Key benchmark indices hovered in positive zone within a narrow range in early afternoon trade. The S&P BSE Sensex was up 25.04 points or 0.13%, up 69.89 points from the day's low and off 36.31 points from the day's high. The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade.
Bharti Airtel dropped over 5% on reports the Department of Telecom (DoT) has decided to slap a Rs 650 crore penalty on the company for violating roaming norms in 13 circles between 2003-2005. M&M and Tata Motors extended intraday fall. MMTC was locked at 5% lower circuit, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake in the firm at a huge discount to the stock's ruling market price.
Reliance Capital jumped after the company said it will apply to Reserve Bank of India for a banking license. Aditya Birla Nuvo rose after the company said its board has approved the proposal of making an application to the Reserve Bank of India for obtaining licence for setting up a bank. Videocon Industries advanced after its chairman and managing director, Venugopal Dhoot, said in an interview with a news channel that the company will consider special dividend and bonus shares. Tech Mahindra and Mahindra Satyam gained after the two IT companies on Tuesday announced the completion of merger of Mahindra Satyam with Tech Mahindra.
Key benchmark indices edged higher in early trade on mostly positive Asian stocks. The market pared gains in morning trade. A bout of volatility was witnessed as key benchmark indices regained positive zone after sliding into the red in mid-morning trade. Key benchmark indices hovered in positive zone within a narrow range in early afternoon trade.
The market may remain volatile in the immediate future as traders roll over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expire tomorrow, 27 June 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1285.86 crore on Tuesday, 25 June 2013, as per provisional data from the stock exchanges.
At 12:22 IST, the S&P BSE Sensex was up 25.04 points or 0.13% to 18,654.19. The index gained 61.35 points at the day's high of 18,690.50 in morning trade. The index fell 44.85 points at the day's low of 18,584.30 in mid-morning trade.
The CNX Nifty was up 10.80 points or 0.19% to 5,619.90. The index hit a high of 5,635.25 in intraday trade. The index hit a low of 5,600.35 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. On BSE, 1,055 shares declined and 992 shares rose. A total of 156 shares were unchanged.
The total turnover on BSE amounted to Rs 651 crore by 12:20 IST compared to Rs 489 crore by 11:20 IST.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.
M&M dropped 3.66% to Rs 921.75, with the stock extending intraday fall.
Tata Motors lost 3.64% to Rs 271.45, with the stock extending intraday fall.
Bharti Airtel tumbled 5.23% to Rs 279.95 on reports the Department of Telecom (DoT) has decided to slap a Rs 650 crore penalty on Bharti Airtel for violating roaming norms in 13 circles between 2003-2005. It was the top loser from the Sensex pack.
Dr Reddys Laboratories rose 0.28%. The company during market hours today said it has launched Lamotrigine Extended-Release Tablets (25 mg, 50 mg, 100 mg, 200 mg, 300 mg) a therapeutic equivalent generic version of Lamictal XR in the US market on 25 June 2013 following the approval by the United States Food & Drug Administration (USFDA) of Dr Reddy's abbreviated new drug application (ANDA) for Lamotrigine XR tablets.
According to IMS Health data, the Lamictal XR brand and its generic verision had combined sales of approximately $300.5 million in the United States for the twelve months ended April 2013.
MMTC was locked at 5% lower circuit at Rs 113.90, also its 52-week low, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake in the firm at a huge discount to the stock's ruling market price. Shares of MMTC have slumped 46.13% in ten trading sessions from a recent high of Rs 211.45 on 12 June 2013. On 13 June 2013, the Government of India (GoI) sold 9.33% stake in MMTC via Offer for Sale (OFS) through stock exchanges mechanism at an indicative price of Rs 60.86 per share, at a discount of 71.21% to the closing price of the stock of Rs 211.45 on 12 June 2013.
The divestment was done to make the company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR). Sebi has mandated minimum public shareholding of 10% for state-run firms by 8 August 2013. Post stake sale, the GoI holds 90% stake in MMTC.
Reliance Capital jumped 5.06% after the company said it will apply to Reserve Bank of India for a banking license. Reliance Capital will be the promoter of the proposed new bank. The company said Sumitomo Mitsui Trust Bank and Nippon Life Insurance, two leading financial institutions from Japan, propose to take between 4-5% stake each in the proposed new bank, subject to necessary regulatory approvals, etc.
