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, settled at their lowest level in more than 2-1/2 weeks. The market breadth, indicating the overall health of the market, was negative. The Sensex lost 47.38 points or 0.23%, off close to 175 points from the day's high and up about 20 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.
The Sensex has lost 714.28 points or 3.34% in six trading sessions from a recent high of 21,326.42 on 9 December 2013. The Sensex has fallen 179.79 points or 0.86% in this month so far (till 17 December 2013). The Sensex has garnered 1,185.43 points or 6.1% in calendar 2013 so far (till 17 December 2013). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,163.43 points or 18.12%. From a record high of 21,483.74 hit on 9 December 2013, the Sensex is off 871.60 points or 4.05%.
Coming back to today's trade, 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.
The S&P BSE Sensex lost 47.38 points or 0.23% to settle at 20,612.14, its lowest closing level since 28 November 2013. The index fell 64.53 points at the day's low of 20,594.99 in late trade. 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 shed 15.65 points or 0.25% to 6,139.05, its lowest closing level since 28 November 2013. The index hit a low of 6,133 in intraday trade. The index hit a high of 6,190.55 in intraday trade, its highest level since 13 December 2013.
The BSE Mid-Cap fell 0.03% and the BSE Small-Cap index declined 0.04%. Both these indices outperformed the Sensex.
The S&P BSE Oil & Gas index (down 0.54%), the S&P BSE Bankex (down 1.28%), the S&P BSE Power index (down 0.73%), and the S&P BSE Realty index (down 0.66%) underperformed the BSE Sensex.
The S&P BSE FMCG index (up 0.76%), the S&P BSE Metal index (up 0.02%), the S&P BSE Auto index (down 0.05%), the S&P BSE IT index (up 0.23%), the S&P BSE Consumer Durables index (up 1.04%), the S&P BSE Teck index (up 0.54%), the S&P BSE Healthcare index (up 1.51%) and the S&P BSE Capital Goods index (up 0.3%) outperformed the BSE Sensex.
The total turnover on BSE amounted to Rs 2014 crore, higher than Rs 1699.61 crore on Monday, 16 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.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined.
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.
FMCG stocks rose on renewed buying. Britannia Industries (up 0.43%), Colgate-Palmolive (India) (up 0.28%), Godrej Consumer Products (up 1.34%), Marico (up 0.55%), Nestle India (up 2.69%) and Tata Global Beverages (up 0.8%) gained.
India's largest FMCG company by sales Hindustan Unilever rose 0.03%.
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.
Pharma stocks rose across the board on renewed buying. Cipla (up 2.82%), Dr Reddy's Laboratories (up 1.02%), Ranbaxy Laboratories (up 5.25%), Wockhardt (up 10.57%), Lupin (up 0.67%) and Sun Pharmaceutical Industries (up 2.15%) advanced.
Aurobindo Pharma rose 1.66% to Rs 354.80, after hitting a record high of Rs 362.65 in intraday trade. The stock extended recent gains triggered by the company receiving the final approval from USFDA to manufacture and market a generic medicine in the United States.
Aurobindo Pharma during trading hours on Friday, 13 December 2013 said it has received the final approval from the US Food & Drug Administration (USFDA) to manufacture and market Duloxetine Hydrochloride Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base) which was earlier tentatively approved.
Duloxetine Hydrochloride Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base) are the generic equivalent of Eli Lilly & Company's Cymbalta Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base). Duloxetine Hydrochloride Delayed-Release Capsules are indicated for the treatment of for the treatment of major depressive disorder (MDD) and falls under the Neurological (CNS) therapeutic category. According to IMS data, the market size of the product is estimated to be $5.4 billion for the twelve months ended September 2013.
Aurobindo now has a total of 188 abbreviated new drug application (ANDA) approvals (163 final approvals including 7 from Aurolife Pharma LLC and 25 tentative approvals) from USFDA.
GlaxoSmithkline Pharmaceuticals rose 0.94% to Rs 2,946.25 after striking a record high of Rs 2,960 in intraday trade. The stock had jumped 18.6% to settle at Rs 2,927.40 on Monday, 16 December 2013. GlaxoSmithKline Pte along with GlaxoSmithkline plc on Monday, 16 December 2013, announced a voluntary open offer to the public shareholders of GlaxoSmithkline Pharmaceuticals to acquire additional 2.06 crore equity shares, representing 24.33% stake of the total voting share capital of the company, at Rs 3,100 per share.
GlaxoSmithkline plc currently holds 50.67% stake in GlaxoSmithkline Pharmaceuticals. Its stake will rise to 75% if it gets the entire 2.06 crore equity shares through the voluntary open offer. The hike in stake will cost the overseas parent about Rs 6389 crore.
Glenmark Pharmaceuticals rose 1.11% to Rs 526. A bulk deal of 4.50 lakh shares was executed on the scrip at Rs 518.80 per share at 10:06 IST on BSE today, 17 December 2013. Another bulk deal of 16.99 lakh shares was executed on the scrip at Rs 519 per share at 10:07 IST on BSE today, 17 December 2013.
Zee Entertainment Enterprises edged higher after the company's board approved a scheme of arrangement between the company and Diligent Media Corporation (DMCL) for the demerger of the media business undertaking from DMCL and vesting into the company. The stock rose 1.28% at Rs 285.35. The stock hit 52-week high of Rs 291.95 in intraday trade. The media business undertaking of DMCL comprises the media and entertainment business of DMCL which includes event management activities, TV channel license and TV reality show formats for game based shows.
