Key benchmark indices erased intraday losses and registered small gains on hopes of further liberalisation of foreign direct investment (FDI) regime. The S&P BSE Sensex was provisionally up 17.04 points or 0.09%, up close to 175 points from the day's low and off about 30 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Metal stocks gained. Jindal Steel & Power edged higher in choppy trade after intimation about pledged shares by promotes. Telecom stocks extended their recent gains on reports that a government panel has recommended a major liberalisation of the foreign direct investment (FDI) regime, including raising the FDI limit to 100% from 74% in telecom. Tata Teleservices (Maharashtra) hit maximum permissible 10% upper circuit after the company's board decided to propose bonus share issue in order to comply with the minimum public shareholding requirement. Reliance Communications (RCom) and Idea Cellular, both, hit 52-week high. Shares of basmati rice exporters surged.
As per reports, a panel headed by Economic Affairs Secretary Arvind Mayaram has recommended a major liberalisation of India's foreign direct investment (FDI) regime, including raising the FDI limit to 74% in multi-brand retail and allowing complete foreign ownership of telecom and aviation companies. The committee has also favoured allowing 100% FDI in internet service providers (ISPs), private security agencies, satellite, ground handling operations, cable networks, direct-to-home services, mobile TV and teleports.
The finance ministry has pitched for a complete re-look at the FDI policy framework as part of the current reforms drive to boost FDI flows that shrunk by 34% to $22 billion in 2012-13. At present, sectoral caps are at four levels -- 26%, 49%, 51% and 74%. The panel has recommended sectoral caps at three levels -- 49%, 74% and 100%.
As per provisional figures, the S&P BSE Sensex was up 17.04 points or 0.09% to 19,240.32. The index rose 50.98 points at the day's high of 19,274.26 in late trade. The index fell 123.15 points at the day's low of 19,100.13 in morning trade, its lowest level since 17 June 2013.
The CNX Nifty was up 7.45 points or 0.13% to 5,821.05, as per provisional figures. The index hit a high of 5,828.40 in intraday trade. The index hit a low of 5,777.90 in intraday trade, its lowest level since 17 June 2013.
The total turnover on BSE amounted to Rs 1652 crore, lower than Rs 1638.35 crore on Tuesday, 18 June 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,256 shares rose and 1,111 shares fell. A total of 152 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks fell and the rest of them rose. HDFC Bank (up 0.98%), HDFC (up 0.89%) and Reliance Industries (up 0.82%), edged higher.
Index heavyweight and cigarette maker ITC rose 0.02% to Rs 330.20, off the day's low of Rs 327.55.
Metal stocks gained. Sterlite Industries (up 2.95%), Hindalco Industries (up 2.91%) and Tata Steel (up 1.72%) edged higher.
Jindal Steel & Power came sharply off the day's high after intimation about pledged shares by promotes. The stock was up 2.25% at Rs 245.15, sharply off the day's high of Rs 258.80. The stock had jumped as much as 7.94% at the day's high. Sarmento Holdings, a promoter group firm, informed the stock exchanges that a pledge has been created over shares held by its holding company in favour of Credit Suisse AG, Singapore Branch.
Volumes were high in the stock. On BSE, 15.86 lakh shares changed hands so far during the day, compared with average daily volume of 3.68 lakh shares during the past one quarter.
JSW Steel rose 1.22%. Jindal Saw jumped 4.34%. Jindal Stainless fell 0.25%, with the stock reversing intraday gain. These companies in separate statements said Sarmento Holdings, a promoter group firm, informed the stock exchanges that a pledge has been created over shares held by its holding company in favour of Credit Suisse AG, Singapore Branch.
Telecom stocks extended their recent gains on reports that a government panel has recommended a major liberalisation of the foreign direct investment (FDI) regime, including raising the FDI limit to 100% from 74% in telecom.
Reliance Communications (RCom) rose 2.55% to Rs 126.85, after striking a 52-week high of Rs 130.10 in intraday trade today, 19 June 2013.
Idea Cellular jumped 4.31% to Rs 147.60 after striking a 52-week high of Rs 150.65 in intraday trade today, 19 June 2013.
Bharti Airtel rose 2.59%. The company on 17 June 2013 said that it has completed the allotment of 19.98 crore new shares, representing 5% equity stake in the company, to Qatar Foundation Endowment. The shares have been issued at a price of Rs 340 each on a preferential basis for a total consideration of Rs 6796 crore. The allotment marks one of the largest private equity transactions in the history of India, Bharti said. On 3 May 2013, Bharti and Qatar Foundation Endowment had announced a binding agreement for the share sale. As part of the entitlement, QFE is entitled to one seat on the board of Bharti.
MTNL gained 3.81%.
Tata Teleservices (Maharashtra) hit maximum permissible upper limit of 10% at Rs 6.64. The company during market hours today, 19 June 2013, said that its board of directors has proposed issue of bonus shares with the promoter/promoter group forgoing their entitlement to the bonus shares in order to comply with the minimum public shareholding requirement. Promoters currently hold 77.21% stake in Tata Teleservices (Maharashtra) (as per the shareholding pattern as on 3 June 2013).
Shares of basmati rice exporters surged. L T Foods (14.64%), Kohinoor Foods (up 13.36%) and KRBL (up 7.76%), jumped.
Development Credit Bank jumped 8.92% to Rs 50.65 after a large block deal on BSE. A block deal of 73.90 lakh shares was struck in the counter on BSE at Rs 46 per share at 14:20 IST. The block deal constituted 2.95% of the private sector bank's equity.
European stocks reversed intraday losses on Wednesday, 19 June 2013. Key benchmark indices in Germany, UK and France were up by 0.02% to 0.55%.
Asian stocks fell on Wednesday, 19 June 2013, with investors cautious ahead of the conclusion of a Federal Reserve policy meeting for clues on Fed's bond purchases. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, Taiwan and South Korea fell by 0.05% to 1.13%. Japan's Nikkei Average rose 1.83%.
Japan's exports surged by the most since 2010 as the yen weakened and shipments to the US jumped, boosting Prime Minister Shinzo Abe's campaign to revive the world's third-largest economy. Exports increased 10.1% in May from a year earlier, the Finance Ministry said in Tokyo today.
Trading in US index futures indicated that the Dow could gain 22 points at the opening bell on Wednesday, 19 June 2013. US stocks rose for the second day in a row on Tuesday as investors bet that the Federal Reserve will stay the course on its economic stimulus policy.
A two-day meeting of the Federal Open Market Committee, the Fed's interest-rating setting body, ends today, 19 June 2013. Fed Chairman Ben Bernanke said last month that the bank could start scaling back its aggressive easing program in coming months if data continue to improve. The Fed's monthly bond purchases of $85 billion a month is aimed at encouraging US economic growth.
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