Key benchmark indices trimmed intraday gains in mid-morning trade after moving in a narrow range. The barometer index, the S&P BSE Sensex, was up 17.24 points or 0.07%, off about 95 points from the day's high and up close to 25 points from the day's low. The market breadth indicating the overall health of the market was positive.
PSU OMCs fell as Brent crude oil futures for July delivery hit a nine-month high. Among bank stocks, HDFC Bank scaled record high. Indian Overseas Bank (IOB) rose after the bank said it has requested the government to infuse capital fund to the bank to an extent of Rs 3500 crore for the current financial year.
A bout of volatility was witnessed in early trade as key benchmark indices regained positive terrain after slipping into the red for a brief period after opening with decent gains. Key benchmark indices moved in a narrow range in positive terrain in morning trade. Key benchmark indices trimmed intraday gains in mid-morning trade after moving in a narrow range.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 652.35 crore on Thursday, 12 June 2014, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 17.24 points or 0.07% to 25,593.45. The index jumped 112.10 points at the day's high of 25,688.31 in early trade, its highest level since 11 June 2014. The index fell 6.17 points at the day's low of 25,570.04 in early trade.
The CNX Nifty was up 5.35 points or 0.07% to 7,655.25. The index hit a high of 7,678.50 in intraday trade, its highest level since 11 June 2014. The index hit a low of 7,643.40 in intraday trade.
The BSE Mid-Cap index was up 38.11 points or 0.42% to 9,204.42. The BSE Small-Cap index was up 50.60 points or 0.51% to 10,036.08. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,488 shares rose and 1,034 shares fell. A total of 87 shares were unchanged.
Bharat Heavy Electricals (Bhel) (up 2.89%), Mahindra & Mahindra (M&M) (up 1.55%) and Bajaj Auto (up 1.39%) edged higher from the Sensex pack.
PSU OMCs fell as Brent crude oil futures for July delivery hit a nine-month high, as supply disruption fears took centre stage with the United States threatening military action in Iraq as Sunni Islamist militants moved towards Baghdad. Indian Oil Corporation (IOCL) was down 2.85% to Rs 341. BPCL was down 2.85% to Rs 582. HPCL was down 2.6% to Rs 416.05.
Higher crude oil prices will increase under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
HDFC Bank rose 0.44% to Rs 852.90 after hitting record high of Rs 856 in intraday trade.
Indian Overseas Bank (IOB) rose 1.47% to Rs 86.15 after the state-run bank on Thursday, 12 June 2014, said that the the bank has requested Government of India (GOI), Ministry of Finance, Department of Financial Services to infuse capital fund to the bank to meet Tier I capital under Basel III norms to an extent of Rs 3500 crore for the current financial year 2014-15. The bank has also requested GOI, Ministry of Finance, Department of Financial Services for the dilution of their shareholding in the bank.
Accordingly, the board of directors of the bank at its meeting held on Thursday, 12 June 2014, considered and approved the bank's assessment of capital requirement of Rs 3500 crore, under Tier I capital, for the financial year 2014-15. The board has given permission for the bank to raise capital by way of issue of equity shares of Rs 10 each at a price determined by SEBI (ICDR) Regulations 2009, to GOI to the extent of GOI's capital infusion. The board has also given permission for the bank to issue equity shares of Rs 10 each to qualified institutional buyers (QIBs) by way of private placement, up to an extent of not exceeding Rs 1200 crore (including the share premium) out of the shortfall in the Tier I Capital Requirement of Rs 3500 crore assessed by the bank.
In the foreign exchange market, the rupee edged lower against the dollar as crude oil prices rose as escalating violence in Iraq threatened supplies from OPEC's second-largest oil producer. The partially convertible rupee was hovering at 59.47, compared with its close of 59.25/26 on Thursday, 12 June 2014.
Brent crude oil futures for July settlement, which expires today, 13 June 2014, were up 26 cents at $113.28 a barrel on the London-based ICE Futures Europe exchange. The contract ended up with gains of more than $3 on Thursday, 12 June 2014.
Crude rose as supply disruption fears took centre stage with the United States threatening military action in Iraq as supply disruption fears took centre stage with the United States threatening military action in Iraq as Sunni Islamist militants moved south towards Baghdad.
On the macro front, industrial production rose 3.4% in April 2014, compared with a contraction of 0.5% in March 2014, data released by the government after trading hours on Thursday, 12 June 2014, showed. Fourteen out of the twenty two industry groups from the manufacturing sector registered positive growth during the month of April 2014 as compared to the corresponding month of the previous year. Industrial production contracted 0.1% during April-May 2014 over the corresponding period of the previous year.
The annual inflation rate based on combined consumer price index (CPI) for urban and rural India eased to 8.28% (provisional) in May 2014, from 8.59% (final) in April 2014, data released by the government after trading hours on Thursday, 12 June 2014, showed. Within the consumer price index, food prices inflation eased to 9.56% in May 2014, from 9.83% in April 2014. The rate of inflation based on the core CPI, which excludes food and energy prices was 7.72% in May 2014, unchanged from the level in April 2014.
Asian stocks rose in choppy trade on Friday, 13 June 2014 after data showed China's industrial output and retail sales growth accelerated in May. Key benchmark indices in Singapore, Japan, China and Hong Kong were up 0.05% to 1.01%. Key benchmark indices in Indonesia, Taiwan, and South Korea were off 0.1% to 1.33%.
China's industrial output rose 8.8% in May 2014 while, retail sales rose 12.5% in May, the latest data showed.
The Bank of Japan maintained record stimulus as Governor Haruhiko Kuroda strives to boost inflation that remains short of a 2% target. The central bank will continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($688 billion) per year, it said in a statement today in Tokyo, in line with estimates.
Trading in US index futures indicated that the Dow could gain 15 points at the opening bell on Friday, 13 June 2014. US stocks fell on Thursday as concerns escalated about Iraq and after disappointing economic data on retail sales and jobless claims.
In macroeconomic news, retail sales rose 0.3% in May, half the growth rate than forecasts. Americans' new claims for unemployment benefits unexpectedly rose last week.
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