Key benchmark indices further extended losses and hit fresh intraday low. The barometer index, the S&P BSE Sensex, hit two-week low. The 50-unit CNX Nifty hit 2-1/2-week low. The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. The Sensex was down 318.745 points or 1.26%, off close to 495 points from the day's high. The BSE Mid-Cap index fell over 2%. The BSE Small-Cap index was off almost 3%.
Metal and mining stocks dropped. IT major Infosys rose in volatile trade after the company retained its revenue guidance for the year ending 31 March 2015 at the time of announcing Q1 June 2014 results.
At 14:20 IST, the S&P BSE Sensex was down 318.745 points or 1.26% to 25,054.01, also its intraday low and its lowest level since 27 June 2014. The index jumped 175.58 points at the day's high of 25,548.33 in morning trade.
The CNX Nifty was down 100.40 points or 1.33% at 7,467.35. The index hit a low of 7,462.35 in intraday trade, its lowest level since 23 June 2014. The index hit a high of 7,625.85 in intraday trade.
The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. On BSE, 2,005 shares fell and 754 shares rose. A total of 73 shares were unchanged.
The BSE Mid-Cap index was off 221.47 points or 2.43% at 8,910.71. The BSE Small-Cap index was off 271.01 points or 2.7% at 9,748.96. Both these indices underperformed the Sensex.
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Among the 30 Sensex shares, 21 declined and the remaining shares rose. Bharat Heavy Electricals (Bhel) (down 7.57%), State Bank of India (SBI) (down 4.23%) and L&T (down 3.97%) edged lower from the Sensex pack.
Metal and mining stocks dropped. Sesa Sterlite (down 2.39%), JSW Steel (down 3.14%), Hindalco Industries (down 3.83%), Hindustan Zinc (down 4.99%), Bhushan Steel (down 0.52%), Tata Steel (down 3.29%), Steel Authority of India (Sail) (down 4.29%) and Hindustan Copper (down 4.93%) declined.
The finance minister in the Union Budget 2014-15, presented on Thursday, 10 July 2014, made revision of royalty on minerals to ensure greater revenue for State Governments. He increased basic customs duty on imported flat-rolled stainless steel products from 5% to 7.5%. He also increased custom duty in metallurgical coal from nil to 2.5%
National Aluminum Company dropped 4.59%. The finance minister increased export duty on bauxite from 10% earlier to 20%.
Jindal Steel & Power shed 6.6% to Rs 281.50. The stock turned ex-dividend today, 11 July 2014, for dividend of Rs 1.50 per share for the year ending March 2014.
IT major Infosys gained 1.64% to Rs 3,346 after announcing its Q1 result. The stock was volatile. The stock hit high of Rs 3,429.35 and low of Rs 3,305 so far during the day. The company's consolidated net profit as per International Financial Reporting Standards (IFRS) fell 3.5% to Rs 2886 crore on 0.8% decline in revenue to Rs 12770 crore in Q1 June 2014 over Q4 March 2014. The result was announced before market hours today, 11 July 2014. Infosys said it added 61 clients during the quarter.
Infosys expects its consolidated revenue to grow 7%-9% in dollar terms in the year ending 31 March 2015 (FY 2015). The guidance is unchanged compared to the one the company had given at the time of announcement of Q4 March 2014 results in April this year. The guidance in rupee terms has also been kept unchanged from that given in April as the company has assumed rupee dollar conversion rate of 60 which is exactly the same conversion rate given in April guidance. The company expects its revenue to grow 5.6%-7.6% in rupee terms in FY 2015.
A bout of initial volatility was witnessed as key benchmark indices regained positive terrain after slipping into the red for a brief period after opening higher. Volatility continued as key benchmark indices once again regained positive terrain after slipping into the negative terrain from positive terrain in morning trade. Volatility continued as key benchmark indices slipped into the red and hit fresh intraday low in mid-morning trade. Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. Selling intensified in afternoon trade as key benchmark indices extended losses to hit fresh intraday low. The Sensex hit two-week low. The CNX Nifty hit 2-1/2-week low. Key benchmark indices further extended losses and hit fresh intraday low.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.11, compared with its close of 60.19/20 on Thursday, 10 July 2014.
Industrial output is seen rising 3.8% in May 2014, higher than 3.4% growth in April, as per the median estimates of a poll of economists carried out by Capital Market. The government will unveil industrial production data for May 2014 today, 11 July 2014.
Finance Minster Arun Jaitley made a number of announcements in Union Budget 2014-15 on Thursday, 10 July 2014, such as a proposal to increase in foreign direct investment in insurance and defence manufacturing, a sharp increase in plan expenditure, measures to boost long term financing for infrastructure by banks and provided clarity on taxation with respect to foreign portfolio investors. But, market expectations that the Finance Minster would scrap the law on retrospective taxation were not met. Government spending on plan expenditure was substantially increased to support growth.
European stocks edged higher on Friday, 11 July 2014, rebounding from concern the region's so-called peripheral countries are slipping back into trouble. Key benchmark indices in UK, France and Germany were up by 0.22% to 0.53%.
European stocks had dropped on Thursday, 10 July 2014, after Portugal's Espirito Santo International missed payments on commercial paper to a few clients. Trading in shares of Banco Espirito Santo SA (BES) and Espirito Santo Financial Group SA was halted on Thursday and remained suspended today. BES today disclosed it has an exposure of 1.18 billion euros ($1.6 billion) to the Espirito Santo conglomerate through loans and securities. BES also said that its capital buffer is 2.1 billion euros above the minimum regulatory level for European banks.
Asian stocks edged lower in choppy trade on Friday, 11 July 2014, amid concern that Europe's debt problems haven't been resolved. Key benchmark indices in Hong Kong, Taiwan, Indonesia, South Korea and Japan fell 0.02% to 1.78%. Key benchmark indices in China and Singapore were up 0.42% to 0.63%.
Trading in US index futures indicated that the Dow could gain 46 points at the opening bell on Friday, 11 July 2014. US stocks fell on Thursday, 10 July 2014, on concerns that trouble at a European bank might spread.
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