A bout of volatility was witnessed as key benchmark indices weakened once again after trimming intraday losses in morning trade soon after a survey showed that India's manufacturing production expanded at its fastest pace in 17 months in July. The barometer index, the S&P BSE Sensex, was currently down 121.27 points or 0.47% at 25,773.70. Weakness in Asian stocks and a sharp fall for US stocks on Thursday, 31 July 2014, dampened sentiment. The market sentiment was also hit adversely after provisional data showed that foreign investors made heavy selling during the previous trading session. The market breadth indicating the overall health of the market was negative.
Maruti Suzuki India rose on reporting strong sales in July. NTPC extended Thursday's losses triggered by weak Q1 results. Shares of public sector oil marketing companies rose after prices of diesel were hiked by Rs 0.50 a litre with effect from midnight of 31 July 2014.
At 11:20 IST, the S&P BSE Sensex was down 121.27 points or 0.47% to 25,773.70. The index slumped 215.51 points at the day's low of 25,679.46 in early trade, its lowest level since 21 July 2014. The index declined 93.44 points at the day's high of 25,801.53 in mid-morning trade.
The CNX Nifty was down 40.30 points or 0.52% to 7,681. The index hit a low of 7,649.75 in intraday trade, its lowest level since 18 July 2014. The index hit a high of 7,694.25 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,164 shares fell and 1,043 shares rose. A total of 87 shares were unchanged.
The BSE Mid-Cap index was down 10.03 points or 0.11% at 9,178.16. The BSE Small-Cap index was up 3.45 points or 0.03% at 9.992.87. Both these indices outperformed the Sensex.
Also Read
Maruti Suzuki India rose 3.68% on strong sales in July. The company said during market hours that its total sales jumped 21.7% to 1.01 lakh units in July 2014 over July 2013. Domestic sales rose 19.9% to 90,093 units in July 2014 over July 2013. Exports rose 38.4% to 11,287 units in July 2014 over July 2013.
Maruti's net profit rose 20.7% to Rs 762.30 crore on 10.8% rise in net sales (net of excise) to Rs 11073.50 crore in Q1 June 2014 over Q1 June 2013. The car major said that cost reduction and localization initiatives, growth in volumes and favourable foreign exchange helped improve the bottom line during the quarter. The result was announced during market hours on Thursday, 31 July 2014.
NTPC dropped 2.34%, with the stock extending Thursday's losses triggered by weak Q1 results. The company's net profit fell 12.89% to Rs 2201.20 crore on 15.21% rise in total income to Rs 1885.14 crore in Q1 June 2014 over Q1 June 2013. The company announced results during market hours on Thursday, 31 July 2014.
Shares of public sector oil marketing companies rose after prices of diesel were hiked by Rs 0.50 a litre with effect from midnight of 31 July 2014. HPCL (up 1.94%), BPCL (up 1.13%) and Indian Oil Corporation (IOC) (up 0.41%), edged higher.
PSU OMCs on Thursday, 31 July 2014, decided to increase retail diesel price by Rs 0.50 a litre and cut retail petrol prices by Rs 1.09 a litre in Delhi with effect from midnight of 31 July 2014. PSU OMCs, however, reduced the diesel price for bulk consumers by Rs 0.72 a litre at Delhi. Price of non-subsidized LPG cylinder was reduced by Rs 2.50 for a 14.2 kg cylinder and that of commercial LPG cylinder was reduced by Rs 4 for a 19kg cylinder at Delhi. The rates will vary from state to state depending on local taxes and levies.
PSU OMCs suffer under-recovery on domestic sales of diesel, kerosene and LPG at government controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals. The government has already freed pricing of petrol.
Peninsula Land fell 2.1% after company reported 37.82% fall in net profit to Rs 1.89 crore on 163.06% surge in total income from operations to Rs 41.38 crore in Q1 June 2014 over Q1 June 2013. The company announced Q1 result after market hours on Thursday, 31 July 2014.
The market sentiment was hit adversely after provisional data showed that foreign investors made heavy selling during the previous trading session. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1654.86 crore on Thursday, 31 July 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.845, compared with its close of 60.54 on Thursday, 31 July 2014.
Markit Economics today, 1 August 2014, said that the HSBC India Purchasing Managers' Index (PMI) -- a composite gauge designed to give an accurate overview of operating conditions in the manufacturing sector -- reached a 17-month peak of 53 in July, up from 51.5 in June. Details within the survey showed that all monitored categories witnessed a rise in output and order flows. However, employment deteriorated fractionally, while inflationary pressures continued to emerge, particularly on the supply-side.
The index of the eight core industries rose 7.3% in June 2014 over June 2013, data released by the government after trading hours on Thursday, 31 July 2014, showed. The eight core industries have a combined weight of 37.9% in the Index of Industrial Production (IIP).
The fiscal deficit for the first quarter of the fiscal year ending 31 March 2015 (FY 2015) was at Rs 297859 crore, which amounted to 56.1% of the budget estimates. The month of June 2014 saw a fiscal deficit of Rs 57022 crore, against a fiscal deficit of Rs 127383 crore in May 2014. The data was released after market hours on Thursday, 31 July 2014.
The World Trade Organization reportedly failed on Thursday to reach a deal to standardise customs rules, which would have been the first global trade reform in two decades but was blocked by India's demands for concessions on agricultural stockpiling. The deadline passed without a breakthrough. WTO ministers had already agreed the global reform of customs procedures known as "trade facilitation" last December, but it needed to be put into the WTO rule book by 31 July 2014.
Asian stocks dropped today, 1 August 2014, extending the biggest global rout in six months that saw the Dow Jones Industrial Average wipe out this year's gains in one session yesterday amid weaker earnings and credit-market concerns. Key benchmark indices in Hong Kong, Singapore, Japan, South Korea and Taiwan were off 0.14% to 0.82%.
China's Shanghai Composite rose 0.21%. China's manufacturing purchasing managers' index increased to 51.7 in July from 51 the previous month, according to data released today by the National Bureau of Statistics and China Federation of Logistics. A private gauge of factory activity from HSBC Holdings Plc and Markit Economics rose to 51.7 last month from 50.7 in June. Levels of 50 or higher signal expansion.
Developments in Latin America will be closely watched as Argentina missed a deadline yesterday to pay $539 million in interest after two full days of negotiations in New York failed to produce an accord with creditors.
S&P declaring Argentina in default melded with concern over Europe's debt position as Portugal's Banco Espirito Santo SA was told to raise capital. Banco Espirito Santo SA plunged by the most on record and the bonds slumped on Thursday, 31 July 2014, after the Portuguese lender was ordered to raise capital following a 3.6 billion euro ($4.8 billion) first-half net loss.
Trading in US index futures indicated that the Dow could gain 43 points at the opening bell on Friday, 1 August 2014. US stocks joined a global selloff on Thursday, 31 July 2104, erasing the year's gains for the Dow Jones Industrial Average, as Exxon Mobil Corp. to Micron Technology Inc. tumbled amid weaker corporate results.
Powered by Capital Market - Live News