Key benchmark indices alternately moved between positive and negative terrain near the flat line in morning trade. The S&P BSE Sensex was down 1.42 points or 0.01%, off close to 100 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, was positive. Most pharma stocks gained on renewed buying.
PSU OMCs rose after announcing increase in retail selling prices of petrol and diesel. Shares of two wheeler makers declined as PSU OMCs raised petrol price. Maruti Suzuki India dropped after the company reported fall in sales in May 2013. Infosys jumped after the company said that its board has appointed Mr. N R Narayana Murthy into the board and executive leadership of the company.
Foreign institutional investors (FIIs) sold shares worth a net Rs 504.02 crore on Friday, 31 May 2013, as per provisional data from the stock exchanges.
A bout of initial volatility was witnessed as key benchmark indices recovered after slipping into the red after a firm start. Key benchmark indices alternately moved between positive and negative terrain near the flat line in morning trade.
At 10:20 IST, the S&P BSE Sensex was down 1.42 points or 0.01% to 19,758.88. The index rose 99.89 points at the day's high of 19.860.19 in opening trade. The index lost 30.43 points at the day's low of 19,729.87 in early trade, its lowest level since 27 May 2013.
The CNX Nifty was down 9.05 points or 0.15% to 5,976.90. The index hit a high of 6,011 in intraday trade. The index hit a low of 5,970.35 in intraday trade, its lowest level since 24 May 2013.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 644 shares rose and 641 shares fell. A total of 71 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks declined and the rest of them gained.
Coal India rose 1.25%.
Telecom major Bharti Airtel gained 1.06%.
Most pharma stocks gained on renewed buying. Cipla and Dr Reddy's Laboratories rose by 0.93% to 0.99%.
But, Sun Pharmaceutical Industries declined 1.51%, with the stock extending initial losses. The company is reportedly in the process of making a massive overseas acquisition. 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.
PSU OMCs rose after announcing increase in retail selling prices of petrol by Rs 0.75 per liter and an increase in retail selling price of diesel by Rs 0.50 per liter with effect from Saturday, 1 June 2013. BPCL, HPCL and Indian Oil Corporation gained by 0.49% to 0.75%.
The current increase was mainly due to depreciation of rupee from Rs 54.26 to Rs 55.32 against the dollar. PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.
Shares of two wheeler makers declined as PSU OMCs raised petrol price. Bajaj Auto declined 3.07%, with the stock extending initial losses. Hero MotoCorp shed 1.07%.
Maruti Suzuki India dropped 3.18% after the company reported fall in sales in May 2013. 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.
Infosys jumped 5.74% to Rs 2,545.75 after the company announced on Saturday, 1 June 2013, that the company's board has appointed Mr. N R Narayana Murthy into the board and executive leadership of the company. The stock came off the day's high of Rs 2,624.90. The board approved appointing Mr. N R Narayana Murthy as Executive Chairman of the board and Additional Director for a five year period with effect from 1 June 2013.
Mr. K V Kamath would step down from his position as Chairman of the board and take up the position of Lead Independent Director effective 1 June 2013.
During his five-year term, Mr. Murthy would draw a token compensation of rupee one per year.
Mr. S Gopalakrishnan would be re-designated as Executive Vice Chairman effective 1 June 2013 and would primarily focus on key client relationships and broader industry issues. Mr. S D Shibulal would continue to be the Managing Director and CEO. Mr. S Gopalakrishnan and Mr. S D Shibulal have requested that they draw a compensation of rupee one per year. The board has accepted their requests, subject to necessary shareholder and government approvals.
In order to function more effectively Mr. Narayana Murthy intends to create the Chairman's office to assist him during his tenure and has requested the board to permit him to put together a team for this function. The team will include his son, Dr. Rohan Murty, as Mr. Narayana Murthy's executive assistant. The board has agreed to Mr. Narayana Murthy's requests, subject to necessary approvals.
Wipro rose 1.19%.
On macro front, Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for May 2013 today, 3 June 2013. The HSBC Manufacturing PMI fell for the second straight month in April, dipping to 51 from 52 in March.
Fiscal deficit for or the fiscal year ended 31 March 2013 (FY 2013) came in lower at 4.9% of GDP against 5.1% budgeted (in February 2012) and revised to 5.2% in February 2013, data released by the government after trading hours on Friday, 31 May 2013, showed. Fiscal deficit for FY 2014 is budgeted at 4.8% of GDP.
The crucial monsoon arrived on cue in Kerala on the southern coast on Saturday, 1 June 2013, boosting farming. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The weather office last month predicted the monsoon would arrive over Kerala on June 3.
Asian stocks fell on Monday after improving US economic data added to concern the Federal Reserve will scale back its stimulus. Key benchmark indices in Indonesia, Japan, Singapore, Taiwan and South Korea shed by 0.21% to 2.66%. Key benchmark indices in China and Hong Kong rose by 0.28% to 0.48%.
The final version of the HSBC China manufacturing Purchasing Managers' Index for May fell to 49.2, down from a preliminary reading of 49.6, and more than a point off from April's 50.4. HSBC said that while the result marked the first contraction in seven months, "albeit at only a marginal pace," manufacturing output actually registered its seventh straight gain, though that too was small in size.
The official purchasing managers' index (PMI), issued by the National Bureau of Statistics and China Federation of Logistics and Purchasing, indicated activity in China's vast manufacturing sector picked up slightly in May. China's official PMI rose to 50.8 in May from 50.6 in April, data showed on Saturday, 1 June 2013. A reading above 50 indicates expanding activity while a reading below that level points to a contraction.
Separately, a government gauge of services industries today, 3 June 2013 showed the slowest expansion since September. The official China non-manufacturing PMI for May declined to 54.3 from 54.5.
South Korea's exports unexpectedly increased in May as surging smartphone shipments and improving demand from the US and China countered a decline in the yen. Overseas shipments increased 3.2% from a year earlier after a 0.4% gain in April, the Ministry of Trade, Industry and Energy said in a statement on Saturday, 1 June 2013.
Trading in US index futures indicated that the Dow could gain 46 points at the opening bell on Monday, 3 June 2013. US stocks tanked on Friday after positive economic indicators rekindled talk that the Federal Reserve will soon scale back stimulus measures. The Thomson Reuters/University of Michigan's final consumer sentiment index rose to 84.5 in May from 83.7 in April. A separate report showed that the Chicago purchasing managers' index climbed to 58.7 this month from 49 in April, beating expectations for a rise to 50.
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