Bank stocks lead initial decline

Key benchmark indices cut losses after a lower start triggered on negative Asian stocks. The S&P BSE Sensex was down 30.20 points or 0.14%, up 41.92 points from the day's low and off 19.41 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Bank pivotals edged lower in early trade.

Foreign institutional investors (FIIs) bought shares worth a net Rs 1014.61 crore on Tuesday, 19 November 2013, as per provisional data from the stock exchanges.

At 9:23 IST, the S&P BSE Sensex was down 30.20 points or 0.14% to 20,860.62. The index fell 72.12 points at the day's low of 20,818.70 in early trade. The index declined 10.79 points at the day's high of 20,880.03 in early trade.

The CNX Nifty was down 8.35 points or 0.13% to 6,195. The index hit a high of 6,198.70 in intraday trade. The index hit a low of 6,181.20 in intraday trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 507 shares gained and 263 shares fell. A total of 26 shares were unchanged.

The total turnover on BSE amounted to Rs 104 crore by 09:25 IST.

Among the 30-share Sensex pack, 18 stocks gained and rest of them declined.

HDFC (down .89%), L&T (down 0.52%) and Tata Steel (down 0.47%) edged lower from the Sensex pack.

Sesa Sterlite (up 1.05%), TCS (up 0.95%) and M&M (up 0.76%) edged higher from the Sensex pack.

Bank pivotals edged lower in early trade. ICICI Bank fell 1.23%. ICICI Bank on Monday, 18 November 2013, said that the bank acting through its Dubai branch, priced an issuance of 5.5 year fixed rate notes of an aggregate principal amount of $750 million. The notes were sold under the Rule 144A/Reg S format. The notes carry a coupon of 4.8% and were offered at an issue price of 99.609. The announcement was made after market hours on Monday, 18 November 2013.

HDFC Bank declined 0.71%.

State Bank of India (SBI) fell 0.39%.

Tata Motors shed 0.12%. The company is reportedly planning to launch a new hatchback and a sub-4 metre sedan powered by an all-new 1.2 litre turbocharged petrol engine in 2014 to cash in on the popularity of petrol cars. These two new products will be the first few major product offerings from Tata Motors in the last 3-4 years since the launch of the Aria crossover in 2010-11, the media report added.

Ashok Leyland rose 0.63%. The company said after market hours on Tuesday, 19 November 2013 that the board of directors of the company at its meeting held on 19 November 2013, approved the scheme of amalgamation of Ashley Services (100% subsidiary - transferor company) with Ashok Leyland (transferee company), subject to approval of regulatory authorities as required and the High Court of Judicature, Madras.

Paris-based Organisation for Economic Co-operation and Development (OECD) said Indian economy will grow just 3.4% in the current financial year and 5.1% in 2014, down from 5.7% and 6.6% forecasted earlier.

The OECD cut its global growth forecasts for this year and next as emerging-market economies including India and Brazil cool. The world economy will probably expand 2.7% this year and 3.6% next year, instead of the 3.1% and 4% predicted in May, the OECD said in a semi-annual report on Tuesday.

On the political front, an unprecedented 78.50% of the nearly 1.40 crore electors voted in the second phase of polling for the Assembly elections in Chhattisgarh on Tuesday, 19 November 2013. The first phase of elections in the 90-member assembly on 11 November 2013 had seen polling of 75.53%.

Asian shares declined on Wednesday as investors adopt a cautious stance ahead of the Fed meeting minutes. Key benchmark indices in Taiwan, China, Japan, Indonesia and South Korea fell by 0.08% to 0.58%. Key benchmark indices in Hong Kong and Singapore rose 0.05% to 0.3%.

Japanese exports rose 18.6% from a year earlier in October to 6.105 trillion yen, the Ministry of Finance said Wednesday, marking the eighth straight month of expansion. In September, exports rose 11.5% on year.

US stocks pulled back on Tuesday, as investors showed caution after the Dow Jones Industrial Average and S&P 500 failed to hold above milestone levels in the prior session.

Investors will closely watch US Federal Reserve's FOMC minutes due to be released today, 20 November 2013 for any fresh clues on Fed monetary policy moves upcoming. The minutes will be from the October 29-30 meeting.

Federal Reserve Chairman Ben Bernanke indicated Tuesday that the US central bank would like to move away from using its balance sheet to help the economy and focus more on forward guidance about keeping short-term rates low, but the timing of this shift remains an open question.

Bernanke said the timing of the Fed's tapering of monetary stimulus still depends on further improvement in employment data and a pickup in inflation toward the central bank's 2% target.

The Federal Reserve would like to move away from using its balance sheet to help the economy and focus more on "forward guidance" about keeping short-term rates low, but the timing of this shift remains an open question, said Federal Reserve Chairman Ben Bernanke on Tuesday. Bernanke was much clearer about the central bank's plan for short-term rates, saying the Fed would likely hold short-term rates near zero well after the economy reaches the 6.5% unemployment rate that is the threshold for considering a rate increase. In new language, Bernanke said rates could even stay near zero until "the preponderance of the data supports the beginning" of tightening.

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