Key benchmark indices extended fall and hit fresh intraday low in afternoon trade as oil surged amid escalating violence in Iraq. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit one week low. The market breadth indicating the overall health of the market was weak with over 2 losers for every gainer on BSE. The barometer index, the S&P BSE Sensex, was down 295.30 points or 1.15%, off 407.40 points from the day's high and up 4.35 points from the day's low. IT major Infosys rose in volatile trade. Metal and mining stocks dropped.
Crude oil prices surged as escalating violence in Iraq threatened supplies from OPEC's second-largest oil producer. Increase in crude oil prices raised concerns about India's current account deficit and fiscal deficit. India imports majority of its crude oil requirements.
A bout of volatility was witnessed in early trade as key benchmark indices regained positive terrain after slipping into the red for a brief period after opening with decent gains. Key benchmark indices moved in a narrow range in positive terrain in morning trade. Key benchmark indices trimmed intraday gains in mid-morning trade after moving in a narrow range. Key benchmark indices slipped into the red and hit fresh intraday low in early afternoon trade. Key benchmark indices extended fall and hit fresh intraday low in afternoon trade on crude surged. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit one week low.
At 13:20 IST, the S&P BSE Sensex was down 295.30 points or 1.15% to 25,280.91. The index lost 299.65 points at the day's low of 25,276.56 in afternoon trade, its lowest level since 6 June 2014. The index jumped 112.10 points at the day's high of 25,688.31 in early trade, its highest level since 11 June 2014.
The CNX Nifty was down 100.75 points or 1.32% to 7,549.15. The index hit a low of 7,548.95 in intraday trade, its lowest level since 6 June 2014. The index hit a high of 7,678.50 in intraday trade, its highest level since 11 June 2014.
The BSE Mid-Cap index was down 177.20 points or 1.93% to 8,989.11. The BSE Small-Cap index was down 244.47 points or 2.45% to 9,741.01. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was weak with more than 2 losers for every gainer on BSE. On BSE, 2,054 shares fell and 971 shares rose. A total of 86 shares were unchanged.
The total turnover on BSE amounted to Rs 2846 crore by 13:15 IST.
ONGC (down 3.51%), NTPC (down 3.09%) and Axis Bank (down 2.33%) edged lower from the Sensex pack.
IT major Infosys rose 1.02% to Rs 3,198.95 in volatile trade. The stock hit high of Rs 3,205 and low of Rs 3,132.15. On Thursday, 12 June 2014, Infosys had announced the selection of Dr. Vishal Sikka as the Chief Executive Officer and Managing Director (CEO & MD) of the company. Dr. Sikka will be inducted as a whole-time director of the board of Infosys and CEO & MD (Designate) on 14 June 2014. He will take over as CEO & MD from Mr. S. D. Shibulal on 1 August 2014. Infosys also said that Mr. N.R. Narayana Murthy will voluntarily step down as Executive Chairman of the company on 14 June 2014. Meanwhile, Infosys on Thursday, 12 June 2014 also denied rumours of the company planning share buyback.
Larsen & Toubro (L&T) fell 2.25%. L&T during market hours today, 13 June 2014, said that its unit construction division has won orders valued at Rs 1027 crore across various business segments in May and June 2014.
Metal and mining stocks dropped. NMDC (down 3.09% to Rs 178.90), Steel Authority of India (Sail) (down 4.66% to Rs 99.20), Jindal Steel & Power (down 3.51% to Rs 322.80), JSW Steel (down 1.7% to Rs 1,278.10), Hindalco Industries (down 3.17% to Rs 163.40), Sesa Sterlite (down 1.83% to Rs 286.95), Hindustan Zinc (down 1.95% to Rs 166.05), Tata Steel (down 2.22% to Rs 537.75), Hindustan Copper (down 6.15% to Rs 110.65), National Aluminium Company (down 5.3% to Rs 53.65) declined.
In the foreign exchange market, the rupee edged lower against the dollar as crude oil prices rose as escalating violence in Iraq threatened supplies from OPEC's second-largest oil producer. The partially convertible rupee was hovering at 59.52, compared with its close of 59.25/26 on Thursday, 12 June 2014.
Brent crude oil futures for July settlement, which expires today, 13 June 2014, were up $1.16 a barrel at $114.18 a barrel on the London-based ICE Futures Europe exchange. The contract ended up with gains of more than $3 on Thursday, 12 June 2014.
Crude rose as supply disruption fears took centre stage with the United States threatening military action in Iraq as supply disruption fears took centre stage with the United States threatening military action in Iraq as Sunni Islamist militants moved south towards Baghdad.
On the macro front, industrial production rose 3.4% in April 2014, compared with a contraction of 0.5% in March 2014, data released by the government after trading hours on Thursday, 12 June 2014, showed. Fourteen out of the twenty two industry groups from the manufacturing sector registered positive growth during the month of April 2014 as compared to the corresponding month of the previous year. Industrial production contracted 0.1% during April-May 2014 over the corresponding period of the previous year.
The annual inflation rate based on combined consumer price index (CPI) for urban and rural India eased to 8.28% (provisional) in May 2014, from 8.59% (final) in April 2014, data released by the government after trading hours on Thursday, 12 June 2014, showed. Within the consumer price index, food prices inflation eased to 9.56% in May 2014, from 9.83% in April 2014. The rate of inflation based on the core CPI, which excludes food and energy prices was 7.72% in May 2014, unchanged from the level in April 2014.
European stocks declined on Friday, 13 June 2014 with investors acting with caution ahead of the weekend as violence escalated in Iraq, sending energy prices soaring. Key benchmark indices in UK, France and Germany were off 0.19% to 0.33%.
The rate of annual inflation in Germany weakened substantially in May, the country's statistics office said Friday. German consumer prices rose by only 0.6% in May in annual terms based on common European data standards, its lowest growth rate since February 2010 and well below the 1.1% gain registered in April. In monthly terms, prices declined by 0.3%. In national terms, prices fell 0.1% on the month, but rose 0.9% on the year in May, the statistics office said.
Spain's inflation rate eased slightly in May, largely due to declines in food and beverage prices, official data showed Friday. The country's European Union-harmonized consumer price index rose 0.2% in May, said the country's national statistics institute, or INE, down from a rise of 0.3% in April. Under Spain's own inflation calculations, prices rose 0.2% in May, having increased by 0.4% in April.
Asian stocks rose in choppy trade on Friday, 13 June 2014, after data showed China's industrial output and retail sales growth accelerated in May. Key benchmark indices in Singapore, Japan, China and Hong Kong were up 0.03% to 0.93%. Key benchmark indices in Indonesia, Taiwan, and South Korea were off 0.09% to 1.03%.
China's industrial output rose 8.8% in May 2014 while, retail sales rose 12.5% in May, the latest data showed.
The Bank of Japan maintained record stimulus as Governor Haruhiko Kuroda strives to boost inflation that remains short of a 2% target. The central bank will continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($688 billion) per year, it said in a statement today in Tokyo, in line with estimates.
Trading in US index futures indicated that the Dow could gain 7 points at the opening bell on Friday, 13 June 2014. US stocks fell on Thursday as concerns escalated about Iraq and after disappointing economic data on retail sales and jobless claims.
In macroeconomic news, retail sales rose 0.3% in May, half the growth rate than forecasts. Americans' new claims for unemployment benefits unexpectedly rose last week.
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