As mentioned, yesterday, the indices gave up some gains today. The Nifty now has to close above 5,880 for the uptrend to continue
The market snapped its three-day winning streak on selling in heavyweights by foreign investors. As mentioned, yesterday, the indices gave up some gains today. The Nifty now has to close above 5,880 for the uptrend to continue. The National Stock Exchange (NSE) registered a volume of 60.89 crore shares and advance-decline ratio of 646:744.
The domestic market opened lower on concerns of foreign investors pulling out funds from Indian equities and weak macro-economic indicators that were released on Monday, which signalled a slowdown in growth. On the other hand, Asian market were in the positive in morning trade taking cues from their US peers, which settled in the green on Monday.
The Nifty opened 13 points down at 5,886 and the Sensex started the day at 19,574, a loss of three points from its previous close. The market hit its intraday high in early trade amid a high degree of volatility on support from consumer durables, oil & gas and metal stocks. The Nifty touched 5,899 and the Sensex inched up to 19,589 at their respective highs.
The benchmarks were range-bound in the negative terrain in morning trade in the absence of any fresh triggers. The market slipped further in noon trade on selling in blue chip stocks and a negative opening of the key European markets.
The losses led the benchmarks further southwards in the post noon session. Each recovery attempt in today’s trade was thwarted by sellers. The market weakened further in late trade and touched its lows in the last half hour of the session. At the lows, the Nifty fell to 5,852 and the Sensex dipped to 19,443.
The benchmarks finally settled near their lows, snapping their three-day winning streak. The Nifty closed 41 points (0.70%) lower at 5,858 and the Sensex declined 114 points (0.58%) to 19,464.
Among the broader indices, the BSE Mid-cap index declined 0.37% and the BSE Small-cap index fell 0.10%.
BSE Consumer Durables (up 0.77%) and BSE Healthcare (up 0.52%) were the only gainers in the sectoral space today. The top losers were BSE Realty (down 1.78%); BSE PSU (down 1.05%); BSE Oil & Gas (down 1.01%); BSE Bankex (down 0.78%) and BSE Auto (down 0.76%).
Out of the 30 stocks on the Sensex, 12 stocks settled higher. The chief gainers were BHEL (up 2.74%); GAIL India (up 2.66%); Bharti Airtel (up 2.51%); Sterlite Industries (up 1.84%) and ICICI Bank (up 0.89%). The main losers were Jindal Steel & Power (down 4.21%); Tata Power (down 1.87%); ONGC (down 1.83%); Infosys (down 1.72%) and Maruti Suzuki (down 1.62%).
The top two A Group gainers on the BSE were—Jaypee Infratech (up 7.66%) and Future Retail (up 7.43%).
The top two A Group losers on the BSE were—Hindustan Copper (down 6.62%) and Gitanjali Gems (down 4.98%).
The top two B Group gainers on the BSE were—Value Industries (up 19.94%) and KBS India (up 18.87%).
The top two B Group losers on the BSE were—Simran Farms (down 19.93%) and Asian Hotels-East (down 18.84%).
Of the 50 stocks on the Nifty, 19 ended in the in the green. The major gainers were Ranbaxy Laboratories (up 6.81%); Lupin (up 3.20%); GAIL India (up 2.31%); Bharti Airtel (up 2.14%0 and BHEL (up 1.98%). The key losers were JSPL (down 4.29%); DLF (down 3.01%); Axis Bank (down 2.72%); Reliance Infrastructure (down 2.61%) and Tata Power (down 2.31%).
Asian markets closed mostly lower on concerns about the pace of the global economic growth. The Japanese market ended higher on news that the Bank of Japan is expected to upgrade its assessment of the country’s economy on signs of renewed growth. On the other hand, the Hang Seng fell as the Hong Kong government is mulling real estate curbs, which would see property agents losing their jobs.
The Shanghai Composite gained 0.57%; the Nikkei 225 surged 1.78% and the Straits Times climbed 1.03%. Among the losers, the Hang Seng declined 0.41%; the Jakarta Composite dropped 1.02%, the KLSE Composite fell 0.18%; the Seoul Composite shed 0.04% and the Taiwan Weighted settled 0.25% lower.
