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IT stocks reboot after strong Q4 show from HCL Tech

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Last Updated : Jul 31 2013 | 5:55 PM IST

Key benchmark indices edged lower in choppy trade on caution ahead of the Federal Reserve's policy decision. The S&P BSE Sensex and the 50-unit CNX Nifty trimmed initial steep losses triggered by rupee's slide against the dollar. The Sensex lost 2.64 points or 0.01%, up 218.88 points from the day's low and off 41.80 points from the day's high. The market breadth, indicating the overall health of the market, was weak. Index heavyweight and cigarette maker ITC edged lower in volatile trade.

Indian stocks fell for the sixth straight session today, 31 July 2013. The Sensex has fallen 956.43 points or 4.71% in six trading sessions from a recent high of 20,302.13 on 23 July 2013. The Sensex has fallen 50.11 points or 0.26% in July 2013. The Sensex has declined 81.01 points or 0.42% in calendar 2013 so far (till 31 July 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 1,097.92 points or 5.37%. From a 52-week low of 16,760.72 on 27 July 2012, the Sensex has surged 2,584.98 points or 15.42%.

Coming back to today's trade, FMCG major Hindustan Unilever (HUL) extended losses for the fourth straight day after the company reported a muted growth in bottom line in Q1 June 2013. Private bank major ICICI Bank declined as the bank's net non-performing assets rose. NTPC extended Tuesday's losses triggered by the company reporting a muted growth in bottomline in Q1 June 2013. HCL Technologies scaled record high after reporting strong Q4 result. Shares of many other IT stocks rose after HCL Technologies' strong Q4 results.

Bharti Airtel surged as the company reported an expansion in operating profit margin and increase in India mobile services revenue led by increase in average revenue per user (ARPU) in Q1 June 2013. Bharti's improved operating profit margin and higher ARPU sent shares of other two other mobile services firms -- Reliance Communications and Idea Cellular - surging. Hindalco Industries rose on bargain hunting after recent steep losses. Interest rate sensitive realty stocks dropped as the Reserve Bank of India (RBI) kept its key lending rate viz. the repo rate and cash reserve ratio unchanged after a monetary policy review on Tuesday, 30 July 2013, as the central bank focused on managing the currency volatility rather than pushing for growth.

Jindal Steel & Power (JSPL) declined after Q1 result. Dr Reddy's Laboratories rose, with the stock recovering from Tuesday's post-result slide. GAIL (India) extended Tuesday's losses triggered by a foreign brokerage downgrade. Grasim Industries fell as the stock turned ex-dividend today, 31 July 2013. Jet Airways extended Tuesday's steep slide.

The market slumped in early trade as a further slide in rupee against the dollar rattled investor sentiment. The Sensex extended initial losses to hit fresh intraday low in morning trade. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their lowest level in nearly five weeks. A bout of volatility was witnessed as key benchmark indices trimming losses after hitting fresh intraday low in mid-morning trade. Key benchmark indices hovered in negative zone in afternoon trade. The Sensex reversed intraday losses to hit fresh intraday high in mid-afternoon trade. High volatility was witnessed in late trade as the Sensex alternately moved between positive and negative terrain.

The rupee recovered from steep intraday slide. The rupee was hovering at 60.40 versus the dollar, slightly firmer than Tuesday's close of 60.47/48. The rupee had witnessed a steep slide on Tuesday. The Reserve Bank of India (RBI) on Tuesday said that its recent liquidity tightening measures aimed at checking undue volatility in the foreign exchange market will be rolled back in a calibrated manner as stability is restored to the foreign exchange market, enabling monetary policy to revert to supporting growth with continuing vigil on inflation.

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Bond prices recovered after Tuesday's losses. The yield on the most traded 8.2% GS 2025 was currently at 8.5868%, lower than Tuesday's close of 8.6416%. Bond yield and bond prices are inversely related.

The S&P BSE Sensex lost 2.64 points or 0.01% to 19,345.70, its lowest closing level since 10 July 2013. The index rose 39.16 points at the day's high of 19,387.50 in mid-afternoon trade. The index declined 221.52 points at the day's low of 19,126.82 in morning trade, its lowest level since 28 June 2013.

