A bout of volatility was witnessed as key benchmark indices dropped to fresh intraday low in afternoon trade after the latest data showed that the country's trade deficit widened in April 2013. Weakness in European and Asian stocks also weighed on sentiment. The S&P BSE Sensex fell below the psychological 20,000 mark. The Sensex was down 243.58 points or 1.21%, off 230.34 points from the day's high. Index heavyweight and cigarette major ITC extended intraday losses and led decline on the bourses today, 13 May 2013. Another index heavyweight Reliance Industries (RIL) was slightly higher in choppy trade.
Realty stocks declined. Dr Reddy's Laboratories hit record high ahead of its Q4 results tomorrow, 14 May 2013.
The market edged lower in early trade. The market extended initial losses to hit fresh intraday low in morning trade. The market trimmed losses in mid-morning trade after the latest data showed that consumer price inflation eased in April 2013. The intraday recovery proved short lived as key benchmark indices weakened once again to hit fresh intraday low in early afternoon trade. The market extended losses in afternoon trade as latest data showed that the country's trade deficit widened in April 2013.
At 13:20 IST, the S&P BSE Sensex was down 243.58 points or 1.21% to 19,878.74. The index declined 244.22 points at the day's low of 19,878.10 in afternoon trade, its lowest level since 8 May 2013. The index declined 13.24 points at the day's high of 20,109.08 in early trade.
The CNX Nifty was down 69.15 points or 1.13% to 6,038.10. The index hit a low of 6,037.20 in intraday trade, its lowest level since 8 May 2013. The index hit a high of 6,104.95 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,373 shares fell and 843 shares rose. A total of 118 shares were unchanged.
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The total turnover on BSE amounted to Rs 897 crore by 13:20 IST.
Among the 30-share Sensex pack, 25 stocks fell while rest of them rose. Bhel (down 2.04%), GAIL (India) (down 1.9%), and L&T (down 1.88%) edged lower from the Sensex pack. Bajaj Auto (up 0.92%) and NTPC (up 0.65%) edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 0.11% to Rs 814.20. The stock hit a high of Rs 824.70 and low of Rs 809.20 so far during the day.
Index heavyweight and cigarette major ITC dropped 4.47% to Rs 338.85 on profit booking. The stock hit a high of Rs 354 and low of Rs 338.45 so far during the day. The stock had hit record high of Rs 355 in intraday trade during the special trading session held on Saturday, 11 May 2013. The Uttar Pradesh state government on 7 May 2013 slashed VAT on cigarette/cigar from existing 50% to 25%. The state government had last year increased VAT on cigarette/cigar and tobacco products from 12.5% to 50%.
The Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14.
Dr Reddy's Laboratories rose 1.2% to Rs 2,116 after striking a record high of Rs 2,150.90 in intraday trade today, 13 May 2013. Dr Reddy's Laboratories declares Q4 results tomorrow, 14 May 2013.
Realty stocks edged lower. Indiabulls Real Estate (down 0.96%), Unitech (down 1.21%), Orbit Corporation (down 1.35%) and Parsvnath Developers (down 0.99%) declined. HDIL rose 1.28%.
DLF declined 1.23% to Rs 233.80. The company on Saturday, 11 May 2013, said that the equity issuance committee of the board of directors of the company at its meeting held on 11 May 2013 finalised 14 May 2013 as the issue opening and closing date for the proposed issue of up to 8.1 crore shares to eligible qualified institutional buyers. The floor price for the qualified institutional placement has been finalised at Rs 222 per equity share, with price band of Rs 222 to Rs 233 per share. The announcement was made after market hours on Saturday, 11 May 2013, when the stock exchanges held a special trading session for a short duration as the BSE was testing its disaster recovery software.
Sobha Developers surged 3.94% after the company said at the time of announcement of Q4 results that it is well positioned for the current fiscal year, with a pipeline of 8.9 million square feet of real estate projects. Sobha said that the company currently has 43 ongoing real estate projects aggregating to 25.83 million square feet of developable area and 10.65 million square feet of contractual projects under various stages of construction.
