Key benchmark indices edged lower in early trade on weak Asian stocks. The market breadth was negative. The barometer index, the S&P BSE Sensex, was down 60.21 points or 0.32%, off about 65 points from the day's high and up close to 15 points from the day's low. Index heavyweight and cigarette maker ITC edged lower in early trade. Another index heavyweight Reliance Industries (RIL) also edged lower. Realty stocks extended recent losses.
Volatility may remain high on the bourses today, 28 March 2013, as traders roll over positions in the futures & options (F&O) segment from the near month March 2013 series to April 2013 series. The March 2013 F&O contracts expire today, 28 March 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 538.27 crore on Tuesday, 26 March 2013, as per provisional data from the stock exchanges.
At 9:30 IST, the S&P BSE Sensex was down 60.21 points or 0.32% to 18,644.32. The index fell 76.91 points at the day's low of 18,627.62 in early trade. The index rose 3.69 points at the day's high of 18,708.22 in early trade.
The CNX Nifty was down 18.55 points or 0.33% to 5,623.05. The index hit a low of 5,620.15 in intraday trade. The index hit a high of 5,647.80 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 540 shares declined and 350 shares rose. A total of 42 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks declined while rest of them gained.
Index heavyweight Reliance Industries (RIL) dropped 1.07% at Rs 775. The telecom department early this month cleared a proposal to allow companies with Internet permits to also offer basic mobile telecom services by paying a one-time license-conversion fee. RIL's telecom unit, Reliance Jio Infocomm, has frequencies to provide broadband Internet across India. Under the new rule, RIL will have to pay about Rs 1658 crore to also provide voice services.
The Finance Minister said in his speech while presenting the Union Budget 2013-14 on 28 February 2013 that the oil and gas exploration policy will be reviewed to move from profit sharing to revenue sharing contracts. The natural gas pricing policy will be reviewed and uncertainties regarding pricing will be removed. NELP blocks that were awarded but are stalled will be cleared. A policy to encourage exploration and production of shale gas will be announced.
Index heavyweight and cigarette major ITC fell 0.18% to Rs 305.55. The stock had hit a record high of Rs 310.75 on 4 February 2013. The government raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14 which was unveiled on 28 February 2013.
GMR Infrastructure declined 0.72%. The company said on Wednesday, 27 March 2013, that Homeland Mining and Energy SA Proprietary (HMESA), a wholly owned subsidiary of Homeland Energy Group, a company listed in Canada ("HEG") in which GMR Energy has a majority shareholding has entered into an agreement to divest its 50% equity interest in Tshedza Mining Resource, which holds the license for the development of Eloff mines. The purchaser of the Homeland's interest in the Eloff mines is the company's current BEE partner, who already holds a 50% interest in the property. The consummation of transaction is subject to receipt of statutory approvals in South Africa. HMESA has also entered into an agreement for the sale of its entire shareholding of Ferret Coal (Kendal). The transaction will be subject to receipt of statutory approvals and HEG Shareholders approval. The Kendal mine is an operating mine and sells coal in domestic market while the Eloff mine is under development stage.
Aditya Birla Nuvo fell 0.6% to Rs 965. The company said after market hours on Tuesday, 26 March 2013, that the Investor Relations & Finance Committee of the board of directors of the company has on 26 March 2013, by way of Circular Resolution, approved allotment of 66.80 lakh shares at a premium of Rs 900.86 each to the Promoter and Promoter Group Company on conversion of equivalent number of Warrants issued to them on 10 May 2012. The existing warrants held by these holders shall stand extinguished to the extent of exercise of the option for conversion of shares, the company said.
Jindal Steel & Power (JSPL) dropped 0.52%. The company said after market hours on Tuesday, 26 March 2013, that the board of directors of the company at its meeting held on 26 March 2013 has appointed Mr. Sushil Maroo, Director as Deputy Managing Director of the company with effect from 1 April 2013. The company also said that Mr. K. Rajagopal has joined the company as JSPL Group CFO & Director from 26 March 2013.
Realty stocks extended recent losses. Sobha Developers, DLF, HDIL, D B Realty and Unitech shed by 0.69% to 2.2%.
The finance minister proposed levy of TDS at the rate of one percent on the value of the transfer of immovable property where the consideration exceeds Rs 50 lakh in Union Budget 2013-14, which was unveiled on 28 February 2013.
Service tax abatement on homes and flats with a carpet area of 2000 square feel or more or of a value of Rs 1 crore or more has been reduced from 75% to 70%. However the existing exemptions from service tax for low cost housing and single residential units will continue.
A person taking a loan for his first home from a bank or a housing finance corporation upto Rs 25 lakh during the period from 1 April 2013 to 31 March 2014 will be entitled to an additional deduction of interest of upto Rs 1,00,000 in 2013-14, provided the value of the residential property is not more than Rs 40 lakh. If the limit is not exhausted, the balance deduction can be claimed in 2014-15. This deduction will be over and above the deduction of Rs 1,50,000 allowed for self-occupied properties under section 24 of the Income-tax Act.
The stock market remains shut tomorrow, 29 March 2013, on account of Good Friday.
Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014.
The India Meteorological Department will issue its first forecast of 2013 southwest monsoon in April 2013.
The second half of the Budget session of the Parliament begins on 22 April 2013. The Budget Session of the Parliament ends on 10 May 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008.
Assembly elections will be held in Karnataka on 5 May 2013 and the counting of votes and results of the election will be declared on 8 May 2013.
Asian stocks fell Thursday on concern Europe's debt crisis is deepening and after pending US home sales fell, damping earnings prospects for Asian exporters. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore, Taiwan and South Korea fell by 0.11% to 2.64%.
China's financial system faces a number of issues, including the so-called shadow banking sector, lending to local-government vehicles, and a range of opaque wealth-management products. On Wednesday, China reportedly issued some rules to attempt to regulate the sector, demanding banks clearly link such products with specific assets.
The Australian, Hong Kong, Indonesian, New Zealand, Philippine, and Singapore markets will all be closed tomorrow, 29 March 2013, along with much of Europe and the US on account of Good Friday.
US stocks ended lower on Wednesday on euro zone debt worries as political parties in Italy remained deadlocked ahead of a deadline today, 28 March 2013, for forming a government
Moody's Investors Service late Wednesday cut its assessment of the highest rating it can assign to a domestic debt issuer in Cyprus to Caa2, saying the move stems from increased risk the financially troubled country will exit as a member of the euro zone. An exit from the euro by Cyprus "would result in large losses to investors due to the redenomination of government debt and private debt securities issued under Cypriot law," said Moody's in a statement. "It would also lead to further severe disruption to the country's banking system and additional acute dislocations in the real economy."
Data on Wednesday showed confidence in the euro zone economy fell more than expected in March after four straight months of gains, with other reports pointing to a slump in Italian manufacturing and retail sales and shrinking gross domestic product in France in the final quarter of 2012.
Powered by Capital Market - Live News