The CNX Nifty was down 13.05 points or 0.23% to 5,742, its lowest closing level since 27 June 2013. The index hit a low of 5,675.75 in intraday trade. The index hit a high of 5,752.10 in intraday trade.

The total turnover on BSE amounted to Rs 2366 crore, higher than Rs 1753.18 crore on Tuesday, 30 July 2013.

The market breadth, indicating the overall health of the market, was weak. On BSE, 1,364 shares fell and 840 shares rose. A total of 140 shares were unchanged.

The BSE Mid-Cap index fell 0.87% and the BSE Small-Cap index fell 0.92%. Both these indices underperformed the Sensex.

Among the sectoral indices on BSE, the S&P BSE Metal index (up 2.39%), the S&P BSE Teck index (up 2.23%), the S&P BSE Oil & Gas index (up 1.88%), the S&P BSE IT index (up 1.29%), the S&P BSE Consumer Durables index (up 1.2%), S&P BSE Auto index (up 0.96%), the S&P BSE PSU index (up 0.53%) and S&P BSE Healthcare index (up 0.31%) outperformed the Sensex.

The S&P BSE Capital Goods index (down 0.17%), the S&P BSE Power index (down 1.67%), the S&P BSE Bankex (down 1.84%), The S&P BSE FMCG index (down 2.26%) and the S&P BSE Realty index (down 2.3%) underperformed the Sensex.

Among the 30-share Sensex pack, 16 stocks rose and rest of them fell.

Reliance Industries (RIL) gained 2.11% to Rs 877. The stock was volatile. The stock hit high of Rs 877.80 and low of Rs 843.

PSU OMCs reversed initial steep losses. BPCL (up 4.09%), Indian Oil Corporation (up 6.45%) and HPCL (up 5.89%) gained.

GAIL (India) lost 1.79%, with the stock extending Tuesday's losses triggered by a foreign brokerage downgrade. The brokerage has downgraded the stock to underweight from overweight after cutting its EPS forecast for fiscal years 2014 to 2016. According to the brokerage report, the domestic gas output has fallen faster than expected due to a drop in output from the KG-D6 block. The brokerage expects a recovery in gas output to be 12-18 months away. The fall in output from KG-D6 will also raise gas costs for GAIL (India).

Coal India rose 2.53% after Coal Minister Sriprakash Jaiswal on Tuesday, 30 July 2013, said the government has lowered the size of proposed divestment in Coal India to 5% from the 10% previously proposed in a bid to get trade unions on board. A meeting of Coal India's trade unions will be held on 5 August 2013 to discuss the divestment plan.

ICICI Bank lost 2.11%. The private sector bank during market hours today, 31 July 2013, reported 25.29% rise in net profit to Rs 2274.21 crore on 12.94% growth in total income to Rs 12904.97 crore in Q1 June 2013 over Q1 June 2012.

Net interest income rose 20% to Rs 3820 crore in Q1 June 2013 over Q1 June 2012. Net interest margin increased by 26 basis points to 3.27% in Q1 June 2013 from 3.01% for Q1 June 2012. Non interest income jumped 32% to Rs 2484 crore in Q1 June 2013 over Q1 June 2012

Net non-performing assets (NPA) as on 30 June 2013 were Rs 2472 crore, higher than to Rs 2234 crore as on 31 March 2013. The net NPA ratio was 0.69% as on 30 June 2013, higher than 0.64% as on 31 March 2013. The bank's provision coverage ratio, computed in accordance with the RBI guidelines, was 75.4% at 30 June 2013. Net loans to companies whose facilities have been restructured were Rs 5915 crore as on 30 June 2013, higher than Rs 5315 crore as on 31 March 2013.

The bank said it continued with its strategy of pursuing profitable growth. The bank continued to leverage its strong corporate franchise, its international presence and its branch network in India. During Q1 June 2013, the bank added 250 branches, including 150 low cost Gramin branches, and 421 ATMs to its network.

HDFC Bank declined 2.65%. State Bank of India shed 0.85%.

