Weakness continued on the bourses in early afternoon trade as a steep slide in rupee which took it to record low against the dollar rattled investor sentiment. Weakness in most Asian stocks also dampened sentiment. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their lowest level in nearly six weeks. The Sensex was down 223.26 points or 1.16%, off close to 175 points from the day's high and up about 25 points from the day's low. The market breadth, indicating the overall health of the market, was weak.
Asian Paints dropped for the second straight day. Metal and mining stocks declined. Pharma stocks also declined. PSU OMCs fell on a weak rupee, with BPCL hitting a 52-week low.
The market edged lower in early trade on weak Asian stocks. The Sensex extended initial losses to hit fresh intraday low in morning trade as the rupee hit record low against the dollar. The market weakened further to hit fresh intraday low in mid-morning trade. The Sensex fell below the psychological 19,000 mark. Weakness continued on the bourses in early afternoon trade.
The rupee weakened to hit record low against the dollar today, 6 August 2013, weighed by weak local and regional shares. The rupee was trading at 61.58 today, 6 August 2013, sharply lower than Monday's close of 60.88/89.
Bond prices fell. The yield on the benchmark government paper 7.16 GS 2023 was at 8.2872%, higher than Monday's close of 8.2015%. Bond yield and bond prices are inversely related.
Most Asian stocks dropped on Tuesday, 6 August 2013, as stronger growth in American service industries fueled speculation the US Federal Reserve will soon be able to reduce economic stimulus.
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At 12:20 IST, the S&P BSE Sensex was down 223.26 points or 1.16% to 18,959. The index lost 251.74 points at the day's low of 18,930.52 in early afternoon trade, its lowest level since 27 June 2013. The index declined 50.34 points at the day's high of 19,131.92 in early trade.
The CNX Nifty was down 77.15 points or 1.42% to 5,604.75. The index hit a low of 5,598.50 in intraday trade, its lowest level since 26 June 2013. The index hit a high of 5,664.90 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,289 shares fell and 504 shares rose. A total of 106 shares were unchanged.
Among the 30-share Sensex pack, 25 stocks fell and rest of them rose.
Tata Motors declined 0.28% ahead of its Q1 result tomorrow, 7 August 2013.
Shares of motorcycle maker Hero MotoCorp rose 2.03%. The company said on 1 August 2013, its total sales rose 0.68% to 4.87 lakh units in July 2013 over July 2012.
Asian Paints dropped 5.27%, with the stock extending Monday's 4.67% losses.
Pharma stocks declined. Dr Reddy's Laboratories (down 0.01%), and Sun Pharmaceutical Industries (down 1.65%), declined.
Lupin was down 0.73% ahead of its Q1 result tomorrow, 7 August 2013.
Ranbaxy Laboratories was down 2.8% ahead of its Q2 result tomorrow, 7 August 2013.
Cipla declined 2.01% as the stock turned ex-dividend today, 6 August 2013, for dividend of Rs 2 per share for the year ended 31 March 2013 (FY 2013).
Metal and mining stocks declined. Sterlite Industries (down 5.44%), Sesa Goa (down 4.32%), NMDC (down 2.43%), Tata Steel (down 3.55%), Jindal Steel & Power (down 3.03%), Sail (down 3.38%), Hindustan Zinc (down 1.79%), Hindalco Industries (down 0.35%),
Shares of state-run copper miner Hindustan Copper jumped 10.1% to Rs 48.50.
PSU OMCs fell on weak rupee. HPCL (down 3.27%) and Indian Oil Corporation (down 0.18%), edged lower.
BPCL declined 4.7% to Rs 268.45 after hitting a 52-week low of Rs 266.25 in intraday trade today, 6 August 2013.
The weakness in rupee has raised concerns about increased costs of importing oil. PSU OMCs import about 70-75% of their crude oil needs and rely heavily on foreign currency borrowings, which largely remain unhedged.
Crompton Greaves rose 1.77%. The company's consolidated net profit declined 30.05% to Rs 60.08 crore on 12.31% growth in total income from operations to Rs 3157.22 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced during trading hours today, 6 August 2013. Crompton Greaves said that Q1 June 2013 results include the results of the subsidiaries acquired during the last year i.e. ZIV Group in Spain. Consequently, figures for the quarter are not comparable with corresponding quarter last year.
NDTV (down 20%), Orbit Corporation (down 9.09%), Deepak Nitrite (down 8.89%), BF Utilities (down 8.75%) and Riddhi Siddhi Gluco Biols (down 8.54%), were among the biggest losers from the BSE Small-Cap index.
Symphony surged 7.49% after net profit jumped 31.67% to Rs 25.90 crore on 27.07% growth in total income from operations to Rs 114.42 crore in Q4 June 2013 over Q4 June 2012. The Q4 result was announced after market hours on Monday, 5 August 2013. Symphony's net profit rose 24.51% to Rs 62.68 crore on 24.88% growth in total income from operations to Rs 321.86 crore in the year ended 30 June 2013 over the year ended 30 June 2012.
On consolidated basis, Symphony's net profit rose 13.2% to Rs 60.11 crore on 22.18% growth in total income from operations to Rs 390.69 crore in the year ended 30 June 2013 over the year ended 30 June 2012.
Symphony's board of directors at a meeting held on Monday, 5 August 2013, decided to open a branch in United Arab Emirates (UAE). UAE is an important hub for trading activities for MENA region viz. Middle East North Africa. This region includes GCC countries (Gulf Cooperation Council), other Middle-eastern countries and North African countries. The whole of this region has vast and promising markets for air coolers, Symphony said. On opening of this branch, the company foresees to expand its presence in this area, it added.
Economic output in emerging economies contracted in July to its slowest pace since April 2009, marking a fresh low since the global financial crisis, according to HSBC Holdings PLC. The HSBC Emerging Markets Index, which tracks purchasing managers' index reports from 16 emerging economies, declined to 49.4 in July from 50.6 the previous month, HSBC said in a report. A reading above 50 indicates an expansion in activity.
Most Asian stocks fell on Tuesday, 6 August 2013, as stronger growth in American service industries fueled speculation the US Federal Reserve will soon be able to reduce economic stimulus. Key benchmark indices in Hong Kong, Taiwan, Singapore, and South Korea were off 0.44% to 1.23%. Key benchmark indices in China and Japan rose by 0.65% to 1%.
Australia's central bank cut its benchmark interest rate to a record low and damped expectations of further reductions. Governor Glenn Stevens and his board reduced the overnight cash-rate target by a quarter percentage point to 2.5%, the Reserve Bank of Australia said in a statement in Sydney today.
Trading in US index futures indicated that the Dow could fall 12 points at the opening bell on Tuesday, 6 August 2013. Most US stocks fell on Monday, 5 August 2013, with benchmark indices pulling away from record highs, as Wall Street considered a report indicating better-than-expected growth in the service sector and a Federal Reserve official's remarks that the central bank is closer to curbing its asset purchases. Dallas Federal Reserve Bank President Richard Fisher on Monday, 5 August 2013, said the fall in the US unemployment rate to 7.4% in July means the Fed is closer to slowing its asset purchases from $85 billion a month.
The Institute for Supply Management's non-manufacturing index for the US rose to 56 in July, beating the median estimate and June's 52.2 reading.
The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data.
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