Key benchmark indices edged higher in volatile trade on firm European stocks and higher US index futures. The S&P BSE Sensex, was provisionally up 41.93 points or 0.22%, off about 60 points from the day's high and up close to 145 points from the day's low and. The market breadth, indicating the overall health of the market, was negative. Capital goods stocks reversed intraday gain on worries the ongoing slowdown in the economy could restrict new orders. Shares of two wheeler makers gained. Shares of PSU banks dropped.
Reliance Industries (RIL) declined in volatile trade after the Cabinet Committee on Economic Affairs (CCEA) today, 21 June 2013, deferred a decision on a proposal to hike natural gas prices. Jindal Steel & Power (JSPL) tumbled on high volume to hit 52-week low. Future Retail tumbled over 30% as a scheme of arrangement became effective on the bourses today, 21 June 2013.
The market edged lower in early trade on weak Asian stocks. A bout of volatility was witnessed as key benchmark indices trimmed losses soon after hitting their lowest level in over 9 weeks in early trade. The Sensex moved into the positive terrain to hit fresh intraday high in mid-morning trade. The Sensex hit fresh intraday high in early afternoon trade. The market retained positive zone in afternoon trade. Volatility ruled the roost as key benchmark indices reversed intraday gains and slipped into the red in mid-afternoon trade. The market once again regained positive zone later.
Foreign institutional investors (FIIs) sold shares worth a net Rs 2094.06 crore on Thursday, 20 June 2013, as per provisional data from the stock exchanges.
The rupee recovered against the dollar in choppy trade. The rupee was currently trading at 59.22, up from its 59.57/58 close on Thursday, 20 June 2013. The rupee had hit record low of 59.9850 in intraday deals on Thursday.
As per provisional figures, the S&P BSE Sensex was up 41.93 points or 0.22% to 18,761.22. The index rose 101.52 points at the day's high of 18,820.81 in afternoon trade. The index declined 104.15 points at the day's low of 18,615.14 in early trade, its lowest level since 16 April 2013.
The CNX Nifty was up 10.40 points or 0.18% to 5,666.30, as per provisional figures. The index hit a high of 5,686.15 in intraday trade. The index hit a low of 5,616.85 in intraday trade, its lowest level since 16 April 2013.
The total turnover on BSE amounted to Rs 2258 crore, higher than Rs 1770.87 crore on Thursday, 20 June 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,323 shares fell and 1,001 shares rose. A total of 138 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose and rest of them fell. Maruti Suzuki India (up 2.24%), Bharti Airtel (up 2.22%) and NTPC (up 2.07%), edged higher.
Reliance Industries (RIL) fell 0.71% to Rs 793.55 after the Cabinet Committee on Economic Affairs (CCEA) today, 21 June 2013, deferred a decision on a proposal to hike natural gas prices by a steep 60%. The stock was volatile. The stock hit high of Rs 810.50 and low of Rs 785. Oil Minister M Veerappa Moily who is away on an official tour had proposed to raise gas prices to $6.775 million British thermal unit (mbtu) from current $4.2 mbtu. The Oil Ministry has proposed raising gas price for state-run firms immediately and that for Reliance Industries (RIL) from April 2014 when it is contractually due.
ONGC rose 2.43%. Oil India declined 0.14%.
Jindal Steel & Power (JSPL) tumbled 8.17% to Rs 204, after hitting 52-week low of Rs 196 in intraday trade today, 21 June 2013. The stock dropped on high volume. On BSE, 31.66 lakh shares were traded in the counter as against average daily volume of 4.04 lakh shares in the past one quarter.
The JSPL stock had tumbled 9.62% to settle at Rs 222.15 on Thursday, 20 June 2013, after a foreign brokerage downgraded the stock to sell and reduced its target price to Rs 230 from Rs 290.
Early this month, the Central Bureau of Investigation filed an FIR in the Coalgate case in which JSPL Chairman Naveen Jindal and JSPL, as well as a former minister of state for coal Dasari Narayan Rao have been named. The CBI has alleged that Rao was paid kickbacks for favouring coal block allocation to the Jindal firm.
Shares of PSU banks dropped. State Bank of India (SBI) (down 0.17%), Canara Bank (down 1.14%), Punjab National Bank (down 2.82%), Union Bank of India (down 3.38%), Bank of Baroda (down 4.63%) and Bank of India (down 5.9%), edged lower.
Shares of private sector bank Karnataka Bank slumped 15.43%.
Shares of two wheeler makers gained. Bajaj Auto (up 0.27%) and Hero MotoCorp (up 1.07%), edged higher.
Capital goods stocks reversed intraday gains on worries the ongoing slowdown in the economy could restrict new orders, L&T (down 0.32%), Bhel (down 0.18%) and Siemens (down 1.35%), edged lower.
Apollo Tyres dropped 5.41% to Rs 57.25, after hitting 52-week low of Rs 54.60 in intraday trade today, 21 June 2013. Shares of Apollo Tyres had tumbled recently on concerns about the impact of a large US acquisition on the company's balance sheet.
Apollo Tyres after trading hours on 12 June 2013 said that it has entered into a definitive merger agreement under which a wholly-owned step subsidiary of the company will acquire Cooper Tire & Rubber Company (Cooper), a company listed on the New York Stock Exchange, in an all-cash transaction valued at approximately $2.5 billion. This strategic combination will bring together two companies with highly complementary brands, geographic presence and technological expertise to create a global leader in tire manufacturing and distribution, Apollo Tyres said in a statement.
Shares of MRF dropped 5.85%.
Future Retail tumbled 32.81% after a scheme of arrangement became effective on the bourses today, 21 June 2013. The country's largest retailer demerged its fashion business and set up the new company -- Future Lifestyle Fashions (FLFL). As per the scheme, shareholders will receive 1 fully paid equity share of Rs 2 each of Future Lifestyle Fashions (FLFL) for every 3 equity shares of Rs 2 each held in Future Retail. Further, the shareholders will receive 1 fully paid equity share of Rs 2 each of FLFL for every 3 Class B (Series-1) shares of Rs 2 each held in Future Retail.
European stock markets edged higher on Friday, 21 June 2013, after posting severe losses the prior day in reaction to the US Federal Reserve's announcement that it may begin to taper asset purchases later this year. Key benchmark indices in UK, France and Germany were up 0.68% to 1.3%.
Asian stocks fell for the second day in a row on Friday, 21 June 2013, after the US Federal Reserve signaled it may soon downsize bond purchases under its quantitative-easing program. Key benchmark indices in Indonesia, Singapore, Taiwan and South Korea were off 0.28% to 2.48%.
Mainland Chinese and Hong Kong shares pared their sharp initial declines as a sharp fall in Shanghai interbank rates from Thursday's record highs aided banks. The Shanghai Composite dropped 0.52% and Hong Kong's Hang Seng Index lost 0.59%. Both benchmarks had dropped more than 2% earlier in the day.
Japanese shares staged a strong intraday rebound as the yen weakened against the dollar. The Nikkei 225 Average rose 1.66%, after sinking more than 2% during the morning session.
Trading in US index futures indicated that the Dow could gain 94 points at the opening bell on Friday, 21 June 2013. US stocks tumbled on Thursday hit by fear that the Federal Reserve will scale back its bond buying later this year.
Federal Reserve Chairman Ben Bernanke said on June 19 the central bank may start dialing down its stimulus effort if the economy achieves sustainable growth.
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