Yes Bank tumbled, with the stock extending Tuesday's losses triggered by reports that Madhu Kapur, the widow of Ashok Kapur, one of the promoters of Yes Bank along with Rana Kapoor, has raised corporate governance issues at Yes Bank in an affidavit filed in the Bombay high court on Monday in the case over the rejection of her daughter's nomination as a director. These issues related to what she alleged was favourable treatment to the wife and daughter of managing director and chief executive officer Rana Kapoor. The court will hear the case on 12 August 2013. The stock was off 7.62% to Rs 322.30. The stock tumbled as much as 17.3% at the day's low of Rs 288.55, also its 52-week low.

Meanwhile, the private sector bank during market hours today, 31 July 2013, said it has raised deposit rates by 0.25% to 0.5% in select tenors. This provides an opportunity for retail depositors to lock in higher rates on term deposits, the private sector bank said. Yes Bank has also consequently raised its base rate by 0.25% 10.75% with effect from 1 August 2013.

Andhra Bank lost 6.6% to Rs 64.40 after net profit dropped 36.08% to Rs 231.28 crore on 14.8% rise in total income to Rs 3854.16 crore in Q1 June 2013 over Q1 June 2012. The result was announced during market hours today, 31 July 2013. The stock hit a 52-week low of Rs 62.85 in intraday trade today, 31 July 2013.

Karnataka Bank lost 7.27% to Rs 80.30 at 15:10 IST on BSE as the bank's ratio of gross non-performing assets to gross advances increased to 3.22% as on 30 June 2013 from 2.51% as on 31 March 2013.

Grasim Industries fell 2.21 % as the stock turned ex-dividend today, 31 July 2013, for dividend of Rs 22.50 per share for the year ended 31 March 2013 (FY 2013).

Shares of power equipment major Bharat Heavy Electricals (Bhel) surged 4.06% to Rs 158.85. The stock reversed direction after sliding as much as 2.82% to hit a 52-week low of Rs 148.35 in intraday trade today, 31 July 2013.

NTPC shed 5.84%, with the stock extending Tuesday's losses triggered by the company reporting a muted growth in bottomline in Q1 June 2013. The company's net profit rose 1.13% to Rs 2527.02 crore on 2.9% fall in total income to Rs 16358.78 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours on Tuesday, 30 July 2013.

The company's board of directors at a meeting held on Tuesday, 30 July 2013, accorded the investment approval for Feroze Gandhi Unchahar Thermal Power Project (1x500 MW) to be implemented in Uttar Pradesh at an appraised current estimated cost of Rs 3363.12 crore.

HCL Technologies rose 3.77% to Rs 940 on strong Q4 results. The stock hit record high of Rs 949 in intraday trade today, 31 July 2013. The company before trading hours today, 31 July 2013, said its consolidated net profit as per US accounting standards rose 16.3% to Rs 1209.60 crore on 8.1% growth in revenue to Rs 6944.20 crore in Q4 June 2013 over Q3 March 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 13.2% to Rs 1628.80 crore in Q4 June 2013 over Q3 March 2013. EBITDA margin edged up to 23.5% in Q4 June 2014, from 22.4% in Q3 March 2013.

The company said that the return on equity (ROE) at 34% in the year ended 30 June 2013 (FY 2013) was the highest in the past five years.

Commenting on the company's performance for Q4 June 2014 and FY 2013, Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies, said: "FY 2013 results have demonstrated significant business momentum, non-linearity and record customer satisfaction. HCL continues to excel in agility and innovation with a Business Model that is resilient in a dynamic environment".

Anant Gupta, President & CEO, HCL Technologies, said: "An exceptional growth of 22% during the Financial Year has propelled HCL's revenue past the Rs 25000 crore milestone. HCL continues to lead the industry in profitable growth, with seven successive quarters of net income margin expansion, having reported 62% growth in net income this year. We have consolidated our leadership position in the Infrastructure Management Services and verticals like Financial Service and Lifesciences & Healthcare".

Anil Chanana, CFO, HCL Technologies, said: "Backed by another strong quarter, we closed our Financial Year on a positive note. Our net income margin expanded by 400 bps and touched a five year high of 16%. Our Return on Equity for the year has been 34% which is amongst the best in the industry. EBITDA to Free Cash Flow conversion has been at a healthy 68%".