Zee will issue 2.23 crore redeemable, non-convertible preference shares of Rs 1 each to the shareholders of DMCL, with the exchange ratio being one preference share of Rs 1 each for every 4 equity shares of Rs 10 each held in DMCL. The preference shares will have tenure of three years and carry a coupon of 6% per annum.
Coal India lost 2.89%. The state-run coal miner after trading hours on Monday, 16 December 2013, said that the company's board of directors at its meeting held on Monday, 16 December 2013, approved an additional 10% increase on the notified price for subsidiaries other than Western Coalfields (WCL), applicable with effect from 28 May 2013, on the existing notified price of non-coking coal of WCL of G-6 to G-17 bands with effect from 17 December 2013. Due to this increase, WCL will earn additional revenue of about Rs 139.84 crore for the balance period of financial year 2013-14.
Coal India's board of directors at its meeting held on Monday, 16 December 2013, also approved revision of raw non-coking coal sizing charges for different sizes and rapid loading charges with effect from 17 December 2013. This will be applicable to all subsidiaries of Coal India for regulated and non-regulated sectors. Due to this revision, Coal India will earn additional revenue of about Rs 197.21 crore for the balance period of financial year 2013-14.
IT stocks were mixed. Infosys rose 0.06% to Rs 3452 after hitting 52-week high of Rs 3483.20 in intraday trade.
Wipro dropped 1.18% to Rs 518, with the stock reversing direction after hitting 52-week high of Rs 530 in early trade.
HCL Technologies fell 0.81% to Rs 1177.50, with the stock reversing direction after hitting record high of Rs 1,197 in intraday trade.
TCS rose 1.43% to Rs 2046.10, with the stock extending Monday's gains. TCS on Monday, 16 December 2013, said that it has fully integrated the ICT infrastructure of Royal Haskoning and DHV in a record time of six months. Royal Haskoning and DHV merged in 2012 under the new name Royal HaskoningDHV. Due to the swift and successful integration, TCS has been upgraded to 'strategic partner' for Royal HaskoningDHV, TCS said in a statement.
TCS also announced on Monday that day that CUA, Australia's largest customer-owned financial institution, has implemented TCS BaNCS to reengineer its core banking and online banking system. The new solution expands CUA's capability to deliver more flexible and innovative products and services to customers. TCS BaNCS will also enable CUA to improve internal processes and efficiencies as well as facilitate enhanced customer service.
Tech Mahindra declined 1%.
Realty 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. Purchases of both residential and commercial property are largely driven by finance. DLF (down 0.23%), HDIL (down 2.12%), D B Realty (down 0.9%), Unitech (down 1.32%), Sobha Developers (down 3.28%) and Godrej Properties (down 1.85%) declined.
JSW Steel rose 1.23%. HeidelbergCement India shed 0.54%. Fair trade regulator Competition Commission of India (CCI) has approved the acquisition of HeidelbergCement India's cement grinding facility at Raigad, Maharashtra, by JSW Steel. It may be recalled that JSW Steel had executed a business transfer agreement in October this year for the acquisition of HeidelbergCement India's cement grinding facility at Raigad, Maharashtra, as a going concern on slump sale basis.
Alstom T&D India rose 2.3% after the firm said it has entered into an agreement with a large Indian business group company for the sale of the firm's land in Bengaluru for a total consideration of about Rs 120 crore. The announcement was made after market hours on Monday, 16 December 2013.
Alstom T&D India said that in respect of its land in Bengaluru, which was previously used for manufacturing instrument transformers and the sale of which has been duly authorised by the shareholders of the company, has entered into an agreement for sale, with a large Indian business group company, for a total sale consideration of approximately Rs 120 crore. The sale is subject to the mutual satisfaction of terms, conditions and obligations mentioned in the agreement for sale and is likely to be concluded upon execution of a sale deed in three months time or earlier, the company said.
IRB Infrastructure Developers rose 0.96% after the company said it has emerged as a preferred bidder for a road project in Maharashtra. The announcement was made during trading hours today, 17 December 2013.
IRB Infrastructure Developers said it has emerged as a preferred bidder for the project of four laning of Solapur to Yedeshi section of national highway (NH) -211 in Maharashtra to be executed as BOT (Toll) on DBFOT Pattern under NHDP Phase - IV. Concession period is 29 years. Construction period for the project is 910 days. IRB said it has sought Rs 189 crore as viability gap funding from National Highway Authority of India (NHAI).
Speciality Restaurants rose 0.65% to Rs 123.50 after Saif India IV FII Holdings bought 15 lakh shares of the company through a bulk deal on Monday, 16 December 2013.
On Monday, 16 December 2013, Saif India IV FII Holdings bought 15 lakh shares of Speciality Restaurants at Rs 124.99 per share from GLIX Securities on the National Stock Exchange (NSE).
As on 30 September 2013, Saif III Mauritius Company held 49.97 lakh shares, or 10.64% stake, while GLIX Securities held 17.32 lakh shares, or 3.69% stake, in Speciality Restaurants.
Shares of most organised retailers gained. Trent (up 6.97%), and Future Retail (up 0.23%) rose. Shopper's Stop fell 0.2%.
Jet Airways (India) rose 2.29% to Rs 267.70 on bargain hunting after the stock tumbled 12.61% in the preceding four trading sessions to Rs 261.70 on 16 December 2013 from a recent high of Rs 299.45 on 10 December 2013.
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 62, 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 0.33% to 0.81%.
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 gain 8 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
