Key benchmark indices pared gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 68.63 points or 0.35%, off 59.79 points from the day's high and up 38.67 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Index heavyweight and cigarette major ITC extended intraday gains. Shares of private sector oil & gas, refinery and gas utility stocks rose after the government on Tuesday, 16 July 2013, said foreign investors won't have to seek government approval for up to 49% ownership in petroleum, natural gas and refining sectors. Steel stocks declined after South Korean steel major Posco scrapped a large steel project in Karnataka. Shares of private sector steel major Tata Steel hit 52-week low.
Key benchmark indices edged higher in early trade boosted by the government's decision on Tuesday, 16 July 2013, to relax overseas-investment rules for a number of sectors. The market retained positive zone in morning trade. A bout of volatility was witnessed as key benchmark indices pared gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices pared gains in early afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 357.40 crore on Tuesday, 16 July 2013, as per provisional data from the stock exchanges.
At 12:21 IST, the S&P BSE Sensex was up 68.63 points or 0.35% to 19,919.86. The index jumped 128.42 points at the day's high of 19,979.65 in mid-morning trade, its highest level since 15 July 2013. The index rose 29.96 points at the day's low of 19,881.19 in mid-morning trade.
The CNX Nifty was up 14.80 points or 0.25% to 5,970.05. The index hit a high of 5,989.80 in intraday trade, its highest level since 15 July 2013. The index hit a low of 5,962.60 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,000 shares gained and 875 shares fell. A total of 130 shares were unchanged.
The total turnover on BSE amounted to Rs 781 crore by 12:20 IST compared to Rs 622 crore by 11:20 IST.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
Shares of private sector oil & gas, refinery and gas utility stocks rose after the government on Tuesday, 16 July 2013, said foreign investors won't have to seek government approval for up to 49% ownership in petroleum, natural gas and refining sectors.
Index heavyweight Reliance Industries (RIL) rose 1.04% at Rs 910.30. The stock hit a high of Rs 915.90 and low of Rs 903 so far during the day. Oil Secretary Vivek Rae today, 17 July 2013, said that natural gas output from RIL's' KG-D6 block off India's east coast has fallen to about 14 million cubic metres per day (mmscmd). Output from the D6 block has been declining steadily after reaching 60 mmscmd in 2010.
The Cabinet Committee on Economic Affairs (CCEA) on 27 June 2013 approved new gas pricing formula from 1 April 2014. The price of gas as per the formula is likely to be about $8.4 mmBtu as opposed to $4.2 mmBtu currently.
Essar Oil gained 1.35%.
Among gas utility stocks, Indraprastha Gas (up 5.52%) and Gujarat Gas Company (up 4.74%) dropped. Gujarat State Petronet dropped 0.61%.
Index heavyweight and cigarette major ITC rose 1.87% to Rs 366.75 after striking a record high of Rs 368.90 in intraday trade today, 17 July 2013. The company announces Q1 results on 25 July 2013.
L&T rose 0.66% after the company said its transportation infrastructure business made a major breakthrough in its international business by securing a new order worth Rs 2085 crore from the Ministry of Transport and Communications, Sultanate of Oman, for the construction of the Al Batinah Expressway Package 4. The project is scheduled to be completed in 36 months. This order was won against stiff international competition and augers well for L&T's expansion in international infrastructure, the company said.
Steel stocks fell after South Korean steel major Posco on Tuesday said it is no longer pursuing plans to build a steel plant in Karnataka after failing to secure land and infrastructure due to local opposition.
Private sector steel major Tata Steel fell 1.83% to Rs 246.85 after hitting a 52-week low of Rs 246.50 in intraday trade today, 17 July 2013.
JSW Steel shed 1.56%. The company after trading hours on Tuesday, 16 July 2013, said that as a policy it does not respond to speculative stories and market rumours after media reports said that JSW Steel is in talks to purchase a significant stake in Sandur Manganese and Iron Ores to improve its access to iron ore and cut logistics costs. Earlier, Sandur Manganese during trading hours on Tuesday, 16 July 2013, had denied stake sale reports. Neither Sandur Manganese nor its promoters have appointed any investment bankers to scout for a buyer, Sandur Manganese had said.
Shares of Sandur Manganese and Iron Ores lost 0.86%.
Sail fell 2.35%. Jindal Steel & Power rose 0.27%.
Other metal stocks also declined. Sterlite Industries (India) (down 0.68%), Hindustan Zinc (down 1.32%), Sesa Goa (down 0.39%), NMDC (down 0.61%), Hindalco Industries (down 0.39%), and Hindustan Copper (down 0.16%) edged lower.
Shares of Multi Commodity Exchange of India jumped 4.24% to Rs 732.25 after the government on Tuesday, 16 July 2013, said foreign investors won't have to seek government approval for up to 49% ownership in commodity exchanges. Earlier, FDI in commodity exchanges needed an approval from the Foreign Investment Promotion Board (FIPB). The government retained the 49% foreign equity cap in commodity exchanges but made the route automatic to help bring more investment and make the existing exchanges more competitive.
PTC India rose 1.16% to Rs 48 after the government on Tuesday, 16 July 2013, said it has decided to allow foreign direct investment (FDI) in power exchanges through the automatic route. This means that no FIPB approval will have to be sought. However, it has retained the cap at 49%.
Asian shares were mostly higher on Wednesday, 17 July 2013, ahead of two-day congressional testimony from Federal Reserve Chairman Ben Bernanke which begins today, 17 July 2013. Key benchmark indices in China, Taiwan and Singapore were down 0.01% to 1.06%. Key benchmark indices in Japan, Hong Kong, South Korea and Indonesia were up 0.01% to 1.13%.
The latest data showed that foreign-direct-investment flows into China jumped more than 20% in June 2013.
Meanwhile, the Xinhua news service, the official press agency of the People's Republic of China, reported that profit at Chinese state-owned companies outside the financial sector rose 7% in the first half of the year, accelerating from a 6.5% increase in the first five months of 2013.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 17 July 2013. US stocks fell on Tuesday, 16 July 29013, with Coca-Cola Co. and Goldman Sachs Group Inc. losing ground after their quarterly results, and as investors considered Kansas City Fed President Esther George's comment that the Federal Reserve should pare its bond purchases sooner rather than later.
Federal Reserve Chairman Ben Bernanke kicks off his two-day testimony on monetary policy in Washington today, 17 July 2013. In comments last week, Bernanke had eased concerns that the Fed would quickly unwind its monetary stimulus.
The minutes of the Fed's June meeting released on 10 July 2013 showed that while several members judged that a reduction in asset purchases would likely soon be warranted, many want to see further improvement in the labor market before reducing the central bank's $85 billion-a-month quantitative easing program. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth. At a press conference following the June 18-19 meeting, Bernanke said the central bank could start reducing its $85 billion in monthly bond purchases later this year if the economy continues to improve in line with its forecasts.
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