Shares of many other IT stocks rose after HCL Technologies' strong Q4 results. Infosys rose 0.48%.

IT major Wipro jumped 4.18%, with the stock extending gains for the third straight day after the company issued upbeat revenue guidance for Q2 September 2013 at the time of announcing Q1 June 2013 results on Friday, 26 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.

TCS rose 1.29% to Rs 1,814. The stock hit record high of Rs 1830.10 in intraday trade today, 31 July 2013. 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.

Bharti Airtel surged as the company reported an expansion in operating profit margin and increase in India mobile services revenue led by increase in average revenue per user (ARPU) in Q1 June 2013. The stock jumped 7.31%. The company's consolidated net profit fell 9.6% to Rs 689 crore on 9.2% growth in total revenue to Rs 20264 crore in Q1 June 2013 over Q1 June 2012. The results are as per International Financial Reporting Standards (IFRS). The company announced the results during market hours today, 31 July 2013.

Derivatives and exchange fluctuation losses and a surge in tax outgo adversely hit the company's bottom line. Derivative and exchange fluctuation losses during the quarter were Rs 534 crore, mainly caused by the rupee depreciation, compared with derivatives and exchange fluctuation gains of Rs 160 crore in Q1 June 2012. Tax outgo surged 113.21% to Rs 968 crore in Q1 June 2013 over Q1 June 2012, mainly due to increase in tax outgo in Africa operations.

Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 19.3% to Rs 6545 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin edged up to 32.3% in Q1 June 2013, from 29.6% in June 2012. EBITDA margin pertaining to India operations improved to 34.9% in Q1 June 2013, from 31.9% in Q1 June 2012. EBITDA margin pertaining international operations improved to 25.4% in Q1 June 2013, from 24% in Q1 June 2012.

Bharti Airtel said mobile revenue in India grew on the back of ARPU moving to Rs 200 in Q1 June 2013, up by Rs 16 over the corresponding period last year. The voice rate increase coupled with higher usage per customer has enabled this improvement in ARPU, Bharti Airtel said.

Consequent to the additional equity infusion of Rs 6796 crore by Qatar Foundation Endowment and after considering the full debt in the Qualcomm subsidiaries, the consolidated net debt has decreased by $908 million during the quarter. The consolidated net debt stood at $9.77 billion as on 30 June 2013. The Net Debt to EBITDA ratio (in dollar terms) now stands at 2.21 as compared to 2.50 at the end of the previous quarter.

Commenting on the first quarter results, Mr. Sunil Bharti Mittal, Chairman, Bharti Airtel, said: "Our results for the quarter reflect the overall stability of our operations, and demonstrate the potential for growth, particularly seeing robust data growth across all geographies. Results for Airtel India reflect rationality returning to the sector which needs to be complemented by a more enabling regulatory environment for a deeper penetration of telecom and broadband services".

Bharti's improved operating profit margin and higher ARPU sent shares of other two other mobile services firms -- Reliance Communications and Idea Cellular - surging. Reliance Communications jumped 11.64% to Rs 141.50. Idea Cellular jumped 8.97% to Rs 170.75.

Index heavyweight and cigarette maker ITC fell 2.44% to Rs 341.95, in volatile trade. The scrip had lost as much as 4.03% at the day's low of Rs 336.35. The stock rose as much as 1.22% at the day's high of Rs 354.80.

FMCG major Hindustan Unilever (HUL) fell 1.97%, with the stock extending losses for the fourth straight day after the company reported a muted growth in bottom line in Q1 June 2013. The company's net profit declined 23.43% to Rs 1019.25 crore on 5.88% increase in total income to Rs 6985.79 crore in Q1 June 2013 over Q1 June 2012. The result was announced on 26 July 2013.

The company said that the year on year fall in net profit was due to significant exceptional income generated in Q1 June 2012 from the sale of properties. Profit after tax but before exceptional items rose 4% to Rs 885 crore in Q1 June 2013 over Q1 June 2012. HUL stated that while commodity costs were relatively benign, PFAD prices started to move up and the rupee sharply depreciated towards the end of the quarter. Competitive intensity remained at high levels and the company continued to invest in its brands. Advertisement and promotion (A&P) cost increased by Rs 70 crore on year on year basis in Q1 June 2013.

