Key benchmark indices edged lower in choppy trade, with selling intensifying towards the latter part of the trading session. Weakness in Asian and European stocks hurt investor sentiment adversely. The market breadth, indicating the overall health of the market, was negative. The barometer index, the S&P BSE Sensex, was provisionally down 202.38 points or 0.98%, up close to 10 points from the day's low and off about 215 points from the day's high. Asian and European stocks fell as investors awaited data on the US housing market and US consumer confidence.
Index heavyweight and cigarette major ITC dropped. Bank stocks edged lower. Realty stocks also declined. PSU OMCs dropped as global crude oil prices traded mixed today, 26 November 2013, after trimming intraday losses on Monday, 25 November 2013. Education stocks rallied.
The market edged lower in early trade on weak Asian stocks. A bout of volatility was witnessed as key benchmark indices trimmed initial losses in morning trade. Volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade. Intraday recovery witnessed in early afternoon trade proved short lived, with key benchmark indices weakening again in afternoon trade. Volatility ruled the roost as key benchmark indices trimmed losses in mid-afternoon trade. The Sensex extended losses and hit fresh intraday low in late trade.
The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month November 2013 series to December 2013 series. The near month November 2013 derivatives contract expire on Thursday, 28 November 2013.
As per provisional figures, the S&P BSE Sensex was down 202.38 points or 0.98% to 20,402.70. The index dropped 214.46 points at the day's low of 20,390.62 in late trade. The index fell 0.81 points at the day's high of 20,604.27 in opening trade.
The CNX Nifty was down 60.30 points or 0.99% to 6,055.05, as per provisional figures. The index hit a low of 6,047.75 in intraday trade. The index hit a high of 6,112.70 in intraday trade.
The total turnover on BSE amounted to Rs 3943 crore, higher than Rs 1833.99 crore on Monday, 25 November 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,461 shares fell and 1,053 shares rose. A total of 140 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks fell and rest rose. HDFC (down 1.61%), Dr Reddy's Laboratories (down 1.65%) and Bharti Airtel (down 2.14%) edged lower from the Sensex pack.
Index heavyweight and cigarette major ITC dropped 1.96%.
Realty stocks declined. HDIL (down 0.53%), Unitech (down 5.9%) and D B Realty (down 3.16%) declined. DLF was flat.
PSU OMCs dropped as global crude oil prices traded mixed today, 26 November 2013, after trimming intraday losses on Monday, 25 November 2013. HPCL (down 4.47%), BPCL (down 6.49%) and Indian Oil Corporation (down 2.11%) declined. Shares of PSU OMCs had surged on Monday, 25 November 2013, on hopes oil prices would slump after Iran clinched a nuclear deal with world powers on Sunday, 24 November 2013. US crude oil futures for January delivery were up 53 cents or 0.56% at $94.62 a barrel. Brent crude oil futures for January delivery were off 5 cents or 0.05% at $110.95 a barrel.
Iran and six world powers clinched a deal on Sunday, 24 November 2013, curbing the Iranian nuclear programme in exchange for initial sanctions relief, signalling the start of a game-changing rapprochement that could ease the risk of a wider Middle East war. Iran's oil exports will be held to about 1 million barrels a day under sanctions that remain in force after the deal. The six-month agreement, which offers Iran about $7 billion in relief from sanctions in exchange for curbs on its nuclear program, leaves in place banking and financial measures that have hampered its crude exports. Sanctions on sales of refined products also remain, while Iran gains access to $4.2 billion in oil revenue frozen in foreign banks. As part of the deal, the European Union (EU) will lift a ban on insurance for tankers transporting Iranian oil, making it easier for the Persian Gulf nation's six remaining customers to take delivery. The EU will continue to prohibit crude imports from Iran.
Coal India (CIL) shed 2.45%. Coal India has identified 126 new projects to take up during the 12th Plan period with an estimated capacity of 438.04 million tonnes (MT). Out of these 60 projects are likely to contribute about 88 MT during the terminal year of 12th Plan i.e. 2016-17. Beside this, CIL has planned a number of other initiatives to increase coal production. In order to infuse world class technology and modernize, CIL has been decided to appoint a consultant of international standings for the modernization of its mines. The bid for selection of consultant is under process.
