Key benchmark indices alternately moved between positive and negative zone near the flat line in early afternoon trade. The S&P BSE Sensex was down 33.99 points or 0.17%, off about 100 points from the day's high and up close to 25 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Most auto stocks edged lower. NTPC extended intraday losses. Tata Power Company extended intraday gain.
The market edged higher in early trade. The Sensex slipped into the red to hit fresh intraday low after paring initial gains in morning trade. The market hit fresh intraday low in mid-morning trade. Key benchmark indices alternately moved between positive and negative zone near the flat line in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was down 33.99 points or 0.17% to 19,405.49. The index fell 57.58 points at the day's low of 19,381.90 in early afternoon trade. The index rose 66.45 points at the day's high of 19,505.93 in early trade, its highest level since 5 July 2013.
The CNX Nifty was down 4.35 points or 0.07% to 5,854.65. The index hit a high of 5,879.35 in intraday trade, its highest level since 5 July 2013. The index hit a low of 5,847.25 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,042 shares rose and 812 shares fell. A total of 120 shares were unchanged.
From the 30-share Sensex pack, 17 stocks fell and rest of them rose. Hindustan Unilever (down 1.71%), Tata Steel (down 1.22%) and Hindalco Industries (down 0.89%), edged lower.
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Tata Power Company rose 1.55%, with the stock extending intraday gain.
NTPC declined 0.74%, with the stock extending intraday losses.
Most auto stocks edged lower. Shares of car major Maruti Suzuki India fell 0.34%. As per recent reports the company has stopped the third shift at its diesel engine plant in Manesar due to low demand. With increase in prices of diesel, the demand for diesel cars has tapered off.
The company on Monday, 8 July 2013, said its production fell 25.36% to 61,668 vehicles in June 2013 over June 2012. Earlier, the company had reported 12.6% fall in total sales to 84,455 units in June 2013 over June 2012. The company's domestic sales fell 7.8% to 77,002 units in June 2013 over June 2012. Exports declined 43% to 7,453 units in June 2013 over June 2012. The company announced the monthly sales data on 1 July 2013.
M&M (down 0.78%) and Tata Motors (down 2.3%), edged lower.
Two wheeler stocks were mixed. Bajaj Auto rose 0.37%. Hero MotoCorp fell 0.71%.
MMTC was locked at 5% lower circuit at Rs 68.45, 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 last month. 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.
Gitanjali Gems was locked at 5% lower circuit at Rs 157.10, also its 52-week low. Shares of Gitanjali Gems (GGL) have slumped a whopping 71.25% in 16 trading sessions from a recent high of Rs 546.50 on 18 June 2013. Credit rating agency CARE on 5 July 2013, revised the ratings assigned to the bank facilities/instruments of Gitanjali Gems (GGL) and its subsidiaries/step-down subsidiaries and placed them on credit watch. The revision in the ratings takes into account stressed liquidity position of GGL as evidenced by full utilisation of the existing working capital limits which along with the recent RBI guidelines on gold import for domestic purpose would further put pressure on its liquidity position, CARE said.
CARE further added that it has also taken into account the significant erosion in share price and market capitalisation of the company in the last two weeks of June 2013 which in CARE's opinion would have weakening effect on GGL's financial flexibility and liquidity. The rating has been placed on credit watch due to lack of adequate information in-order to take a final view, the rating agency added.
Strides Arcolab dropped 5.38%, with the stock extending recent losses triggered by reports that the Department of Industrial Policy and Promotion (DIPP) has put on hold the company's unit Agila Specialties' sale plan on concerns that ownership of critical cancer drug-making facilities will fall into foreign hands. The DIPP, the government body that makes FDI (foreign direct investment) policy, raised fears that foreign multinational firms were taking over the few remaining domestic cancer drug-making facilities. The Foreign Investment Promotion Board (FIPB) has reported deferred a decision on the deal.
On 28 February this year, Strides Arcolab and the US-based Mylan Inc signed a massive $1.6 billion plus agreement by which the US drug major was to acquire Agila Specialties, the injectable medicine business of Strides.
Most Asian stocks rose on Wednesday, 10 July 2013, after an improved economic outlook clinched a fourth day of improvement for US equities on Tuesday, 9 July 2013. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, and Taiwan rose by 0.51% to 1.72%. Key benchmark indices in South Korea and Japan fell by 0.34% to 0.39%.
Chinese stocks rose on expectations that policy makers will ensure economic stability.
China's exports and imports both unexpectedly declined in June in a sign that weakness in global and domestic demand will intensify the slowdown in the world's second-biggest economy. Overseas shipments fell 3.1% from a year earlier, the General Administration of Customs said in Beijing today, 10 July 2013. Imports declined 0.7% after a 0.3% drop in May.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 10 July 2013. US stocks closed solidly higher for the fourth straight day on Tuesday, 9 July 2013, pushing the S&P 500 to within 1% of its all-time closing high, as Wall Street embraced an improving economy and higher interest rates.
The minutes of Federal Open Market Committee's (FOMC) policy meeting held on 19 June 2013, will be released later in the global day today, 10 July 2013. The minutes may provide more insight into the Federal Reserve's outlook on monetary stimulus. Fed Chairman Ben Bernanke is also due to deliver a speech today, 10 July 2013. Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.
World economic growth will struggle to accelerate this year as a US expansion weakens, China's economy levels off and Europe's recession deepens, the International Monetary Fund said. Global growth will be 3.1% this year, unchanged from the 2012 rate, and less than the 3.3% forecast in April, the Washington-based fund said yesterday, trimming its prediction for this year a fifth consecutive time.
In Europe, global ratings agency Standard & Poor's cut Italy's sovereign credit rating on Tuesday to BBB from BBB-plus and left its outlook on negative, citing concerns about prospects for an economy stuck in its worst recession since World War Two.
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