A bout of volatility was witnessed as key benchmark indices trimmed losses after a weak opening. Reliance Industries (RIL), ONGC and Oil India dropped after the Cabinet Committee on Economic Affairs (CCEA) on Wednesday, 25 June 2014, deferred a decision on revision of natural gas pricing by three months. The barometer index, the S&P BSE Sensex, was down 25.18 points or 0.1%, up about 90 points from the day's low and off close to 10 points from the day's high. The market breadth indicating the overall health of the market was strong.
Crompton Greaves rose after the company said that the company along with the other consortium partners Fabricom and Iemants, has been selected by Van Oord, for the offshore wind project "Gemini" in the Netherlands.
At 9:30 IST, the S&P BSE Sensex was down 25.18 points or 0.1% to 25,288.56. The index shed 112 points at the day's low of 25,201.74 in early trade. The index fell 14.38 points at the day's high of 25,299.36 in early trade.
The CNX Nifty was down 6.75 points or 0.09% to 7,562.50. The index hit a low of 7,545.35 in intraday trade. The index hit a high of 7,567.70 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 875 shares gained and 367 shares fell. A total of 48 shares were unchanged.
The BSE Mid-Cap index was up 21.87 points or 0.24% at 9,230.53. The BSE Small-Cap index was up 33.05 points or 0.33% at 10,045.84. Both these indices outperformed the Sensex.
Reliance Industries (RIL), ONGC and Oil India dropped after the Cabinet Committee on Economic Affairs (CCEA) on Wednesday, 25 June 2014, deferred a decision on revision of natural gas pricing for three months. RIL fell 2.76% to Rs 1,020.90. ONGC dropped 5.69% to Rs 412. Oil India shed 4.68% to Rs 561.05. The decision to defer gas price revision means that gas will be sold at prevailing price of $4.2 per unit until end September 2014.
The government said that comprehensive discussions are necessary on the issue of natural gas pricing and the gas pricing guidelines. The government said that consultations will be held with all stakeholders and public interest will be kept in mind.
The price of natural gas would have doubled to $8.4 per unit from 1 April 2014 after the Congress led United Proressive Alliance (UPA) government in January this year approved a new formula for pricing all domestic gas from 1 April 2014. However, gas price revision could not be implemented because of the electoral code of conduct due to Lok Sabha elections in April-May 2014.
Crompton Greaves (CG) rose 2.23% to Rs 201.85 after the company said after market hours on Wednesday, 25 June 2014, that along with the other consortium partners Fabricom and Iemants, the company has been selected by Van Oord, for the offshore wind project Gemini in the Netherlands. The volume of the order for the consortium is in excess of 150 million. CG's scope of the order covers approximately 30% of the overall contract. The project is expected to start in the second quarter of 2014 and likely to be completed in 2016. CG will design, deliver and install 2 high voltage offshore substations and 1 HV onshore substation.
Havells India gained 0.29% to Rs 1,117.90. The stock turned ex-dividend today, 26 June 2014, for final dividend of Rs 10 per share for the year ended 31 March 2014.
IDBI Bank rose 0.65% to Rs 108.15. The stock turned ex-dividend today, 26 June 2014, for final dividend of Rs 0.28 per share for the year ended 31 March 2014.
Indian stocks may remain volatile today, 26 June 2014, as traders roll over positions in the futures & options (F&O) segment from the near month June 2014 series to July 2014 series. The near-month June 2014 F&O contract expire today, 26 June 2014.
The government on Wednesday, 25 June 2014, announced extension of concessional excise duty on automobiles, capital goods and consumer durables by six months up to 31 December 2014. It may be recalled that the Congress led United Progressive Alliance (UPA) government had in Interim Budget for 2014-15 in February this year had reduced excise duty on small cars, two wheelers, scooters and commercial vehicles to 8% from 12%. Excise duty on sports utility vehicles (SUVs) was cut to 24% from 30% and that on mid and large cars was cut to 24/20% from 27/24%. At that time, the reduction is excise duty was restricted till 30 June 2014 as an interim relief measure for the auto sector.
Similarly, excise duty was cut to 10% from 12% for a period up to 30 June 2014 for capital goods and consumer durable falling under chapter 84 and chapter 85 of the Schedule to the Central Excise Tariff Act. The chapter 84/85 includes products like boiler, turbine, transformers, motors, air conditioners, toaster, oven, switches, switchgears etc.
Asian stocks rose on Thursday, 26 June 2014, amid optimism the US economy is emerging from a worse-than-estimated contraction last quarter. Key benchmark indices in Japan, China, Indonesia, Singapore, Hong Kong, South Korea and Taiwan rose by 0.32% to 0.93%.
US stocks gained for the first time in three days on Wednesday, 25 June 2014, as investors speculated the economy is recovering from a first-quarter contraction and Monsanto Co. announced a $10 billion stock buyback plan.
A report showed that US gross domestic product shrank 2.9% in the first quarter, the worst reading since 2009. Orders for business equipment climbed in May, a sign that corporate investment is helping revive the economy after slumping at the start of the year.
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