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Sensex regains 19,000 mark

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In a sharp reversal, key benchmark indices bounced back from intraday low levels to hit fresh intraday high in afternoon trade. The S&P BSE Sensex regained the psychological 19,000 mark. The market, however, continued trading in the red as data showing a muted 2% growth in industrial production in April 2013 and weakness in global stocks hit investor sentiment adversely. The Sensex was down 50.01 points or 0.26%, up about 124 points from the day's low and off close to 50 points from the day's high. The market breadth, indicating the overall health of the market, was weak. Tata Coffee, Titan Industries, Tube Investments of India, Federal Bank and Bata India saw a surge in volumes on BSE today, 12 June 2013.

 

The market edged lower in early trade. A bout of volatility was witnessed as the Sensex trimmed intraday losses in morning trade. The market hit fresh intraday low in mid-morning trade. The market extended losses to hit fresh intraday low in early afternoon trade. The Sensex hit over 7-week below the psychological 19,000 mark. The CNX Nifty hit its lowest level in nearly 8 weeks. In a sharp reversal, key benchmark indices bounced back from intraday low levels to hit fresh intraday high in afternoon trade. The S&P BSE Sensex regained the psychological 19,000 mark.

The market sentiment was affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Tuesday, 11 June 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 885.85 crore on Tuesday, 11 June 2013, as per provisional data from the stock exchanges.

At 13:20 IST, the S&P BSE Sensex was down 50.01 points or 0.26% to 19,092.99. The index declined 173.92 points at the day's low of 18,969.08 in afternoon trade, its lowest level since 22 April 2013. The index hit the day's high of 19,143.24, at par with Sensex's closing on Tuesday (11 June 2013).

The CNX Nifty was down 11.85 points or 0.20% to 5,776.95. The index hit a low of 5,738.60 in intraday trade, its lowest level since 18 April 2013. The index hit a high of 5,792.90 in intraday trade.

The market breadth, indicating the overall health of the market, was weak. On BSE, 1278 shares fell and 898 shares rose. A total of 127 shares were unchanged.

Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. Jindal Steel & Power (up 2.28%), HDFC Bank (up 1.06%), Cipla (up 0.99%), ONGC (up 0.91%), Bharti Airtel (up 0.81%), GAIL (India) (up 0.77%), ICICI Bank (up 0.65%) and Reliance Industries (up 0.48%), edged higher from the Sensex pack.

Coal India (down 3.02%), Hero MotoCorp (down 2.15%), Bajaj Auto (down 2.06%), Tata Steel (down 1.87%), TCS (down 1.69%), Hindalco Industries (down 1.59%), ITC (down 1.4%) and Maruti Suzuki India (down 1.17%), edged lower from the Sensex pack.

Tata Coffee clocked volume of 1.62 lakh shares, a 27.13-times surge over two-week average daily volume of 6,000 shares. The stock slumped 20% to Rs 1,100.25.

Titan Industries notched up volume of 26.68 lakh shares, a 10.55-fold surge over two-week average daily volume of 2.53 lakh shares. The stock tumbled 12.80% to Rs 206.15, with the stock extending Tuesday's 10.86% losses triggered by the company's announcement that the Reserve Bank of India (RBI) has clarified that all imports of gold for domestic consumption, either through banks, nominated agencies or directly can be made only with 100% cash margin. RBI has also clarified that credit of any kind from suppliers or bullion banks for import of gold for domestic use is prohibited, Titan said during trading hours on Tuesday, 11 June 2013. This will affect import of gold through all non consignment routes like gold on lease/loan, Titan Industries said. Titan imports gold for its retail gold jewellery business.

Titan said it had sought some clarifications on gold imports after the Reserve Bank of India issued a notification on 4 June 2013 on changes to the current terms governing import of gold in India.

Tube Investments of India saw volume of 11.08 lakh shares, a 5.91-fold surge over two-week average daily volume of 1.87 lakh shares. The stock fell 2.36% to Rs 138.40.

Federal Bank clocked volume of 8.96 lakh shares, a 4.99-fold surge over two-week average daily volume of 1.79 lakh shares. The stock fell 0.42% to Rs 424.55.