At the time of writing, the key European indices were down between 0.42% and 0.90% while the US stock futures were in the positive.
Back home, foreign institutional investors were net sellers of equities totalling Rs1.48 crore on Monday whereas domestic institutional investors were net buyers of shares amounting to Rs213.60 crore.
Glenmark Pharmaceuticals’ US subsidiary Glenmark Generics Inc has received US health regulator’s approval to market generic version of Merck’s Maxalt MLT tablets, used to treat migraine headaches, in the American market. The approval is for
Rizatriptan Benzoate orally disintegrating tablets (ODT) in strengths of 5 mg and 10 mg, Glenmark Pharma said in a statement. Glenmark Pharma gained 1.11% to close at Rs576.50 on the NSE.
The Empowered Group of Ministers has cleared the offer for sale of Hindustan Copper. The sale will take place on Wednesday. The government will offer 4.01% of its stake and is expected to rake in Rs260 crore. The stock declined 6.49% to Rs72.75 on the NSE.
The Telecom Commission has approved raising FDI limit to 100%, 49% investment can be made through the automatic route but FIPB approval is required to increase the level, a senior government official said
The inter-ministerial body Telecom Commission today approved hiking the foreign direct investment (FDI) limit in the sector from 74% to 100%.
The Commission has approved raising FDI limit to 100%, 49% investment can be made through the automatic route but FIPB (Foreign Investment Promotion Board) approval is required to increase the level, a senior government official said. The decision will come in force after the Cabinet approval is given for the same.
The official said that Department of Telecom (DoT) will send a detailed note to the Department of Industrial Policy and Promotion (DIPP) which forward this proposal for Cabinet approval.
At present, FDI limit in the sector is 74% where 49% is done through automatic route and rest requires nod from Foreign Investment Promotion Board.
The idea behind increasing FDI limit in telecom sector is to help industry get fresh funds to lower financial burden.
According to a presentation by GSM industry body COAI to DoT, the debt of telecom sector stood at Rs1,85,720 crore at end of 2011-12. This included debt of Rs93,594 crore from domestic sources and Rs92,126 crore from external sources.
The Commission also discussed creation of Telecom Finance Corporation (TFC) to address the sector’s funding challenges and “sought a detailed project report on it”.
The TFC is proposed to be set up on the lines of sectoral finance bodies such as Power Finance Corporation and Tourism Finance Corporation of India.
The proposed TFC is targeting financing Rs38,000 crore in the five-year period.
Barring energy futures, trading volumes in farm items, gold, silver and other metals remained lower in the said period, commodity markets regulator FMC said in a statement
The turnover of the commodity bourses declined marginally to Rs34.36 lakh crore till 15th June of the current fiscal as volumes fell in agricultural commodities as well as in bullion, according to the Forward Markets Commission (FMC).
The exchanges had reported a business of Rs34.42 lakh crore in the same period last year.
Barring energy futures, trading volumes in farm items, gold, silver and other metals remained lower in the said period, commodity markets regulator FMC said in a statement.
According to the FMC, the turnover from energy items like crude oil increase by 33% to Rs8,50,017 crore between April and June 15 of the current fiscal, as against Rs6,39,455 crore in the same period corresponding year.
However, the business from agricultural commodities declined more than 25% to Rs3,11,377 crore from Rs4,16,393 crore, while the turnover from metals fell by over 6% to Rs6,55,408 crore from Rs6,98,206 crore in the review period.
Similarly, the turnover from bullion fell by 4% to Rs 16,19,612 crore between April and June 15th of 2013-14 fiscal from Rs 16,88,770 crore in the year-ago period.
During the first fortnight of June, leading commodity bourse MCX had achieved a maximum business of Rs5,58,168 crore, followed by NCDEX at Rs41,103 crore, NMCE at Rs5,928 crore, ICEX at Rs5,777 crore, Universal Commodity Exchange at Rs5,419 crore and ACE at Rs3,184 crore.
Currently, there are 22 commodity bourses in the country, of which six of them operate at national level. Total turnover of these bourses had dipped to Rs170.46 lakh crore in the 2012-13 fiscal from Rs181.26 lakh crore in the previous year.