Sharply lower Asian stocks continued to weigh on domestic bourses in afternoon trade. The CNX Nifty index hit an intraday low. The barometer index, the S&P BSE Sensex, was down 175.16 points or 0.93%, off 114.98 points from the day's high and up 16.53 points from the day's low. The market breadth, indicating the overall health of the market, was weak. The market sentiment was weak after data showed that foreign institutional investors (FIIs) remained net sellers of Indian stocks on Friday, 21 June 2013.
Select PSU stocks declined. GAIL (India) hit 52-week low on reports that the Cabinet Committee on Economic Affairs (CCEA) will consider a proposal this week for a steep hike in natural gas prices. Capital goods pivotals dropped with shares of India's largest power equipment maker by capacity Bhel hitting a 52-week low.
Index heavyweight Reliance Industries (RIL) hovered in negative zone. Another index heavyweight and cigarette maker ITC held positive zone.
Key benchmark indices edged lower in early trade on weak Asian stocks. Key benchmark indices dropped to fresh intraday low in morning trade. The Sensex and Nifty, both, hit their lowest level in almost 10 weeks. Fresh selling derailed a brief recovery in mid-morning trade. Sharply lower Asian stocks continued to weigh on domestic bourses in 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.
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The market sentiment was hit adversely after data showed that foreign funds remained net sellers of Indian stocks on Friday, 21 June 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 1768.60 crore on Friday, 21 June 2013, as per provisional data from the stock exchanges.
At 12:22 IST, the S&P BSE Sensex was down 175.16 points or 0.93% to 18,599.08. The index declined 191.69 points at the day's low of 18,582.55 in morning trade, its lowest level since 16 April 2013. The index fell 60.18 points at the day's high of 18,714.06 in opening trade.
The CNX Nifty was down 62.55 points or 1.1% to 5,605.10. The index hit a low of 5,602.25 in intraday trade, its lowest level since 16 April 2013. The index hit a high of 5,640 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,377 shares declined and 522 shares rose. A total of 119 shares were unchanged.
The total turnover on BSE amounted to Rs 767 crore by 12:20 IST.
Among the 30-share Sensex pack, 25 declined and rest of them gained. M&M (down 2.45%), Infosys (down 2.05%) and Bharti Airtel (down 1.64%) edged lower from the Sensex pack.
Capital goods pivotals dropped. India's largest power equipment maker by capacity Bhel fell 2.43% to Rs 166.50 after hitting a 52-week low of Rs 165.80 in intraday trade today, 24 June 2013.
India's largest engineering and construction firm L&T declined 2.3%.
Select PSU stocks declined. GAIL (India) dropped on a likely hike in gas prices. The stock lost 4.44% at Rs 277.45. The scrip hit 52-week low of Rs 276.30 in intraday trade today, 24 June 2013.
As per reports, the Cabinet Committee on Economic Affairs (CCEA) will consider a proposal this week for a steep hike in natural gas prices.
Coal India (down 1.19%), ONGC (down 1.7%) and SBI (down 2.75%) declined.
Reliance Industries (RIL) fell 0.23% to Rs 792.05, with the stock recovering from intraday low of Rs 779.20. The Cabinet Committee on Economic Affairs (CCEA) on Friday, 21 June 2013, deferred a decision on a proposal to hike natural gas prices by a steep 60% as Oil Minister M Veerappa Moily was away on an official tour. The CCEA is likely to consider the proposal this week. 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.
Index heavyweight and cigarette major ITC rose 0.65% to Rs 324.95, with the stock hovering in positive zone. The stock came off the day's low of Rs 319.10.
Redington (India) declined 2.23%. The company during market hours today, 24 June 2013 said that Lenovo India has appointed the company as a national distributor for their smart phones in India for penetrating in the IT channel.
Lenovo is one of the world's largest makers of personal computers, notebook and other innovative computer products including the renowned Thinkpad. Lenovo has launched new smart phones designed specifically for different types of customers.
Fresenius Kabi Oncology jumped 12.8% to Rs 124 on buzz that the foreign promoter has got a green signal from the Securities Appellate Tribunal (SAT) for delisting of the shares of Fresenius Kabi Oncology from the stock exchanges. The company's foreign promoter Fresenius Kabi (Singapore) Pte, which currently holds 81% stake in the company, had announced delisting plan in April 2013. The foreign promoter had said at that time that it intends to pay an indicative price of up to Rs 130 per share to acquire the shares offered to it in the delisting offer.
The company is already a distributor for other computing products of Lenovo and this tie-up would enable the company to align itself to the form-factor evolution in Lenovo, Redington (India) said.
Asian stocks were trading lower on Monday, 24 June 2013, on mounting concerns that the US Federal Reserve may start scaling back its huge monthly bond-buying plan which was aimed at keeping bond yields down and provide support to its faltering economy. Key benchmark indices in Japan, Singapore, Taiwan, Indonesia and South Korea were off 0.45% to 1.31%.
Chinese stocks edged lower as a recent spike in Shanghai interbank interest rates fueled worries about the world's second-largest economy. In mainland China, the Shanghai Composite was off 4.53% and Hong Kong's Hang Seng was down 2.29%. Short-term interbank interest rates in Shanghai, which hit record highs on Thursday, 20 June 2013, extended their drop from levels seen on Friday, 21 June 2013, but remained above the 6%-level on Monday, 24 June 2013. This fed worries that the People's Bank of China, China's central bank, may keep those rates at a high level.
The China's central bank warned Monday that the nation's banks need to strengthen their liquidity management and control liquidity risks. The statement was the first by the central bank that appeared to be aimed at banks caught in a recent liquidity crunch which sent short-term rates on the interbank market soaring, with the overnight lending rate hitting an intraday high of 30% late last week. The People's Bank of China said liquidity in the banking system is at a reasonable level. It also said banks need to maintain "stable and appropriate" credit growth and adhere to its prudent monetary policy.
Trading in US index futures indicated that the Dow could fall 71 points at the opening bell on Monday, 24 June 2013. US stocks ended mixed on Friday, 21 June 2013, as investors picked up beaten down stocks. While the Dow Junes Industrial Average and S&P 500 score small gains the tech laden Nasdaq Composite index registered small losses.
Federal Reserve Chairman Ben Bernanke said last week the central bank may start dialing down its stimulus effort if the economy achieves sustainable growth.
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