Sensex, Nifty fail to retain key psychological levels

Key benchmark indices pared gains in early afternoon trade. The barometer index, BSE Sensex, fell below the psychological 20,000 level, having alternately moved above and below that mark in intraday trade so far. The CNX Nifty continued to hover below the psychological 6,000 level, having alternately moved above and below that mark earlier in the day. The Sensex was up 35.10 points or 0.18%, off 75.20 points from the day's high and up 12.82 points from the day's low. The market breadth, indicating the overall health of the market, was negative.

Shares of FMCG major Hindustan Unilever reversed direction after striking record high. In the pharma pack, Lupin scaled record high after the company announced forming a strategic partnership with MSD to co-market MSD's 23-valent Pneumococcal polysaccharide vaccine for Indian market. Kotak Mahindra Bank fell after declaring Q1 June 2013 as its first quarter results showed that that the bank's sticky loans rose. Telecom stocks edged lower in volatile trade.

Key benchmark indices edged higher in early trade on mostly higher Asian stocks. The Sensex moved past the psychological 20,000 mark. The CNX Nifty hit the psychological 6,000 mark. Key benchmark indices pared gains in morning trade. The Nifty fell below the psychological 6,000 mark. A bout of volatility was witnessed in mid-morning trade as the key benchmark indices recovered after paring intraday gains in morning trade. Key benchmark indices once again pared gains in early afternoon trade.

At 12:22 IST, the S&P BSE Sensex was up 35.10 points or 0.18% to 19,983.83. The index gained 110.30 points at the day's high of 20,059.03 in early trade, its highest level since 15 July 2013. The index rose 22.28 points at the day's low of 19,971.01 in mid-morning trade.

The CNX Nifty was up 9.70 points or 0.16% to 5,983. The index hit a high of 6,005.60 in intraday trade. The index hit a low of 5,976.15 in intraday trade.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,091 shares declined and 940 shares gained. A total of 142 shares were unchanged.

The total turnover on BSE amounted to Rs 798 crore by 12:20 IST compared to Rs 596 crore by 11:20 IST.

Among the 30-share Sensex pack, 17 stocks gained and rest of them declined.

Shares of FMCG major Hindustan Unilever shed 0.89% to Rs 678.35, with the stock reversing direction after scaling a record high of Rs 718 in intraday trade today, 18 July 2013. The stock had surged on Wednesday on reports that the company has raised prices of several personal care products.

HUL's parent Unilever PLC on 11 July 2013 said that pursuant to the voluntary open offer to increase its stake in HUL, the shareholders of HUL tendered a total of 31.99 crore shares, out of which 31.95 crore shares have been accepted by Unilever PLC on completion of the verification of the shares tendered. Based on the shares tendered which represent 14.78% of HUL, the Unilever Group will increase its stake in HUL from 52.48% to 67.26%.

Lupin rose 2.56% to Rs 895.95 after striking a record high of Rs 904.95 in intraday trade today, 18 July 2013. Lupin during market hours today, 18 July 2013, it has entered into a strategic partnership with MSD to co-market MSD's 23-valent Pneumococcal polysaccharide vaccine for Indian market. Lupin will have a non-exclusive licence to market, promote and distribute MSD's 23-valet Pnemococcal Polysaccharide vaccine under a different brand name in India. MSD is one of the world's leading players in the Pneumococcal polysaccharide vaccine (PPV) category.

Kotak Mahindra Bank fell 1.77% as its first quarter results showed that that the bank's sticky loans rose. Gross non-performing assets surged to Rs 995.39 crore as on 30 June 2013, from Rs 758.11 crore as on 31 March 2013 and Rs 684.68 crore as on 30 June 2012. The ratio of the bank's gross non-performing assets (NPAs) to gross advances increased to 1.95% as on 30 June 2013, from 1.55% as on 31 March 2013 and 1.6% as on 30 June 2012. The ratio of the bank's net non-performing assets (NPAs) to net advances increased to 0.98% as on 30 June 2013 from 0.64% as on 31 March 2013 and 0.8% as on 30 June 2012.

The bank during market hours today reported 42.61% rise in net profit to Rs 402.82 crore on 28.94% rise in total income to Rs 2652.40 crore in Q1 June 2013 over Q1 June 2012.

Telecom stocks were mostly lower in volatile trade. Idea Cellular shed 0.5% to Rs 150. The stock had hit a record high of Rs 163.50 in intraday trade on 17 July 2013.

Tata Teleservices (Maharashtra) fell 1.75%. MTNL declined 1.73%.

Bharti Airtel gained 1.5%.

Reliance Communications rose 0.94% to Rs 144.25. The stock had hit 52-week high of Rs 151.25 in intraday trade on 18 July 2013.

The government had on Tuesday, 16 July 2013, announced increase of FDI ceiling in the telecom services sector to 100% from 74%. FDI in the telecom services sector was increased from 74% to 100%, but all investments above 49% will continue to be routed through the FIPB.

The Reserve Bank of India (RBI) on Wednesday, 17 July 2013, said it has decided to conduct a special 3-day repo at an interest rate of 10.25% for a notified amount of Rs 25000 crore with a view to enabling banks to meet the liquidity requirements of mutual funds. This facility will be made available for a temporary period until further notice, RBI said.

RBI governor D. Subbarao on Wednesday, 17 July 2013, said that the rupee exchange rate is largely market-determined and that the central bank intervenes only to dampen currency volatility and preserve macroeconomic stability.

Asian markets were mostly lower on Thursday, 18 July 2013, after China's Finance Minister Lou Jiwei said the government is unlikely to provide a big fiscal stimulus this year. China is the world's second biggest economy after the United States. Key benchmark indices in Hong Kong, China, Singapore and South Korea were down 0.14% to 1.06%. Key benchmark indices in Japan, Taiwan and Indonesia were up 0.34% to 1.32%.

Chinese Finance Minister Lou Jiwei on Wednesday, 17 July 2013, said that the government is unlikely to use massive fiscal stimulus this year.

Trading in US index futures indicated that the Dow could fall 31 points at the opening bell on Thursday, 18 July 2013. US stocks ticked higher on Wednesday, 17 July 2013, after the Federal Reserve Chairman Ben Bernanke said the central bank's monthly bond purchases weren't on a "pre-set course" and could be curbed or extended, depending on economic conditions. In prepared testimony to the House Financial Services Committee, Bernanke said that there is no set timetable for slowing US monetary stimulus. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.

The Fed chief is due to speak before the Senate later on Thursday, 18 July 2013.

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