Key benchmark indices hovered in negative terrain in morning trade as weakness in Asian stocks weighed on sentiment. The S&P BSE Sensex was down 36.76 points or 0.19%, off close to 40 points from the day's high and up about 60 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Car major Maruti Suzuki India extended initial losses triggered by one-day suspension of production at its two plants and due to firm yen.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Mahindra Satyam rose after the company won a new multiyear contract from Bridgestone Europe. Some auto stocks reversed initial losses. Index heavyweight and cigarette maker ITC declined. Index heavyweight Reliance Industries (RIL) gained. Shares of companies whose fortunes are linked to orders from Indian Railways edged higher.
The market recovered after slipping into the red after opening slightly higher. The Sensex hovered in negative terrain in morning trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 270.47 crore on Thursday, 6 June 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was down 36.76 points or 0.19% to 19,482.73. The index lost 94.52 points at the day's low of 19,424.97 in early trade. The index rose 2.82 points at the day's high of 19,522.31 in opening trade.
The CNX Nifty was down 15.85 points or 0.27% to 5,905.55. The index hit a low of 5,886.60 in intraday trade. The index hit a high of 5,914.10 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 755 shares rose and 431 shares fell. A total of 77 shares were unchanged.
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Among the 30-share Sensex pack, 15 stocks fell and rest of them rose. L&T, NTPC and Cipla shed by 0.61% to 0.68%. Dr Reddy's Laboratories, Tata Power Company and Bhel rose by 0.39% to 1.99%.
IT stocks rose on positive economic data in the US, the biggest outsourcing market for the Indian IT firms. Infosys, TCS and Wipro gained by 0.01% to 0.32%.
Mahindra Satyam rose 0.9% after the company said after market hours on Thursday, 6 June 2013, that it has won a new multiyear contract from Bridgestone Europe for its managed services. The company will work on SAP based mission critical applications for Bridgestone Europe. Mahindra Satyam has been working with Bridgestone since 2005 in providing IT application development and support services.
At the end of FY 2012-13, 23% of Mahindra Satyam's total earnings came from Europe. Europe is also a key market for the company in terms of banking, aerospace and defense, sales domains, Mahindra Satyam said.
Index heavyweight Reliance Industries (RIL) gained 0.49%. The company's Chairman Mukesh Ambani said that the company plans to invest Rs 1.5 lakh crore in its businesses over the next three years. Addressing the shareholders of company at its thirty ninth annual general meeting (AGM) held on Thursday, 6 June 2013, Mr. Ambani said that the company is making significant investments in all its five businesses -- exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G -- simultaneously.
Ambani said that RIL is making huge investments in its businesses at a time when the global economy is facing one of its most challenging periods in modern times. He said that margins in RIL's core businesses are on the upswing.
Commenting on the company's business and financial performance, Mr. Ambani said that RIL continues to be debt free on a net basis.
Ambani said that RIL has undertaken the single largest expansion in the petrochemicals sector in the world. In polyester, the company is expanding its capacity by 1.5 million tonnes per annum (MTPA) to reach 4 MTPA.
Car major Maruti Suzuki India declined 2.27%, with the stock extending initial losses. The company is suspending production for a day at both of its plants in Manesar and Gurgaon today, 7 June 2013, to adjust inventory levels in response to falling sales.
A firm yen also weighed on the Maruti counter as it could make imports of components costlier for the car major.
India's largest motorcycle maker by sales Hero MotoCorp rose 1.26%.
Some auto stocks reversed initial losses. M&M and Tata Motors rose by 0.16% to 0.26%.
Index heavyweight and cigarette maker ITC declined 0.64%.
Shares of companies whose fortunes are linked to orders from Indian Railways edged higher. Kalindee Rail Nirman (Engineers) (up 6.4%), Kernex Microsystems (India) (up 5.3%), and Titagarh Wagons (up 3.7%) surged.
Asian stocks fell on Friday as gains in yen weighed on Japanese shares and as investors awaited a US jobs report later in the global day. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Taiwan, Singapore and South Korea shed by 0.21% to 2.56%.
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell on Friday, 7 June 2013. US stocks ended higher on Thursday, snapping a two-session losing streak, as investors eagerly awaited Friday's May employment report for clues about monetary policy. Data showed that US jobless claims fell by 11,000 to 346,000 in the week ended June 1, essentially in line with expectations.
Federal Reserve Chairman Ben Bernanke said last month that the bank could start scaling back its aggressive easing program in coming months if data continue to improve.
The European Central Bank (ECB) and the Bank of England (BoE) on Thursday, 6 June 2013, held their main interest rates at record lows, with the ECB saying data supports its forecast of a gradual economic recovery across the region. The ECB and BoE both held their benchmark interest rates at the record-low level of 0.5%.
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