Fears of a hike in its main lending rate viz. the repo rate by the Reserve Bank of India (RBI) after a monetary policy review this week weighed on the bourses after the latest data showed acceleration of inflation based on the wholesale price index (WPI) to a 14-month high of 7.52% in November 2013. The WPI data comes close on the heels of last week's data showing record high consumer price inflation in November 2013. The barometer index, the S&P BSE Sensex, was provisionally down 50.14 points or 0.24%, up 27.67 points from the day's low and off 99.08 points from the day's high. The market was volatile as the Sensex alternately swung between positive and negative terrain throughout the day. The Sensex and the 50-unit CNX Nifty hit, both, hit their lowest level in more than two weeks. The market breadth, indicating the overall health of the market, was negative.
Index heavyweight and cigarette major ITC declined on high volume. Index heavyweight Reliance Industries extended intraday fall in late trade. Banking and realty stocks declined on speculation the Reserve Bank of India (RBI) will hike its main lending rate viz. the repo rate after a monetary policy review this week as inflation accelerated in November 2013. Tata Motors dropped after the company reported fall in global wholesales for November 2013. GlaxoSmithkline Pharmaceuticals jumped after its overseas parent GlaxoSmithkline plc announced a voluntary open offer to acquire additional 2.06 crore equity shares of the company at a substantial premium to the ruling market price.
The market sentiment was hit adversely after the latest data showed that foreign institutional investors (FIIs) were net sellers of Indian stocks on Friday, 13 December 2013. FIIs sold shares worth a net Rs 432.02 crore on Friday, 13 December 2013, as per provisional data from the stock exchanges.
As per provisional closing, the S&P BSE Sensex was down 50.14 points or 0.24% to 20,665.44. The index fell 77.81 points at the day's low of 20,637.77 in late trade, its lowest level since 29 November 2013. The index rose 48.94 points at the day's high of 20,764.52 in morning trade.
The CNX Nifty was down 14.50 points or 0.24% to 6,153.90. The index hit a low of 6,146.05 in intraday trade, its lowest level since 29 November 2013. The index hit a high of 6,183.25 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,328 shares dropped and 1,104 shares rose. A total of 180 shares were unchanged.
The total turnover on BSE amounted to Rs 1692 crore, lower than Rs 1750.30 crore on Friday, 13 December 2013.
Among the 30-share Sensex pack, 16 stocks declined and rest of them gained. Jindal Steel & Power (down 2.83%), Mahindra & Mahindra (down 2.43%) and Sun Pharmaceutical Industries (down 2.34%) declined.
Sesa Goa (up 4.01%), Infosys (up 2.06%) and Tata Power Company (up 1.84%) gained.
Index heavyweight and cigarette major ITC was off 0.59% at Rs 313.20 on high volume of 20.19 lakh shares. The stock was volatile. The scrip hit high of Rs 315.40 and low of Rs 310.75.
Index heavyweight Reliance Industries lost 2.14% to Rs 844.90, with the stock extending intraday losses in late trade. The scrip hit high of Rs 861.50 and low of Rs 842.25.
Bank stocks declined on speculation the Reserve Bank of India (RBI) will hike its main lending rate viz. the repo rate after a policy review this week as inflation accelerated in November 2013. HDFC Bank (down 0.67%), Yes Bank (down 1.2%), Kotak Mahindra Bank (down 1.09%), State Bank of India (SBI) (down 0.72%), Canara Bank (down 0.77%), Union Bank of India (down 1.47%), Bank of India (down 1.36%), Bank of Baroda (down 0.23%) and Punjab National Bank (down 0.1%) declined
ICICI Bank was up 0.97% at Rs 1,096. The stock was volatile. The scrip hit high of Rs 1,104 and low of Rs 1,086.
Tata Motors fell 0.85%. Tata Motors' global wholesales fell 19.91% to 81,957 units in November 2013 over November 2012. Global wholesales for Jaguar Land Rover rose 15.31% to 39,956 vehicles in November 2013 over November 2012.
GlaxoSmithkline Pharmaceuticals jumped 18.66% to Rs 2,929. The scrip hit record high of Rs 2,952 in intraday trade. GlaxoSmithKline Pte along with GlaxoSmithkline plc today, 16 December 2013, announced a voluntary open offer to the public shareholders of GlaxoSmithkline Pharmaceuticals to acquire 2.06 crore equity shares, representing 24.33% stake of the total voting share capital of the company, at Rs 3,100 per share, at a premium of 25.58% over the closing price of GlaxoSmithkline Pharmaceuticals' shares on Friday, 13 December 2013.
