Key benchmark indices hovered at lower levels after hitting fresh intraday low in mid-morning trade after a survey showed that Indian services firms lost momentum in June as new business trickled in at the slowest pace in nearly two years. The S&P BSE Sensex was down 242.71 points or 1.25%, off 126 points from the day's high and up 14.40 points from the day's low. The market breadth, indicating the overall health of the market, was weak. Weakness in Asian stocks weighed on sentiment.
Metal stocks edged lower on weak Chinese economic data. Mangalore Chemicals & Fertilizers was locked at 10% lower circuit on massive volume. MMTC was locked at 5% lower circuit at Rs 88.30, also its 52-week low, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake in the firm at a huge discount to the stock's ruling market price. Shares of diamond jewellery maker Gitanjali Gems were locked at 5% lower circuit at Rs 202.85, also its 52-week low, with the stock extending a steep recent slide.
Key benchmark indices dropped in early trade on weak Asian stocks. The market extended initial losses to hit fresh intraday low in morning trade. Key benchmark indices hovered at lower levels after hitting fresh intraday low in mid-morning trade.
The rupee fell below the psychological 60 a dollar level and bond prices also declined. The rupee was hovering at 60.05, weaker than Tuesday's close of 59.66/67.
In the government bond market, the yield on the most traded 8.2% GS 2025 was currently at 7.7213%, higher than Tuesday's close at 7.6722%. Bond yield and bond prices are inversely related.
Foreign institutional investors (FIIs) sold shares worth a net Rs 43.20 crore on Tuesday, 2 July 2013, as per provisional data from the stock exchanges.
At 11:16 IST, the S&P BSE Sensex was down 242.71 points or 1.25% to 19,221.11. The index lost 257.11 points at the day's low of 19,206.71 in mid-morning trade, its lowest level since 28 June 2013. The index fell 116.71 points at the day's high of 19,347.11 in opening trade.
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The CNX Nifty was down 74.35 points or 1.27% to 5,783.20. The index hit a low of 5,779.40 in intraday trade, its lowest level since 28 June 2013. The index hit a high of 5,815 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,124 shares declined and 623 shares rose. A total of 96 shares were unchanged.
The total turnover on BSE amounted to Rs 818 crore by 11:20 IST compared to Rs 589 crore by 10:20 IST.
Among the 30-share Sensex pack, 25 stocks declined and only five of them gained. GAIL (India) (up 0.62%), ITC (up 0.25%), Hindustan Unilever (up 0.32%), Sun Pharmaceutical Industries (up 0.62%) and Infosys (up 0.4%) edged higher from the Sensex pack.
Tata Power Company (down 3.75%), Bhel (down 3.78%) and SBI (down 3.33%) edged lower from the Sensex pack.
Metal stocks edged lower on weak Chinese economic data. China is the world's largest consumer of copper and aluminum.
Jindal Steel & Power (down 2.34%), Sterlite Industries (India) (down 4.02%), JSW Steel (down 5.86%), Sail (down 4.12%), National Aluminium Company (down 1.16%), Hindustan Zinc (down 1.82%), Tata Steel (down 4.16%) and Hindalco Industries (down 4.14%) edged lower.
Hindustan Copper lost 2.41% to Rs 70.90. Bids were received for a total of 1.85 crore shares at an indicative price of Rs 70 per share for the Offer for Sale (OFS) of the company's shares till 10:55 IST, as per data from the stock exchanges.
The government has announced an Offer for Sale (OFS) for divestment of stake in Hindustan Copper to enable the company to comply with the minimum public shareholding norms. The government has set floor price of Rs 70 for the OFS, a 3.78% discount to Hindustan Copper's closing price on BSE on Tuesday, 2 July 2013. The government has decided to sell 3.71 crore shares constituting 4.01% stake in Hindustan Copper via OFS today, 3 July 2013. The government currently holds 94.01% in Hindustan Copper. The stake-sale would make the company compliant with the minimum 10% public holding norm of market regulator Sebi. Sebi has mandated minimum public shareholding of 10% for state-run firms by 8 August 2013.
Shares of Hindustan Copper lost 6.62% to settle at Rs 72.65 on Tuesday, 2 July 2013.
MMTC was locked at 5% lower circuit at Rs 88.30, also its 52-week low, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake in the firm at a huge discount to the stock's ruling market price. On 13 June 2013, the Government of India (GoI) sold 9.33% stake in MMTC via Offer for Sale (OFS) through stock exchanges mechanism at an indicative price of Rs 60.86 per share, at a discount of 71.21% to the closing price of the stock of Rs 211.45 on 12 June 2013.
Shares of diamond jewellery maker Gitanjali Gems were locked at 5% lower circuit at Rs 202.85, also its 52-week low. The stock has witnessed a steep slide recently.
Mangalore Chemicals & Fertilizers was locked at 10% lower circuit at Rs 56.20 on massive volume of 2.59 crore shares. A block deal of 58.84 lakh shares was struck on the counter at Rs 62.80 per share at 09:18 IST on BSE.
The next major trigger for the market is Q1 June 2013 results. India Inc. will start reporting Q1 June 2013 results from the second week of July 2013. Mahindra & Mahindra announces Q1 results on 13 August 2013.
Indian services firms lost momentum in June as new business trickled in at the slowest pace in nearly two years, dashing hopes of a sustained pick-up in economic growth, a survey showed on Wednesday. The HSBC Markit Services Purchasing Managers' Index fell to 51.7 in June from May's three-month high of 53.6.
Asian stocks fell on Wednesday, 3 July 2013, as concerns about growth in China's services sector added to the selling pressure amid caution ahead of US jobs data later in the week. Key benchmark indices in China, Hong Kong, Indonesia, South Korea, Taiwan, Singapore and Japan were down 0.4% to 1.78%.
A pair of surveys monitoring China's services sector released Wednesday showed weak growth for June. The government-sponsored version of China's services Purchasing Managers' Index fell to 53.9 for June from May's 54.3, though it remained above the 50 level dividing expansion from contraction.
Later in the morning, HSBC said its privately compiled China Services Business Activity Index ticked up to 51.3 last month, compared to 51.2 the previous month.
Trading in US index futures indicated that the Dow could fall 11 points at the opening bell on Wednesday, 3 July 2013. US stocks edged lower on Tuesday, 2 July 2013, losing steam gained from reports showing solid growth for car sales and factory orders as investors anticipated the jobs report at the end of the week. The US government will unveil the influential nonfarm payrolls data for June 2013 on Friday, 5 July 2013.
The US stock market is open for a short duration today, 3 July 2013, and remains closed tomorrow, 4 July 2013, for Independence Day holiday.
Among US data due later on Wednesday, ADP is slated to release private-sector payroll projections for June, and the Labor Department is scheduled to publish weekly jobless-claims numbers. Also, the Institute for Supply Management is due to report on activity at service-sector companies in June.
The European Central Bank is widely expected to keep interest rates on hold after a monetary policy review on Thursday, 4 July 2013.
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