Key benchmark indices edged higher in volatile trade on firm European stocks and higher US index futures. The S&P BSE Sensex, lost 54.95 points or 0.29%, off about 45 points from the day's high and up close to 160 points from the day's low and. The market breadth, indicating the overall health of the market, was negative. Capital goods stocks reversed intraday gain on worries the ongoing slowdown in the economy could restrict new orders. Shares of two wheeler makers gained. Shares of PSU banks dropped.
Indian stocks witnessed a mild recovery after slumping nearly 3% on Thursday, 20 June 2013. The Sensex has lost 986.06 points or 4.99% in this month so far (till 21 June 2013). The Sensex has fallen 652.47 points or 3.35% in calendar 2013 so far (till 21 June 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 1,669.38 points or 8.16%. From a 52-week low of 16,598.48 on 26 July 2012, the Sensex has surged 2,175.76 points or 13.1%.
Coming back to today's trade, Reliance Industries (RIL) declined in volatile trade after the Cabinet Committee on Economic Affairs (CCEA) today, 21 June 2013, deferred a decision on a proposal to hike natural gas prices. Jindal Steel & Power (JSPL) tumbled on high volume to hit 52-week low. Future Retail tumbled over 30% as a scheme of arrangement became effective on the bourses today, 21 June 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 2102.80 crore into secondary equity markets on Thursday, 20 June 2013, as per data from Securities & Exchange Board of India.
The rupee recovered against the dollar in choppy trade. The rupee was currently trading at 59.25, up from its 59.57/58 close on Thursday, 20 June 2013. The rupee had hit record low of 59.9850 in intraday deals on Thursday.
The S&P BSE Sensex advanced 54.95 points or 0.29% to 18,774.24, its highest closing level since 19 June 2013. The index rose 101.52 points at the day's high of 18,820.81 in afternoon trade. The index declined 104.15 points at the day's low of 18,615.14 in early trade, its lowest level since 16 April 2013.
The CNX Nifty advanced 11.75 points or 0.21% to 5,667.65, its highest closing level since 19 June 2013. The index hit a high of 5,686.15 in intraday trade. The index hit a low of 5,616.85 in intraday trade, its lowest level since 16 April 2013.
The BSE IT index (up 1.43%), BSE Teck (up 1.11%) and BSE Auto index (up 0.34%) outperformed the Sensex. The BSE Metal index (down 1.45%), BSE Realty index (down 1.02%), BSE Consumer Durables index (down 0.41%), BSE Bankex (down 0.37%), BSE Capital Goods index (down 0.32%), BSE Healthcare index (down 0.26%), BSE FMCG index (down 0.13%), BSE PSU index (was unchanged), BSE Oil & Gas index (up 0.17%) and BSE Power index (up 0.27%) underperformed the Sensex.
The total turnover on BSE amounted to Rs 2258 crore, higher than Rs 1770.87 crore on Thursday, 20 June 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,342 shares fell and 982 shares rose. A total of 138 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose and rest of them fell.
Some pharma stocks edged higher. Ranbaxy Laboratories gained 1.72%. Dr Reddy's Laboratories rose 2.05%.
Cipla gained 0.59% after the company after market hours on Thursday, 20 June 2013, said that it has received approvals from the South African and Botswana competition authorities for the acquisition of the entire share capital of Cipla Medpro South Africa (Medpro) either by Cipla or through its nominated subsidiary. The implementation of the scheme is still subject to various other approvals and conditions, including regulatory and government approvals, Cipla said.
GAIL (India) rose 0.21% to Rs 291.85, with the stock reversing direction after striking 52-week low of Rs 286.05 in intraday trade today, 21 June 2013.
Shares of some power generation companies edged higher after the Cabinet Committee on Economic Affairs today, 21 June 2013, cleared a proposal to allow power companies to pass on cost of imported coal to customers. NTPC and Tata Power Company rose by 0.74% to 2.11%.
