The Sensex will hover around 17,600 before the next move

The market witnessed a subdued closing today, as traders rolled over their position in the derivatives segment from the near-month June contracts to July contracts ahead of the expiry of the near-month June derivatives contracts on Thursday (24th June). The Sensex settled lower at 17,749, down 126 points (0.7%) and the Nifty ended at 5,316, down 36 points (0.7%). The indices started the day on a negative note, taking cues from the Asian markets. Trading was range-bound till mid-morning. The market recovered from there and gained till early afternoon. However, it slid from there to shut in the red.

Asian stocks were down on Tuesday on concerns over Europe's economic crisis after Fitch Ratings cut its debt rating on French bank BNP Paribas SA. Fitch reduced BNP's long-term rating to AA-minus, the fourth-highest investment grade, from AA on deteriorating asset quality. Key benchmark indices in Japan, South Korea, Singapore, Indonesia, Hong Kong and Taiwan fell by 0.2% to 1.2%.

US indices closed lower on Monday. The Dow was down 8.2 points (0.08%) at 10,442. The S&P 500 was down 4.3 points (0.3%) at 1,113. The Nasdaq was down 20.7 points (0.9%) at 2,289.

Japan has set an ambitious target to control its fiscal deficit. The government pledged to do its utmost to keep new debt issuance in the year to next March at or below about 44 trillion yen ($483 billion) that has been earmarked for this year, while aiming to steadily reduce bond issuance thereafter.

Back home, a bumper harvest prospect because of a good monsoon has livened up the possibility that India should lift the export ban on non-basmati rice. India is the world's second-largest exporter of rice. Thailand banned exports of non-basmati rice in 2008, as high prices of the grain put pressure on domestic supply.

The government will decide on the fuel price hike on Friday. Earlier this month, the government deferred a decision on raising fuel prices, the second time in a year, which is a politically-sensitive reform measure.

Foreign institutional investors were net buyers of equities worth Rs1,564 crore on Monday. Domestic institutional investors were net sellers of Rs 561 crore. 

Hindustan Dorr-Oliver (up 0.5%) has joined hands with Bronswerk Heat Transfer BV, Netherlands, a technology and manufacturing company that supplies air-cooled heat exchangers and high-pressure heat exchangers to various process plants, process license holders, plant construction companies and leading global consultants.

L&T (down 0.8%) thermal power plant construction business unit has secured two orders aggregating Rs827 crore from GVK Power for the latter's Gautami Combined Cycle Power Plant Expansion and from SEPCO-I for the Talwandi Sabo Power Plant in Punjab.

JIK Industries (down 2.9%) has successfully commenced its showroom in south Mumbai and is planning expansion in the form of own retail stores, franchise stores, shop-in shop, etc. The company will be focusing on development of new designs and increase of profits in this segment. There is no significant competition in its product profile. The company is considering floating a subsidiary abroad and increase its focus and capabilities in the high-end luxury product segment and export to Europe and the Middle-East.