A bout of volatility was witnessed as key benchmark indices alternately swung between positive and negative zone after hitting fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, was up 22.53 points or 0.11%, off close to 25 points from the day's high and up about 50 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Index heavyweight and cigarette maker ITC dropped. Bharat Heavy Electricals (Bhel) extended Wednesday's losses triggered by the company's weak Q2 results. IT stocks extended Wednesday's gains as the rupee hit one-month low against the dollar. Ashok Leyland declined after the company reported reverse turnaround in Q2 September 2013. Thermax dropped on weak Q2 result.
A bout of initial volatility was witnessed as key benchmark alternately swung between positive and negative terrain. Volatility continued in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 271.70 crore on Wednesday, 6 November 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 22.53 points or 0.11% to 20,917.47. The index rose 49.35 points at the day's high of 20,944.29 in morning trade. The index fell 28.06 points at the day's low of 20,866.88 in early trade.
The CNX Nifty was down 2.60 points or 0.04% to 6,212.55. The index hit a high of 6,232.15 in intraday trade. The index hit a low of 6,207.35 in intraday trade, its lowest level since 29 October 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 913 shares rose and 672 shares fell. A total of 100 shares were unchanged.
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Among the 30-share Sensex pack, 16 stocks rose and rest of them fell. Coal India (down 1.34%), ICICI Bank (down 0.81%) and Jindal Steel & Power (down 0.84%), declined.
Bharat Heavy Electricals (Bhel) extended Wednesday's losses triggered by the company's weak Q2 results. The stock shed 4.81%. The company's net profit fell 64.22% to Rs 455.95 crore on 11.31% decline in total income to Rs 9482.25 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced during trading hours on Wednesday, 6 November 2013.
Bhel's order book stood at Rs 102300 crore as on 30 September 2013.
IT stocks extended Wednesday's gains as the rupee hit one-month low against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. TCS (up 0.74%), Infosys (up 0.73%), HCL Technologies (up 1.05%) and Wipro (up 0.91%), edged higher.
US based IT services firm Cognizant Technology Solutions Corp, which has most of its employees in India, raised its full-year forecast for both profit and revenue at the time of announcing its Q3 September 2013 results early this week. Cognizant reported a better-than-expected 22% rise in revenue in third quarter, helped by contracts from insurers setting up online exchanges as part of President Barack Obama's healthcare reforms. The company, which also raised its full-year forecast for both profit and revenue, said it would focus on winning more business from governments. The company's net income rose to $319.6 million, or $1.05 per share in the third quarter, from $276.9 million, or 91 cents per share, a year earlier. The company said it expects earnings of at least $4.01 per share on revenue growth of at least 20.3% to $8.84 billion for the year ending 31 December 2013. It had previously forecast earnings of at least $3.96 per share on revenue growth of at least 19% to $8.74 billion for 2013.
Index heavyweight and cigarette maker ITC dropped 0.7% to Rs 316.50. The scrip hit high of Rs 319.20 and low of Rs 315 so far during the day.
Ashok Leyland declined 1.13% after the company reported reverse turnaround in Q2 September 2013. The company reported a net loss of Rs 25.05 crore in Q2 September 2013 compared with net profit of Rs 142.59 crore in Q2 September 2012. The Q2 result was announced after market hours on Wednesday, 6 November 2013. Ashok Leyland's total income from operations declined 23.19% to Rs 2549.62 crore in Q2 September 2013 over Q2 September 2012.
Thermax dropped 2.2% on weak Q2 result. The company's net profit dropped 66.87% to Rs 30.16 crore on 13.85% fall in total income to Rs 1050.81 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 6 November 2013.
Thermax said that results for Q2 September 2013 were after making a one-time provision of Rs 29 crore on account of estimated tax liability expected due to likely inadmissibility of certain business expenses incurred in earlier years.
Thermax's order backlog was Rs 5308 crore as on 30 September 2013 as against Rs 4412 crore on 30 September 2012. The group's order backlog was Rs 6128 crore as on 30 September 2013 as against Rs 4984 crore on 30 September 2012. However, generally the market for capital goods continues to remain sluggish, Thermax said.
In the foreign exchange market, the rupee hit one-month low against the dollar. The partially convertible rupee was hovering at 62.5625, compared with its close of 62.39/40 on Wednesday, 6 November 2013. The rupee had declined sharply on Wednesday on sustained dollar demand from state-run banks, leading to speculation that they were buying on behalf of oil refiners.
Asian stocks fell on Thursday, 7 November 2013, before US economic reports and the European Central Bank's policy meeting. Key benchmark indices in Taiwan, China, Japan, Hong Kong and South Korea shed 0.2% to 0.7%. Key benchmark indices in Indonesia and Singapore rose 0.08% to 0.86%.
China's leaders will meet in Beijing on November 9-12 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 fall 9 points at the opening bell on Thursday, 7 November 2013. Most US stocks rose on Wednesday, 6 November 2013, with the Dow Jones Industrial Average notching another record close, as investors bought into optimism that the Federal Reserve would continue its stimulus longer than thought, ahead of economic reports this week on the economy and the labor market.
Data on US GDP growth for Q3 September 2013 is due for release today, 7 November 2013. The GDP grew 2.5% in Q2 June 2013.
The US government will tomorrow, 8 November 2013, release nonfarm payrolls figures for October 2013. The job data is a key economic indicator that has been watched closely in recent months to see whether the US Federal Reserve will roll back its bond-buying program.
In Europe, the European Central Bank (ECB) holds a monetary policy meeting today, 7 November 2013. The ECB is seen retaining its key policy rate at a record-low 0.5%. The Bank of England will also announce its monetary policy decision today, 7 November 2013.
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