Market summary pptx 23.6.2014

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Market summary pptx 23.6.2014

  1. 1. India-GlobalMarketSummary 23-6-2014 • A choppy trading session was witnessed in late trade as market trimmed losses soon after extending intraday decline. The recovery materialized as international crude oil prices reversed gains. Higher global crude oil prices and hike in railway freight rates have triggered worries of higher inflation in India. The government after trading hours on Friday, 20 June 2014, announced 6.5% hike in railway freight rate and 14.2% increase in railway passenger fare to boost revenue of the railways to meet its annual expenditure. The barometer index, the S&P BSE Sensex, regained the psychological 25,000 level in late trade after alternately moving above and below that mark during the session. The Sensex was provisionally down 41.99 points or 0.17%, up about 185 points from the day's low and off close to 135 points from the day's high. The market breadth indicating the overall health of the market turned positive from negative in late trade. Sensex shed 0.3% to settle at 25,031.32 and Nifty lost 0.24% to settle at 7,493.35 • The government on Friday, 20 June 2014, raised passenger fare and freight rates. A flat 10% increase in passenger fare was announced for all classes. In addition, there will be an increase of 4.2% in fares on account of FAC (Fuel Adjustment Component) which is due from April 2014. The overall increase in passenger fare is 14.2%. • There has been a flat 5% increase in freight rates. In addition there will be an increase of 1.4% in fares on account of FAC (Fuel Adjustment Component) which is due from April 2014. The overall increase in freight rates will be about 6.5% for major commodities. The revised passenger fare and freight rates and freight structure rationalization will come into effect from 25 June 2014.
  2. 2. • Brent crude oil prices reversed intraday gains. Brent oil futures for August delivery were off 3 cents at $114.78 a barrel. The contract had risen past $115 a barrel earlier during the day. Brent had dropped on Friday, 20 June 2014, after settling at its highest level in more than nine months at $115.06 a barrel on Thursday, 19 June 2014. • The recent spike in crude oil has sparked worries about India's macroeconomic situation as India imports majority of its crude oil requirements. Increase in crude oil prices has raised concerns of increase in India's current account deficit and fiscal deficit. Firm global crude oil prices and the latest hike in railway freight rate have also stoked inflation worries. • In the foreign exchange market, the rupee edged lower against the dollar. • ITC slumped on reports that Union health minister Harsh Vardhan has urged Finance Minister Arun Jaitley to raise tax on cigarettes in the upcoming final Union Budget for 2014-15 to deter people from smoking. Shares of power generation firms were mixed after the government raised freight rates on Friday, 20 June 2014. Tyre stocks rallied, with CEAT hitting record high. • Praj Industries jumped on reports that the government has decided to raise the level of mandatory blending of ethanol in petrol to 10% from 5%, as a part of measures for the revival of the sugar industry. • Deepak Nitrite rose 3.31% to Rs 99.80 after the company said that its board of directors at a meeting held today, 23 June 2014, approved the sale of parcel of land admeasuring 12,141 sq. mt at Sinhagad Road, Pune, Maharashtra. • Praj Industries jumped 5.08% on reports the government has decided to raise the mandatory level for blending ethanol in petrol to 10% from 5% • L&T rose 0.48% after the firm said it has entered into a definitive pact with a wholly-owned unit of Canada Pension Plan Investment Board for an initial investment tranche of Rs 1000 crore into L&T's unit L&T IDPL. • Gammon Infrastructure Projects hit an upper circuit limit of 5% after the company said its board has approved a qualified institutional placement issue of equity shares or equity linked instrument of upto Rs 500 crore. • Sundram Fasteners rose 2.41% after the company said its wholly owned subsidiary has acquired 24.53% of equity capital of TVS Infotech. • Indiabulls Housing Finance rose 1.31% after the company said that the rating committee of ICRA has upgraded the long term rating to the non-convertible debentures programme of the company • Kotak Mahindra Bank fell 3.87% after index provider MSCI said it will delete the stock from its Global Standard Index with effect from 8 July 2014.
  3. 3. Global news • European markets edged lower on Monday, 23 June 2014, after data showed Euro-area manufacturing and services activity weakened in June. Most Asian stocks edged lower in choppy trade on Monday, 23 June 2014. Trading in US index futures indicated that the Dow could gain 4 points at the opening bell on Monday, 23 June 2014. The Dow Jones Industrial Average and the S&P 500 index closed at record highs on Friday, helped by the prospect of the Federal Reserve keeping interest rates low for a long period of time • Euro-area manufacturing and services activity weakened in June amid a further slowdown in France's economy, underscoring the fragility of the recovery in the 18-nation region. A Purchasing Managers Index for both industries slipped to 52.8 in June from 53.5, Markit Economics said today. That's the 12th month the gauge has exceeded 50, the mark that signals expansion. • Activity in China's factory sector expanded in June for the first time in six months as new orders surged, a preliminary HSBC survey showed on Monday, offering new signs the economy is stabilising thanks to Beijing's measures to shore up growth. The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index rose to 50.8 in June from May's final reading of 49.4. It was the first time since December that the PMI was in growth territory, and the highest reading since November, when it was also 50.8.
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