IT stocks edge lower

Key benchmark indices trimmed losses in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was down 136.65 points or 0.54%, up about 75 points from the day's low and off close to 230 points from the day's high. The market breadth indicating the overall health of the market was negative. Indian stocks fell today, 23 June 2014, as firm global crude oil prices and hike in railway freight rates stoked inflation worries. The government after trading hours on Friday, 20 June 2014, announced 14.2% increase in railway passenger fare and 6.5% hike in railway freight rate to boost revenue of the railways to meet its annual expenditure. Weakness in European stocks also hurt sentiment on the domestic bourses.

IT stocks edged lower.

At 14:20 IST, the S&P BSE Sensex was down 136.65 points or 0.54% to 24,968.86. The index shed 209.92 points at the day's low of 24,895.59 in afternoon trade, its lowest level since 5 June 2014. The index jumped 91.99 points at the day's high of 25,197.50 in early trade.

The CNX Nifty was down 45.75 points or 0.61% to 7,465.70. The index hit a low of 7,445.25 in intraday trade, its lowest level since 5 June 2014. The index hit a high of 7,534.80 in intraday trade.

The market breadth indicating the overall health of the market was negative. On BSE, 1,482 shares fell and 1,324 shares rose. A total of 110 shares were unchanged.

The BSE Mid-Cap index was up 39.76 points or 0.44% at 9,001.72. The BSE Small-Cap index was up 35.25 points or 0.36% at 9,796.47. Both these indices outperformed the Sensex.

Among the 30 Sensex shares, 16 rose and the remaining shares fell.

IT stocks edged lower. HCL Technologies (down 1.4% to Rs 1,420.50), TCS (down 0.5% to Rs 2,275), Tech Mahindra (down 0.44% to Rs 1,999.25) and Wipro (down 0.7% to Rs 532.60) declined.

Infosys lost 2.52% to Rs 3.232. The company said during market hours that FONDEP, one of Morocco's leading microfinance institutions, has chosen Infosys Finacle for its strategic core banking transformation program. The Finacle solution will help FONDEP adapt to changing customer needs by enabling them to offer relevant products to their customer base, Infosys said in a statement today, 23 June 2014.

Havells India rose 0.05% to Rs 1,103.95 after the company said during market hours that a meeting of the board of directors of the company will be held on 30 June 2014 to consider and approve the sub-division of equity shares of the company. The stock was volatile. The scrip hit high of Rs 1,141 and low of Rs 1,091.75 so far during the day.

Sundram Fasteners rose 2.74% to Rs 96.10 after the company said its wholly owned subsidiary has acquired 24.53% of equity capital of TVS Infotech (an existing associate company) consequent to the allotment of rights shares to Sundaram Fasteners Investment. With this acquisition, Sundaram Fasteners Investment has 62.27% equity stake in TVS Infotech. TVS Infotech has thus become a subsidiary of Sundaram Fasteners Investment and consequently a step-down subsidiary of Sundram Fasteners with effect from 18 June 2014.

TVS Infotech holds 100% equity stake in TVS Infotech Inc., Michigan, USA. As a result of the above mentioned acquisitions, TVS Infotech Inc., Michigan, USA has also become a subsidiary of Sundram Fasteners Investments and consequently a step-down subsidiary of Sundram Fasteners with effect from 18 June 2014, Sundram Fasteners said.

Indiabulls Housing Finance rose 0.92% to Rs 357.30 after the company said that the rating committee of ICRA has upgraded the long term rating to the non-convertible debentures programme of the company. With this IBHFL enjoys a AA+ from three rating agencies and joins a group of select few HFCs and NBFCs to be rated AA+ by ICRA.

The market edged higher amid initial volatility as the government's announcement after trading hours on Friday, 20 June 2014, to raise passenger fare and railway freight fuelled expectations that the Centre has started taking tough decisions which are required to bring the economy on growth path. But, the initial gains proved short lived as firm global crude oil prices and hike in railway freight rates stoked inflation worries. The Sensex and the 50 Nifty, both, hit their lowest level in 2-1/2 weeks in morning trade. A bout of volatility was witnessed as key benchmark indices weakened once again after trimming losses after hitting fresh intraday low in mid-morning trade as firm global crude oil prices and hike in railway freight rates stoked inflation worries. The Sensex regained the psychological 25,000 level after falling below that mark in intraday trade. Key benchmark indices weakened once again after trimming intraday losses in early afternoon trade. Key benchmark indices extended losses and hit fresh intraday low in afternoon trade after European market opened lower. The Sensex fell below the psychological 25,000 mark. Key benchmark indices trimmed losses in mid-afternoon trade.

Indian stocks may continue to remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month June 2014 series to July 2014 series. The near-month June 2014 F&O contract expire on Thursday, 26 June 2014.

The government on Friday, 20 June 2014, raised passenger fare and freight rates. A flat 10% increase in passenger fare was announced for all classes. In addition, there will be an increase of 4.2% in fares on account of FAC (Fuel Adjustment Component) which is due from April 2014. The overall increase in passenger fare is 14.2%.

There has been a flat 5% increase in freight rates. In addition there will be an increase of 1.4% in fares on account of FAC (Fuel Adjustment Component) which is due from April 2014. The overall increase in freight rates will be about 6.5% for major commodities. The revised passenger fare and freight rates and freight structure rationalization will come into effect from 25 June 2014.

Brent crude oil prices rose as militant violence in Iraq continues, raising concerns of oil supply from a key oil exporter of the world. Brent oil futures for August delivery were up 59 cents or 0.51% at $115.40 a barrel. Brent had dropped on Friday, 20 June 2014, after settling at its highest level in more than nine months at $115.06 a barrel on Thursday, 19 June 2014.

Increase in crude oil prices has sparked worries about India's macroeconomic situation as India imports majority of its crude oil requirements. Increase in crude oil prices has raised concerns of increase in India's current account deficit and fiscal deficit. Firm global crude oil prices and the latest hike in railway freight rate have also stoked inflation worries.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.175, compared with its close of 60.185/195 on Friday, 20 June 2014.

European markets edged lower on Monday, 23 June 2014, after data showed Euro-area manufacturing and services activity weakened in June. Key benchmark indices in UK, France and Germany were down 0.48% to 0.85%.

Euro-area manufacturing and services activity weakened in June amid a further slowdown in France's economy, underscoring the fragility of the recovery in the 18-nation region. A Purchasing Managers Index for both industries slipped to 52.8 in June from 53.5, Markit Economics said today. That's the 12th month the gauge has exceeded 50, the mark that signals expansion.

Most Asian stocks edged lower in choppy trade on Monday, 23 June 2014. Key benchmark indices in Indonesia, China, Singapore, Hong Kong and Taiwan were down by 0.02% to 1.68%. Key benchmark indices in Japan and South Korea were up by 0.13% and 0.35%.

Activity in China's factory sector expanded in June for the first time in six months as new orders surged, a preliminary HSBC survey showed on Monday, offering new signs the economy is stabilising thanks to Beijing's measures to shore up growth. The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index rose to 50.8 in June from May's final reading of 49.4. It was the first time since December that the PMI was in growth territory, and the highest reading since November, when it was also 50.8.

Trading in US index futures indicated that the Dow could fall 12 points at the opening bell on Monday, 23 June 2014. The Dow Jones Industrial Average and the S&P 500 index closed at record highs on Friday, helped by the prospect of the Federal Reserve keeping interest rates low for a long period of time.

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