A bout of volatility was witnessed in early trade as key benchmark indices slipped into the negative terrain after opening higher. The S&P BSE Sensex was down 1 point or 0.01%, up about 5 points from the day's low and off close to 80 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Infosys gained after the company's US-based subsidiary Infosys Public Services bagged a one-year contract valued at $49.5 million from the US District of Columbia. Shares of Mahindra Group companies gained after the Mahindra Group and CIE Automotive S. A. (Spain) on Saturday, 15 June 2013, announced the signing of a global alliance agreement between Mahindra's automotive component businesses (held under its Systech Sector) and CIE Automotive (involving also its subsidiary Autometal). Maruti Suzuki India rose after the company announced the launch of the CNG variant of Ertiga.
At 9:30 IST, the S&P BSE Sensex was down 1 point or 0.01% to 19,176.93. The index fell 6.04 points at the day's low of 19,171.09 in early trade. The index rose 79.48 points at the day's high of 19,257.41 in early trade.
The CNX Nifty was down 4.95 points or 0.09% to 5,803.45. The index hit a low of 5,800.70 in intraday trade The index hit a high of 5,825.55 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 464 shares rose and 388 shares fell. A total of 48 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks rose and the rest of them fell. Bajaj Auto (down 1.15%), Jindal Steel & Power (down 0.99%) and GAIL (India) (down 0.91%), edged lower. Bharti Airtel (up 1.59%), Hero MotoCorp (up 1.42%) and Hindalco Industries (up 0.87%), edged higher.
Infosys gained 0.91% after the company said after market hours on Friday, 14 June 2013, that its US-based subsidiary Infosys Public Services has bagged a one-year contract valued at $49.5 million from the US District of Columbia to develop a new health benefit exchange, a crucial component of the Affordable Care Act. Infosys Public Services is the prime systems integrator of this healthcare system transformation that will bring critically important benefits to nearly one quarter million district residents, Infosys said in a statement. Individuals, families, and small businesses can purchase healthcare coverage through an online marketplace, the company said.
Mahindra & Mahindra (M&M) was up 2.24%. Mahindra Ugine Steel Company was locked at 10% upper circuit at Rs 71.70. Mahindra Forgings jumped 4.34%. The Mahindra Group and CIE Automotive S. A. (Spain) on Saturday, 15 June 2013, announced the signing of a global alliance agreement between Mahindra's automotive component businesses (held under its Systech Sector) and CIE Automotive (involving also its subsidiary Autometal). The agreement will see the formation of a global automotive component supply network with combined annual sales of approximately Rs 15000 crore or $3 billion with operations in North America, South America, Europe and Asia held through listed businesses in Spain, Brazil and India.
As part of the transaction, CIE Automotive, through one of its subsidiaries, will acquire from Mahindra Group a stake in its listed and unlisted companies belonging to Systech Automotive Component business and CIE Automotive will contribute its forging businesses in Spain and Lithuania and together consolidate all companies under Mahindra Forgings (MFL) which will be rechristened Mahindra CIE. Mahindra CIE will continue to be listed on BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
The share sale by Mahindra group will trigger open-offer provisions under the Securities Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations 2011. The proposed business transaction will be carried out in a series of steps over the next year that will culminate in Mahindra & Mahindra (M&M) taking a stake of 13.5% in CIE Automotive and CIE Automotive taking a majority stake in a single listed entity in India which will continue to operate the current Systech automotive component businesses globally and include CIE's European forgings operations. Post acquisition of 13.5% stake, M&M will be second largest shareholder in CIE. M&M will nominate 2 directors to the CIE board.
The Mahindra Systech business consists of five companies viz. Mahindra Forgings, Mahindra Ugine Steel Company, Mahindra Composites, Mahindra Hinoday Industries and Mahindra Gears.
Maruti Suzuki India rose 0.92% after the company on Saturday, 15 June 2013, announced the launch of the CNG variant of Ertiga, 7-seater utility vehicle named Ertiga Green. With this launch, Ertiga will now be available in all three fuel variants: CNG, petrol and diesel. Ertiga Green will be available in two variants viz. Ertiga Green LXi CNG and Ertiga Green VXi CNG with ex-showroom price of Rs 6.52 lakh and Rs 7.30 lakh respectively at Delhi. Ertiga Green will be available in states with CNG infrastructure including Delhi, NCR, Gujarat, Mumbai, Pune and parts of Andhra Pradesh, Uttar Pradesh and Madhya Pradesh.
