A bout of volatility was witnessed as key benchmark indices trimmed losses after extending losses in afternoon trade. The barometer index, the S&P BSE Sensex, was down 75.56 points or 0.30%, up 89 points from the day's low and off 116 points from the day's high. The market breadth indicating the overall health of the market was weak. The market sentiment was hit adversely by increase in crude oil prices which stoked concerns of fuel price inflation and increase in India's current account deficit and fiscal deficit.
GMR Infrastructure edged lower on reports that the company is looking to raise $250 million through a qualified institutional placement.
At 13:16 IST, the S&P BSE Sensex was down 75.56 points or 0.3% to 25,152.61. The index fell 164.24 points at the day's low of 25,063.93 in afternoon trade, its lowest level since 5 June 2014. The index gained 40.24 points at the day's high of 25,268.41 in early trade.
The CNX Nifty was down 26.60 points or 0.35% to 7,515.50. The index hit a low of 7,487.55 in intraday trade, its lowest level since 5 June 2014. The index hit a high of 7,548.60 in intraday trade.
The BSE Mid-Cap index was off 42.58 points or 0.48% at 8,893.35. The BSE Small-Cap index was off 70.18 points or 0.73% at 9,604.40. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,778 shares declined and 973 shares rose. A total of 96 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks declined and rest of them gained. Axis Bank (down 3.48%), Larsen & Toubro (down 2.48%), M&M (down 2.13%), Reliance Industries (down 1.86%), Tata Steel (down 1.86%), State Bank of India (down 1.85%), ICICI Bank (down 1.56%), Tata Power (down 1.54%), Coal India (down 1.39%), NTPC (down 1.27%) and Tata Motors (down 1.22%), edged lower from the Sensex pack.
GAIL (India) (up 2.64%), TCS (up 2.37%), Infosys (up 2.2%), Sun Pharmaceutical Industries (up 1.6%), Wipro (up 1.32%), Hero MotoCorp (up 1.01%), Bajaj Auto (up 0.81%), ITC (up 0.76%), HDFC Bank (up 0.05%) and ONGC (up 0.04%), edged higher from the Sensex pack.
GMR Infrastructure lost 3.17% on reports that the company is looking to raise $250 million through a qualified institutional placement. According to reports, GMR Group has revived plans to sell shares of GMR Energy, less than two months after scrapping a proposed initial share sale, and its parent GMR Infrastructure (GMR Infra) is looking to raise $250 million (around Rs 1500 crore) through a qualified institutional placement (QIP) as demand for stocks soar.
The Bangalore-based GMR Infra will begin meeting institutional investors from Monday for the QIP, and is planning to file the draft prospectus for GMR Energy with the capital markets regulator by the end of June, reports suggested.
It may be recalled that on 28 April, GMR Infra had told stock exchanges that it had withdrawn plans to take its energy arm public, citing "business reasons".
GMR Infra during market hours today, 16 June 2014, said that a consortium led by the company has won three construction packages of rail line doubling of Multi Modal Transports System (MMTS) - Phase II works on Secunderabad Division of South Central Railway in Andhra Pradesh. Rail Vikas Nigam has issued the letter of award to the GMR consortium on 11 June 2014, the company said in a statement.
The total contract value at approximately Rs 389 crore of which GMR's share of work is about Rs 207 crore.
Dish TV India surged 3.8%, with the stock recovering on bargain hunting after recent slide. Shares of Dish TV India had declined 9.62% in three trading sessions to settle at Rs 54 on Friday, 13 June 2014, from a recent high of Rs 59.75 on 10 June 2014.
The sentiment on the domestic bourses was hit adversely by increase in crude oil prices which stoked concerns of fuel price inflation and increase in India's current account deficit and fiscal deficit. India imports majority of its crude oil requirements.
Brent crude oil futures rose to near nine-month high today, 16 June 2014, on fears the insurgency in Iraq could worsen and affect oil exports. Brent crude oil futures for August delivery were up 53 cents at $112.99 a barrel.
Volatility struck the bourses in early trade as the key benchmark indices dropped to intraday low after reversing initial fall. Key benchmark indices extended fall in morning trade and hit fresh intraday low. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit 1-1/2-week low. A bout of volatility was witnessed in mid-morning trade as the key benchmark indices weakened once again after staging recovery from lower levels. Key benchmark indices extended losses in early afternoon trade after data released by the government showed that the annual rate of inflation based on the wholesale price accelerated in May 2014. The Sensex trimmed losses after hitting fresh intraday low in afternoon trade.
In the foreign exchange market, the rupee edged lower against the dollar as strong demand for the greenback from oil marketing companies weighed after global crude prices surged to nine-month highs on Friday, 13 June 2014. The partially convertible rupee was hovering at 60.16, compared with its close of 59.76/59.77 on Friday, 13 June 2014.
The annual rate of inflation based on the monthly wholesale price index (WPI) accelerated to 6.01% for the month of May 2014, from 5.2% in April 2014, data released by the government today, 16 June 2014, showed. The WPI inflation for March 2014 was revised upwards to 6%, from 5.7% reported earlier. Non-food manufacturing inflation edged up to 3.8% in May 2014, from 3.4% in April 2014.
Prime Minister Narendra Modi on Saturday, 14 June 2014, said setting the economy on the right track would require unpleasant decisions and tough actions. He added that he was confident that the people would support these decisions, as they would be in the national interest. The Prime Minister said that the government would lay targeted focus on the areas of entrepreneurship, skill development and infrastructure, to harness the talent and energy of India's youth.
Modi called for two movements to be pursued in mission mode. He called for Swachh Bharat - Clean India, to be achieved by the 150th birth anniversary year of Mahatma Gandhi, in 2019. He also called for providing a home with basic amenities of water, power and sanitation, to all families by the 75th anniversary of Indian independence, in 2022. These missions would also build infrastructure and boost employment, the Prime Minister said. The Prime Minster was speaking at in a meeting with leaders from various walks of life in Goa.
European stocks slipped in early trade on Monday, 16 June 2014, adding to last week's retreat as mounting violence in Iraq prompted investors to further book profits on recent lofty equity market gains. Key benchmark indices in UK, France and Germany were off 0.03% to 0.20%.
Asian stocks edged lower on Monday, 16 June 2014, amid an escalation of violence in Iraq. Key benchmark indices in Hong Kong, Japan and Indonesia were off 0.17% to 1.09%. Key benchmark indices in China, Singapore, South Korea and Taiwan were up 0.07% to 0.74%.
Trading in US index futures indicated that the Dow could fall 20 points at the opening bell on Monday, 16 June 2014. US stock rose modestly on Friday, 13 June 2014, but trading was choppy with news out of Iraq resulting in price swings in late trade.
In economic news, the University of Michigan/Thomson Reuters sentiment gauge fell in June to 81.2 the lowest level in three months. Separately, government data ahead of the open showed wholesale prices for May fell unexpectedly.
The Federal Open Market Committee (FOMC) undertakes monetary policy review at a two-day meeting that begins tomorrow, 17 June 2014. The FOMC after a monetary policy review on 30 April 2014 reduced its monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve. The Fed also said at that time that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends.
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