Key benchmark indices extended intraday losses and hit fresh intraday low in early afternoon trade. The barometer index, the S&P BSE Sensex, was down 167.12 points or 0.79%, off close to 100 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Weakness in Asian stocks hit sentiment on the domestic bourses adversely. In the foreign exchange market, the rupee edged lower against the dollar on speculation a US budget agreement will boost prospects for the Federal Reserve to start tapering its monetary stimulus for the US economy.
IT stocks dropped. Index heavyweight Reliance Industries (RIL) fell. Wheels India rose after the company's board of directors proposed to issue shares to public shareholders on rights basis to comply with the minimum public shareholding requirements.
The market edged lower in early trade on weak Asian stocks. Key benchmark indices extended initial losses and hit fresh intraday low in morning trade. The Sensex, and the 50- unit CNX Nifty, both, hit their lowest level in almost a week. The Sensex hovered in negative terrain in mid-morning trade. Key benchmark indices extended intraday losses and hit fresh intraday low in early afternoon trade.
Asian stocks dropped on Thursday, 12 December 2013, on heightened expectations the Federal Reserve may act sooner than later to unwind its stimulus after a provisional budget deal in Washington eased some of the fiscal drag on the US economy.
At 12:20 IST, the S&P BSE Sensex was down 167.12 points or 0.79% to 21,004.29. The index fell 168.74 points at the day's low of 21,002.67 in early afternoon trade, its lowest level since 6 December 2013. The index declined 67.61 points at the day's high of 21,103.80 in early trade.
The CNX Nifty was down 49.35 points or 0.78% to 6,258.55. The index hit a low of 6,254.50 in intraday trade, its lowest level since 6 December 2013. The index hit a high of 6,286.85 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,208 shares fell and 911 shares rose. A total of 144 shares were unchanged.
From the 30-share Sensex pack, 25 stocks fell and rest rose. Tata Motors (down 2.81%), ONGC (down 1.63%) and Maruti Suzuki India (down 1.59%) declined.
IT stocks dropped. Infosys (down 0.17%) and Wipro (down 1.52%) declined.
TCS was off 1.1% at Rs 2,034. The company announced during market hours that it has been selected by the Improvement Service to implement a Citizen Account Service for Scottish citizens, allowing them to access numerous digital public services from a single user profile. The project is TCS's first public sector win in Scotland.
HCL Technologies dropped 0.73%. Index compiler FTSE has raised the 'investability weight' in its global equity index series of HCL Technologies to 38% from 30%.
Tech Mahindra shed 0.34%. FTSE has raised 'investability weight' in its global equity index series of Tech Mahindra to 45% from 24%.
Shares of local search engine Just Dial gained 1.77% after index compiler FTSE said it will include the stock in its FTSE AllCap index, effective from the start of trading on 23 December 2013.
Index heavyweight Reliance Industries (RIL) was off 1.13% at Rs 871.05. The scrip hit high of Rs 879.95 and low of Rs 869 so far during the day. Bharti Airtel fell 0.99%. Shares of Bharti Airtel's telecom tower infrastructure subsidiary -- Bharti Infratel dropped 3.14% after Wednesday's gains. Reliance Jio Infocomm, a subsidiary of Reliance Industries and Bharti Airtel on Tuesday, 10 December 2013, announced a comprehensive telecom infrastructure sharing arrangement under which they will share infrastructure created by both parties. This will include optic fibre network - inter and intra city, submarine cable networks, towers and internet broadband services and other such opportunities identified in the future, Reliance Jio Infocomm and Bharti Airtel said in a joint statement issued after trading hours on Tuesday, 10 December 2013.
The cooperation is aimed at avoiding duplication of infrastructure, wherever possible, and to preserve capital and the environment, the two companies said. This will also provide redundancy in order to ensure seamless services to customers of the respective parties, they said. The arrangement could, in future, be extended to roaming on 2G, 3G and 4G, and any other mutually benefiting areas relating to telecommunication, including but not limited to jointly laying optic fibre or other forms of infrastructure services. The pricing would be at 'arm's length', based on the prevailing market rates. As part of this arrangement, Bharti and Reliance Jio have already announced an agreement under which Bharti has provided capacity on its i2i submarine cable to Reliance Jio.
Wheels India rose 1.71% after the company's board of directors proposed to issue shares to public shareholders on rights basis to comply with the minimum public shareholding requirements. The announcement was made after market hours on Wednesday, 11 December 2013.
Wheels India said that the company's board of directors proposes to pass a resolution(s) by Circulation on 16 December 2013, inter alia, to consider the issue of equity shares on rights basis to comply with the minimum public shareholding requirements applicable to the company, by way of a rights offering to the public shareholders of the company with the promoters and promoter group shareholders of the company foregoing their rights entitlement, as permitted by the Sebi.