Sumitomo Mitsui Trust Bank is a preeminent trust banking group in Japan. Nippon Life Insurance is Japan's largest private life insurer.
Aditya Birla Nuvo rose 1.04% after the company said its board has approved the proposal of making an application to the Reserve Bank of India for obtaining licence for setting up a bank. The announcement was made after market hours on Tuesday, 25 June 2013.
Videocon Industries advanced after its chairman and managing director, Venugopal Dhoot, said in an interview with a news channel that the company will consider special dividend and bonus shares. The stock was up 4.57% after its chairman and managing director, Venugopal Dhoot, reportedly said that the company will consider special dividend and bonus shares. The comments come after ONGC and Oil India on Tuesday, 25 June 2013, agreed to buy a 10% stake in a Mozambique gas field from Videocon Group for $2.48 billion.
Tech Mahindra rose 3.22% and Mahindra Satyam gained 4.22%. The two IT companies on Tuesday announced the formal amalgamation of Mahindra Satyam with Tech Mahindra. The merged entity is amongst the top 5 Indian IT services companies, with revenue of $2.7 billion, a team of 84,000 professionals servicing 540 customers across 46 countries, the two companies said.
Crompton Greaves fell 4.14%. The stock's slide a day after Tuesday's sharp rally triggered by the company's announcement of a board meeting on Friday, 28 June 2013, to consider share buyback proposal, comes after the Securities & Exchange Board of India announcing tightening of share buyback norms.
Shree Ganesh Jewellery House jumped 4.43% after the company said that its board will meet on 27 June 2013 to consider issuing equity shares on preferential basis to non-promoters. The company made the announcement after market hours on Tuesday, 25 June 2013.
Meanwhile, market regulator Securities & Exchange Board of India (Sebi) on Tuesday approved changes to buyback of shares or other specified securities from the open market through stock exchange mechanism as part of its constant endeavour to align regulatory requirements with the changing market realities as well as to enhance efficiency of the buy-back process.
Sebi said after a board meeting that the mandatory minimum buy-back has been increased to 50% of the amount earmarked for the buy-back, as against existing 25%, failing which amount in the escrow account would be forfeited subject to a maximum of 2.5% of the total amount earmarked. The maximum buy-back period has been reduced to 6 months from 12 months, it added.
Sebi's new rules will require companies to not raise further capital for a period of one year from the closure of the buy-back except in discharge of subsisting obligations as against the existing 6 months. The company shall not make another buy-back offer within a period of one year from the date of closure of the preceding offer. The companies can buy-back 15% or more of capital (paid-up capital and free reserves) only by way of tender offer, it added.
Approving a Sebi committee report on the rationalization of foreign investment routes, Sebi also introduced uniform entry norms for existing foreign institutional investors (FIIs), sub-accounts and qualified foreign investors (QFIs) and combined these entities under a category known as foreign portfolio investors (FPIs).
In another key move, the regulator approved the proposal to put in place a single self-regulatory organization (SRO) for mutual fund distributors. In order to speed up the process, Sebi decided to have a cut-off time for accepting applications from potential SROs.
Asian stocks edged higher to reverse a four-day losing streak on Wednesday as investors took comfort from firm US data underscoring an American recovery, and assurances from China's central bank to provide funds to institutions if needed. Key benchmark indices in Hong Kong, South Korea, Indonesia, Taiwan and Singapore were up by 0.16% to 2.97%. China's Shanghai Composite index fell 0.8%, extending recent losses on fears of a credit crunch and slower loan growth. Japan's Nikkei 225 index shed 1.04%.
Trading in US index futures indicated that the Dow could fall 23 points at the opening bell on Wednesday, 26 June 2013. US stocks rose sharply on Tuesday cheered by upbeat economic data showing increases in durable-goods orders, new-home sales and consumer confidence.
The Commerce Department said orders for goods built to last at least three years rose 3.6% in May. Another report from the Commerce Department indicated new-home sales rising 2.1% last month. Separately, the S&P/Case-Shiller index of home values rose 12.1% in April from a year earlier, the biggest jump in more than seven years. The Conference Board's consumer-confidence index rose to 81.4 in June from 74.3 in May.
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