Key benchmark indices extended losses to strike fresh intraday low in mid-afternoon trade as weakness in European and mostly lower Asian stocks weighed on sentiment. The barometer index, the S&P BSE Sensex, was down 336.57 points or 1.66%, off 312.46 points from the day's high and up 8.85 points from the day's low. Indian stocks were also hit by Reserve Bank of India governor D. Subbarao's hawkish comments on inflation on Thursday, 30 May 2013, which dashed hopes that the central bank will continue to lower interest rates to boost economic growth. The market breadth, indicating the overall health of the market, was weak.
Metal stocks edged lower as the International Monetary Fund (IMF) recently cut its growth forecast for China this year citing a weak world economy and exports, adding to concerns that the world's second-largest economy is losing momentum. Cement stocks declined. Telecom stocks also edged lower.
Key benchmark indices dropped in early trade as hawkish comments by Reserve Bank of India governor D. Subbarao on Thursday, 31 May 2013, on inflation dashed hopes that the central bank will continue to lower interest rates to boost economic growth. The market extended initial fall in morning trade, with Sensex sliding below the psychological 20,000 mark. Weakness persisted on the bourses in mid-morning trade as latest data showed that India's economy grew at its lowest pace in a decade in fiscal year 2012-13. Key benchmark indices hovered in red in early afternoon trade. The market weakened to hit fresh intraday low in afternoon trade. The market extended losses to hit fresh intraday low in mid-afternoon trade.
At 14:15 IST, the S&P BSE Sensex was down 336.57 points or 1.66% to 19,878.83. The index lost 345.42 points at the day's low of 19,869.98 in mid-afternoon trade, its lowest level since 27 May 2013. The index slipped 24.11 points at the day's high of 20,191.29 in early trade.
The CNX Nifty was down 102.30 points or 1.67% to 6,021.75. The index hit a low of 6,016 in intraday trade, its lowest level since 27 May 2013. The index hit a high of 6,106.25 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,469 shares declined and 772 shares rose. A total of 128 shares were unchanged.
The total turnover on BSE amounted to Rs 1369 crore by 14:20 IST
More From This Section
Among the 30-share Sensex pack, 25 stocks declined and the rest of them gained.
Metal stocks edged lower as the International Monetary Fund (IMF) recently cut its growth forecast for China this year citing a weak world economy and exports, adding to concerns that the world's second-largest economy is losing momentum. China is the world's largest consumer of copper and aluminum. Hindalco Industries (down 4.51%), Tata Steel (down 2.5%), Jindal Steel & Power (down 3.19%) and Hindustan Zinc (down 1.06%) declined. Sterlite Industries (India) gained 1.21%.
Sail tumbled 5.16%. The company's consolidated net profit declined 38.46% to Rs 2180.52 crore on 3.59% fall in total income from operations (net) to Rs 44697.61 crore in the year ended 31 March 2013 (FY 2013) over FY 2012. The result was announced during market hours on Thursday, 30 May 2013.
State-run iron ore miner NMDC fell 0.42%. NMDC's net profit declined 10.8% to Rs 1464.95 crore on 23.5% growth in turnover to Rs 3204 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Wednesday, 29 May 2013.
The company said it achieved a record production and sales of iron ore for the 4th quarter. This was accomplished inspite of the slurry pipeline not being available at all for evacuation, NMDC said.
NMDC said it has been pursuing its growth programme vigorously. NMDC, as part of its forward integration programme and value addition, is setting up a 3 million tonnes per annum (MTPA) steel plant at Nagarnar in Chhattisgarh, for which most of the major packages have been finalized and awarded. So far, cumulative orders worth Rs 13475 crore have already been placed and expenditure of over Rs 2346 crore has already been incurred. Work on some of the packages have already started and the project is expected to be completed by 2015-16, NMDC said.
NMDC said it incurred capital expenditure of Rs 1607.24 crore in the year ended 31 March 2013 (FY 2013) under various schemes. For the year ending 31 March 2014 (FY 2014), an expenditure of Rs 2720 crore is planned to be expended, NMDC said.
Cement stocks declined. ACC (down 1.96%), Ambuja Cement (down 1.45%) and UltraTech Cement (down 2.37%) declined.
Telecom stocks dropped. Bharti Airtel (down 3.1%), Idea Cellular (down 3.44%), MTNL (down 2.28%), Tata Teleservices (Maharashtra) (down 0.79%) and Reliance Communications (down 2%) edged lower.