Bata India saw volume of 1.56 lakh shares, a 1.83-fold rise over two-week average daily volume of 85,000 shares. The stock slipped 6.31% to Rs 755.45, with the stock extending recent fall.

Shares of Bata India have slipped 14.94% in four trading sessions from a recent high of Rs 888.10 on 6 June 2013.

Earlier, shares of Bata India had gained 10.45% to Rs 888.10 on 6 June 2013 from a low of Rs 804.05 on 31 May 2013. Gains were supported by a domestic brokerage on 4 June 2013 initiating coverage on the Bata India stock with a buy rating citing strong earnings and growth visibility. The brokerage said that Bata India's focus is on aggressive growth by expanding presence in Tier II, III cities and rural India. The brokerage expects the company's margins to increase on the back of outsourcing of certain manufacturing operations and control over employee costs.

Industrial production rose 2% in April 2013, lower than a revised growth of 3.4% in March 2013, data released by the government today, 12 June 2013, showed. The manufacturing sector registered a growth of 2.8% and electricity generation rose 0.7%. The mining sector registered a decline of 3%. As per use-based classification, production of basic goods rose 1.3%, capital goods production rose 1%, production of intermediate goods rose 2.4% and production of consumer non-durables jumped 12.3%. Production of consumer durables declined 8.3%.

Meanwhile, industrial production growth for March 2013 was revised upwards to 3.4% from 2.5% growth reported earlier.

Inflation based on the combined consumer price index (CPI) for urban and rural India eased to 9.31% in May 2013 from 9.39% in April 2013, another data released by the government today, 12 June 2013, showed. With the CPI, inflation based on the category food and beverages stood at 10.65% in May 2013.

The Reserve Bank of India (RBI) on Tuesday took measures to increase the supply of dollars in the market including asking exporters to realise their dollar earnings and get them back into the country within one year to support a plunging rupee. The RBI also hastened the process of dollar inflows through online payment channels by increasing the amount that exporters can bring back to $10,000 from $3000. The new norms will be applicable with immediate effect, the Reserve Bank of India said. The rupee hit record low of 58.98 per dollar in intraday trade on Tuesday.

Dr. Raghuram G. Rajan, Chief Economic Adviser, Ministry of Finance, on Tuesday, 11 June 2013, said that the government continues to undertake measures to ensure the Current Account Deficit (CAD) is safely financed. Dr. Rajan issued the statement after a recent steep slide in rupee against the dollar. "In the coming weeks, we will be recommending the policies to enhance foreign direct investment (FDI) limits in a number of areas", he said. All this will help not just in the short term objective of financing the CAD but also in the longer term objective of ensuring sustainable growth, Dr. Rajan said.

European markets were mostly lower as fears persist that the Federal Reserve will soon reduce its measures to stimulate the US economy. Key benchmark indices in Germany and UK were down by 0.16% and 0.17%, respectively. However, France's CAC 40 was up 0.54%.

On Tuesday, Germany's constitutional court began hearing debate on whether the European Central Bank's Outright Monetary Transactions -- a yet-to-be-used program to buy bonds from struggling euro-bloc nations -- is allowable under German law. A ruling isn't expected until later this year, however.

Asian stocks fell on Wednesday as Japanese machinery orders declined more than expected and concern grew that central banks from Tokyo to Washington are increasingly reluctant to add stimulus. Key benchmark indices in Indonesia, Japan, Singapore and South Korea shed by 0.21% to 0.65%. Stock markets in Hong Kong, Taiwan and the Philippines were closed for holidays. Mainland Chinese markets are closed from Monday, 10 June 2013 till today, 12 June 2013, for the Dragon Boat Festival.

Japan's machinery orders, an indicator of future capital spending dropped 8.8% in April, more than estimated.

Trading in US index futures indicated that the Dow could gain 53 points at the opening bell on Wednesday, 12 June 2013. US stocks dropped on Tuesday after the Bank of Japan's status-quo policy decision revived concerns about the winding down of central bank stimulus measures. The restraint in Japan also raised questions about the US Federal Reserve's future direction of policy measures ahead of next week's Federal Open Market Committee meeting.

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First Published: Jun 12 2013 | 1:27 PM IST

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