Key benchmark indices extended initial losses and hit fresh intraday low in morning trade. The market breadth, indicating the overall health of the market, was weak. Weakness in Asian stocks weighed on sentiment. The S&P BSE Sensex was down 206.11 points or 0.97%, off close to 125 points from the day's high and up about 30 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.
IT stocks dropped. Index heavyweight and cigarette maker ITC declined. Tata Motors scaled record high. Ashok Leyland declined after the company reported weak October sales.
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.
At 10:20 IST, the S&P BSE Sensex was down 206.11 points or 0.97% to 21,033.25. The index fell 233.70 points at the day's low of 21,005.66 in 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 67.80 points or 1.07% to 6,249.55. 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 weak. On BSE, 954 shares fell and 605 shares rose. A total of 96 shares were unchanged.
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Among the 30-share Sensex pack, 25 stocks fell and rest of them rose. Bhel (down 2.52%), Bharti Airtel (down 2.4%) and Sesa Sterlite (down 2.15%), edged lower.
Index heavyweight and cigarette maker ITC lost 2.27%.
IT stocks dropped. Infosys (down 0.93%), TCS (down 1.4%) and Wipro (down 1.02%), declined.
HCL Technologies declined 1.2%. The company and Consumers Energy, the principal subsidiary of CMS Energy and the 4th-largest US electric and natural gas company, today, 5 November 2013, formally announced the opening of a Global Center of Excellence (GCoE) called Michigan Technology Development Center (MTDC) in Jackson, Mich. The announcement was made during market hours. HCL will provide IT services to Consumers Energy at the new MTDC, which is located in the Commonwealth Commerce Center in Jackson. The two companies work in close collaboration on various innovative IT initiatives. Through its work with Consumers Energy and other local customers, HCL has hired 120 professionals across Michigan.
MTDC will also serve as HCL's center of excellence for application and infrastructure related operations providing significant benefits to HCL's North American and LATAM customer base. The center works with the HCL Global Learning & Development academy to foster their knowledge on global best practices in the technology sector and provide training and development for advanced and emerging next-generation IT technologies including cloud computing, mobility and smart products for its Michigan based employees.
Tata Motors rose 0.4% to Rs 392.70 after hitting record high of Rs 394.50 in intraday trade.
Ashok Leyland declined 2.22% after the company reported fall in sales in October 2013. The company's total sales declined 15% to 6,803 units in October 2013 over October 2012. The company announced the sales numbers on Monday, 4 November 2013. The stock market was closed on that day on account of Diwali-Balipratipada. Ashok Leyland's medium and heavy commercial vehicle sales declined 18% to 4,093 units in October 2013 over October 2012. Sales of light commercial vehicles including DOST and STILE fell 11% to 2,710 units in October 2013 over October 2012.
TV Today Network fell 2.15% on profit booking after gaining 27.66% in prior two trading sessions.
In the foreign exchange market, the rupee edged lower against the dollar on dollar demand from custodian banks and weaker local equities. The partially convertible rupee was hovering at 61.82, compared with its close of 61.74/75 on Friday, 1 November 2013.
Markit Economics will unveil the results of a monthly survey on the performance of India's services sector for October 2013 today, 5 November 2013. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, slipped from 47.6 in August 2013 to 44.6 in September 2013, its weakest since April 2009. That marked its straight third reading below 50, the threshold between growth and contraction.
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, Indonesia, and South Korea shed 0.21% to 0.57%. Key benchmark indices in Singapore and Japan rose 0.09% to 0.24%.
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 12 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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