Promoters own 91.44% stake in Wheels India (as per the shareholding pattern as on 30 September 2013). Promoter shareholding in private companies is not allowed to exceed 75% i.e. minimum public shareholding of 25% to comply with Sebi norms.
HeidelbergCement India rose 2.3% to Rs 37.85 after the company said a meeting of the board of directors of the company will be held on 16 December 2013, inter alia, to consider issue and allotment of non-convertible debentures aggregating to Rs 370 crore on private placement basis to its non-resident parent/group companies.
The Securities and Exchange Board of India (SEBI) unveiled new proposals on Wednesday, 11 December 2013, broadening the scope of who can be held liable for insider trading violations, as it steps up its fight against securities fraud. India's financial market regulator plans to include company employees, directors and their immediate relatives and other stakeholders such as founders, handling market sensitive information under its purview. Under current rules only senior executives are liable for trading violations.
Officials with access to sensitive information will also be required to submit planned trades in company shares ahead of time to resolve any potential conflict of interest. The new proposals also mandate that every listed company and market intermediary formulate a code of conduct to regulate, monitor and report trading in securities by its employees or connected persons. Trades by stakeholders, employees, directors and their immediate relatives would need to be disclosed internally to the company.
In the foreign exchange market, the rupee edged lower against the dollar on speculation a US budget agreement will boost prospects for the Federal Reserve to start tapering its monetary stimulus for the US economy. The partially convertible rupee was hovering at 61.64, compared with its close of 61.245/255 on Wednesday, 11 December 2013.
Indian government bond prices dropped on speculation a US budget agreement will boost prospects for the Federal Reserve to start tapering its monetary stimulus for the US economy. The yield on the new 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.8348%, higher than its close of 8.8265% on Wednesday, 11 December 2013. Bond yield and bond prices are inversely related.
The Reserve Bank of India on Wednesday, 11 December 2013, said it has decided to provide additional liquidity of Rs 10000 crore through the 14-day term repo scheduled to be conducted on Friday, 13 December 2013. Accordingly, the notified amount for the 14-day term repo auction to be conducted on that day will be adjusted upwards by Rs 10000 crore. The RBI said it has announced this additional liquidity support for the banking sector so as to ensure that adequate liquidity is available to support the flow of credit to the productive sectors of the economy. The RBI said that the liquidity conditions are expected to tighten in the immediate future on account of advance tax payments commencing from mid-December 2013.
The government will unveil industrial production data for October 2013 after trading hours today, 12 December 2013. Industrial output is estimated to fall 1.5% in October 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production rose 2% in September 2013, showing increase in growth from 0.4% growth recorded in August 2013.
Data on inflation based on the general consumer price index (CPI) for November 2013 will also be unveiled after trading hours today, 12 December 2013. CPI (combined) for November 2013 is estimated at 10%, as per the median estimate of a poll of economists carried out by Capital Market. The CPI inflation (combined) for October 2013 stood at 10.09% (y-o-y), higher than 9.84% (y-o-y) seen in September 2013.
The government will unveil data on inflation based on the wholesale price index (WPI) for November 2013 on 16 December 2013. WPI is seen easing a bit at 6.9% in November 2013, from 7% in October 2013, as per the median estimate of a poll of economists carried out by Capital Market.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
President Pranab Mukherjee has given the Andhra Pradesh Assembly six weeks to decide on Telangana. The President had on Wednesday sent the Telangana Bill to the Andhra Pradesh Assembly for consideration. Earlier, Pranab Mukherjee held consultations with legal experts on various provisions of the draft Telangana Bill proposing splitting of Andhra Pradesh.
Asian shares slipped to a four-week low on Thursday, 12 December 2013, on heightened expectations the Federal Reserve may act sooner than later to unwind its stimulus after a provisional budget deal in Washington eased some of the fiscal drag on the US economy. Key benchmark indices in Taiwan, South Korea, Indonesia, Singapore, Japan and Hong Kong were off 0.25% to 1.12%. China's Shanghai Composite rose 0.09%.
Chinese policy makers are meeting this week to set economic growth targets for 2014. China's central economic work conference, which is expected to end today or tomorrow, will set the tone for macroeconomic policy and decide major targets for 2014.
Trading in US index futures indicated that the Dow could fall 16 points at the opening bell on Thursday, 12 December 2013. US stocks posted their biggest drop in a month on Wednesday as traders locked in recent gains after Congress announced the provisional budget deal. The bipartisan budget agreement reached late on Tuesday, though modest in spending cuts, would end three years of political squabbling in Washington that climaxed in October with a two-week partial government shutdown. The US House of Representatives could vote on the deal tomorrow, 13 December 2013.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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