Key benchmark indices retained positive zone in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 61.72 points or 0.3%, off close to 80 points from the day's high and up about equal points from the day's low. The market breadth, indicating the overall health of the market, was positive. Gains in Asian and European stocks and rally in US stocks overnight underpinned sentiment on the domestic bourses.
Auto stocks were mostly higher. Maruti Suzuki India extended Thursday's gains triggered by the company announcing the launch of its compact car, Celerio, with the revolutionary auto gear shift. Tata Power Company fell in choppy trade after announcing Q3 result.
The market edged higher in early trade on firm Asian stocks. The 50-unit CNX Nifty hit one-week high. Firmness continued on the bourses in morning trade. Key benchmark indices trimmed initial gains in mid-morning trade. Key benchmark indices moved in a narrow range in positive zone in afternoon trade. Volatility ruled the roost as key benchmark indices regained positive zone soon after a sudden steep slide pushed them to negative zone from positive zone for a brief period in afternoon trade. The Sensex retained positive zone in mid-afternoon trade.
At 14:20 IST, the S&P BSE Sensex was up 61.72 points or 0.3% to 20,372.46. The index jumped 139.77 points at the day's high of 20,450.51 in early trade, its highest level since 3 February 2014. The index fell 21.44 points at the day's low of 20,289.30 in afternoon trade.
The CNX Nifty was up 22.50 points or 0.37% to 6,058.60. The index hit a high of 6,079.95 in intraday trade, its highest level since 31 January 2014. The index hit a low of 6,035.95 in intraday trade.
The BSE Mid-Cap index was up 30.44 points or 0.63% at 6,339.03. The BSE Small-Cap index was up 35.42 points or 0.56% at 6,344.43. Both these indices outperformed the Sensex.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 1,322 shares rose and 1,076 shares fell. A total of 154 shares were unchanged.
Sesa Sterlite (up 2.97%), AXIS Bank (up 1.72%) and Sun Pharmaceutical Industries (up 2.6%), edged higher from the Sensex pack.
Tata Steel rose 5.95%, with the stock extending intraday gains.
Tata Power Company fell in choppy trade after announcing Q3 result. The stock was off 0.6% at Rs 74.80. The scrip hit high of Rs 76.65 and low of Rs 73.75 so far during the day. The company reported consolidated net loss of Rs 74.91 crore for Q3 December 2013, lower than net loss of Rs 328.92 crore in Q3 December 2012. Total income fell 4.91% to Rs 8605.93 crore in Q3 December 2013 over Q3 December 2012. The result was announced during market hours.
Auto stocks were mostly higher.
Maruti Suzuki India extended Thursday's gains triggered by the company announcing the launch of its compact car, Celerio, with the revolutionary auto gear shift. The stock was up 1.69%. With fuel efficiency same as the manual transmission, the revolutionary auto gear shift, christened EZ Drive, is all set to redefine the car driving experience on Indian roads, Maruti said in a statement on Thursday, 6 February 2014. Auto gear shift on the Celerio is a first for India amongst passenger cars. Celerio offers a fuel efficiency of 23.1 kmpl, for both, auto gear shift and the manual transmission variants, the company said.
Celerio with auto gear shift will be available in two variants, with ex-showroom price of Rs 4.29 lakh and Rs 4.59 lakh in Delhi. Celerio with manual gear will be available in four variants, with price ranging from Rs 3.90 lakh to Rs 4.96 lakh ex-showroom Delhi.
Tata Motors rose 1.16%. Tata Motors after trading hours on Thursday, 6 February 2014, announced that as an interim measure, consequent upon the sudden demise of the company's Managing Director, Mr. Karl Slym, a Corporate Steering Committee (CSC) will provide oversight of strategy and key aspects of the company's operations. Mr. Cyrus P. Mistry will chair the CSC, which comprises all the current members of the company's Executive Committee, Tata Motors said. Mr. Mistry will also chair New Product Design and Engineering Review meetings.
"I was deeply saddened by the tragic and untimely demise of Karl Slym, Managing Director of Tata Motors. To ensure leadership continuity, the board of Tata Motors has constituted a Corporate Steering Committee to oversee strategy execution and key aspects of operations; the Corporate Steering Committee will be chaired by me, and will include the current Executive Committee members. The board expects to appoint a Managing Director in due course. As communicated to all Tata Motors employees by me on January 30, during the condolence meeting held in the memory of Karl, we will ensure that the company vigorously pursues and delivers on the strategy which had already been defined and which Karl was executing. As the company looks ahead, it is gratifying to note that several new product launches have taken place recently and a robust pipeline is being showcased at this year's Auto Expo. I am confident that Tata Motors will sustain its strong leadership in the Indian automobile industry," Mr. Mistry said in a statement.
