Volatility continued in mid-afternoon trade as the key benchmark indices reversed intraday losses and hit fresh intraday high in mid-afternoon trade. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in a week. The Sensex was up 44.83 points or 0.23%, up close to 155 points from the day's low and off about 10 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Metal stocks extended intraday gain. Telecom stocks gained for the second day in a row after Telecom Regulatory Authority of India (TRAI) said on Monday, 17 June 2013 it has reduced ceilings for national roaming calls and SMS. Idea Cellular and Reliance Communications scaled 52-week high.
A bout of volatility was witnessed in early trade as key benchmark indices slipped into the negative terrain after opening slightly higher. The Sensex hovered in red in morning trade. The Sensex trimmed intraday losses in mid-morning trade. Key benchmark indices traded off intraday lows in early afternoon trade. Volatility ruled the roost in afternoon trade as the key benchmark indices cut losses after sliding to intraday low. The Sensex reversed direction and moved into positive zone in mid-afternoon trade.
At 14:20 IST, the S&P BSE Sensex was up 44.83 points or 0.23% to 19,370.70. The index rose 57.74 points at the day's high of 19,383.61 in mid-afternoon trade, its highest level since 11 June 2013. The index fell 112.40 points at the day's low of 19,213.47 in afternoon trade.
The CNX Nifty was up 3.90 points or 0.07% to 5,853.95. The index hit a high of 5,863.40 in intraday trade, its highest level since 11 June 2013. The index hit a low of 5,808.30 in intraday trade.
The market breadth, indicating the overall health of the market, once again turned positive from negative. Earlier, the breadth had turned negative from positive in afternoon trade. On BSE, 1,103 shares gained and 1,000 shares declined. A total of 140 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and the rest of them fell. Tata Power Company (up 1.82%), Bajaj Auto (up 1.53%) and Infosys (up 1.47%), edged higher. NTPC (down 1.23%), GAIL (India) (down 1.17%) and Dr Reddy's Laboratories (down 0.74%), edged lower.
Telecom stocks gained for the second day in a row after Telecom Regulatory Authority of India (TRAI) said on Monday, 17 June 2013 it has reduced ceilings for national roaming calls and SMS and instituted a new regime for providing flexibility to telecom service providers to customise tariffs for national roamers through special tariff vouchers (STVs) and combo vouchers. TRAI has also mandated two types of free national roaming plans to be provided by all telecom service providers. These changes will come into effect from 1 July 2013.
Reliance Communications jumped 9.25% to Rs 121.55, after striking a 52-week high of Rs 121.95 in intraday trade today, 18 June 2013.
Shares of Idea Cellular rose 2.25% to Rs 142.85 after striking a 52-week high of Rs 143.20 in intraday trade today, 18 June 2013.
As per the latest (TRAI) mandate, outgoing local call charges, while on roaming, will be capped at Rs 1 per minute from Rs 1.40 earlier, while outgoing STD charges, while on national roaming, have been capped to Rs 1.50 from Rs 2.40 per minute earlier. The ceiling tariffs for incoming calls while on national roaming have been reduced from Rs 1.75 per minute to 75 paise per minute, TRAI said. Outgoing local SMS-es will cost Rs 1, while outgoing STD SMS will cost Rs 1.50. Incoming SMS will remain free of charge. The changes will be effective from 1 July 2013.
India is divided into 22 telecoms zones. Currently, subscribers pay an additional fee for making and receiving calls when they are outside their home zone.
Bharti Airtel rose 0.46%, with the stock extending Monday's 2.53% gains. The company on Monday, 17 June 2013, said that it has completed the allotment of 19.98 crore new shares, representing 5% equity stake in the company, to Qatar Foundation Endowment. The shares, having face value of Rs 5 each, have been issued at a price of Rs 340 each on a preferential basis for a total consideration of Rs 6796 crore. The allotment marks one of the largest private equity transactions in the history of India, Bharti said. On 3 May 2013, Bharti and Qatar Foundation Endowment had announced a binding agreement for the share sale. As part of the entitlement, QFE is entitled to one seat on the board of Bharti.
Metal stocks extended intraday gains. Jindal Steel & Power (up 1.19%), Sterlite Industries (up 1.22%), and Hindalco Industries (up 1.37%), edged higher. Tata Steel jumped 3.25%, with the stock extending intraday gains.
Nitesh Estates jumped 8.84% after the company said during market hours today, 18 June 2013, that a total of 1.11 crore shares pledged by Chairman & Managing Director Mr. Nitesh Shetty with a financial institution have been released. The pledged shares were released after repayment of the financial obligations by Mr. Shetty.
Finance Minister P. Chidambaram on Monday, 17 June 2013, said that the government is proactively working towards operationalisation of 215 stalled projects involving investment of about Rs 7 lakh crore with a view to give a push to the production activity in the country. The only way to contain Current Account Deficit (CAD) is to increase the domestic production of oil and coal and restraining the consumption of gold. Chidambaram made the comments while addressing a meeting of the Parliamentary Consultative Committee of the Ministry of Finance on India's high CAD and measures to contain the deficit.
On political front, the ruling Congress government ahead of 2014 Lok Sabha elections appointed eight new ministers on Monday. In all, eight ministers -- four Cabinet and four ministers of state -- were sworn in on Monday evening. Mallikarjun Kharge became new minister for railways, and Oscar Fernandes was sworn in as minister for roads and highways.
European stock markets were mostly lower on Tuesday, as investors remained cautious ahead of the US Federal Reserve's policy meeting, which could signal a potential slowdown in the bank's asset purchases. Key benchmark indices in France and Germany were down by 0.08% to 0.2%. UK's FTSE 100 rose 0.44%.
Most Asian stocks rose on Tuesday, 18 June 2013. Key benchmark indices in China, Indonesia, Taiwan, Singapore and South Korea rose by 0.14% to 1.51%. Hong Kong's Hang Seng was flat. Japan's Nikkei Average fell 0.2%.
Foreign direct investment in China rose in May by the least in four months, a sign of concern that growth is slowing in the world's second-biggest economy. Inbound non-financial investment increased 0.3% from a year earlier to $9.26 billion, the Ministry of Commerce said today in a statement in Beijing, after a 0.4% gain in April.
Trading in US index futures indicated that the Dow could gain 34 points at the opening bell on Tuesday, 18 June 2013. US stocks surged on Monday as investors await Wednesday's monetary-policy decision by the Federal Open Market Committee.
A two-day meeting of the Federal Open Market Committee, the Fed's interest-rating setting body, begins today, 18 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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