Key benchmark indices edged higher amid initial volatility. The S&P BSE Sensex was up 52.33 points or 0.28%, up 97.60 points from the day's low and off 37.03 points from the day's high. Index heavyweight and cigarette maker ITC was marginally lower in early trade. Another index heavyweight Reliance Industries (RIL) edged higher in early trade. The market breadth, indicating the overall health of the market, was positive.
The market may remain volatile this week 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 on Thursday, 27 June 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1552.98 crore on Monday, 24 June 2013, as per provisional data from the stock exchanges.
At 9:28 IST, the S&P BSE Sensex was up 52.33 points or 0.28% to 18,593.22. The index gained 89.36 points at the day's high of 18,630.25 in early trade. The index fell 45.27 points at the day's low of 18,495.62 in early trade.
The CNX Nifty was up 13.80 points or 0.25% to 5,604.05. The index hit a high of 5,616.90 in intraday trade. The index hit a low of 5,575.65 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 429 shares gained and 331 shares fell. A total of 35 shares were unchanged.
The total turnover on BSE amounted to Rs 134 crore by 09:30 IST.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.
Reliance Industries (RIL) rose 1.2% to Rs 802.80. As per reports, the Cabinet Committee on Economic Affairs (CCEA) will consider a proposal this week for a steep hike in natural gas prices. The CCEA last week deferred a decision on a proposal to hike natural gas prices as Oil Minister M Veerappa Moily was away on an official tour. The oil ministry has proposed an increase in 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.
Index heavyweight and cigarette major ITC shed 0.06% to Rs 314.20.
Tata Steel rose 0.88%. Shares of Tata Motors fell 0.81%. Tata Steel is reportedly looking at the option of stake sales in various group companies, including Tata Motors in an attempt to raise Rs 7200 crore. Tata Steel owns 5.46% in Tata Motors as at 31 March 2013, apart from stake in other Tata Group companies.
Shree Cement shed 0.11%. The company on Monday, 24 June 2013, said it has lighted up its clinker manufacturing unit having capacity of 6,000 ton per day (TPD) at Bangur City, Ras in Pali distraction of Rajasthan on 20 June 2013.
MMTC was locked at 5% lower circuit at Rs 119.85, also its 52-week low, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake at a huge discount to the stock's ruling market price this month. The government sold 9.33% stake in MMTC via Offer for Sale through stock exchanges mechanism at an indicative price of Rs 60.86 per share. 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.
M&M Financial Services lost 4.23%, with the stock extending Monday's steep slide triggered by the company's announcement that it has decided not to proceed with the application for a banking license with Reserve Bank of India. Mahindra & Mahindra Financial Services on Tuesday said its board took the decision not to apply for a banking license after reviewing the implications of the present guidelines issued by the Reserve Bank of India (RBI) for such an application, alongwith the clarifications issued by RBI on 3 June 1013.
The RBI guidelines provide for the conversion of non-banking financial companies (NBFCs) into a bank, but do not provide any flexibility for a NBFC and a bank to co-exist for a reasonable period of time, M&M Financial Services said. The regulations provide that CRR and SLR will be applicable from inception, even though building of CASA will take some time for a newly converted bank. This anomaly will impose an undue penalty on large, successful NBFCs with a pan-India network, that wish to convert into a bank, as compared to smaller NBFCs with a limited network.
Mainland Chinese stocks plunged on Tuesday, 25 June 2013, dragging down other Asian markets on worries that Beijing's reluctance to provide relief in the interbank money markets may have a wider economic impact. China is the world's second biggest economy after the United States. The Shanghai Composite index was off 3.8% and Hong Kong's Hang Seng was off 1.14%. Among other Asian markets, key benchmark indices in Japan, Singapore, Indonesia, South Korea and Taiwan were off 0.15% to 1.76%.
The Shanghai benchmark plunged 5.3% on Monday, 24 June 2013, for its worst finish in nearly four years, as concerns that reluctance by China's central bank to ease tight liquidity conditions in the interbank money markets would hurt small and medium-sized banks and borrowers. In a statement on Monday, the People's Bank of China said the liquidity in the financial system was "reasonable" and that lenders must manage their own liquidity risks.
US stocks ended sharply lower on Monday, 24 June 2013, following a 5.3% tumble in the Shanghai stock market overnight spurred by worries over China's economy and banking system.
Federal Reserve Chairman Ben Bernanke said last week the central bank may start dialing down its stimulus effort if the economy achieves sustainable growth.
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