Immense volatility was witnessed as key benchmark indices reversed intraday gain in early afternoon trade after surging to record high in mid-morning trade. BSE Small-Cap and Mid-Cap indices also reversed intraday gains. The barometer index, the S&P BSE Sensex, was down 50.25 points or 0.2%, off about 200 points from the day's high and up close to 20 points from the day's low. The market breadth indicating the overall health of the market was positive.
Pharma stocks edged higher on renewed buying. Tech Mahindra rose after announcing a global services alliance agreement with HPS, a market-leading provider of mission-critical solutions to the cards and payments industry. Shares of power generation firms dropped.
Key benchmark indices edged higher in morning trade. A sudden slide was witnessed after the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high in mid-morning trade. Key benchmark indices slipped into the red in early afternoon trade.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 682.26 crore on Tuesday, 10 June 2014, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was down 50.25 points or 0.2% to 25,533.44. The index jumped 152.18 points at the day's high of 25,735.87 in mid-morning trade, a lifetime high for the index. The index fell 68.32 points at the day's low of 25,515.37 in early afternoon trade.
The CNX Nifty was down 18.35 points or 0.24% to 7,637.95. The index hit a low of 7,632.60 in intraday trade. The index hit a high of 7,700.05 in intraday trade, a lifetime high for the index.
The BSE Mid-Cap index was off 40.18 points or 0.44% at 9,171.67, underperforming the Sensex. The BSE Small-Cap index was off 2.52 points or 0.03% at 10,014.92, outperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,656 shares rose and 1,229 shares fell. A total of 73 shares were unchanged.
Sesa Sterlite (down 1.71%), Hindalco Industries (down 1.8%) and Tata Motors (down 1.67%) edged lower from the Sensex pack.
Pharma stocks edged higher on renewed buying. Cipla (up 1.61% to Rs 413.90), Dr Reddy's Laboratories (up 1.04% to Rs 2,416.95), Lupin (up 1.19% to Rs 986.25), Ranbaxy Laboratories (up 0.58% to Rs 458.20) and Sun Pharmaceutical Industries (up 0.53% to Rs 612) gained.
Shares of power generation firms dropped. NTPC (down 3.03% to Rs 158.50), Tata Power Company (down 2.24% to Rs 109.70), GVK Power & Infrastructure (down 2.58% to Rs 18.90), Adani Power (down 0.47% to Rs 63.10), CESC (down 0.1% to Rs 621.45), JSW Energy (down 1.05% to Rs 80.40), Reliance Infrastructure (down 2.67% to Rs 788.20), and Reliance Power (down 0.89% to Rs 109.20) declined.
Tech Mahindra rose 1.35% to Rs 2,032.50 after hitting 52-week high of Rs 2,047.90 in intraday trade. Tech Mahindra and HPS, today, 11 June 2014, announced that they have entered into a global services alliance agreement. HPS is a market leading provider of mission-critical solutions to the cards and payments industry.
HPS' flagship PowerCARD payments technology will now be available to Tech Mahindra's customers worldwide. The alliance will enable Tech Mahindra's financial institutions and payment processing customers of all sizes to improve their cards and payment businesses by replacing legacy hardware and software with a single, flexible and cost processing effective platform.
Unitech shed 0.82% to Rs 36.25. With reference to an announcement made by Unitech Corporate Parks PLC to sell its entire interest in the portfolio of 6 IT SEZ/Parks in India, Unitech announced during market hours today, 11 June 2014, that the interest of two of the affiliates of Unitech in 4 of these 6 IT SEZ/Parks stands transferred to an independent third party. These 4 SEZs are the most mature in terms of their development status, Unitech said. As part of this transaction, certain affiliates of Unitech will continue to manage and develop these assets to ensure that there is no impact on tenants and other stakeholders, Unitech said.
DCW rose 3.35% to Rs 21.60, after the company scheduled a board meeting on 18 June 2014 to consider issue of shares on preferential basis to promoters and promoter group. The company made the announcement after trading hours on Tuesday, 10 June 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 59.3275, compared with its close of 59.29/30 on Tuesday, 10 June 2014.
The government will unveil trade data for May 2014 today, 11 June 2014.
Finance Minister Arun Jaitley said on Tuesday, 10 June 2014, that the growth of the country has been below 5% in the recent years. He said that economic growth cannot be compromised at any cost. The Finance Minister said that the government is committed to bring the economy back on the track. He said that priority of the government would be to restore the economic growth, curb inflation, follow the path of fiscal consolidation and to create an environment for higher employability. The Finance Minister was making the opening remarks during his Pre-Budget consultation with economists.
Major suggestions from economists included doing away with retrospective tax amendments, removal of all kind of cess and surcharges and instead increase rate of tax if so required, removal of dividend distribution tax and introduction of inheritance tax above certain threshold limit as in case of many other capitalist countries.
The next major trigger for the market is the Union Budget for 2014-15. Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by mid-July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.
The government will unveil industrial production data for April 2014 tomorrow, 12 June 2014. Industrial production shrank for a second straight month in March 2014. Industrial production declined 0.5% in March 2014, compared with a contraction of 1.8% in February 2014.
The government is scheduled to announce data on inflation based on the combined consumer price index (CPI) for rural and urban India for May 2014 tomorrow, 12 June 2014. Inflation based on the CPI accelerated to 8.59% (provisional) in April 2014, from 8.31% (final) in March 2014. Core CPI which excludes food and energy prices eased to 7.8% in April 2014, from 7.81% in March 2014.
Asian stocks edged lower in choppy trade on Wednesday, 11 June 2014 after the World Bank cut its global growth forecast for 2014. Key benchmark indices in Singapore, Indonesia, Hong Kong, and China were off 0.11% to 0.36%. Key benchmark indices in Japan, Taiwan, and South Korea rose 0.08% to 0.5%.
China will quicken interest rate liberalisation and preparations for setting up a deposit insurance system in 2014, the central bank said on Wednesday. The People's Bank of China (PBOC) reiterated elements from its 2013 annual report stating it would keep its monetary stance prudent, while still making pre-emptive moves to fine-tune policy.
Trading in US index futures indicated that the Dow could fall 16 points at the opening bell on Wednesday, 11 June 2014. Most US stocks managed small gains on Tuesday, with the Dow Jones Industrial Average closing at an all-time high.
Data showed US wholesale inventories increased 1.1% in April, more than the estimates. A separate report showed job openings rose to 4.5 million in April from 4.17 million in March.
The World Bank cut its global growth forecast amid weaker outlooks for the US, Russia and China, while calling on emerging markets to strengthen their economies before the Federal Reserve raises interest rates. The Washington-based lender predicts the world economy will expand 2.8% this year, compared with a January projection of 3.2%. The US forecast was reduced to 2.1% from 2.8% while outlooks for Brazil, Russia, India and China were also lowered. The 2015 estimate for world economic growth was unchanged at 3.4%.
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