Key benchmark indices slipped into the red and hit fresh intraday low in early afternoon trade. The market breadth indicating the overall health of the market turned negative from positive. A surge in crude oil prices weighed on investor sentiment, as India imports majority of its oil requirements. The barometer index, the S&P BSE Sensex, was down 71.24 points or 0.28%, off about 185 points from the day's high and up close to 25 points from the day's low.
Crude oil prices rose as escalating violence in Iraq threatened supplies from OPEC's second-largest oil producer. Increase in crude oil prices raised concerns about India's current account deficit and fiscal deficit. India imports majority of its crude oil requirements.
Cairn India rose along with crude oil prices. Bharat Heavy Electricals (Bhel) rose after the company said that it has commissioned one more hydro generating unit of 68 megawatts (MW) at Rampur Hydro Electric Project (HEP) in Himachal Pradesh, thus successfully commissioning a total four units of the 412 MW hydro power plant of SJVN. Deepak Nitrite rose after the company said it has fixed 23 June 2014 as record date for 5-for-1 stock split and also for 1:1 bonus issue.
A bout of volatility was witnessed in early trade as key benchmark indices regained positive terrain after slipping into the red for a brief period after opening with decent gains. Key benchmark indices moved in a narrow range in positive terrain in morning trade. Key benchmark indices trimmed intraday gains in mid-morning trade after moving in a narrow range. Key benchmark indices slipped into the red and hit fresh intraday low in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was down 71.24 points or 0.28% to 25,504.81. The index fell 98.28 points at the day's low of 25,477.93 in early afternoon trade. The index jumped 112.10 points at the day's high of 25,688.31 in early trade, its highest level since 11 June 2014.
The CNX Nifty was down 24.80 points or 0.32% to 7,625.10. The index hit a low of 7,615.55 in intraday trade. The index hit a high of 7,678.50 in intraday trade, its highest level since 11 June 2014.
The BSE Mid-Cap index was down 35.04 points or 0.38% to 9,131.27. The BSE Small-Cap index was down 32.46 points or 0.33% to 9,953.02. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was turned negative from positive in early afternoon trade. On BSE, 1,533 shares fell and 1,227 shares rose. A total of 96 shares were unchanged.
Hindalco Industries (down 3.41%), Bharti Airtel (down 1.68%) and Axis Bank (down 1.67%) edged lower from the Sensex pack.
Cairn India rose along with crude oil prices. The stock was up 1.01% to Rs 375.40. Higher crude oil prices could result in higher realizations from crude sales for oil exploration firms such as Cairn India.
Bharat Heavy Electricals (Bhel) rose 2.89% to Rs 251.25 after the company said during market hours that it has commissioned one more hydro generating unit of 68 megawatts (MW) at Rampur Hydro Electric Project (HEP) in Himachal Pradesh, thus successfully commissioning total four units of the 412 MW hydro power plant of SJVN.
The first three units at Rampur HEP, which were commissioned earlier by Bhel in March 2014, have been put into commercial operation in May 2014. The remaining 2 sets are also in an advanced stage of execution and are likely to be commissioned by Bhel shortly.
Bhel is presently executing hydro power projects of around 5,000 MW which are under various stages of implementation.
GAIL (India) shed 0.88% to Rs 428.45. The company said during market hours today, 13 June 2014, that its wholly owned subsidiary -- GAIL Gas -- and Uttar Pradesh State Industrial Development Corporation (UPSIDC) have signed a memorandum of understanding (MoU) to expand the natural gas downstream distribution network in Uttar Pradesh. This Mou will lay the foundation for building up natural gas infrastructure for fulfilling the demand of natural gas, setting up CNG stations along the highway corridor and distribution of gas to various industrial clusters and parks in the state. The investment envisaged for developing this city gas distribution project in Uttar Pradesh is about Rs 140 crore.
Indian Bank (up 5.93% to Rs 184.75, Petronet LNG (up 4.24% to Rs 167.15), Adani Enterprises (up 3.22% to Rs 503.75), and Colgate-Palmolive (India) (up 2.84% to Rs 1,526.50) were the biggest gainers from the BSE's A group.
Shares of Edelweiss Financial Services edged higher after influential investor Rakesh Jhunjhunwala on Thursday, 12 June 2014, bought 1 crore shares of the company at an average price of Rs 55 per share in a bulk deal on BSE. The stock was up 4.09% at Rs 62.40. GPC Mauritius I LLC sold 1.18 crore shares of the company at an average price of Rs 56.35 per share and GPC Mauritius III LLC sold 1.44 crore of the company at an average price of Rs 56.34 per share, the bulk deals data on BSE showed.
Deepak Nitrite rose 0.8% to Rs 904.80 after the company said it has fixed 23 June 2014 as record date for 5-for-1 stock split and also for 1:1 bonus issue. The announcement was made after market hours on Thursday, 12 June 2014.
In the foreign exchange market, the rupee edged lower against the dollar as crude oil prices rose as escalating violence in Iraq threatened supplies from OPEC's second-largest oil producer. The partially convertible rupee was hovering at 59.47, compared with its close of 59.25/26 on Thursday, 12 June 2014.
Brent crude oil futures for July settlement, which expires today, 13 June 2014, were up 65 cents at $113.67 a barrel on the London-based ICE Futures Europe exchange. The contract ended up with gains of more than $3 on Thursday, 12 June 2014.
Crude rose as supply disruption fears took centre stage with the United States threatening military action in Iraq as supply disruption fears took centre stage with the United States threatening military action in Iraq as Sunni Islamist militants moved south towards Baghdad.
On the macro front, industrial production rose 3.4% in April 2014, compared with a contraction of 0.5% in March 2014, data released by the government after trading hours on Thursday, 12 June 2014, showed. Fourteen out of the twenty two industry groups from the manufacturing sector registered positive growth during the month of April 2014 as compared to the corresponding month of the previous year. Industrial production contracted 0.1% during April-May 2014 over the corresponding period of the previous year.
The annual inflation rate based on combined consumer price index (CPI) for urban and rural India eased to 8.28% (provisional) in May 2014, from 8.59% (final) in April 2014, data released by the government after trading hours on Thursday, 12 June 2014, showed. Within the consumer price index, food prices inflation eased to 9.56% in May 2014, from 9.83% in April 2014. The rate of inflation based on the core CPI, which excludes food and energy prices was 7.72% in May 2014, unchanged from the level in April 2014.
Asian stocks rose in choppy trade on Friday, 13 June 2014 after data showed China's industrial output and retail sales growth accelerated in May. Key benchmark indices in Singapore, Japan, China and Hong Kong were up 0.01% to 0.92%. Key benchmark indices in Indonesia, Taiwan, and South Korea were off 0.09% to 1.03%.
China's industrial output rose 8.8% in May 2014 while, retail sales rose 12.5% in May, the latest data showed.
The Bank of Japan maintained record stimulus as Governor Haruhiko Kuroda strives to boost inflation that remains short of a 2% target. The central bank will continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($688 billion) per year, it said in a statement today in Tokyo, in line with estimates.
Trading in US index futures indicated that the Dow could gain 22 points at the opening bell on Friday, 13 June 2014. US stocks fell on Thursday as concerns escalated about Iraq and after disappointing economic data on retail sales and jobless claims.
In macroeconomic news, retail sales rose 0.3% in May, half the growth rate than forecasts. Americans' new claims for unemployment benefits unexpectedly rose last week.
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