Key benchmark indices trimmed intraday losses in mid-morning trade as index heavyweight Reliance Industries (RIL) reversed intraday losses. The S&P BSE Sensex was down 31.18 points or 0.16%, up about 70 points from the day's low and off close to 40 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
MMTC was locked at 5% lower circuit at Rs 154.70 on BSE, 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 last week. Interest rate sensitive bank stocks edged lower after the Reserve Bank of India (RBI) kept repo rate and cash reserve ratio unchanged after mid-quarter review of the monetary policy on Monday, 17 June 2013. IT stocks rose on a weak rupee. NTPC extended intraday losses. Tata Power Company extended intraday gain.
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.
At 11:20 IST, the S&P BSE Sensex was down 31.18 points or 0.16% to 19,294.69. The index fell 98.76 points at the day's low of 19,227.11 in early trade. The index rose 8.20 points at the day's high of 19,334.07 in opening trade.
The CNX Nifty was down 11.35 points or 0.19% to 5,838.70. The index hit a low of 5,815.15 in intraday trade. The index hit a high of 5,843.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 897 shares rose and 687 shares fell. A total of 99 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and the rest of them fell. Tata Motors (down 1.54%), Hindalco Industries (down 0.98%) and Cipla (down 0.96%), edged lower.
Interest rate sensitive banking stocks edged lower after the Reserve Bank of India (RBI) kept repo rate and cash reserve ratio unchanged after mid-quarter review of the monetary policy on Monday, 17 June 2013. ICICI Bank (down 0.97%), HDFC Bank (down 0.95%), and State Bank of India (down 0.19%), edged lower.
MMTC was locked at 5% lower circuit at Rs 154.70 on BSE, 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 last week. The government last week 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 August 2013.
IT stocks rose on weak rupee. Infosys (up 0.43%), Wipro (up 0.34%) and TCS (up 0.01%), edged higher. The partially convertible rupee was at 58.42 versus 57.87/88 at Monday's close. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
HCL Technologies fell 0.28%. The company said during market hours today, 18 June 2013 that the company is poised for continued growth and expansion in Latin America (LATAM), having recently marked the four-year anniversary of its operations in Brazil. HCL's operations in Brazil have grown 35% percent year-on-year for the last two years, adding significantly to the customer base over this period. the company said. During the past two years, the company has also increased its headcount by about 50% percent in Brazil. HCL is seeing increasing demand from its global customers headquartered in North America, as well as in Europe and Asia to support their LATAM delivery operations from its Brazil centers, it said in a statement.
NTPC fell 1.03%, with the stock extending intraday losses.
Tata Power Company rose 0.85%, with the stock extending intraday gain.
Shares of index heavyweight Reliance Industries (RIL) gained 0.9% to Rs 832.50, with the stock reversing initial losses. The stock came off the day's low of Rs 817.70. RIL shares had risen recently after Niko Resources on 13 June 2013 said its proved reserves increased by 160%, and that a recent gas discovery in the D6 block off India's east coast could add significantly to future reserves. RIL is the operator of the block with a 60% stake. BP Plc holds 30% and Niko the rest.
Ranbaxy Laboratories dropped 3.9% to Rs 351 on reports that the Supreme Court will hear on June 24 a petition seeking probe against the company for allegedly manufacturing and selling adulterated medicines. Ranbaxy on 31 May 2013 had said all Ranbaxy products currently in the Indian and global markets are safe and efficacious. The company stands by the quality of every medicine that the company makes and distributes in India and every country around the world, it had said. The company's India facilities are routinely inspected by Drug Controller General of India and many other global regulatory agencies, Ranbaxy said at that time.
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.
Asian stocks were mixed on Tuesday, 18 June 2013. Key benchmark indices in Indonesia, Taiwan, Singapore and South Korea rose by 0.19% to 1.41%. Key benchmark indices in China, Hong Kong and Japan fell by 0.5% to 0.51%.
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 a flat opening of US stocks 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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