A bout of volatility was witnessed as key benchmark indices trimmed losses after a weak opening triggered by lower Asian shares and overnight decline in US stocks. The barometer index, the S&P BSE Sensex, was down 45.70 points or 0.22%, up about 80 points from the day's low and off close to 15 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Bajaj Auto declined after the company reported weak sales for December 2013. TVS Motor Company dropped after the company reported a muted growth in sales for December 2013. Hero MotoCorp declined after the company reported weak sales for December 2013. Tata Motors dropped after the company reported weak sales for December 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 674.05 crore on Thursday, 2 January 2014, as per provisional data from the stock exchanges.
Asian stocks dropped on Friday, 3 January 2014, after US equities retreated from record highs and a gauge of China's non-manufacturing industries declined.
At 9:30 IST, the S&P BSE Sensex was down 45.70 points or 0.22% to 20,842.63. The index dropped 124.90 points at the day's low 20,763.43 in early trade. The index fell 31.80 points at the day's high of 20,856.53 in early trade.
The CNX Nifty was down 19.85 points or 0.32% to 6,281.30. The index hit a low of 6,178.85 in intraday trade. The index hit a high of 6,209.05 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 588 shares rose and 485 shares dropped. A total of 52 shares were unchanged.
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Among the 30-share Sensex pack, 22 stocks fell and rest of them rose.
State Bank of India declined 0.68%. The state-run bank after market hours on Thursday, 2 January 2014, said that the Executive Committee of the Central Board of the bank at its meeting held on Thursday, 2 January 2014, has accorded its approval for the issuance and allotment of 1.12 crore equity shares at an issue price of Rs 1782.74 per share to the Government of India (GoI) on preferential basis. The committee also approved the allotment of Basel III compliant Tier 2 bonds of Rs 2000 crore, issued for 120 months (10 year bullet), at an annually payable coupon of 9.69%, by way of private placement.
Hero MotoCorp declined 0.02% after the company reported weak sales for December 2013. The company announced after market hours on Thursday, 2 Janaury 2014, that its total sales fell 3.06% to 5.24 lakh units in December 2013 over December 2012. The company sold record 61.83 lakh two-wheelers in calendar year 2013.
Hero MotoCorp said that the management has put together plans to further consolidate the company's leadership position in the two-wheeler industry. Year 2014 will be action-packed with radically new products launches from the company, entry into new markets backed by new, clutter-breaking campaign and continued network expansion.
Tata Motors dropped 1.81% after the company reported weak sales for December 2013. The total sales (including exports) of Tata commercial and passenger vehicles plunged 42.28% at 37,852 units in December 2013 over December 2012. Tata Motors' exports declined 26.79% at 2,842 units in December 2013 over December 2012. Tata Motors announced the monthly sales volume data on standalone basis after trading hours on Thursday, 2 January 2014.
Bajaj Auto declined 0.91% after the company reported weak sales for December 2013. The company said before market hours that its total sales declined 13% to 2.97 lakh units in December 2013 over December 2012. The company's total exports rose 20% to 1.5 lakh units in December 2013 over December 2012. Motorcycles sales fell 13% to 2.6 lakh units in December 2013 over December 2012. Commercial vehicles sales fell 19% to 37,131 units in December 2013 over December 2012.
TVS Motor Company dropped 0.26% after the company reported a muted growth in sales in December 2013. The company's total sales rose 2% at 1.59 lakh units in December 2013 over December 2012. Total exports rose 27% to 20,251 units in December 2013 over December 2012.
Total two wheeler sales rose 1% to 1.53 lakh units in December 2013 over December 2012. Domestic two wheeler sales declined 1.4% to 1.32 lakh units in December 2013 over December 2012. Two wheeler exports registered a growth of 21% to 20,694 units in December 2013 over December 2012.
Scooters sales grew 38% to 41,817 units in December 2013 over December 2012. Motorcycle sales declined 4.37% to 57,576 units in December 2013 over December 2012.
Three wheeler sales surged 37% to 6,137 units in December 2013 over December 2012.
Prime Minister Dr Manmohan Singh will be addressing the media at 11:00 IST today, 3 January 2014. It will be his third press meet after he took charge as the Prime Minister in May 2004. The Prime Minister is likely to address several issues including the list of achievements of the UPA government in the last decade. Ahead of the upcoming Lok Sabha elections, the PM may list achievements of the UPA during its tenure in the last 10 years in the area of economic growth, employment generation and foreign policy in the press conference.
The next major trigger for the market is Q3 December 2013 corporate earnings. The Q3 earnings season will begin around mid-January 2014 and continue till mid-February 2014. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian stocks dropped on Friday, 3 January 2014, after US equities retreated from record highs and a gauge of China's non-manufacturing industries declined. Key benchmark indices in Hong Kong, Taiwan, Singapore, Indonesia, China and South Korea were off 0.58% to 1.79%. Japanese stock markets were closed for a holiday.
China's non-manufacturing gauge fell to a four-month low in December, after data earlier this week showed two measures of factory output in the world's second-largest economy declined. China's purchasing managers' index for the non-manufacturing sector fell to 54.6, the lowest reading since August, from 56 in November.
Stocks on Wall Street closed sharply lower on the first trading day of 2014 on Thursday, 2 January 2014, after data pointed to a slowdown in manufacturing expansion in China and the United States.
Data indicated applications for US unemployment benefits declined last week to the lowest level in a month. Jobless claims fell by 2,000 to 339,000 in the period ended Dec. 28, Labor Department data showed. A separate report showed the Institute for Supply Management's factory index fell to 57 in December from the prior month's 57.3, which was the highest since April 2011. Readings above 50 indicate expansion.
The US Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually over the next year.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014.
In Europe, final readings on Thursday, 2 January 2014, confirmed that manufacturing in the euro zone expanded last month at the fastest pace since May 2011, while output in Germany, the currency bloc's largest economy, expanded for a sixth consecutive month.
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