IT stocks rose on recent steep slide in rupee against the dollar. TCS (up 1.31%) and Wipro (up 0.4%), edged higher. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Infosys rose 2.21%. The company announced after market hours on Thursday, 20 June 2013, that it has joined Open Data Center Alliance (ODCA) as a contributing member. Infosys will contribute its proven expertise in cloud and big data to ODCA's mission of developing a unified vision for an enterprise's cloud and big data requirements based on open, interoperable standards. Infosys will contribute to working groups that will focus on strengthening industry standards in areas like interoperability, manageability, businesses processes and governance.
HCL Technologies was flat at Rs 759.40. The company after market hours today, 21 June 2013, said it entered into a multi-year engagement with Vestas Wind Systems A/S as the latter's strategic partner. Vestas is a global leader in manufacturing, selling, installing, and servicing of wind turbine power-plants.
HCL will provide application development and management and IT-consultancy services to applications run by Vestas as part of this engagement. The services will be delivered to Vestas primarily from India, but also from the Philippines and across locations in Denmark. Besides cost reduction, Vestas IT expects to gain increased flexibility in terms of skills, scale, knowledge and experience and achieve higher quality by using the HCL's best in class processes and services.
Realty stocks edged lower in choppy trade. HDIL (down 4.84%), Sobha Developers (down 3.95%), Unitech (down 2.14%), D B Realty (down 0.9%) and DLF (down 0.28%), edged lower.
Reliance Industries (RIL) fell 0.66% to Rs 793.90 after the Cabinet Committee on Economic Affairs (CCEA) today, 21 June 2013, deferred a decision on a proposal to hike natural gas prices by a steep 60%. The stock was volatile. The stock hit high of Rs 810.50 and low of Rs 785. Oil Minister M Veerappa Moily who is away on an official tour had proposed to raise 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.
ONGC rose 2.56%. Oil India declined 0.41%.
Jindal Steel & Power (JSPL) tumbled 8.06% to Rs 204.25, after hitting 52-week low of Rs 196 in intraday trade today, 21 June 2013. The stock dropped on high volume. On BSE, 31.66 lakh shares were traded in the counter as against average daily volume of 4.04 lakh shares in the past one quarter.
The JSPL stock had tumbled 9.62% to settle at Rs 222.15 on Thursday, 20 June 2013, after a foreign brokerage downgraded the stock to sell and reduced its target price to Rs 230 from Rs 290.
Early this month, the Central Bureau of Investigation filed an FIR in the Coalgate case in which JSPL Chairman Naveen Jindal and JSPL, as well as a former minister of state for coal Dasari Narayan Rao have been named. The CBI has alleged that Rao was paid kickbacks for favouring coal block allocation to the Jindal firm.
Shares of PSU banks dropped. State Bank of India (SBI) (down 0.4%), Canara Bank (down 0.98%), Punjab National Bank (down 2.93%), Union Bank of India (down 3.83%), Bank of Baroda (down 4.73%) and Bank of India (down 6.19%), edged lower.
Shares of private sector bank Karnataka Bank slumped 15.5%.
Shares of two wheeler makers gained. Bajaj Auto (up 0.27%) and Hero MotoCorp (up 1.56%), edged higher.
Capital goods stocks reversed intraday gains on worries the ongoing slowdown in the economy could restrict new orders. L&T (down 0.18%), Bhel (down 0.38%) and Siemens (down 1.47%), edged lower.
Apollo Tyres dropped 6.91% to Rs 57.25, after hitting 52-week low of Rs 54.60 in intraday trade today, 21 June 2013. Shares of Apollo Tyres had tumbled recently on concerns about the impact of a large US acquisition on the company's balance sheet.
