Volatility continued in morning trade as the key benchmark indices reversed intraday gain. The S&P BSE Sensex was down 14.47 points or 0.06%, off 78.75 points from the day's high and up 26.30 points from the day's low. Increase in crude oil prices, provisional data showing selling by foreign funds yesterday, 19 June 2014, and weakness in Asian stocks weighed on sentiment. Yet, the market breadth indicating the overall health of the market was positive.
Many pharmaceutical shares rose as the rupee edged lower against the dollar.
At 10:18 IST, the S&P BSE Sensex was down 14.47 points or 0.06% to 25,187.33. The index gained 64.28 points at the day's high of 25,266.08 at onset of the day's trading session. The index fell 40.77 points at the day's low of 25,161.03 in early trade.
The CNX Nifty was down 4.70 points or 0.06% to 7,536. The index hit a high of 7,553.15 in intraday trade. The index hit a low of 7,521.30 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,076 shares gained and 982 shares fell. A total of 97 shares were unchanged.
The BSE Mid-Cap index was up 22.48 points or 0.25% at 9,019.83. The BSE Small-Cap index was up 20.62 points or 0.21% at 9,863.60. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 713 crore by 10:15 IST on BSE, compared with Rs 341 crore by 09:30 IST.
Among the 30-share Sensex pack, 18 stocks declined and rest of them gained.
Axis Bank (up 1.21%), ONGC (up 1.14%) and NTPC (up 0.69%) edged higher from the Sensex pack.
Tata Power Company (down 2.06%), Mahindra & Mahindra (down 0.95%) and Tata Motors (down 0.91%) edged lower from the Sensex pack.
Many pharmaceutical shares rose as the rupee edged lower against the dollar. A lower rupee boosts the value of overseas earnings in local terms. Pharma companies derive substantial revenue from exports.
Cipla (up 1.84%), Wockhardt (up 1.26%), Dr Reddy's Laboratories (up 0.64%), Cadila Healthcare (up 0.59%) and Glenmark Pharmaceuticals (up 0.42%) gained.
Lupin (down 0.26%), Ranbaxy Laboratories (down 1.33%) and Sun Pharmaceutical Industries (down 1.81%) declined.
Volatility struck bourses in early trade as the key benchmark indices reversed initial gains only to regain positive zone later. Volatility continued in morning trade as the key benchmark indices reversed intraday gain.
Increase in crude oil prices has sparked worries about India's macroeconomic situation as India imports majority of its crude oil requirements. Increase in crude oil prices has raised concerns of increase in fuel price inflation and increase in India's current account deficit and fiscal deficit
Militant violence in Iraq which is a key oil exporter in the world, has sent crude prices higher over the past few days. Brent crude futures for August delivery were down 2 cents at $115.04 a barrel today, 20 June 2014. The contract gained 80 cents to settle at $115.06 a barrel yesterday, 19 June 2014, the highest close since 6 September 2013.
The United States on Thursday, 19 June 2014, said it will send military advisers to Iraq to support Iraqi security forces and create joint operation centers in Baghdad and northern Iraq. The United States is prepared to make targeted air strikes in Iraq, he said, maintaining that ground troops would not be returning to the country.
Closer home, India's Ministry of Petroleum & Natural Gas on Thursday, 19 June 2014, said that there is no disruption in supply of crude oil from Iraq to India so far. Crude supplies to India from Iraq come from the Basra oilfields which are situated well away from the conflict zone in the north-eastern part of Iraq and loading of crude oil shipments from the Basra oil terminal continues normally, the oil ministry said. Nonetheless, the PSU OMCs have been asked to prepare a contingency plan both for the short and medium term including diversification of their resources for import of crude oil in order to minimize the impact of any geo-political instability in the middle-east, the oil ministry said.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 420.51 crore on Thursday, 19 June 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar as crude rose. The partially convertible rupee was hovering at 60.25, compared with its close of 60.08/09 on Thursday, 19 June 2014.
The monsoon has covered half of the country four days behind the usual schedule. Meanwhile, all India seasonal rainfall from 1 to 18 June 2014 was 45% below long period average, the India Meteorological Department said on its website on Thursday, 19 June 2014. The weather office has forecast below average rainfall in 2014 due to fears of El Nino, a weather event marked by the warming of sea surface temperatures in the Pacific Ocean that can lead to droughts in the Asia Pacific region including India.
Asian stocks edged lower on Friday, 20 June 2014. Key benchmark indices in China, Hong Kong, Singapore, Taiwan and South Korea fell by 0.1% to 1.23%. Key benchmark indices in Japan, Indonesia rose by 0.14% to 0.31%.
Trading in US index futures indicated that the Dow could fall 10 points at the opening bell on Friday, 20 June 2014. Most US stocks ended with modest gains on Thursday, 19 June 2014. With miniscule gains, the S&P 500 finished at a record level for the 21st time this year.
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