Weak market breadth

Weakness persisted on the bourses in mid-morning trade on weak Asian stocks. The market breadth was weak. The S&P BSE Sensex was down 148.95 points or 0.77%, off 39.27 points from the day`s high and up 46.38 points from the day`s low. Index heavyweight Reliance Industries (RIL) trimmed losses in volatile trade. Another index heavyweight and cigarette major ITC was marginally lower. Realty stocks edged lower. Sugar shares rose on reports that the Union Cabinet is likely to meet today, 18 March 2013, to consider partial decontrol of the sugar sector.

Key benchmark indices edged lower in early trade on weak Asian stocks. Key benchmark indices cut losses in morning trade. Weakness persisted on the bourses in mid-morning trade.

Asian stocks dropped on Monday to details of a bailout of Cyprus over the weekend as investors fretted about the potential implications of a decision to levy private bank deposits.

At 11:15 IST, the S&P BSE Sensex was down 148.95 points or 0.77% to 19,278.61. The index lost 195.33 points at the day`s low of 19,232.23 in morning trade, its lowest level since 14 March 2013. The index fell 109.68 points at the day`s low of 19,317.88 in morning trade.

The CNX Nifty was down 42.60 points or 0.73% to 5,830. The index hit a low of 5,814.35 in intraday trade, its lowest level since 14 March 2013. The index hit a high of 5,842.45 in intraday trade.

The market breadth, indicating the overall health of the market, was weak. On BSE, 1,414 shares declined and 810 shares rose. A total of 106 shares were unchanged.

The BSE Mid-Cap shed 0.47% and the BSE Small-Cap index declined 0.63%. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 496 crore by 11:20 IST compared to Rs 317 crore by 10:20 IST

Among the 30-share Sensex pack, 26 stocks declined while rest of them gained.

Index heavyweight Reliance Industries (RIL) declined 0.33% at Rs 841. The scrip hit high of Rs 843.25 and a low of Rs 833.05 so far during the day. The telecom department earlier this month cleared a proposal to allow companies with Internet permits to also offer basic mobile telecom services by paying a one-time license-conversion fee. RIL`s telecom unit, Reliance Jio Infocomm, has frequencies to provide broadband Internet across India. Under the new rule, RIL will have to pay about Rs 1658 crore to also provide voice services.

The Finance Minister said in his speech while presenting the Union Budget 2013-14 on 28 February 2013 that the oil and gas exploration policy will be reviewed to move from profit sharing to revenue sharing contracts. The natural gas pricing policy will be reviewed and uncertainties regarding pricing will be removed. NELP blocks that were awarded but are stalled will be cleared. A policy to encourage exploration and production of shale gas will be announced.