Key benchmark indices reversed direction after holding positive zone till afternoon trade as European stocks dropped. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit 2-1/2-week low. The market breadth, indicating the overall health of the market, was negative. The barometer index, the S&P BSE Sensex, was provisionally down 50.40 points or 0.24%, off 174.91 points from the day's high and up 14.13 points from the day's low. A widely expected hike in repo rate by the Reserve Bank of India (RBI) after a monetary policy review tomorrow, 18 December 2013, weighed on stock prices as key benchmark indices dropped for the sixth day in a row.
In the foreign exchange market, the rupee edged lower against the dollar as investors bet improving US economic data may usher in a reduction in monetary stimulus for the US economy from the US Federal Reserve.
Index heavyweight and cigarette major ITC rose in volatile trade. Index heavyweight Reliance Industries (RIL) edged lower in volatile trade. Bharti Airtel gained on reports the company is close to selling its operations in Sri Lanka to UAE-based telecom company Etisalat.
Bank stocks edged lower as the Reserve Bank of India (RBI) is widely expected to increase in main lending rate viz. the repo rate by 25 basis points to 8% from current 7.75% after a mid-quarter monetary policy review tomorrow, 18 December 2013, to rein in inflation after recent data showed that both consumer prices and wholesale prices accelerated last month. HDFC Bank dropped after the Reserve Bank of India (RBI) on Monday, 16 December 2013, banned further purchases of the bank's shares by foreign institutional investors (FIIs) after foreign share holding in the bank crossed the overall limit of 49% of the bank's paid-up capital.
Key benchmark indices edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices trimmed initial gains in morning trade. Key benchmark indices hovered in positive zone in mid-morning trade. Key benchmark indices trimmed gains and hit fresh intraday low in early afternoon trade. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving away a lion's part of intraday gains in afternoon trade. Key benchmark indices slipped into the red in mid-afternoon trade as European stocks edged lower in early trade there.
As per provisional closing, the S&P BSE Sensex was down 50.40 points or 0.24% to 20,609.12. The index fell 64.53 points at the day's low of 20,594.99 in late trade, its lowest level since 29 November 2013. The index jumped 124.51 points at the day's high of 20,784.03 in early trade, its highest level since 13 December 2013.
The CNX Nifty was down 15.65 points or 0.25% to 6,139.05. The index hit a low of 6,133 in intraday trade, its lowest level since 29 November 2013. The index hit a high of 6,190.55 in intraday trade, its highest level since 13 December 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,305 shares declined and 1,153 shares gained. A total of 171 shares were unchanged.
The total turnover on BSE amounted to Rs 2014 crore, higher than Rs 1699.61 crore on Monday, 16 December 2013.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined. Coal India (down 3.08%), NTPC (down 2.21%) and HDFC (down 1.94%) declined. Cipla (up 2.88%), TCS (up 1.42%) and Sesa Sterlite (up 1.2%) gained.
Index heavyweight Reliance Industries (RIL) edged lower in volatile trade. The stock was down 0.82% at Rs 837.45. The stock hit a high of Rs 852.70 and low of Rs 836.25. RIL' subsidiary Reliance Retail on Monday, 16 December 2013, said it has decided to discontinue its non-vegetarian food offering, 'Delight', with immediate effect. Reliance Retail on Monday said that echoing consumer sentiments, Reliance Retail has decided to discontinue its non-vegetarian food offering, 'Delight', with immediate effect.
'Delight' was introduced as an independent format for non-vegetarian offerings in select geographies. A completely dedicated and fully segregated supply chain was maintained for Delight in order to cater to the distinct preferences and ideologies of different customers. Despite this sensitive balance of availability and convenience, it was felt that certain sections of customers were still hesitant to shop at the company's other stores. Reliance Retail has therefore decided to focus on vegetarian offerings only, within its retail portfolio.
Reliance Retail further said that there have been some misconceptions among various stakeholders about a possible joint venture with a foreign partner for establishing quick service restaurants and non-veg processing business. "We wish to clarify that we have not tied up with any foreign partner for quick service restaurant business and also categorically state that we are neither planning nor desirous of pursuing setting up of any such processing plant", Reliance Retail said.
Index heavyweight and cigarette major ITC rose 0.8% to Rs 315.50. The stock hit a high of Rs 315.85 and low of Rs 312.40.
Bharti Airtel surged 4.41% to Rs 327.85. As per reports, Bharti Airtel is close to selling its operations in Sri Lanka to UAE-based telecom company Etisalat. Bharti Airtel and Etisalat have been negotiating for over five months now and have agreed on the broad characteristics of the deal.