Torrent Pharmaceuticals jumped 9.96% to Rs 788.40 after striking a record high of Rs 809.50 in intraday trade today, 31 May 2013 after the company reported consolidated net profit of Rs 111 crore in Q4 March 2013, as against net loss of Rs 2 crore in Q4 March 2012. Torrent Pharmaceuticals' consolidated revenue rose 29% to Rs 871 crore in Q4 March 2013 over Q4 March 2012. The Q4 result was announced after market hours on Thursday, 30 May 2013.
Berger Paints India tumbled 4.92% after net profit rose 4.3% to Rs 50.90 crore on 8.1% growth in net sales to Rs 734.09 crore in Q4 March 2013 over Q4 March 2012. The Q4 result was announced after market hours on Thursday, 30 May 2013.
Corporation Bank lost 5.62% as the stock turned ex-dividend today, 31 May 2013, for dividend of Rs 19 per share for the year ended 31 March 2013.
GMR Infrastructure rose 2.44% after the company reported consolidated net profit of Rs 579.17 crore in Q4 March 2013, as against net loss of Rs 366.16 crore in Q4 March 2012. GMR Infrastructure's consolidated total income from operations rose 21.46% to Rs 2592.52 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results during trading hours today, 31 May 2013.
Gujarat State Petronet rose 3.63% after net profit rose 24.92% to Rs 161.47 crore on 29.9% rise in net sales to Rs 358.96 crore in Q4 March 2013 over Q4 March 2012. The result was announced after trading hours on Thursday, 30 May 2013.
India's GDP grew 4.8% Q4 March 2013, slightly higher than a revised 4.7% growth in Q3 December 2012, data released by the government today, 31 May 2013, showed. GDP grew at a decade low of 5% in fiscal year 2012-13.
In Q4 March 2013, the 'agriculture, forestry and fishing' segment registered a growth of 1.4%, the manufacturing sector reported 2.6% growth, 'electricity, gas and water supply' segment clocked growth of 2.8%, the construction sector grew 4.4%, 'trade, hotels, transport and communication' segment clocked 6.2% growth, 'financing, insurance, real estate and business services' segment clocked 9.1% growth and 'community, social and personal services' segment registered 4% growth. The mining and quarrying segment reported a decline of 3.1%.
The Reserve Bank of India (RBI) governor D. Subbarao on Thursday, 30 May 2013, said that the central bank is concerned about the country's wide current-account deficit (CAD) and still-high retail inflation. Mr. Subbarao, while speaking at an event in Ahmedabad, said the RBI will factor in the current-account gap while formulating its monetary policy. He said the wide deficit is weakening the local currency and may fan inflation that has slowed in recent months. The bank is concerned about the size of the deficit as well as the way India funds it, Mr. Subbarao said. The result of the high current-account deficit has been the depreciation of the rupee, he said. Rupee depreciation is a problem because it pushes up the cost of our imports, it increases debt-servicing cost, it causes inflation and it erodes our external payment situation, he added. Mr. Subbarao said India's retail inflation is still a concern. Sacrificing growth in the short term is "inevitable" as the RBI strives to rein in inflation, he added.
RBI undertakes mid-quarter review of the monetary policy on 17 June 2013. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
European stock markets moved lower on Friday, pulling back from gains seen the prior day and with investors cautious to make any major moves ahead of data on US consumer spending and consumer sentiment. Key benchmark indices in France, Germany and UK shed 0.7% to 1.31%.
Asian markets were trading mostly lower today, 31 May 2013. Key benchmark indices in Indonesia, Hong Kong, China and Singapore were down by 0.41% to 1.61%. Key benchmark indices in South Korea, Taiwan and Japan rose by 0.05% to 1.37%.
Japan's industrial production rose 1.7% during April, the Ministry of Economy, Trade and Industry said today, 31 May 2013.
China will release the government-sponsored manufacturing data for May 2013 tomorrow, 1 June 2013. Investors will be watching to see if the government-sponsored Purchasing Managers' Index matches preliminary results from a privately-compiled version, produced by HSBC and Markit, which showed Chinese manufacturing activity contracting in May.
Trading in US index futures indicated that the Dow could fall 68 points at the opening bell on Friday, 31 May 2013. US stocks edged higher on Thursday, 30 May 2013, as another report cast a positive light on the US housing market and as weaker-than-expected data on first-quarter economic growth and jobless claims raised hopes the Federal Reserve may keep its current level of bond purchases.
Fed Chairman Ben Bernanke said last week that an improvement in data could trigger the central bank to start tapering its asset purchases in coming months, stoking fears that the $85-billion-a-month liquidity injection will soon come to an end.
Powered by Capital Market - Live News