Key benchmark indices dropped on the last trading session of the week amid high intraday volatility. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest closing level in more than two weeks. The Sensex lost 96.29 points or 0.38%, up 49.33 points from the day's low and off 170.80 points from the day's high. The market breadth indicating the overall health of the market was negative. Increase in crude oil prices and provisional data showing selling by foreign funds yesterday, 19 June 2014, weighed on sentiment.
Axis Bank reversed intraday fall in volatile trade. State Bank of India (SBI) fell in volatile trade. Mahindra & Mahindra (M&M) dropped on worries below normal monsoon this year may impact its tractor sales. Pharmaceutical shares reversed intraday gains. Shares of jewellery retailers rose as increase in gold prices will boost valuation of their gold holdings. Among FMCG stocks, Colgate Palmolive (India) reversed direction after scaling record high. Among tyre stocks, CEAT scaled record high.
Shares of public sector oil marketing companies (PSU OMCs) declined after Brent crude hit a nine-month high on Thursday, 19 June 2014. ICRA scaled record high after Moody's Corporation acquired a controlling stake in the Indian company after the completion of a voluntary open offer. Shares of rival rating firm Credit Analysis and Research (CARE) also scaled record high.
The S&P BSE Sensex lost 96.29 points or 0.38% to settle at 25,105.51, its lowest closing level since 5 June 2014. The index lost 145.62 points at the day's low of 25,056.18 in late trade. The index gained 74.51 points at the day's high of 25,276.31 in early afternoon trade.
The CNX Nifty lost 29.25 points or 0.39% to sette at 7,511.45, its lowest closing level since 5 June 2014. The index hit a low of 7,497.30 and a high of 7,560.55 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,720 shares declined and 1,250 shares gained. A total of 95 shares were unchanged.
The BSE Mid-Cap index lost 35.39 points or 0.39% to settle at 8,961.96. The BSE Small-Cap index lost 81.76 points or 0.83% to settle at 9,761.22. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3038 crore, lower than Rs 3883.53 crore on Thursday, 19 June 2014.
Among the 30 Sensex shares, 21 stocks declined and the rest of them gained.
Tata Power (down 2.69%), Hindalco Industries (down 2.21%) and Tata Motors (down 1.01%) edged lower from the Sensex pack.
Bajaj Auto (up 0.7%), Bharti Airtel (up 0.52%) and Tata Steel (up 0.42%) edged higher from the Sensex pack.
Mahindra & Mahindra (M&M) dropped 2.62% on worries below normal monsoon this season may impact its tractor sales.
TVS Motor Company shed 0.38% to Rs 143.85, with the stock reversing direction after scaling a record high of Rs 150.30 in intraday trade. The company announced the launch of its all new motorcycle, StaR HLX 125, in Tanzania after market hours on Thursday, 19 June 2014.
Designed especially to suit riding conditions in the African continent, StaR HLX 125 is an ideal combination of power, mileage and comfort, TVS Motor Company said in a statement. The company currently exports its StaR range, Max range, Victor range, Apache RTR 160, Apache RTR 180 and Jive to African markets. StaR HLX 125 is now being introduced in Tanzania.
Atul Auto surged 7.98% to Rs 500.45 after scaling a record high of Rs 522.90 in intraday trade after the company said its board of directors will meet on 26 June 2014, to consider stock-split. The announcement was made after market hours on Thursday, 19 June 2014.
Pricol rose 4.22% to Rs 42. On Thursday, 19 June 2014, HDFC Mutual Fund acquired 25.40 lakh equity shares or 2.69% stake at Rs 39 per share in Pricol through a bulk deal on NSE on Thursday, 19 June 2014. Simultaneously, Precot Meridian sold 26.72 lakh shares of Pricol at Rs 39.01 on the NSE.