Bharti Airtel had announced the launch of its Sri Lanka operations in 2009 but the company has not been able to make inroads in terms of market share, with just under two million users.
Bharti Airtel Lanka, a subsidiary of Bharti Airtel, commenced commercial operations of services in Sri Lanka on 12 January 2009, as the fifth entrant in a highly saturated market, and was the fastest operator to reach 1 million customers in Sri Lanka. As one of Sri Lanka's largest foreign investors, Airtel has invested over $300 million in Sri Lanka and has achieved island-wide coverage in under two years which has enabled it to emerge as Sri Lanka's fastest expanding network.
Bank stocks edged lower as the Reserve Bank of India (RBI) is widely expected to increase in main lending rate viz. the repo rate by 25 basis points to 8% from current 7.75% after a mid-quarter monetary policy review tomorrow, 18 December 2013, to rein in inflation after recent data showed that both consumer prices and wholesale prices accelerated last month.
ICICI Bank fell 0.43% at Rs 1,092.65. The stock was volatile. The scrip hit high of Rs 1,121.85 and low of Rs 1,090.
Private sector bank HDFC Bank dropped after the Reserve Bank of India (RBI) on Monday, 16 December 2013, banned further purchases of the bank's shares by foreign institutional investors (FIIs) after foreign share holding in the bank crossed the overall limit of 49% of the bank's paid-up capital. The stock lost 3.61% at Rs 658 in volatile trade. The scrip hit high of Rs 675.05 and low of Rs 655.10.
State Bank of India shed 1.02% to Rs 1,715.10.
Kotak Mahindra Bank (down 1.16%), Axis Bank (down 0.63%), Punjab National Bank (down 0.02%), Bank of Baroda (down 1.37%), and Union Bank of India (down 2.46%) dropped.
Bank of India fell 0.36% to Rs 206.05. The state-run bank during market hours said that upon receipt of funds from Government of India, the bank has on 11 December 2013 allotted the 4.63 crore equity shares to Government of India on preferential allotment basis at issue price of Rs 215.70 per share.
The Central Board of Direct Taxes (CBDT) has extended the time limit for payment of the December installment of Advance Tax by two days from 15 December 2013 to 17 December 2013. This was done in view of the fact that 15 December 2013 was a Sunday.
In the foreign exchange market, the rupee edged lower against the dollar as investors bet improving US economic data may usher in a reduction in monetary stimulus for the US economy from the US Federal Reserve. The partially convertible rupee was hovering at 61.95, compared with its close of 61.73/74 on Monday, 16 December 2013.
The Reserve Bank of India (RBI) is widely expected to increase in main lending rate viz. the repo rate by 25 basis points to 8% from current 7.75% after a mid-quarter monetary policy review tomorrow, 18 December 2013, to rein in inflation after recent data showed that both consumer prices and wholesale prices accelerated last month.
European stock markets fell on Tuesday, 17 December 2013, as investors awaited the outcome of a Federal Reserve meeting starting today, 17 December 2013. Key benchmark indices in UK, Germany and France were off 0.47% to 0.92%.
Euro-area manufacturing reached a 31-month high in December, led by Germany, a survey from London-based Markit Economics showed on Monday, 16 December 2013.
Asian stocks edged higher on Tuesday, 17 December 2013, after reports on Monday, 16 December 2013, showed manufacturing growth accelerated in Europe and the US. Key benchmark indices in Taiwan, Singapore, Japan, Indonesia and South Korea rose by 0.23% to 1.37%. Key benchmark indices in China and Hong Kong shed 0.2% to 0.45%.
The Bank of Japan (BoJ), which buys more than 7 trillion yen ($67.6 billion) of Japanese Government Bonds (JGBs) every month in its bid to stoke inflation, holds a two-day monetary policy meeting on 19 and 20 December 2013.
Trading in US index futures indicated that the Dow could drop 6 points at the opening bell today, 17 December 2013. US stocks surged on Monday as a flurry of economic data indicated solid improvements in business activity across the country. The Empire State Manufacturing Index rebounded in December after a slump in November.
Markit's US Purchasing Managers' Manufacturing index rose further into expansion at 54.4. Industrial production jumped 1.1% in November, its biggest one-month gain in a year, and surpassed its pre-recession peak, versus a 0.1% fall the month before.
The Federal Open Market Committee's (FOMC) two-day policy meeting on interest rates in the United States begins today, 17 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.
Powered by Capital Market - Live News
