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Market slips for third straight day

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Capital Market
Last Updated : Jun 04 2013 | 4:35 PM IST

Key benchmark indices reversed intraday gains and hit fresh intraday low in late trade. The S&P BSE Sensex hit its lowest level in 4-1/2 weeks. The 50-unit CNX Nifty hit 5-week low. The Sensex was provisionally down 57.99 points or 0.3%, off close to 190 points from the day's high and up about 30 points from the day's low. The market breadth, indicating the overall health of the market, turned negative from positive in late trade. Bank stocks declined. Some metal stocks fell. Index heavyweight Reliance Industries (RIL) reversed intraday gains in late trade.

Indian stocks fell for the third straight day today, 4 June 2013.

The market edged higher amid initial volatility. The market extended initial gains to hit fresh intraday high in morning trade. The Sensex trimmed gains in mid-morning trade. The market was range bound in positive terrain in early afternoon trade. The Sensex once again trimmed gains in afternoon trade. The market continued to hover in positive terrain in mid-afternoon trade. The market reversed intraday gains to hit fresh intraday low in late trade.

As per provisional figures, the S&P BSE Sensex was down 57.99 points or 0.3% to 19,552.49. The index lost 88.01 points at the day's low of 19,522.47 in late trade, its lowest level since 2 May 2013. The index rose 132.22 points at the day's high of 19,742.70 in morning trade.

The CNX Nifty was down 17.85 points or 0.3% to 5,921.45, as per provisional figures. The index hit a low of 5,910.25 in intraday trade, its lowest level since 30 April 2013. The index hit a high of 5,981.60 in intraday trade.

The total turnover on BSE amounted to Rs 1463 crore, lower than Rs 1782.22 crore on Monday, 3 June 2013.

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The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On BSE, 1,215 shares fell and 1,119 shares rose. A total of 162 shares were unchanged.

Among the 30-share Sensex pack, 16 stocks fell and the rest of them rose. Cipla, Dr Reddy's Laboratories and L&T rose by 1.76% to 2.55%.

HDFC fell 1.69%, with the stock extending intraday losses.

Maruti Suzuki India fell 0.99% to Rs 1,554, with the stock extending Monday's 2.27% losses triggered by the company reporting fall in sales in May 2013. The stock was volatile. The scrip hit high of Rs 1,587.40 and low of Rs 1,541so far during the day. The company said during market hours today, 4 June 2013, that its production fell 2.54% to 1.01 lakh units in May 2013 over May 2012. The company on Saturday, 1 June 2013, reported 14.4% fall in total sales to 84,677 units in May 2013 over May 2012. The company's domestic sales declined 13% to 77,821 units in May 2013 over May 2012. Exports fell 27.1% to 6,856 units in May 2013 over May 2012.

Tata Motors declined 2.41%. The company said during market hours today, 4 June 2013 that, pursuant to terms and conditions of the Notes, the company has allotted 79.75 lakh shares underlying ordinary shares (representing 15.95 lakh American depository shares at a premium of Rs 590.595 each) and 87.84 lakh ordinary shares at a premium of Rs 118.119 each arising out of conversion of 435, 4% Foreign Currency Convertible Notes due in 2014 of $100,000 each. With the above conversions, there would not be any outstanding Notes

Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles declined 23.37% to 49,304 vehicles in May 2013 over May 2012. The company's domestic sales of Tata commercial and passenger vehicles declined 24.44% to 45,430 units in May 2013 over May 2012. Exports declined 8.17% to 3,874 units in May 2013 over May 2012.

Index heavyweight and cigarette major ITC rose 0.51% to Rs 338 in volatile trade on defensive buying. The stock hit high of Rs 339 and low of Rs 335.20.

Index heavyweight Reliance Industries (RIL) dropped 1.03% to Rs 780, off the day's high of Rs 800.45. RIL and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India. RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.

Bank stocks declined. State Bank of India fell 2.16% to Rs 2024.95. The stock came off the day's high of Rs 2084.45. The bank said after market hours on Monday, 3 June 2013, that it has been decided to reduce the interest rate on bulk deposits (Rs 1 crore and above) by 25 basis points (bps) for the tenors 7 days to less than 1 year. Accordingly, the interest rate for bulk deposits for the above tenors will be 7.25% per annum with effect from 7 June 2013.

ICICI Bank fell 0.32%, with the stock reversing intraday gains. HDFC Bank dropped 0.73% to Rs 684, off the day's high of Rs 693.65.

Some metal stocks fell. Hindalco Industries, Sterlite Industries and Jindal Steel & Power dropped by 0.49% to 2.01%.

Jaypee Infratech tumbled 5.23% to Rs 29, with the stock extending recent steep losses to hit a record low today, 4 June 2013. The stock hit record low of Rs 28.65 in intraday trade today, 4 June 2013. The company concluded its offer for sale (OFS) on 29 May 2013. The OFS of Jaypee Infratech was subscribed 1.43 times at an indicative price of Rs 35.13 per share. After the share sale, Jaiprakash Associates' total stake in Jaypee Infratech reduced to 71.64% from 83.16% earlier.

Pharmaceutical major Sun Pharmaceutical Industries rose 0.54% to Rs 1023, with the stock reversing intraday losses. The company is reportedly in talks to buy Sweden's Meda AB for between $5 billion and $6 billion to boost its generics business in developed markets. Meda makes speciality products, over-the-counter drugs and branded generics -- the same areas of focus as Sun.

European market edged higher as the release of disappointing ISM manufacturing figures in the US reined back expectations that the Federal Reserve will exit its quantitative easing program any time soon. Key benchmark indices in UK, France and Germany were up by 0.4% to 0.6%.

The number of people filing for jobless benefits in Spain dropped 2% in May to 4.89 million, a second-straight monthly fall, according to government statistics released on Tuesday. It was also the lowest level for jobless claims since December. The level fell by 92,265 persons, which was the biggest drop for the month of May on record. Spain's unemployment rate stood at 27.2% in the first quarter and in April rose beyond 6 million for the first time ever. Spain had the second-highest unemployment rate in the 27-nation European Union in April.

Asian stocks edged higher on Tuesday, 4 June 2013. Key benchmark indices in Hong Kong, Indonesia, Japan and Singapore rose by 0.01% to 2.05%. Key benchmark indices in China and Taiwan shed by 0.12% to 1.17%. South Korea's Kospi was flat.

A report Monday, 3 June 2013, from HSBC showed activity in China's manufacturing sector contracted in May 2013.

Trading in US index futures indicated a flat opening of US stocks on Tuesday, 4 June 2013. US stocks rallied on Monday as investors gauged the impact of disappointing factory data on potential quantitative-easing moves by the Federal Reserve. The Institute for Supply Management said Monday its business-conditions index last month fell to 49% in its first contraction since November.

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First Published: Jun 04 2013 | 3:45 PM IST

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