Larsen & Toubro (L&T) shed 0.71%. Ashok Leyland declined 1.36%. Ashok Leyland Defence Systems, Nexter Systems and L&T have signed a consortium agreement to collaborate for the Mounted Gun System (MGS) artillery programme of the Indian Army, the three companies said in a joint statement today, 20 June 2014. The partnership was signed at Eurosatory, one of the world's largest defence exhibitions. Under the agreement, L&T will act as the prime contractor and Nexter will transfer the final integration and production of the MGS artillery system in India to L&T.
The artillery system proposed by the consortium for the MGS programme is a version of the well-known CAESAR artillery System on 6x6 Super Stallion chassis from Ashok Leyland.
The partnership among the three companies is based on delivering the best solution and value to the Indian Army. The customization of the systems to fulfill specific Indian requirements will be done in cooperation between the three companies.
State Bank of India (SBI) fell 1.27% to Rs 2,573. The stock was volatile. The stock hit high of Rs 2,622 and low of Rs 2,567.20.
Axis Bank rose 1.7% to Rs 1874, with the stock reversing intraday fall in volatile trade. The stock hit high of Rs 1,883.55 and low of Rs 1,829.35.
DCB Bank advanced 4.4% to Rs 78.25 after hitting a 52-week high of Rs 80.45 in intraday trade.
IFCI jumped 4.85%. IFCI announced during trading hours today, 20 June 2014, said that it proposes to engage the services of consultant to advise and manage the company in the process of partial disinvestment of its stake in National Stock Exchange of India (NSE) and disinvestment of its entire stake in IFCI Financial Services. The company said it has invited bids for advisors for the proposed stake sale.
Pharmaceutical shares reversed intraday gains. Cipla (down 0.19%), Wockhardt (down 1.07%), Dr Reddy's Laboratories (down 0.16%), Cadila Healthcare (down 0.51%), Glenmark Pharmaceuticals (down 0.82%), Lupin (down 1.34%), Ranbaxy Laboratories (down 2.2%) and Sun Pharmaceutical Industries (down 2.01%) declined.
Orchid Chemicals & Pharmaceuticals surged 3.41% after the company said it has received approval from USFDA for its abbreviated new drug application for Eszopiclone tablets, 1 mg, 2 mg, and 3 mg strengths. The announcement was made after market hours on Thursday, 19 June 2014.
Abbott India jumped 9.84% to Rs 2,010.05 after hitting a record high of Rs 2,039 in intraday trade.
Dishman Pharma rose 2.58% to Rs 129.20 after hitting a 52-week high of Rs 133.30 in intraday trade.
Natco Pharma jumped 10.34% to Rs 1,135 after hitting a record high of Rs 1,210.70 in intraday trade.
Colgate Palmolive (India) fell 1.57% to Rs 1,550.35, with the stock reversing direction after scaling record high of Rs 1,600 in intraday trade.
United Spirits rose 4.39% to Rs 2,702.95. The stock hit a high of Rs 2,705.80 and a low of Rs 2,514.80. According to reports, Diageo's stake in United Spirits will rise to 55% from 28.8%. Diageo is set to attain majority stake in United Spirits, added reports.
Diageo made an open offer to public shareholders of United Spirits to acquire an additional 26% stake at Rs 3,030 per share. The offer opened on 6 June 2014 and ended on Thursday, 19 June 2014. This was Diageo's second attempt to gain majority control in India's number one alcoholic beverages firm.
Shares of public sector oil marketing companies (PSU OMCs) edged lower after Brent crude hit a nine-month high of more than $115 a barrel on Thursday as the United States said it could send military advisers to Iraq. Higher crude oil prices will increase under-recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Indian Oil Corporation (IOCL) (down 3.54%), BPCL (down 2.81%) declined.
HPCL fell 0.33%. As per reports, HPCL-Mittal Energy, part owned by steel tycoon LN Mittal, shut a vacuum gas oil unit on Friday, 20 June 2014, after a fire at its 180,000 barrels per day Bathinda refinery. The fire has been contained and there were no casualties, reports added.