In order to overcome the problem of slow coal evacuation from its three major coalfields namely North Karanpura - Auranga of CCL, Mand Raigarh - Korba of SECL & Ib Valley of MCL which have a high growth potential, CIL has planned investment of Rs 7045 crore in three major railway infrastructure facilities namely Tori-Shivpur (Kathotia), Mand-Raigarh- Korba & Gopalpur- Manoharpur in these coalfields respectively which is under various stages of implementation. These rail links together shall stretch to about 435 kms, are expected to handle 150 Mt by the end of 12th Plan periods.
Bank stocks edged lower. ICICI Bank (down 2.61%) and HDFC Bank (down 1.11%) declined.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank shed 1.04% to 5.52%.
The Reserve Bank of India (RBI) on Monday, 25 November 2013, said that it has decided to include incremental bank loans to medium manufacturing enterprises (as defined in the MSMED Act, 2006), extended by banks after 13 November 2013 as priority sector advances. The RBI also said that incremental bank loans to medium service enterprises extended after 13 November 2013, up to the credit limit of Rs 10 crore, would qualify as priority sector advances. The RBI has also raised the loan limit given to micro and small service enterprises to Rs 10 crore from Rs 5 crore that will be treated as priority sector advance. This facility will remain open till 31 March 2014, the RBI said in a statement.
Under priority sector advance, most banks have to lend 40% of their loans to agriculture, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sectors.
IDBI Bank fell in choppy trade after global credit rating agency Standard and Poor's downgraded the lender's rating to below investment grade citing expectations for weaker asset quality. The stock shed 1.23% at Rs 64. The scrip hit high of Rs 64.65 and low of Rs 63.55. S&P lowered IDBI's foreign currency issuer credit rating to "BB-plus/B" from "BBB-minus/A-3." The outlook is "negative." "We downgraded IDBI because we expect the bank's asset quality to remain weak over the next 12-18 months," said Standard and Poor's in a report released on Monday, 25 November 2013.
Education stocks rallied. Core Education Technologies, Everonn Education, Educomp Solutions, Aptech, NIIT, Zee Learn, Edserv Softsystems and Career Point rose 1.12% to 20%.
In the foreign exchange market, the rupee edged higher against the dollar on board weakness of the dollar. The partially convertible rupee was hovering at 62.47, compared with its close of 62.50/51 on Monday, 25 November 2013.
India's economic growth is seen recovering a bit in Q2 September 2013. The GDP growth for Q2 September 2013 is projected at 4.7%, as per the median estimate of a poll of economists carried out by Capital Market. India's GDP grew at its slowest pace in four years at 4.4% in Q1 June 2013. The government unveils Q2 September 2013 GDP growth data on Friday, 29 November 2013.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
European stocks edged lower in choppy trade on Tuesday, 26 November 2013, as investors awaited data on the US housing market and consumer confidence. Key benchmark indices in France, Germany and UK were off 0.05% to 0.45%.
Asian stocks edged lower in choppy trade on Tuesday, 26 November 2013. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, and Japan were off 0.01% to 2.3%. Key benchmark indices in South Korea and Taiwan were up 0.33% to 0.74%.
Most Bank of Japan board members agreed that inflation was likely to reach around 2% toward the latter half of the projection period of between the 2013 and 2015 fiscal years, according to minutes of the Oct. 31 meeting released today in Tokyo.
China's central bank governor said on Tuesday, 26 November 2013, that Beijing is moving ahead with plans to liberalize domestic interest rates and reduce its intervention in the foreign exchange market, the state-run China Securities Journal's website reported. In a speech at a financial forum, People's Bank of China Governor Zhou Xiaochuan repeated statements that the central bank is focusing on liberalizing deposit rates and wants to withdraw from routine intervention in the foreign exchange market. Mr. Zhou also was cited as saying that China will speed its move toward capital account convertibility in order to facilitate overseas trade and investment by domestic companies. The central bank chief also called for expanded quotas under the qualified domestic institutional investors and qualified foreign institutional investors programs, which cover inbound and outbound investments by institutions.
Trading in US index futures indicated that the Dow could fall 15 points at the opening bell on Tuesday, 26 November 2013. US stocks ended mixed on Monday, 25 November 2013, after disappointing report on the housing market. The number of contracts Americans signed to buy previously-owned homes unexpectedly fell in October for a fifth consecutive month amid higher borrowing costs that are denting the real-estate recovery. The gauge of pending home sales decreased 0.6% after a 4.6% drop in September, the National Association of Realtors said in Washington.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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