Apollo Tyres after trading hours on 12 June 2013 said that it has entered into a definitive merger agreement under which a wholly-owned step subsidiary of the company will acquire Cooper Tire & Rubber Company (Cooper), a company listed on the New York Stock Exchange, in an all-cash transaction valued at approximately $2.5 billion. This strategic combination will bring together two companies with highly complementary brands, geographic presence and technological expertise to create a global leader in tire manufacturing and distribution, Apollo Tyres said in a statement.
Shares of MRF dropped 5.88%.
Future Retail tumbled 32.81% after a scheme of arrangement became effective on the bourses today, 21 June 2013. The country's largest retailer demerged its fashion business and set up the new company -- Future Lifestyle Fashions (FLFL). As per the scheme, shareholders will receive 1 fully paid equity share of Rs 2 each of Future Lifestyle Fashions (FLFL) for every 3 equity shares of Rs 2 each held in Future Retail. Further, the shareholders will receive 1 fully paid equity share of Rs 2 each of FLFL for every 3 Class B (Series-1) shares of Rs 2 each held in Future Retail.
Magma Fincorp rose 4.1% to Rs 86.40 after block deals on BSE. Three block deals of 2.16 lakh shares each were executed in the counter on BSE at 10:46 IST. Out of the three deals, two deals were struck at Rs 87 per share and the third deal was struck at Rs 85.85 per share. Magma Fincorp is one of the largest non-banking finance companies (NBFC) in India.
MMTC fell by maximum permissible 5% lower circuit at Rs 132.75 on BSE, also its 52-week low, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake at a huge discount to the stock's ruling market price last week. The government last week sold 9.33% stake in MMTC via Offer for Sale through stock exchanges mechanism at an indicative price of Rs 60.86 per share. The divestment was done to make the company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR). Sebi has mandated minimum public shareholding of 10% for state-run firms by August 2013.
Shriram Transport Finance Company fell 2.49% as the stock turned ex-dividend today, 21 June 2013, for final dividend of Rs 4 per share for the year ended 31 March 2013.
Vijaya Bank fell 7.85% as the stock turned ex-dividend today, 21 June 2013, for dividend of Rs 2.50 per share for the year ended 31 March 2013
Neyveli Lignite rose 0.61% to Rs 58.05, off the day's high of Rs 62.90. The Cabinet Committee on Economic Affairs today, 21 June 2013, cleared a proposal for divestment of 5% government stake in the state-run firm. The stock was volatile. The scrip bounced back after sliding as much as 5.63% at the day's low of Rs 54.45 so far during the day.
Shares of power finance companies extended Thursday's losses. Power Finance Corporation (down 5.6%) and Rural Electrification Corporation (down 3.74%), edged lower.
European stock markets edged higher on Friday, 21 June 2013, after posting severe losses the prior day in reaction to the US Federal Reserve's announcement that it may begin to taper asset purchases later this year. Key benchmark indices in UK, France and Germany were up 0.41% to 0.93%.
Asian stocks fell for the second day in a row on Friday, 21 June 2013, after the US Federal Reserve signaled it may soon downsize bond purchases under its quantitative-easing program. Key benchmark indices in Indonesia, Singapore, Taiwan and South Korea were off 0.28% to 2.48%.
Mainland Chinese and Hong Kong shares pared their sharp initial declines as a sharp fall in Shanghai interbank rates from Thursday's record highs aided banks. The Shanghai Composite dropped 0.52% and Hong Kong's Hang Seng Index lost 0.59%. Both benchmarks had dropped more than 2% earlier in the day.
Japanese shares staged a strong intraday rebound as the yen weakened against the dollar. The Nikkei 225 Average rose 1.66%, after sinking more than 2% during the morning session.
Trading in US index futures indicated that the Dow could gain 92 points at the opening bell on Friday, 21 June 2013. US stocks tumbled on Thursday hit by fear that the Federal Reserve will scale back its bond buying later this year.
Federal Reserve Chairman Ben Bernanke said on June 19 the central bank may start dialing down its stimulus effort if the economy achieves sustainable growth.
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