Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade after a survey showed continued contraction in the service sector activity. The market breadth, indicating the overall health of the market, was negative. Weakness in Asian stocks weighed on sentiment. The S&P BSE Sensex was down 226.69 points or 1.07%, off close to 145 points from the day's high and up about 10 points from the day's low. Asian stocks dropped amid speculation that a meeting of China's top party officials this weekend may struggle to meet market expectations for economic reforms in the world's second biggest economy. The rupee edged lower against the dollar.
Index heavyweight and cigarette maker ITC extended intraday losses. Another index heavyweight Reliance Industries (RIL) rose. Capital goods pivotals edged lower. Bhel declined ahead of its Q2 result tomorrow, 6 November 2013. Bank stocks were mixed.
The market edged lower in early trade on weak Asian stocks. Key benchmark indices extended initial losses and hit fresh intraday low in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade after a survey showed continued contraction in the service sector activity.
At 11:20 IST, the S&P BSE Sensex was down 226.69 points or 1.07% to 21,012.26. The index fell 239.07 points at the day's low of 21,000.29 in mid-morning trade, its lowest level since 31 October 2013. The index dropped 80.80 points at the day's high of 21,158.56 in early trade.
The CNX Nifty was down 64.05 points or 1.01% to 6,253.30. The index hit a low of 6,247.55 in intraday trade, its lowest level since 31 October 2013. The index hit a high of 6,293.75 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,038 shares fell and 858 shares rose. A total of 120 shares were unchanged.
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Among the 30-share Sensex pack, 25 stocks fell and rest of them rose. TCS (down 2.15%), Sun Pharmaceutical Industries (down 1.94%) and Sesa Sterlite (down 2.8%), edged lower.
Index heavyweight and cigarette maker ITC was off 3.3% at Rs 319.40. The scrip hit high of Rs 330.20 and low of Rs 319.10 so far during the day.
Capital goods pivotals edged lower. L&T dropped 1.2%.
Bhel declined 2.18% ahead of its Q2 result tomorrow, 6 November 2013.
Index heavyweight Reliance Industries (RIL) was up 0.39% at Rs 912. The scrip hit high of Rs 921.70 and low of Rs 904 so far during the day.
Bank stocks were mixed. Among private sector banks, ICICI Bank (down 1.59%), HDFC Bank (down 0.26%), Yes Bank (down 1.9%), Federal Bank (down 1.98%), Kotak Mahindra Bank (down 0.9%) and Axis Bank (down 1.09%), declined.
Among PSU bank stocks, State Bank of India, Canara Bank, Bank of Baroda and Punjab National Bank dropped 0.15% to 2.45%.
Indian Bank (up 5.4%), Punjab & Sind Bank (up 4.9%), Dena Bank (up 4.4%), Bank of India (up 4.1%), Andhra Bank (up 3.8%), Oriental Bank of Commerce (up 3.09%), UCO Bank (up 2.6%), Central Bank of India (up 2.8%), Syndicate Bank (up 2.1%), Vijaya Bank (up 1.9%), Allahabad Bank (up 1.8%), Canara Bank (up 1.8%), IDBI Bank (up 1.9%), Corporation Bank (up 1.5%), Indian Overseas Bank (up 1.3%) and Union Bank of India (up 1.1%), edged higher.
United Bank of India jumped 15% to Rs 42.80.
Granules India advanced 4.09% after the company announced signing of a definite agreement for the acquisition of Auctus Pharma. The announcement was made on Monday, 4 November 2013, when the stock market remained closed on account of Diwali-Balipratipada.
Granules India, on Monday, 4 November 2013, announced the signing of a definite agreement for the acquisition of Auctus Pharma, a manufacturer of active pharma ingredients (API). The acquisition process is expected to be completed in the next 3 to 6 months.
Auctus has two manufacturing facilities, an API facility at Vishakhapatnam and an intermediates facility at Hyderabad. Auctus' product portfolio includes 12 APIs and intermediates of those APIs in several therapeutic categories such as antihistaminic, antihypertensive, antithrombotic and anticonvulsant. Auctus currently sells its APIs and intermediates in 50 countries. The team and assets from the acquisition will initially operate as a separate division with Granules.
Granules also announced the opening of 10,000 sq ft research and development (R&D) facility in Hyderabad. The new R&D will focus on full scale generic API development and supplement the company's existing R&D facility in Pune which focuses on sustainable technology development.
In the foreign exchange market, the rupee edged lower against the dollar on dollar demand from custodian banks and weaker equities. The partially convertible rupee was hovering at 61.825, compared with its close of 61.74/75 on Friday, 1 November 2013.
Indian services firms recovered slightly last month from the worst slump in over four years in September but activity still shrank and a shortage of new orders means a rebound looks some way off, a survey showed on Tuesday, 5 November 2013. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, rose to 47.1 last month from 44.6 in September, which was the weakest reading since April 2009. But the PMI still lingered below the 50 mark that divides growth and contraction for the fourth consecutive month.
Asian stocks fell on Tuesday, 5 November 2013, amid speculation that a meeting of China's top party officials this weekend may struggle to meet market expectations for economic reforms in the world's second biggest economy. Key benchmark indices in China, Hong Kong, Taiwan, and South Korea shed 0.36% to 0.78%. Key benchmark indices in Singapore and Japan rose 0.24% to 0.29%.
A HSBC and Markit Economics China services index released today, 5 November 2013, rose in October 2013, after an official non-manufacturing gauge rose to the highest level this year.
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.
Australia's central bank left its benchmark interest rates unchanged at a record low and said a lower currency will be needed to achieve balanced growth. Governor Glenn Stevens and his board kept the overnight cash-rate target at 2.5%, the Reserve Bank of Australia said in a statement today in Sydney
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell on Tuesday, 5 November 2013. US stocks settled with modest gains Monday, 4 November 2013, as investors took a cue from upbeat earnings and shook off fears the market is overdue for a correction.
The US government will on Friday, 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.
"Monetary policy is likely to need to remain accommodative for some time so that we can achieve full employment within a reasonable forecast horizon. The economy remains challenged," Boston Fed President Eric Rosengren, who votes on monetary policy this year, said in a speech in Boston on Monday, 4 November 2013. Richmond Fed President Jeffrey Lacker gives a speech on the labor market in Charlotte, North Carolina today, 5 November 2013. Earlier this month he said the probability of another recession is "bigger than we thought."
In Europe, European Union Economic and Monetary Affairs Commissioner Olli Rehn will release economic growth forecasts for the region in Brussels today, 5 November 2013. The European Central Bank (ECB) holds a monetary policy meeting on Thursday, 7 November 2013. The ECB is seen retaining its key policy rate at a record-low 0.5%.
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