Shares of Sobha Developers had lost 2.54% to settle at Rs 398.25 on Saturday, 11 May 2013, after the company reported weak Q4 numbers after market hours on Friday, 10 May 2013. A special trading session was held on the bourses for a short duration on Saturday, 11 May 2013, as the BSE was testing its disaster recovery software.
Sobha Developers consolidated net profit declined 28% to Rs 69.60 crore on 12.1% growth in net sales to Rs 585.40 crore in Q4 March 2013 over Q4 March 2012. Consolidated net profit rose 5.4% to Rs 217.20 crore on 32.4% growth in net sales to Rs 1860.20 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company reported highest-ever EBITDA (earnings before interest, taxation, depreciation and amortization) at Rs 554 crore in FY 2013.
With regard to the company's growth plans, Sobha said that the improving cash flows have prompted the company to look for new opportunities in emerging markets as well as its existing locations. Sobha said it plans to make a foray into new geographies like Kochi, Kozhikode (Calicut), Hyderabad and Noida/Ghaziabad region in FY 2014.
The focus of the market is on Q4 results. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results tomorrow, 14 May 2013. Bajaj Auto announces Q4 results on Thursday, 16 May 2013. ITC unveils Q4 results on Friday, 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
India's trade deficit widened to $17.787 billion in April 2013 from $14.041 billion in April 2012, data released by the government today, 13 May 2013, showed. While exports rose 1.68% at $24.164 billion, imports jumped 10.96% to $41.951 billion in April 2013 over April 2012.
Another data showed that the consumer price inflation fell below the 10% mark in April 2013. The combined consumer price inflation for rural and urban India eased to 9.39% in April 2013 from 10.39% in March 2013, data released by the government today, 13 May 2013, showed. Within the consumer price index, inflation with respect to food and beverages stood at 10.61% in April 2013.
The government will unveil data on the wholesale price index (WPI) for April 2013 tomorrow, 14 May 2013. WPI eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013.
Industrial production rose 2.5% in March 2013, compared with a revised growth of 0.46% in February 2013, data released by the government on Friday, 10 May 2013, showed. Industrial production rose 1% for the year ended 31 March 2013 (FY 2013).
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
European stock markets retreated on Monday, 13 May 2013, as a mixed bag of Chinese data highlighted growth concerns in the world's second largest economy. Key benchmark indices in UK, France and Germany were down by 0.17% to 0.29%.
Asian stocks edged lower on Monday, 13 May 2013, with sentiment hit by selling in commodities triggered by a strong dollar, which rose to a fresh 4-1/2-year peak against the yen on the back of growing confidence in the US economy. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, and Taiwan fell by 0.19% to 1.45%. South Korea's Kospi gained 0.2%.
Japanese stocks on Monday jumped to their highest level in more than five years, boosted by an improved profit outlook and further yen weakness after the Group of Seven major economies refrained from criticizing Tokyo's easing policies. The Nikkei Average rose 1.2%.
China's industrial production rose 9.3% in April 2013, improving from a gain of 8.9% in March 2013. Retail sales rose 12.8% in April 2013, accelerating from a 12.6% advance in March 2013. The growth, however, was slower than that seen during 2012.
Urban fixed-asset investment, which is a gauge of construction and infrastructure spending, rose 20.6% in the January-April period, lower than 20.9% increase for January-March period. The January-April result matched fixed-asset investment growth during the full year of 2012.
Trading in US index futures indicated that the Dow could fall 40 points at the opening bell on Monday, 13 May 2013. The US Federal Reserve has reportedly sketched out a plan for winding down its stimulus program of buying $85 billion in bonds each month. As per reports, the Fed intends to clarify the strategy so that the financial markets don't overreact to the Fed's announcements in this regard.
The US Commerce Department unveils monthly report on retail sales for April 2013 later in the global day today, 13 May 2013.
Group of Seven finance officials agreed on Saturday to redouble efforts to deal with failing banks and gave a green light to Japan's drive to galvanize its economy.
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