Minister for Petroleum & Natural Gas Dharmendra Pradhan on Thursday, 19 June 2014, reviewed the status of the availability of petroleum products in the country in the light of the on-going conflict in Iraq with the Ministry's officials and representatives of the PSU Oil Marketing Companies (OMCs). It was noted that while India imported about 13% of its crude oil requirements from Iraq last year, in the current year, the Public Sector Oil Marketing Companies (OMCs) had planned to import 19.4 Million Metric Tonnes, MMT (about 20% of their requirement) of crude oil from Iraq, mostly by IOCL and HPCL. It was also confirmed that against the 18.7 MMT of crude oil imports planned by these two OMCs from Iraq in 2014, 50% of the contracted quantity has already been lifted. It was further noted that crude supplies to India from Iraq come from the Basra oilfields which are situated well away from the conflict zone in the north-eastern part of Iraq and loading of ships, including by the two PSUs, from the Basra oil terminal, continues normally.
Nonetheless, the OMCs have been asked to prepare a contingency plan both for the short and medium term including diversification of their resources for import of crude oil in order to minimize the impact of any geo-political instability in the middle-east. It was also confirmed during the meeting that there is no possibility of supply disruption at present and adequate supply of petroleum products throughout the country would be maintained by the OMCs, the Ministry of Petroleum & Natural Gas said.
Cairn India rose as Brent crude hit a nine-month high of more than $115 a barrel on Thursday, 19 June 2014. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms like Cairn India. The stock was up 0.98%.
Petronet LNG gained 3.42% to Rs 167.90 after hitting a 52-week high of Rs 170 in intraday trade.
Sun TV Network rose 2.42% to Rs 429.95, with the stock recovering on bargain hunting after recent slide. Shares of Sun TV Network had declined 5.42% in three trading sessions to settle at Rs 419.80 on Thursday, 19 June 2014, from a recent high of Rs 443.90 on 16 June 2014.
Shares of jewellery retailers rose as increase in gold prices will boost valuation of their gold holdings. On Thursday, 19 June 2014, gold for August delivery, the most actively traded contract, rose 3.3%, the biggest one-day percentage gain since September 2013. The contract rose $41.40 to $1,314.10 a troy ounce, its highest level since 14 April 2014.
Rajesh Exports (up 20%), Tara Jewels (up 7.01%), Tribhovandas Bhimji Zaveri (TBZ) (up 5.22%), Gitanjali Gems (up 4.66%), Shree Ganesh Jewellery House (up 2.68%) and Titan Company (4.53% to Rs 334.80) surged.
ICRA jumped 11.68% to Rs 2,638 after scaling a record high of Rs 2,779.40 in intraday high after Moody's Corporation secured a majority stake in the Indian company through a volunary open offer. Moody's Corporation made the announcement after market hours on Thursday, 19 June 2014.
Moody's Corporation announced that it has secured a majority equity ownership stake in ICRA, increasing its stake from 28.51% to 50.06%.
"The successful conclusion of our offer for a majority stake in ICRA will allow us to extend our strong ties as we work together to serve the growing domestic debt market in India and across the region," said Raymond McDaniel, President and Chief Executive Officer of Moody's.
Moody's Singapore had on 21 February 2014 announced a conditional open offer for acquisition of up to 26.50 lakh equity shares, or 26.50% equity, at Rs 2,000 per share from the shareholders of ICRA. The offer price was later revised to Rs 2,400 per share in May 2014.
The conditional open offer opened on 3 June 2014 and closed on 16 June 2014. Moody's acquired 21.54 lakh shares, or 21.55% equity, of ICRA through the open offer.
Shares of other ratings firms also rose. Credit Analysis and Research jumped 4.5% to Rs 1,053 after scaling a record high of Rs 1,101 in intraday trade.
CRISIL rose 0.2% to Rs 1,710.
