Key benchmark indices reversed intraday losses and moved into positive zone in mid-afternoon trade. Hopes of a further liberalisation of foreign direct investment (FDI) regime aided intraday recovery on the bourses. The S&P BSE Sensex was up 9.65 points or 0.05%, up close to 130 points from the day's low and off about 5 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Jindal Steel & Power came sharply off the day's high after intimation about pledged shares by promotes. Idea Cellular jumped nearly 6% to scale 52-week high. Shares of two wheeler makers rose for the third day in a row, shrugging off a hike in petrol price announced over the weekend. Capital goods stocks edged lower. Bhel reversed intraday gain.
As per reports, a panel headed by Economic Affairs Secretary Arvind Mayaram has recommended a major liberalisation of India's foreign direct investment (FDI) regime, including raising the FDI limit to 74% in multi-brand retail and allowing complete foreign ownership of telecom and aviation companies. The committee has also favoured allowing 100% FDI in internet service providers (ISPs), private security agencies, satellite, ground handling operations, cable networks, direct-to-home services, mobile TV and teleports.
The finance ministry has pitched for a complete re-look at the FDI policy framework as part of the current reforms drive to boost FDI flows that shrunk by 34% to $22 billion in 2012-13. At present, sectoral caps are at four levels -- 26%, 49%, 51% and 74%. The panel has recommended sectoral caps at three levels -- 49%, 74% and 100%.
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 Sensex hovered in negative terrain in mid-morning trade. The Sensex trimmed intraday losses in early afternoon trade. Key benchmark indices traded off intraday lows in afternoon trade. The Sensex reversed intraday losses and moved into positive zone in mid-afternoon trade.
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 14:20 IST, the S&P BSE Sensex was up 9.65 points or 0.05% to 19,232.93. The index rose 16.83 points at the day's high of 19,240.11 in mid-afternoon trade. 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 CNX Nifty was up 5.25 points or 0.09% to 5,818.85. The index hit a high of 5,820.30 in intraday trade. The index hit a low of 5,777.90 in intraday trade, its lowest level since 17 June 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,101 shares rose and 1,080 shares fell. A total of 139 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks fell and the rest of them rose. Tata Steel (up 2.86%), Sterlite Industries (up 2.59%) and Bharti Airtel (up 1.85%), edged higher.
Shares of two wheeler makers rose for the third day in a row, shrugging off a hike in petrol price announced over the weekend. Hero MotoCorp (up 0.1%) and Bajaj Auto (up 0.55%), edged higher. PSU OMCs hiked petrol price by Rs 2 a litre on 15 June 2013.
Tata Motors declined 1.25%. The company today, 19 June 2013, announced the launch of eight upgraded versions of its passenger vehicles, including those of the Nano minicar, Indica hatchback and Sumo sport-utility vehicle. Besides offering exciting new features, these cars will be backed by an engaging purchase experience and a transformed after-sales network, said Mr. Ranjit Yadav, President, Passenger Vehicle Business Units, Tata Motors.
Jindal Steel & Power came sharply off the day's high after intimation about pledged shares by promotes. The stock was up 2.48% at Rs 245.70, sharply off the day's high of Rs 258.80. The stock had jumped as much as 7.94% at the day's high. Sarmento Holdings, a promoter group firm, informed the stock exchanges that a pledge has been created over shares held by its holding company in favour of Credit Suisse AG, Singapore Branch.
Volumes were high in the stock. On BSE, 13.02 lakh shares changed hands so far during the day, compared with average daily volume of 3.68 lakh shares during the past one quarter.
JSW Steel rose 1.86%. Jindal Saw jumped 5.37%. Jindal Stainless rose 2.25%. These companies in separate statements said Sarmento Holdings, a promoter group firm, informed the stock exchanges that a pledge has been created over shares held by its holding company in favour of Credit Suisse AG, Singapore Branch.
Capital goods stocks edged lower. L&T declined 0.58%.
State-run power equipment major Bharat Heavy Electricals (Bhel) fell 0.55%, with the stock reversing intraday gain. The company on Tuesday, 18 June 2013, said it has won an order worth Rs 450 crore for the Energy Efficient Renovation & Modernisation (EE R&M) of a 210 MW thermal unit in Maharashtra. The World Bank-funded contract has been placed on Bhel by the Maharashtra State Power Generation Corporation (MSPGCL). With this order, Bhel has made an entry into the Energy Efficient Renovation, Modernisation and Uprating business. More and more utilties in the country are preparing to go in for renovation & modernisation (R&M) of aging thermal units to extend the life of the plants as well as to maximize generation, Bhel said in a statement. Bhel's scope of work in the contract involves design, engineering, manufacture, supply and erection & commissioning of critical parts of the boiler, turbine and generator, along with their controls & instrumentation. The order also envisages uprating of the unit.
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.
Idea Cellular jumped 5.62% to Rs 149.45 after striking a 52-week high of Rs 150.65 in intraday trade today, 19 June 2013.
European stocks edged lower on Wednesday, 19 June 2013, as investors wait for the much anticipated monetary-policy decision from the US Federal Reserve. Key benchmark indices in Germany, UK and France were down by 0.36% to 0.47%.
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, Taiwan and South Korea fell by 0.05% to 1.13%. Japan's Nikkei Average rose 1.83%.
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 a flat opening of US stocks 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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