As we mentioned on Tuesday, a higher high and higher low on the Nifty will be the first sign of stability. We may see this happening in a day or two
The domestic indices opened in the positive after three days of negative opening, on the back of Reserve Bank of India (RBI) measures to increase the availability of cash in the banking system. However, the indices plunged deeply into the red in the noon session and continued to fall further close at their lowest lever since September 2012.
The Nifty opened at 5,494 and soon hit an intra-day high of 5,504. At the close of the session it hit an intra-day low of 5,268. However, it closed lower than yesterday’s level at 5,303 (down 99 points or 1.83%). Today’s intraday range on the Nifty was the highest absolute range since 5 October 2012. The National Stock Exchange (NSE) recorded a volume of 71.96 crore shares.
Among the major indices India Vix (up 3.16%) and Nifty Dividend, which ended flat were the gainers while the remaining indices closed lower, Nifty Midcap 50 was the top loser, down 2.88%.
Among other indices, Finance (0.85%) and Bank Nifty (0.49%) were the only gainers, while Realty (3.89%); Energy (3.59%); FMCG (3.26%); Infra (3.14%) and Commodities (3.12%) were the top five losers.
Of the 50 stocks on the Nifty, 11 ended in the in the green. The major gainers were IndusInd BanK (up 6.30%); BHEL (up 4.05%); HDFC (up 2.64%); HDFC Bank (up 1.92%) and ICICI Bank (up 1.16%). The top losers were Ranbaxy (down 10.94%); Sesa Goa (down 9%); ACC (down 6.98%); Jaiprakash Associates (down 5.86%) and Bharti Airtel (down 5.48%).
The RBI on Tuesday relaxed some rules that will help banks deal with the notional or marked-to-market loss in their government bond portfolios due to a recent sharp fall in bond prices. They now do not have to record their current marked-to-market losses immediately as the RBI has allowed them to spread the losses equally over the remaining period of this fiscal year. The RBI also said it would buy back Rs8000-crore of government bonds on 23 August 2013. A step that appears to be a partial reversal of the slew of measures it took since mid-July to tighten liquidity.
India’s government bonds rallied, pushing the 10-year yield down by the most since 2009, after the central bank said it would buy long-dated sovereign notes in a move that eases curbs on the supply of cash.
The rupee was closed at 64.02 against the US dollar, after hitting a record low of 64.52. The domestic currency also breached 101 level against the British pound, thus making the UK currency, the first major foreign currency to cost more than 100 apiece.
Asian indices had a mixed performance with Jakarta Composite major gainer, up 1.04% while Seoul Composite fell the most, fell 1.08%.
European indices were trading lower with investors closely awaiting the minutes from the latest US Federal Reserve meeting, which could bring out the possibilities of the potential reduction of asset purchases. The US Futures were also trading lower.
Indian Oil Corp will invest about Rs8,000 crore to expand capacity at its Koyali oil refinery in Gujarat to 18 million tonnes per annum by 2016-17. At present, it has a capacity of 13.7 million tonnes. The stock was up 1.05% to close at Rs212.50 on the NSE.
Anti-regime activists from Syria alleged that the army had used chemical arms in its bombardment on the densely-populated Ghouta suburbs killing 650 people
More than 650 people were killed when Syrian army used chemical weapons for bombardment in suburbs of Damascus on Wednesday. The Opposition has branded it a 'massacre' and called for international intervention.
According to activists, hundreds of people died of gas inhalation and exposure to chemical weapons.
Syrian authorities, however, had denied charges that the army used chemical arms. “Reports on the use of chemical weapons in (the suburbs of) Ghouta are totally false,” state news agency SANA said adding, “It’s an attempt to prevent the UN commission of inquiry from carrying out its mission.”
Britain, meanwhile, said it would refer the alleged chemical weapons attack, which could not immediately be verified and has been vehemently denied by the Damascus regime to the United Nations (UN).
While the Syrian National Coalition gave a toll of 650 dead, a Britain-based monitoring group said earlier that at least 100 people had been killed and the number was rising.
“This figure will surely go up. The raids and bombardment are continuing,” said the Syrian Observatory for Human Rights, which gathers its information from activists and medics.
It did not comment on allegations by anti-regime activists that the army had used chemical arms in its bombardment of the densely-populated Ghouta suburbs where rebels have been holding out against Government forces.
The British pound has become the first major foreign currency to cost more than 100 rupees apiece
The Indian rupee closed Wednesday at 64.02 against the US dollar, while breaching the 101 lever against the British pound as foreign investors continued to unwind their investments from the stock markets.
After opening at 63.45, the domestic currency moved in a range of 64.53-63.15 intra-day before closing at 64.02 against the US dollar. The rupee had closed at 63.23 on Tuesday.
Losing its ground further, the Indian currency also hit a new low against the British pound and breached the 101-level in the afternoon trade.
After crossing the 100-level for the first time ever against the British pound in intra-day trade yesterday, the rupee had managed to close marginally below this mark at 99.04 against the pound.
However, it slipped further to as low as 101.20 this afternoon at the Interbank Foreign Exchange (Forex) market.
The rupee has depreciated by around 22% against the British pound over the past three months from close to 83 level in mid-May. It was at about 80 in March.
The pound has become the first major foreign currency to cost more than 100 apiece. It is the most expensive against the Indian rupee among major foreign currencies, followed by the euro, Swiss franc, US dollar, Canadian dollar, Australian dollar, New Zealand dollar and Singapore dollar.