Nestle India declined 0.74% as the stock turned ex-dividend today, 31 July 2013, for interim dividend of Rs 18 per share for the year ending 31 December 2013.

Interest rate sensitive realty stocks dropped as the Reserve Bank of India (RBI) kept its key lending rate viz. the repo rate and cash reserve ratio unchanged after a monetary policy review on Tuesday, 30 July 2013, as the central bank focused on managing the currency volatility rather than pushing for growth. Purchases of both residential and commercial property are largely driven by finance. HDIL (down 2.35%), Unitech (down 0.3%) and Sobha Developers (down 1.11%), edged lower.

DLF dropped 5.79% to Rs 149.60 after hitting a 52-week low of Rs 146 in intraday trade today, 31 July 2013.

Shares of state-run oil exploration major ONGC rose 3.58%, with the stock reversing intraday losses. The stock had lost as much as 5.5% at the day's low of Rs 265.40.

Jindal Steel & Power (JSPL) declined 1.78% after Q1 result. The company's consolidated net profit rose 28.27% to Rs 494.28 crore on 2.65% decline in total income to Rs 4593.55 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 30 July 2013.

The surge in net profit was due to base effect. JSPL's net profit in Q1 June 2012 was hit adversely by a huge write off of Rs 574.12 crore for impaired Bolivia investments.

The company said it has achieved impressive growth in its earnings notwithstanding a shrinking global and sluggish local market, adverse economic conditions in the home market, power transmission constraints and major devaluation of the Indian rupee. JSPL said that in spite of all challenges, the company has maintained the tempo in completing its 4x600 MW Tamnar Phase 2 power project as well as its new steel plants in Angul and Oman which would be fully commissioned as per the targeted schedule during 2013-14. JSPL said that the management remains cautiously optimistic and confident of achieving its targeted performance in the quarters to come.

Meanwhile, JSPL's board of directors at a meeting held on Tuesday, 30 July 2013, inter alia, has authorized Sub Committee of board of directors of the company to examine a buy-back of shares from the existing shareholders of the company and to seek or cause to be sought requisite clarifications, consents and approvals (including without limitation, from the lenders to the company), and to accordingly provide their recommendations in this regard to the board of directors for further consideration and evaluation and for taking such formal decision or action as the board of directors may deem fit, pursuant to applicable laws, market conditions and other relevant considerations.

Sterlite Industries (India) gained 3.83%, with the stock reversing intraday fall.

Steel giant Tata Steel advanced 3.17% to Rs 216.25. The stock recovered after sliding as much as 3.39% to hit a 52-week low of Rs 202.50 in intraday trade today, 31 July 2013.

Hindalco Industries rose 4.34%, with the stock recovering on bargain hunting after recent steep losses.

Lupin rose 4.11% after the company today, 31 July 2013 said that its US subsidiary, Lupin Pharmaceuticals, Inc. (LPI) has received tentative approval for its Armodafinil Tablets, 50 mg, 100 mg, 150 mg, 200 mg and 250 mg strengths as well as another tentative approval for its Doxycycline Capsule 40 mg (30 mg Immediate-release and 10 mg Delayed-release) from the United States Food and Drugs Administration (FDA). Lupin's Armodafinil Tablets are the AB-rated generic equivalent of Cephalon Inc's Nuvigil tablets 50 mg, 100 mg, 150 mg, 200 mg and 250 mg strengths. Armodafinil Tablet is indicated to improve wakefulness in adult patients with excessive sleepiness associated with treated obstructive sleep apnea (OSA), narcolepsy, or shift work disorder. Nuvigil tablets, 50 mg, 100 mg, 150 mg, 200 mg and 250 mg had US sales of approximately $420 million for the twelve months ended March 2013 (IMS Health data).

Lupin's Doxycycline Capsules is the AB‐rated generic equivalent of Galderma Laboratories Oracea Capsules, 40 mg. Doxycycline Capsule is indicated for the treatment of only inflammatory lesions (papules and pustules) of rosacea in adult patients. Oracea Capsules had US sales of approximately $319 million for the twelve months ended March 2013 (IMS Health data).

