BSE Small-Cap, Mid-Cap indices in red

Key benchmark indices held firm after striking fresh intraday high in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 226.44 points or 1.22%, up 280.03 points from the day's low and off 33.61 points from the day's high. Gains in European stocks and comments from a People's Bank of China official suggesting a potential end to a cash crunch that has gripped China's financial system this month aided gains in Indian stocks.

Index heavyweight and cigarette major ITC hovered in positive zone. Reliance Industries extended intraday gains as Cabinet Committee on Economic Affairs (CCEA) is likely to consider a proposal this week for a steep hike in natural gas prices. Select metal stocks rose on renewed buying. PSU OMCs gained.

The market breadth, indicating the overall health of the market, was negative. The BSE Mid-Cap and the BSE Small-Cap indices were, both, in red, underperforming Sensex.

Key benchmark indices edged higher amid initial volatility. Key benchmark indices alternately moved between positive and negative zone near the flat line in morning trade. Key benchmark indices saw divergent trend in mid-morning trade. Key benchmark indices surged in early afternoon trade as Chinese shares erased most of heavy intraday losses. The Sensex extended gains to hit fresh intraday high in afternoon trade as European stocks rose in early trade. Key benchmark indices held firm after striking fresh intraday high in mid-afternoon trade.

The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expire on Thursday, 27 June 2013.

At 14:22 IST, the S&P BSE Sensex was up 226.44 points or 1.22% to 18,767.33. The index jumped 260.05 points at the day's high of 18,800.94 in mid-afternoon trade, its highest level since 21 June 2013. The index fell 53.59 points at the day's low of 18,487.30 in morning trade.

The CNX Nifty was up 65.95 points or 1.18% to 5,656.20. The index hit a high of 5,665.40 in intraday trade, its highest level since 21 June 2013. The index hit a low of 5,570.25 in intraday trade.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,193 shares declined and 955 shares advanced. A total of 131 shares were unchanged.

The BSE Mid-Cap shed 0.21% and the BSE Small-Cap index declined 0.22%. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 1419 crore by 14:20 IST.

Among the 30-share Sensex pack, 23 stocks gained and rest of them declined. ONGC (up 4.7%), HDFC Bank (up 2.97%) and M&M (up 2.65%) edged higher from the Sensex pack.

Select metal stocks gained on bargain hunting. Sterlite Industries (India) rose 1.1% to Rs 78.30. The stock recovered after falling to a 52-week low of Rs 75.90 in intraday trade today, 25 June 2013.

Jindal Steel & Power (up 0.65%), Hindalco Industries (up 3.72%) and Sesa Goa (up 1.45%) edged higher. JSW Steel (down 1.56%), Sail (down 1.37%), National Aluminium Company (down 0.34%) and Hindustan Zinc (down 0.59%) edged lower.

Index heavyweight and cigarette major ITC rose 1.89% to Rs 320.35. The stock hit a high of Rs 321.50 and low of Rs 311.05 so far during the day.

Reliance Industries (RIL) extended intraday gains as Cabinet Committee on Economic Affairs (CCEA) is likely to consider a proposal this week for a steep hike in natural gas prices. The stock was up 3.11% at Rs 818. The stock hit a high of Rs 818.90 and low of Rs 795 so far during the day.

As per reports, the Cabinet Committee on Economic Affairs (CCEA) will consider a proposal this week for a steep hike in natural gas prices. The CCEA last week deferred a decision on a proposal to hike natural gas prices as Oil Minister M Veerappa Moily was away on an official tour. The oil ministry has proposed an increase in gas prices to $6.775 million British thermal unit (mbtu) from current $4.2 mbtu. The Oil Ministry has proposed raising gas price for state-run firms immediately and that for Reliance Industries (RIL) from April 2014 when it is contractually due.

PSU OMCs gained. HPCL (up 2.2%) and BPCL (up 2.83%) gained.

Indian Oil Corporation (IOC) rose 2.83%. The government intends to divest 10% stake in Indian Oil Corporation (IOC) through an Offer for Sale (OFS) via the stock exchanges mechanism. The government currently holds 78.92% stake in IOC. The stock market regulator Securities & Exchange Board of India (Sebi) has set a deadline of 8 August 2013 for state-run listed companies to meet the mandatory minimum public shareholding of 10%.

The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas on 17 June 2013 said that the under-recovery on high speed diesel (HSD) applicable for second fortnight of June effective from 16 June 2013 has increased sharply to Rs 6.31 per litre from Rs 4.87 per litre during the first fortnight of June 2013. PSU OMCs are currently incurring daily under-recovery of about Rs 286 crore on the sale of diesel, PDS kerosene and domestic LPG. PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers.

Prestige Estates Projects (up 5.93%), United Phosphorus (up 5.58%), IndusInd Bank (up 5.54%), Reliance Communications (up 4.8%), Federal Bank (up 4.39%), Reliance Infrastructure (up 4.26%), Adani Enterprises (up 4.19%) and Sun TV Network (up 3.73%) edged higher from the BSE's 'A' group.

European stock markets rebounded from a five-day losing streak on Tuesday, 25 June 2013, with investors awaiting a raft of US data later in the global day to gauge if the economy is recovering. Key benchmark indices in France, Germany and UK rose by 0.79% to 1.53%.

In Asia, Chinese shares erased most of heavy intraday losses and Hong Kong stocks turned positive on Tuesday, 25 June 2013, on speculation that policy makers in China would elaborate on the ongoing credit crunch in China. The Shanghai Composite index ended 0.19% after tumbling almost 6% earlier in the day. Hong Kong's Hang Seng was up 0.21%. The volatility in mainland Chinese bourses came a day after the Shanghai Composite Index plunged 5.3% for its worst finish in nearly four years, sparking a selloff in global equities, including on Wall Street.

Ling Tao, deputy director of the People's Bank of China's (PBOC) Shanghai branch, said at a briefing in Shanghai today, 25 June 2013, that China's central bank will keep money-market rates at a reasonable level. China's liquidity risks are controllable and the central bank will closely monitor rates going forward, Ling said. The comments build on a PBOC statement released on Monday, 24 June 2013, saying there's a reasonable amount of liquidity in the system and urging banks to control risks from lending.

Most other Asian stocks were in red on Tuesday, 25 June 2013. Key benchmark indices in Japan, Indonesia, South Korea and Taiwan were off 0.72% to 1.22%. In Singapore, the Straits Times index was up 0.51%.

Trading in US index futures indicated that the Dow could gain 62 points at the opening bell on Tuesday, 25 June 2013. US stocks dropped Monday, 24 June 2013, as a 5.3% tumble in the Shanghai stock market overnight spurred by worries over China's economy and banking system.

Some Fed officials on Monday, 24 June 2013, sought to soften worries about the end of monetary stimulus from the central bank. Federal Reserve Chairman Ben Bernanke said last week the central bank may start dialing down its stimulus effort if the economy achieves sustainable growth.

US economic data on durable goods, consumer confidence and housing numbers are due later in the global day today, 25 June 2013.

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