Key benchmark indices traded off intraday lows in afternoon trade. The S&P BSE Sensex was down 59.77 points or 0.31%, up 63.38 points from the day's low and off 70.97 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Shares of some non-banking finance companies (NBFC's) edged higher in anticipation of getting banking licenses. Dr Reddy's Laboratories fell on reports US-based drug maker AbbVie Inc has dragged the company to court for allegedly infringing AbbVie Inc's patented drug Zemplar on six counts concerning three patents. Tata Teleservices (Maharashtra) was locked at 10% upper circuit after the company' board decided to propose bonus share issue in order to comply with the minimum public shareholding requirement.
The rupee was volatile against the dollar. The Indian currency trimmed losses and was currently at 58.6450 per dollar after hitting a low of 58.91, within striking distance of a record low of 58.98 struck last week. The rupee fell 1.5% to a record closing low of 58.77/78 on Tuesday, 18 June 2013, as traders worried that the country's current account deficit made the currency especially vulnerable to any scaling back of the US Federal Reserve's monetary stimulus.
The Reserve Bank of India (RBI) on Monday, 17 June 2013, refrained from cutting its key policy rate further despite sluggish economic growth due to the recent steep slide in rupee against the dollar. The central bank after a monetary policy review said that the weakness in rupee could adversely impact inflation which has been slowing in the past few months. A weak rupee makes the cost of oil and other imported goods higher in rupee terms, adding to inflationary pressure.
The market edged lower in early trade on weak Asian stocks. The market extended initial losses to hit fresh intraday low in morning trade. The Sensex hovered in negative terrain in mid-morning trade. The Sensex trimmed intraday losses in early afternoon trade. Key benchmark indices traded off intraday lows in afternoon trade
Foreign institutional investors (FIIs) sold shares worth a net Rs 597.37 crore on Tuesday, 18 June 2013, as per provisional data from the stock exchanges.
At 13:20 IST, the S&P BSE Sensex was down 59.77 points or 0.31% to 19,163.51. The index fell 123.15 points at the day's low of 19,100.13 in morning trade, its lowest level since 17 June 2013. The index rose 11.20 points at the day's high of 19,234.48 in early trade.
The CNX Nifty was down 16.50 points or 0.28% to 5,797.10. The index hit a low of 5,777.90 in intraday trade, its lowest level since 17 June 2013. The index hit a high of 5,810.40 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,108 shares rose and 1,088 shares fell. A total of 149 shares were unchanged.
The total turnover on BSE amounted to Rs 986 crore by 13:20 IST.
Among the 30-share Sensex pack, 20 stocks fell and the rest of them rose. Tata Motors (down 1.75%), Infosys (down 1.6%) and M&M (down 0.99%) edged lower from the Sensex pack.
NTPC (down 1.84%), ONGC (down 1.75%) and Coal India (down 1.35%) declined.
Shares of select non-banking finance companies (NBFC's) edged higher in anticipation of getting banking licenses. Applicants seeking new banking licences are required to submit their applications to the Reserve Bank of India by 1 July 2013.
Mahindra and Mahindra Financial Services gained 3.95% to Rs 277.65 after striking a record high of Rs 287.50 in intraday trade today, 19 June 2013.
Bajaj Finserv (up 0.81%), Reliance Capital (up 2%), L&T Finance Holdings (up 3.21%) gained.
IDFC rose 0.91% after the company after market hours on Tuesday, 18 June 2013, said its board has approved a resolution for making an application to the Reserve Bank of India (RBl) for obtaining a banking license based on the guidelines for licensing of new banks in the private sector dated 22 February 2013 and the associated clarifications issued by RBI on 3 June 2013.
Religare Enterprises rose 1.73%. The company after trading hours on Tuesday, 18 June 2013, said that the promoters of the company have agreed to dilute their shareholding to 49% in the company to enable the company to qualify for applying for banking license under guidelines for licensing of new banks in the private sector.
Dr Reddy's Laboratories fell 1.62%. US-based drug maker AbbVie Inc, the spun-off entity of Abbott, has reportedly dragged Dr Reddy's Laboratories to court for allegedly infringing the former's patented drug Zemplar on six counts concerning three patents. Zemplar (Paricalcitol) is a drug used for the prevention and treatment of secondary hyperparathyroidism (excessive secretion of parathyroid hormone) associated with chronic renal failure.
The US Drug maker has requested the court to pass an order to restrain Dr Reddy's Laboratories from commercially manufacturing, using, offering for sale, selling, marketing, distributing, or importing Dr Reddy's Laboratories' generic paricalcitol injectable products prior to the expiration of said patents, reports added.
Dr Reddy's filed an Abbreviated New Drug Application (ANDA) with the US Food and Drug Administration, seeking approval to sell a generic copy of US drug maker's Zemplar injectable products in 2 microgram/ml and 5 microgram/ml formulations, prior to the expiration of the patents owned by and exclusively licensed to the complainants, the report indicated.
Tata Teleservices (Maharashtra) was locked in 10% upper circuit at Rs 6.64. The company during market hours today, 19 June 2013 said that its board of directors has proposed issue of bonus shares with the promoter/promoter group forgoing their entitlement to the bonus shares in order to comply with the minimum public shareholding requirement. Promoters currently hold 77.21% stake in Tata Teleservices (Maharashtra) (as per the shareholding pattern as on 3 June 2013).
Indiabulls Real Estate (up 3.71%), Indian Hotels (up 3.62%), Jain Irrigation Systems (up 3.39%), Videocon Industries (up 2.92%) and Mahindra Satyam (up 2.77%) were among the top gainers in BSE's 'A' group.
European stock markets were mostly lower at the open on Wednesday, 19 June 2013, as investors wait for the much anticipated monetary-policy decision from the US Federal Reserve. Key benchmark indices in UK and France were down by 0.05% to 0.31%. Germany's DAX rose 0.08%.
Asian stocks fell on Wednesday, 19 June 2013, with investors cautious ahead of the conclusion of a Federal Reserve policy meeting for clues on Fed's bond purchases. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, Taiwan and South Korea fell by 0.05% to 0.78%. Japan's Nikkei Average rose 1.83%.
Japan's exports surged by the most since 2010 as the yen weakened and shipments to the US jumped, boosting Prime Minister Shinzo Abe's campaign to revive the world's third-largest economy. Exports increased 10.1% in May from a year earlier, the Finance Ministry said in Tokyo today.
Trading in US index futures indicated that the Dow could gain 31 points at the opening bell on Wednesday, 19 June 2013. US stocks rose for the second day in a row on Tuesday as investors bet that the Federal Reserve will stay the course on its economic stimulus policy.
A two-day meeting of the Federal Open Market Committee, the Fed's interest-rating setting body, ends today, 19 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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