Key benchmark indices extended initial losses to hit fresh intraday low in morning trade as weakness in rupee and lower Asian stocks dampened sentiment. The S&P BSE Sensex was down 109.80 points or 0.57%, off close to 120 points from the day's high and up about 15 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Glenmark Pharmaceuticals rose after a step down subsidiary of the company in the United States got final abbreviated new drug approval (ANDA) from the United States Food and Drug Administration (US FDA) for a drug for the treatment of amyotrophic lateral sclerosis. Metal stocks edged higher. NTPC and ONGC extended initial losses. Telecom stocks extended their recent gains on reports that a government panel has recommended a major liberalisation of the foreign direct investment (FDI) regime, including raising the FDI limit to 100% from 74% in telecom. Reliance Communications (RCom) and Idea Cellular hit 52-week high.
Weakness in rupee against the dollar dampened investor sentiment. The rupee was hovering at 58.87 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 market sentiment was adversely hit by data showing that foreign funds were net sellers of Indian stocks on Tuesday, 18 June 2013. 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 10:20 IST, the S&P BSE Sensex was down 109.80 points or 0.57% to 19,113.48. 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 29.85 points or 0.51% to 5,783.75. The index hit a low of 5,778 in intraday trade, its lowest level since 17 June 2013. The index hit a high of 5,809.25 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 642 shares rose and 524 shares fell. A total of 84 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell and the rest of them rose. Coal India (down 1.35%), Tata Motors (down 1.21%) and TCS (down 0.99%), edged lower. GAIL (India) (up 1.24%), Bhel (up 0.55%) and Bajaj Auto (up 0.34%) edged higher.
Telecom stocks extended their recent gains on reports that a government panel has recommended a major liberalisation of the foreign direct investment (FDI) regime, including raising the FDI limit to 100% from 74% in telecom.
Reliance Communications (RCom) rose 2.99% to Rs 127.40, after striking a 52-week high of Rs 128 in intraday trade today, 19 June 2013.
Shares of Idea Cellular rose 1.48% to Rs 143.60 after striking a 52-week high of Rs 144 in intraday trade today, 19 June 2013.
MTNL (up 1.36%) and Tata Teleservices (Maharashtra) (up 3.48%) gained.
Bharti Airtel rose 1.77%. The company on 17 June 2013 said that it has completed the allotment of 19.98 crore new shares, representing 5% equity stake in the company, to Qatar Foundation Endowment. The shares have been issued at a price of Rs 340 each on a preferential basis for a total consideration of Rs 6796 crore. The allotment marks one of the largest private equity transactions in the history of India, Bharti said. On 3 May 2013, Bharti and Qatar Foundation Endowment had announced a binding agreement for the share sale. As part of the entitlement, QFE is entitled to one seat on the board of Bharti.
Glenmark Pharmaceuticals rose after a step down subsidiary of the company in the United States got final abbreviated new drug approval (ANDA) from the United States Food and Drug Administration (US FDA) for a drug for the treatment of amyotrophic lateral sclerosis. The stock was up 0.5%. The drug garnered sales of $64 million in the United States for the 12 month period ended March 2013, as per IMS Health data.
Metal stocks edged higher, Sterlite Industries (up 0.3%), Hindalco Industries (up 0.39%), Tata Steel (up 0.76%) and Jindal Steel & Power (up 1.86%) edged higher.
NTPC fell 1.87%, with the stock extending initial losses.
ONGC dropped 1.74%, with the stock extending initial losses.
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 and South Korea fell by 0.13% to 1.33%. Key benchmark indices in Taiwan and Japan rose by 0.23% to 1.32%.
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 fall 16 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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