Trading for the week began on a subdued note as the key benchmark indices logged modest losses weighed by negative global stocks. The barometer index, the S&P BSE Sensex, lost 219.25 points or 0.61% at 35,470.35. The Nifty 50 index fell 59.40 points or 0.55% at 10,762.45. Losses were led by ICICI Bank, Tata Motors and L&T. Oil stocks declined.
Domestic stocks edged lower in early trade on negative Asian stocks. Stocks turned volatile in morning trade as the key benchmark indices once again dipped in negative zone after briefly turning positive. Volatility continued as the key benchmark indices traded in negative zone till afternoon trade. Stocks resumed decline in mid-afternoon trade. Fresh selling pulled stocks to intraday low in late trade.
The S&P BSE Mid-Cap index fell 0.8%. The S&P BSE Small-Cap index fell 0.89%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 862 shares rose and 1731 shares fell. A total of 154 shares were unchanged.
Oil stocks declined. Among shares of oil exploration and production (E&P) companies, ONGC (down 1.72%), Oil India (down 1.14%) and Reliance Industries (down 0.62%) edged lower.
Among PSU OMCs, HPCL (down 3.86%), BPCL (down 3.3%) and Indian Oil Corporation (down 1.94%) dropped.
Vedanta rose 0.59%. With reference to a news item titled, "Acid leak severe at Sterlite copper smelter: Vedanta", the company clarified during trading hours today, 25 June 2018, that following the sealing and closure of the unit pursuant to the Government of Tamil Nadu order dated 28 May 2018, the firm does not have access to the premises. The leak in the sulphuric acid tank was observed and reported by a police personnel deployed by the District Administration.
As soon as the company got to know of this, it informed the District Administration and Pollution Control Board and the firm is working with them to evacuate the acid spillage safely, to mitigate any environmental damage. The company has filed a Writ of mandamus before Madras High Court and submitted a note on potential safety risks with no supervision of the plant. Bench has directed the District Administration and Pollution Control Board to file their response. Matter is now scheduled for further hearing on 25 June 2018.
Idea Cellular fell 6.36%. According to media reports, the merger of Idea Cellular and Vodafone India may not meet the expected 30 June 2018 deadline as the Telecom Department is looking to raise a fresh demand of around Rs 4700 crore. The demand will be raised from Vodafone India before its merger with Idea Cellular, reports added. Idea Cellular and Vodafone India were expecting the merger deal to create India's largest telecom company to be completed by 30 June 2018.
In 2015, Vodafone had merged its four subsidiaries Vodafone East, Vodafone South, Vodafone Cellular and Vodafone Digilink with Vodafone Mobile Services, which is now called Vodafone India. The Telecom Department had then asked Vodafone to clear OTSC dues worth Rs 6678 crore, which the company challenged in court. Following a Supreme Court order, Vodafone had paid only Rs 2000 crore to get the deal cleared, reports suggested.
KRBL hit an lower circuit limit of 20% at Rs 373.45 on media reports that former director Gautam Khaitan had been arrested by the Enforcement Directorate in connection with AgustaWestland helicopter scam. With reference to news item captioned, "KRBL tanks 20% as ED arrests former director in Agusta scam", KRBL clarified during trading hours today, 25 June 2018, that it has nothing to do with the AgustaWestland helicopter scam.
Gautam Khaitan was an independent director of the company from 30 July 2007 to 18 April 2013. During his tenure as an independent director in the company, he was associated in his professional capacity and the company is totally unaware about his internal workings. The company is not in any way connected with Gautam Khaitan since 2013 and the firm is totally unaware about his recent arrest by Enforcement Directorate (ED) as mentioned in the news article.
Overseas, European and Asian stocks fell as investors assessed prospects for continuing trade tensions between US and China. China's central bank will cut the amount of cash some lenders must hold as reserves, unlocking about 700 billion yuan ($108 billion) of liquidity, as it seeks to control leverage and support smaller companies. The required reserve ratio for some banks will drop by 0.5 percentage point, effective 5 July 2018, the People's Bank of China said. That's the day before the US and China are scheduled to impose tariffs on each other.
US stocks climbed on Friday, 22 June 2018 as investors tried to shake off jitters concerning trade tensions between the US and China, with energy shares rising. OPEC and its allied oil producers including Russia met on June 22 in Vienna for a two-day meeting. Saudi Arabia said the group had reportedly agreed on a nominal output rise of around 1 million barrels per day.
On the US economic data front, the US manufacturing PMI registered at 54.6 in June, down from 56.4 in May, while services PMI stood at 56.5, slightly down from 56.8 in May, according to statistics from data provider Markit on Friday.
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