Tuesday, 18 June 2013, as per provisional data from the stock exchanges.
At 9:30 IST, the S&P BSE Sensex was down 61.53 points or 0.32% to 19,161.75. The index fell 71.67 points at the day's low of 19,171.09 in early trade. The index rose 11.20 points at the day's high of 19,257.41 in early trade.
The CNX Nifty was down 18 points or 0.31% to 5,795.60. The index hit a low of 5,791.65 in intraday trade. The index hit a high of 5,809.25 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 373 shares rose and 274 shares fell. A total of 46 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell and the rest of them rose. ONGC (down 0.86%), L&T (down 0.65%) and NTPC (down 0.56%), edged lower.
Shares of index heavyweight Reliance Industries (RIL) declined 0.72%, with the stock falling for the second straight day. 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.
Tata Motors shed 0.74%. The company is reportedly set to launch a revamped version of its small car Nano today, 19 June 2013. The revamped Nano is likely to come with aesthetic changes but retain its engine. The latest Nano facelift is expected to come with a marginal increase in its price tag, reports suggest.
Axis Bank declined 0.3%. The bank after market hours on Tuesday, 18 June 2013, said that its board of directors on 18 June 2013 passed a resolution approving the allotment of Senior Notes aggregating to $20 million under the MTN Programme through its Dubai International Financial Centre (DIFC) branch.
MMTC was locked at 5% lower circuit at Rs 147 on BSE, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake at a huge discount to the stock's ruling market price last week. The government last week sold 9.33% stake in MMTC via Offer for Sale through stock exchanges mechanism at an indicative price of Rs 60.86 per share. The divestment was done to make the company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR). Sebi has mandated minimum public shareholding of 10% for state-run firms by August 2013.
IDFC rose 3.01% after the company after market hours on Tuesday, 18 June 2013, said its board has approved a resolution for making an application to the Reserve Bank of India (RBl) for obtaining a banking license based on the guidelines for licensing of new banks in the private sector dated 22 February 2013 and the associated clarifications issued by RBI on 3 June 2013.
State-run power equipment major Bharat Heavy Electricals (Bhel) rose 0.33% after the company on Tuesday, 18 June 2013, said it has won an order worth Rs 450 crore for the Energy Efficient Renovation & Modernisation (EE R&M) of a 210 MW thermal unit in Maharashtra. The World Bank-funded contract has been placed on Bhel by the Maharashtra State Power Generation Corporation (MSPGCL). With this order, Bhel has made an entry into the Energy Efficient Renovation, Modernisation and Uprating business. More and more utilties in the country are preparing to go in for renovation & modernisation (R&M) of aging thermal units to extend the life of the plants as well as to maximize generation, Bhel said in a statement. Bhel's scope of work in the contract involves design, engineering, manufacture, supply and erection & commissioning of critical parts of the boiler, turbine and generator, along with their controls & instrumentation. The order also envisages uprating of the unit.
Asian stocks fell on Wednesday, 19 June 2013, as investors were cautious ahead of the conclusion of a Federal Reserve policy meeting for clues on Fed's bond purchases. Key benchmark indices in China, Hong Kong, Indonesia, Singapore and South Korea fell by 0.3% to 1.35%. Key benchmark indices in Taiwan and Japan rose by 0.23% to 1.25%.
Japan's exports surged by the most since 2010 as the yen weakened and shipments to the US jumped, boosting Prime Minister Shinzo Abe's campaign to revive the world's third-largest economy. Exports increased 10.1% in May from a year earlier, the Finance Ministry said in Tokyo today.
US stocks rose for the second day in a row on Tuesday as investors bet that the Federal Reserve will stay the course on its economic stimulus policy.
A two-day meeting of the Federal Open Market Committee, the Fed's interest-rating setting body, ends today, 19 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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