MindTree jumped 5.43% to Rs 907.50 after scaling a record high of Rs 918.60 in intraday trade after the company received shareholders' approval to raise upto $1 billion. The company made the announcement after trading hours on Thursday, 19 June 2014. MindTree has received an approval from shareholders to borrow up to $1 billion. Besides, the company has been authorised to sell, lease, mortgage or otherwise dispose off the whole or substantially the whole of the undertaking(s), the moveable and immoveable properties of the company, both present and future.
Firstsource Solutions surged 6.43% to Rs 39.75 after hitting a 52-week high of Rs 40.15 in intraday trade.
CEAT galloped 10.88% to Rs 594.20, also its record high.
HSIL gained 4.38% to Rs 275.50 after hitting a record high of Rs 289.90 in intraday trade.
Volatility struck bourses in early trade as the key benchmark indices reversed initial gains only to regain positive zone later. Volatility continued in morning trade as the key benchmark indices reversed intraday gain. Key benchmark indices regained positive zone after hitting intraday low in mid-morning trade. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in early afternoon trade. Key benchmark indices further trimmed gains afternoon trade. Key benchmark indices recovered after reversing gains to hit fresh intraday low in mid-afternoon trade. High volatility was witnessed in late trade as key benchmark indices trimmed losses after hitting fresh intraday low in late trade.
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 fuel price inflation and increase in India's current account deficit and fiscal deficit.
Militant violence in Iraq which is a key oil exporter in the world, has sent crude prices higher over the past few days. Brent crude futures for August delivery were down 20 cents at $114.86 a barrel today, 20 June 2014. The contract gained 80 cents to settle at $115.06 a barrel yesterday, 19 June 2014, the highest close since 6 September 2013.
The United States on Thursday, 19 June 2014, said it will send military advisers to Iraq to support Iraqi security forces and create joint operation centers in Baghdad and northern Iraq. The United States is prepared to make targeted air strikes in Iraq, he said, maintaining that ground troops would not be returning to the country.
Closer home, India's Ministry of Petroleum & Natural Gas on Thursday, 19 June 2014, said that there is no disruption in supply of crude oil from Iraq to India so far. Crude supplies to India from Iraq come from the Basra oilfields which are situated well away from the conflict zone in the north-eastern part of Iraq and loading of crude oil shipments from the Basra oil terminal continues normally, the oil ministry said. Nonetheless, the PSU OMCs have been asked to prepare a contingency plan both for the short and medium term including diversification of their resources for import of crude oil in order to minimize the impact of any geo-political instability in the middle-east, the oil ministry said.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 420.51 crore on Thursday, 19 June 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar as crude rose on Thursday, 19 June 2014. The partially convertible rupee was hovering at 60.1925, compared with its close of 60.08/09 on Thursday, 19 June 2014.
The monsoon has covered half of the country four days behind the usual schedule. Meanwhile, all India seasonal rainfall from 1 to 18 June 2014 was 45% below long period average, the India Meteorological Department said on its website on Thursday, 19 June 2014. The weather office has forecast below average rainfall in 2014 due to fears of El Nino, a weather event marked by the warming of sea surface temperatures in the Pacific Ocean that can lead to droughts in the Asia Pacific region including India.
European market edged higher today, 20 June 2014, as dovish comments from Federal Reserve Chairwoman Janet Yellen earlier in the week continued to push indexes closer to multiyear highs. Key benchmark indices in Germany and UK were up by 0.13% to 0.30%. In France, the CAC 40 fell 0.05%.
Asian stocks edged lower on Friday, 20 June 2014. Key benchmark indices in Japan, Indonesia, Singapore, Taiwan and South Korea fell by 0.08% to 1.20%. Key benchmark indices in China and Hong Kong rose 0.11% to 0.15%.
Trading in US index futures indicated that the Dow could rise 4 points at the opening bell on Friday, 20 June 2014. Most US stocks ended with modest gains on Thursday, 19 June 2014. With miniscule gains, the S&P 500 finished at a record level for the 21st time this year.
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