Tata Motors early this week unveiled two all-new cars -- the classy sedan, ZEST and the sporty, dynamic premium hatchback, BOLT that look to redefine the passenger car market with new design aesthetics, segment-defining drive experience and high-tech Infotainment system, the auto major said in a statement on 3 February 2014. These cars will be launched in 2014 in India and subsequently in other countries. ZEST and BOLT have been designed and developed based on three key fundamental principles, namely, DesigNext, DriveNext, ConnectNext, Tata Motors said. ZEST and BOLT, a result of the collaborative design inputs from the three Tata Motors design studios in Pune, Coventry (UK) and Turin ( Italy), come with several segment first features and a new design language on the exterior and the interior of the car, the company said.
Mahindra & Mahindra (M&M) fell 0.56%. M&M on 1 February 2014 said its total auto sales declined 13.77% to 42,685 units in January 2014 over January 2013. Domestic sales declined 15.71% to 40,324 units in January 2014 over January 2013. Exports surged 42.05% to 2,361 units in January 2014 over January 2013.
The sales of Passenger Vehicles segment declined 25.46% to 19,792 units in January 2014 over January 2013. The four-wheeler commercial vehicle sales rose 4.49% to 15,100 units in January 2014 over January 2013. Three-wheeler sales declined 18.94% to 4,710 units in January 2014 over January 2013.
Separately, the company on 1 February 2014 said its total tractor sales rose 15% to 20,109 units in January 2014 over January 2013. Domestic tractor sales rose 18% to 19,389 units in January 2014 over January 2013. Exports declined 33% to 720 units in January 2014 over January 2013.
Ashok Leyland rose 0.83%.
Shares of two wheelers makers were mostly higher. Bajaj Auto (up 2.02%) and Hero MotoCorp (up 0.84%) gained. TVS Motor Company fell 2.85%.
Andhra Bank lost 1.99% after net profit declined 82.27% to Rs 45.57 crore on 12.48% growth in total income to Rs 3900.54 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during trading hours today, 7 February 2014.
In the foreign exchange market, the rupee reversed intraday gains against the dollar. The partially convertible rupee was hovering at 62.40, compared with its close of 62.365/375 on Thursday, 6 February 2014.
The government will announce the advance estimate of GDP for 2013-14 at around 17.30 IST today, 7 February 2014. The GDP grew 4.6% annually in the first half of the current fiscal year, down from 5.3% in the corresponding period a year ago. Growth slowed in almost all sectors, including services such as tourism, transport and telecoms.
Last week, the Statistics Ministry revised down GDP growth for the previous fiscal year to 4.5%, from an earlier estimate of 5%.
Finance Minister P Chidambaram will present the Vote-on-Account or interim budget on 17 February 2014. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
European stocks rose on Friday, 7 February 2014, extending the prior day's solid rally, as investors waited for the closely watched US nonfarm-payrolls data. Key benchmark indices in France, Germany and UK rose 0.19% to 0.21%.
The European Central Bank kept interest rates unchanged on Thursday as officials chose to set aside concerns that inflation may stay low for too long. The 24-member Governing Council, convening in Frankfurt Thursday, left the main refinancing rate at 0.25%. The ECB also held the deposit rate at zero and the marginal lending rate at 0.75%. ECB President Mario Draghi said at a news conference that medium- and long-term inflation expectations remain well-anchored, with no real deflation risk.
The Bank of England kept its benchmark rate at a record-low 0.5%, while its bond-purchase plan stayed unchanged at 375 billion pounds ($611 billion) on Thursday.
Asian stocks rose on Friday, 7 February 2014, as US jobless claims fell and investors weighed company earnings. Key benchmark indices in Indonesia, South Korea, Japan, Hong Kong, Singapore and Taiwan rose 0.74% to 2.17%.
China's Shanghai Composite Index rose 0.56%, reversing intraday losses as China's markets opened after Lunar New Year holidays. China's services sector grew at its slowest pace in almost 2-1/2 years in January after firms secured a smaller volume of new business, a private survey showed, adding to growing signs of slackening in the Chinese economy. The HSBC/Markit Services Purchasing Managers' Index (PMI) retreated to 50.7 in January, a low last seen in August 2011 though still above the 50-point level that demarcates growth and contraction. December's PMI was 50.9.
Trading in US index futures indicated that the Dow could advance 31 points at the opening bell on Friday, 7 February 2014. US stocks surged on Thursday, 6 February 2014, as investors welcomed a larger-than-expected drop in weekly jobless claims and upbeat earnings from companies including Walt Disney Co.
Initial jobless claims dropped for the first time in three weeks, falling 20,000 to 331,000 in the period ended Feb. 1, according to the Labor Department.
The influential monthly US jobs data for January 2014 will be released today, 7 February 2014.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
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