Key benchmark indices cut losses in afternoon trade. The barometer index, S&P BSE Sensex briefly turned positive to hit an intraday high only to reverse direction later. The CNX Nifty also hit an intraday high in negative zone. The S&P BSE Sensex, was down 32.85 points or 0.16%, up 150.89 points from the day's low and off 39.23 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
HDFC Bank reversed intraday fall in volatile trade. Tata Motors dropped despite the company reported a strong Q2 result. Capital goods pivotals declined. GlaxoSmithKline Pharmaceuticals fell after declaring weak Q3 result.
The market edged lower in early trade. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their lowest level in 3-1/2 weeks. It weakened once again after it pared initial losses and hit fresh intraday high in morning trade. It hovered in negative terrain in mid-morning trade. It continued to hover in negative terrain in early afternoon trade. Key benchmark indices cut losses in afternoon trade.
Indian stocks fell for the fifth day in a row today, 11 November 2013. Sentiment was impacted on concerns the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected after latest data showed better than expected US October jobs report. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
In the foreign exchange market, the rupee fell below the 63 level against the dollar. Rupee depreciation fuels inflation, increases import bill and current account deficit. It also increases the government's spending on fuel subsidies, potentially widening the fiscal deficit.
At 13:18 IST, the S&P BSE Sensex was down 32.85 points or 0.16% to 20,633.30. The index shed 183.74 points at the day's low of 20,482.41 in early trade, its lowest level since 17 October 2013. The index rose 6.38 points at the day's high of 20,672.53 in afternoon trade.
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The CNX Nifty was down 13.25 points or 0.22% to 6,127.40. The index hit a low of 6,070.85 in intraday trade, its lowest level since 17 October 2013. The index hit a high of 6,141.65 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,201 shares fell and 1,059 shares rose. A total of 127 shares were unchanged.
The total turnover on BSE amounted to Rs 1124 crore by 13:25 IST.
Among the 30-share Sensex pack, 19 stocks fell and rest of them rose. Dr Reddy's Laboratories (up 1.63%), Tata Steel (up 1.29%) and TCS (up 0.87%) gained.
Hindalco Industries (down 2.58%), ONGC (down 1.91%) and Hero MotoCorp (down 1.24%), declined.
Capital goods pivotals declined. L&T dropped 1.8%. Bhel shed 0.49%.
HDFC Bank rose 1% to Rs 659.40 in volatile trade. The stock reversed direction after falling as much as 2.78% at day's low of Rs 634.75.
Tata Motors dropped 1.36% despite the company reported a strong Q2 result. The company's consolidated net profit surged 70.7% to Rs 3542 crore on 31.1% rise in revenues to Rs 56882 crore in Q2 September 2013 over Q2 September 2012. The company said revenues grew despite weak operating environment in the India business which was more than offset by increase in wholesale volumes and richer product and market mix at Jaguar Land Rover (JLR).
JLR wholesale and retail volumes for the quarter ended 30 September 2013 grew by 31.6% and 21.1%, respectively, over the corresponding period last year and stood at 101,931 units and 102,644 units, respectively. Following strong response to its new products and powertrain options, Jaguar wholesale and retail volumes grew by 91.6% and 56.5% to 18,834 units and 20,024 units, respectively, as against 9,832 units and 12,798 units, respectively, in the corresponding quarter last year. Strong response to the All-New Range Rover and continued strong growth in Evoque and other products, Land Rover wholesale and retail volumes stood at 83,097 units and 82,620 units (growth of 22.9% and 14.8% over corresponding quarter last year).
JLR's revenues for the quarter ended September 30, 2013 of 4,612 million pounds, represented a growth of 40.3% over 3,288 million pounds in the corresponding quarter last year. Operating margins for the quarter ended 30 September 2013 stood at 17.8%. Operating profit (EBITDA) of 823 million pounds in the quarter, represented a growth of 69.3% over 486 million pounds in the corresponding quarter last year. Continued strong revenue growth and operating performance were supported by increase in wholesale volume, richer product mix, launch of new Range Rover Sport, new Range Rover and Jaguar F-TYPE. The profit before tax for the quarter ended 30 September 2013 grew by 55.0% over the corresponding quarter last year to 668 million pounds (431 million pounds in the corresponding quarter last year). Profit after tax for the quarter grew by 66.2% over the corresponding quarter last year to 507 million pounds (305 million pounds in the corresponding quarter last year).
GlaxoSmithKline Pharmaceuticals fell 0.82%. The company reported 33.73% fall in net profit to Rs 100.95 crore on 7.03% fall in total income to Rs 666.02 crore in Q3 September 2013 over Q3 September 2012. The Q3 result was announced during market hours today, 11 November 2013.
Adani Enterprises (up 7.91%), Zee Entertainment Enterprises (up 5.64%), Syndicate Bank (up 4.31%), Aurobindo Pharma (up 4.23%) and Indraprastha Gas (up 3.57%) were the key gainers from the BSE's 'A' group.
In the foreign exchange market, the rupee fell below the 63 level against the dollar as better than expected October US jobs report fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. The partially convertible rupee was hovering at 63.2050, compared with its close of 62.475/485 on Friday, 8 November 2013.
On the macro front, the government will unveil industrial production data for September 2013 on tomorrow, 12 November 2013. Index of industrial production (IIP) rose 0.6% in August 2013, showing moderation in growth from 2.8% growth recorded in July 2013.
Data on inflation based on the consumer price index (CPI) for October 2013 will also be unveiled tomorrow, 12 November 2013. The headline CPI inflation (combined) for September 2013 was placed at 9.84% (y-o-y), which came in higher than 9.52% (y-o-y) seen in August 2013.
Most Asian stocks edged higher on Monday. Key benchmark indices in China, Singapore, Japan and Hong Kong rose 0.16% to 1.6%. Key benchmark indices in Taiwan, South Korea and Indonesia shed 0.38% to 0.72%.
China's industrial output rose a more-than-estimated 10.3% from a year earlier in October, according to data released Nov 9 by the National Bureau of Statistics. October inflation was a less-than-forecast 3.2%, producer prices fell 1.5% from a year earlier and retail sales rose 13.3%.
The meeting of China's leaders in Beijing will end tomorrow, 12 November 2013 to map out economic policies as the country heads for its slowest annual growth in more than two decades.
Trading in US index futures indicated that the Dow could rise 3 points at the opening bell on Monday, 11 November 2013. US stocks applauded a better-than-expected October jobs report and rose on Friday amid hopes a more buoyant economy will improve business for American companies over the long run.
American employers added 204,000 workers last month after a revised 163,000 gain in September that was larger than previously estimated, Labor Department figures showed Nov. 8. The increase in payrolls topped the most optimistic forecast in a survey of economists.
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