GlaxoSmithkline plc currently holds 50.67% stake in GlaxoSmithkline Pharmaceuticals. Its stake will rise to 75% if it gets the entire 2.06 crore equity shares through the voluntary open offer. The hike in stake will cost the overseas parent about Rs 6389 crore.
Realty stocks declined on speculation the Reserve Bank of India (RBI) will hike its main lending rate viz. the repo rate after a policy review this week as inflation accelerated in November 2013. Purchases of both residential and commercial property are largely driven by finance. Indiabulls Real Estate (down 1.07%), HDIL (down 2.07%), Unitech (down 1.63%), Sobha Developers (down 7.28%), and Parsvnath Developers (down 0.81%) declined. DLF rose 0.6%.
Inflation based on the wholesale price index (WPI) accelerated to 7.52% in November 2013, from 7% in October 2013, data released by the government today, 16 December 2013, showed. Core inflation or non-food manufacturing inflation accelerated to 2.64% in November 2013, from 2.58% in October 2013, the latest data showed.
WPI for September 2013 was revised upwards to 7.05% from 6.46% reported earlier. Build up inflation rate in the financial year so far was 6.7% compared to a build up rate of 4.84% in the corresponding period of the previous year.
Data released by the government last week showed that inflation based on the consumer price index (CPI) stood at a record 11.24% last month.
The Reserve Bank of India (RBI) announces Mid-Quarter Review of Monetary Policy for 2013-14 on Wednesday, 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
In the foreign exchange market, the rupee strengthened past 62 against the dollar. The partially convertible rupee was hovering at 61.96, compared with its close of 62.125/135 on Friday, 13 December 2013.
The Central Board of Direct Taxes (CBDT) on Friday, 13 December 2013, extended the time limit for payment of the December installment of Advance Tax by two days from 15 December 2013 to 17 December 2013. This was done in view of the fact that 15 December 2013 was a Sunday.
European stocks reversed initial losses on Monday, 16 November 2013, after a gauge of manufacturing in the euro area rose more than forecast. Key benchmark indices in UK, Germany and France were up 0.33% to 0.52%.
A Markit Economics report showed that euro-area flash manufacturing index rose to 52.7, a 31-month high, from 51.6 in November. The gauge has been above 50, indicating expansion, for six months.
The German economy ended 2013 positively, according to a survey released Monday, with new business, confidence and employment all growing in December. Data provider Markit's preliminary composite purchasing managers index was little changed in December, slipping marginally to 55.2 from 55.4 in November. A reading above 50 denotes growth. The change in the composite PMI came as the manufacturing sector strengthened in December from November, while services providers posted a slightly slower pace of growth than a month earlier.
The survey was positive across the board and bodes well for the fourth quarter economic performance. Incoming business rose at the fastest pace for two-and-a-half years, while job creation, output levels and backlogs of work were also stronger in December.
Asian stocks edged lower on Monday, 16 December 2013, after a gauge of Chinese manufacturing fell and as investors awaited a Federal Reserve meeting this week to gauge the timing of stimulus cuts. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, South Korea, Japan and Indonesia were off 0.09% to 1.6%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
The HSBC Holdings Plc/Markit Economics preliminary manufacturing purchasing managers' index for China fell to 50.5 in December from 50.8 in November. Readings above 50 signal expansion.
Japan's quarterly Tankan index for large manufacturers rose to the highest since 2007 in October 2013, climbing to 16 from 12 in September 2013, according to the Bank of Japan. Positive figures indicate optimists outnumber pessimists.
The Bank of Japan (BoJ), which buys more than 7 trillion yen ($67.6 billion) of Japanese Government Bonds (JGBs) every month in its bid to stoke inflation, holds a two-day monetary policy meeting on 19 and 20 December 2013.
Trading in US index futures indicated that the Dow could jump 64 points at the opening bell on Monday, 16 December 2013. US stocks made a mild rebound Friday but ended the week lower, as investors looked toward a Federal Reserve meeting next week that could start the curtailment of the Fed's equities-boosting stimulus program.
The Federal Open Market Committee's (FOMC) two-day policy meeting on interest rates in the United States begins tomorrow, 17 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
Powered by Capital Market - Live News