Dr Reddy's Laboratories rose 4.66%, with the stock recovering from Tuesday's post-result slide. The company's adjusted consolidated net profit rose 12% to Rs 320 crore on 12% rise in revenue to Rs 2840 crore in Q1 June 2013 over Q1 June 2012. The adjustments pertain to taxation. The tax rates for both the period i.e. for Q1 June 2013 and for Q1 June 2012 have been normalized to the annual effective tax rate for the concerned full year. The company announced Q1 result during market hours on Tuesday, 30 July 2013.

Jet Airways (India) lost 7.06%. The stock extended Tuesday's 7.7% losses. As per recent reports, the Foreign Investment Promotion Board on Monday, 29 July 2013, approved a proposal by Jet Airways (India) to sell a 24% stake to Abu Dhabi-based Etihad Airways, with some conditions. Last month, FIPB had deferred a decision on Jet-Etihad deal, asking for more details on effective control and ownership of the Indian carrier post the stake sale.

National Fertilizers rose 1.12% to Rs 27. Bids were received for a total of 5.84 crore shares at an indicative price of Rs 27 per share for the Offer for Sale (OFS) of the company's shares, as per data from the stock exchanges. The Government of India had put on block 3.74 crore shares of National Fertilizers, constituting about 7.64% of the equity share capital of National Fertilizers, through Offer for Sale (OFS) via the stock exchanges mechanism today, 31 July 2013. The floor price for the OFS was set at Rs 27 per share.

The Centre has increased an interest subsidy for some export goods to 3% from 2% and has extended that subsidy to include more items in a bid to prop up the country's flagging overseas sales, Trade Minister Anand Sharma said on Wednesday.

On the political front, the ruling Congress party approved on Tuesday the creation of a new Telangana state, a move that has revived deep political divisions and raised fears of violence in the area, home to global firms including Google. The decision to break up Andhra Pradesh and establish Telangana comes ahead of elections next year.

European stock markets were mostly lower on Wednesday ahead of the release of US second-quarter GDP data and the latest policy decision from the Federal Reserve. Key benchmark indices in Germany and France were down by 0.29% to 0.40%. UK's FTSE 100 rose 0.58%.

German retail sales unexpectedly declined in June, suggesting that doubts about Europe's economic recovery weighed on consumer spending. Sales adjusted for inflation and seasonal swings dropped 1.5% from May, when they rose 0.7%, the Federal Statistics Office in Wiesbaden said today.

The European Central Bank (ECB) and the Bank of England (BoE) will announce their policy decisions tomorrow, 1 August 2013.

Asian stocks fell on Wednesday, 31 July 2013, amid caution ahead of the Federal Reserve's policy decision. Key benchmark indices in Japan, Singapore, South Korea, and Taiwan fell by 0.16% to 1.45%. Indonesia's Jakarta Composite rose 0.04%.

Mainland Chinese stocks rose after the powerful politburo of China's communist party on Tuesday said it would act to maintain steady growth in the second half of 2013. China's Shanghai Composite rose 0.19%. Hong Kong's Hang Seng fell 0.32%.

The results of two separate surveys on Chinese manufacturing activity in July are due tomorrow, 1 August 2013.

Taiwan's economy expanded at a faster-than-estimated pace in the second quarter as domestic consumption improved, even as a slowdown in China damps the outlook for the island's exports. Gross domestic product rose 2.27% from a year earlier after increasing 1.67% in the first quarter, the statistics bureau said in a preliminary report in Taipei today.

Trading in US index futures a flat opening of US stocks on Wednesday, 31 July 2013. US stocks closed mixed on Tuesday in quiet trading session as many investors remained on the sidelines ahead of the Federal Reserve's Wednesday announcement on interest rates and monetary policy.

The Federal Open Market Committee's (FOMC) two-day policy meeting ends today, 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.

The influential US non-farm payroll data for July 2013 is due on Friday, 2 August 2013.

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First Published: Jul 31 2013 | 4:53 PM IST

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