Key benchmark indices extended losses to hit fresh intraday low in mid-morning trade as a steep slide in rupee which took it to record low against the dollar rattled investor sentiment. Weakness in 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 currently below the psychological 19,000 mark, having alternately moved above and below that level in intraday trade so far. The Sensex was down 215.79 points or 1.12%, off close to 165 points from the day's high and up about 10 points from the day's low. The market breadth, indicating the overall health of the market, was weak.
Realty stocks dropped, with DLF hitting a record low. Among PSU OMCs, BPCL hit a 52-week low. Bank stocks fell across the board. Sterlite Industries extended intraday losses.
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 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 61.46 today, 6 August 2013, sharply lower than Monday's close of 60.88/89.
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.
At 11:20 IST, the S&P BSE Sensex was down 215.79 points or 1.12% to 18,966.47. The index lost 223.65 points at the day's low of 18,958.61 in mid-morning 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.
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The CNX Nifty was down 74.55 points or 1.31% to 5,610.85. The index hit a low of 5,607.45 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, 1,121 shares fell and 470 shares rose. A total of 81 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks fell and rest of them rose. Bhel (down 3.6%), Tata Steel (down 3.61%) and Tata Power Company (down 3.11%), edged lower.
Sterlite Industries declined 5.31%, with the stock extending intraday losses.
Bank stocks fell across the board. HDFC Bank declined 3.23%. ICICI Bank dropped 1.57%.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank shed by 1.21% to 4.04%.
Realty stocks dropped. HDIL (down 8.97%), Unitech (down 2.86%), and D B Realty (down 0.39%), edged lower.
DLF declined 5.33% to Rs 122.45 after hitting a record low of Rs 121.60 in intraday trade today, 6 August 2013.
BPCL declined 3.51% to Rs 271.60 after hitting a 52-week low of Rs 270 in intraday trade today, 6 August 2013.
Siemens declined 2.98%. The company today, 6 August 2013, said that a consortium comprising the company, its parent Siemens AG and Siemens Ltd. China has won an order for a turnkey project worth about 70 million euros from IL&FS Rail. The company's share of the order in the project is Rs 184.10 crore. The project involves extension of the Gurgaon Metro line with a new southern line, which is around seven kilometers long. The new line will add 6 stations in the south-east of Gurgaon.
Great Eastern Shipping Company rose 1.95% after the company said its board will meet on 8 August 2013, to consider buyback of equity shares. The announcement was made after market hours on Monday, 5 August 2013.
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, China, Taiwan, Singapore, and South Korea were off 0.03% to 1.53%. Japan's Nikkei Average rose 0.1%.
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 26 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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