Tata Motors declined 0.81%. The Tata Motors Group global wholesales in May 2013, including Jaguar Land Rover, were 81,783 units. Global wholesales of all commercial vehicles -- Tata, Tata Daewoo and the Tata Hispano Carrocera range -- were 38,641 units. Cumulative commercial vehicles wholesales for the fiscal were 78,610 units.
IndusInd Bank shed 0.84% as the stock turned ex-dividend today, 17 June 2013, for dividend of Rs 3 per share for the year ended 31 March 2013.
UCO Bank dropped 2.32% as the stock turned ex-dividend today, 17 June 2013, for dividend of Rs 1.60 per share for the year ended 31 March 2013.
Tech Mahindra declined 0.29%. The company after market hours on Friday, 14 June 2013, announced the appointment of Milind Kulkarni as Chief Financial Officer, and Manoj Bhat as Deputy Chief Financial Officer of the company. Sonjoy Anand, who has served as Chief Financial Officer of Tech Mahindra moves on having decided to pursue opportunities internationally, Tech Mahindra said in a statement. Milind Kulkarni has been Senior Vice President, Finance till now of the company. He will take charge of the CFO's office with immediate effect. Manoj Bhat who is leading the Corporate Planning (including Mergers and Acquisitions) and also Investor Relations portfolio, will now take up the additional responsibility of Deputy CFO.
The Reserve Bank of India (RBI) undertakes a mid-quarter review of the monetary policy today, 17 June 2013. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The India Meteorological Department (IMD) said on 14 June 2013 that cumulative seasonal rainfall for the country as a whole during the period between 1-13 June 2013 was 28% above the Long Period Average (LPA).
On the political front, the 17-year long relationship between the BJP and Janata Dal (United) ended on Sunday, 16 June 2013, as Bihar Chief Minister Nitish Kumar remained adamant against elevation of Narendra Modi to the BJP's election campaign committee. The BJP on 9 June 2013 appointed Modi as the Chairman of BJP's Election Campaign Committee for 2014 Lok Sabha polls which could make him the party's candidate for Prime Minister.
Janata Dal (United), rules in Bihar state in a coalition with the BJP. The split is unlikely to bring down Bihar's state government. Mr. Kumar said on Sunday he had asked the state's governor to sack the BJP's ministers. He said his party would seek a vote of confidence in Bihar's state assembly on June 19 to show it has a majority even without the BJP.
Asian stocks rose for a second day on Monday as investors await this week's Federal Reserve meeting. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Taiwan and Singapore rose by 0.09% to 1.37%. South Korea's Kospi fell 0.02%.
Singapore's exports fell more than economists estimated in May as manufacturers shipped fewer electronics after an uneven global recovery hurt demand. Non-oil domestic exports slid 4.6% from a year earlier, after falling 1% in April, the trade promotion agency said in a statement today.
US stocks fell on Friday as the International Monetary Fund cut its 2014 outlook for the US and urged the central bank to carefully manage its exit from stimulus plans. The Washington-based IMF lowered its US growth forecast for 2014 to 2.7%, from 3% predicted in April. It left its predication for growth this year unchanged at 1.9%. The IMF sees the Federal Reserve maintaining large monthly bond purchases until at least the end of this year and urged the central bank to carefully manage its exit plan to avoid disrupting financial markets.
The Thomson Reuters/University of Michigan June preliminary index of consumer sentiment fell to 82.7 from a final reading of 84.5 the prior month. Other reports showed US industrial production was unchanged in May and wholesale prices climbed for the first time in three months.
The Federal Open Market Committee, the Fed's interest-rating setting body, is due to begin its two-day meeting on interest rates in the United States tomorrow, 18 June 2013. Uncertainty about whether the Fed will curtail the pace of its bond purchases, set at $85 billion a month, directed at encouraging US economic growth, has weighed on global stocks over the past few weeks. Federal Reserve 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.
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