Volatility continued as key benchmark indices recovered after hitting fresh intraday low in morning trade. The S&P BSE Sensex and the 50- unit CNX Nifty, both, hit their lowest level in nearly three weeks. The Sensex was up 1.40 points or 0.01%, off close to 30 points from the day's high and up about 40 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Capital goods pivotals edged higher on bargain hunting after recent losses. IT major Wipro extended Monday's rally triggered by the company issuing upbeat revenue guidance for Q2 September 2013 at the time of announcing Q1 June 2013 results on Friday, 26 July 2013. Shares of other IT firms gained also edged higher after Wipro's upbeat Q2 revenue guidance.
A bout of initial volatility was witnessed as key benchmark indices pared gains after moving into the positive terrain after opening lower. Volatility continued as key benchmark indices recovered after hitting fresh intraday low in morning trade.
At 10:20 IST, the S&P BSE Sensex was up 1.40 points or 0.01% to 19,594.68. The index rose 32.31 points at the day's high of 19,625.59 in early trade. The index declined 40.01 points at the day's low of 19,553.27 in morning trade, its lowest level since 11 July 2013.
The CNX Nifty was up 2.60 points or 0.04% to 5,834.25. The index hit a high of 5,844.75 in intraday trade. The index hit a low of 5,822.55 in intraday trade, its lowest level since 10 July 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 664 shares fell and 469 shares rose. A total of 64 shares were unchanged.
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Among the 30-share Sensex pack, 17 stocks fell and rest of them rose. GAIL (India) (down 2.18%), Hindustan Unilever (down 2.08%) and Sterlite Industries (down 1.49%), edged lower.
IT major Wipro was up 0.69%, with the stock extending Monday's rally triggered by the company issuing upbeat revenue guidance for Q2 September 2013 at the time of announcing Q1 June 2013 results on Friday, 26 July 2013. The stock had surged 6.71% on Monday, 29 July 2013. Wipro expects 1.99% to 3.88% growth in revenue from IT services business at between $1.62 billion to $1.65 billion in Q2 September 2013 over Q1 June 2013.
The company's consolidated net profit rose 3% to Rs 1623.30 crore on 1% growth in revenue to Rs 9734.60 crore in Q1 June 2013 over Q4 March 2013. The results are as per International Financial Reporting Standards. The results are after adjusting for the spinoff of its non-technology businesses, completed in April.
Shares of other IT firms gained for the second straight day after Wipro's upbeat Q2 revenue guidance. Infosys gained 0.87%. HCL Technologies rose 1.35%.
TCS rose 0.55%. TCS on Monday, 29 July 2013, said it has won a three-year contract from the Zambia Revenue Authority (ZRA) for the modernisation of its domestic tax system.
Capital goods pivotals edged higher on bargain hunting after recent losses. Shares of power equipment major Bharat Heavy Electricals rose 0.48% to Rs 157.70. The stock had hit 52-week low of Rs 156.10 in intraday trade on Friday, 26 July 2013.
Engineering and construction giant L&T gained 0.9% to Rs 848.95. The stock had hit 52-week low of Rs 836 in intraday trade on Monday, 29 July 2013. The company on Monday, 29 July 2013, said that its construction division secured an order worth $ 1403 million (Rs 8250 crore) from the ArRiyadh Development Authority, kingdom of Saudi Arabia for the design, construction and comissioning of metro project in Riyadh, Saudi Arabia. L&T has secured the order as a JV partner of ArRiyadh New Mobility consortium. The total value of the order is $5.94 billion. The project is to be completed during a period of four years, which will be preceded by eight months to prepare the detailed designs and to carry out the enabling works, the coordination for utilities diversion and the site preparation works, and followed by four months of system demonstration, trial run and project handing over.
The Reserve bank of India (RBI) announces first quarter review of the Monetary Policy 2013-14 today, 30 July 2013.
The Reserve Bank of India (RBI) on Monday, 29 July 2013, said that amplifying macro-financial risks warrant cautious monetary policy stance. Recent currency depreciation and upward revisions in fuel prices have increased upside risks to both wholesale and consumer price inflation, the RBI said in a report. The RBI report serves as a backdrop to the First Quarter Review of Monetary Policy Statement 2013-14 to be announced today, 30 July 2013. The RBI has highlighted several risks facing the economy.
Global commodity price inflation is expected to remain contained in the near term, in part helped by slowing growth in China. However, upside risks to global crude oil prices remain from rising geo-political uncertainties in the Middle East, the report said.
Food inflation rose in May and June 2013 and put pressures on general price-level. These pressures could moderate somewhat if the monsoon remains on track during the rest of the season, the report said.
Global financial markets have entered into a period of fresh turbulence, with re-pricing of risks from likely tapering of quantitative easing (QE). Going forward, interest rates could continue to harden and financial conditions could tighten further, keeping markets episodically under stress, the report said. While the current account deficit (CAD) may fall in 2013-14, risks to CAD financing have increased with firming up of US bond yields, the report said. In this milieu, structural policy reforms are needed to reduce CAD and to improve its financing by attracting more stable capital flows to the Indian economy, the report said.
The Reserve Bank of India will endeavour to actively manage liquidity to reinforce monetary transmission that is consistent with the growth-inflation balance and macro-financial stability, the report said.
Asian stocks rose on Tuesday, 30 July 2013, after China's central bank injected funds into money markets easing cash crunch worries. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea, Indonesia and Taiwan rose by 0.2% to 1.45%.
China's central bank injected funds into money markets via open market operations on Tuesday for the first time since February, easing fears of another cash crunch ahead of the month end after a severe cash squeeze in June caused market panic.
Meanwhile, the results of two separate surveys on Chinese manufacturing activity in July are due on Thursday, 1 August 2013.
In Japan, data released on Tuesday, 30 July 2013, showed that Japan's industrial production unexpectedly fell a seasonally adjusted 3.3% in June from the level in May. Japanese household spending also declined, though the monthly unemployment rate eased to 3.9% from 4.1%.
Trading in US index futures indicated that the Dow could gain 17 points at the opening bell on Tuesday, 30 July 2013. US stocks edged lower on Monday, 29 July 2013, slipping after a decline in June home sales as investors look ahead to key data later in the week and the Federal Reserve's upcoming policy meeting. The National Association of Realtors said pending home sales fell 0.4% in June, with rising rates blamed for undercutting sales momentum.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting today (30 July 2013) and tomorrow (31 July 2013), with expectations that it will offer further clues on how long it will maintain its bond purchases. In his two-day testimony to Congress, which concluded on 18 July 2013, Federal Reserve Chairman Ben Bernanke said plans to taper asset purchases were not on a preset path and stressed intentions to be very responsive to data. Additionally, Bernanke said recent data have been "mixed" and it was "way too early" to make a judgment on when the central bank will slow down the pace of its asset purchases. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.
In Europe, the European Central Bank (ECB) and the Bank of England (BoE) will announce their policy decisions on Thursday, 1 August 2013.
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