Intraday volatility continued as key benchmark indices regained positive terrain after slipping into the red for a brief period in afternoon trade. The market turned volatile after the Central Bureau of Investigation (CBI) said in a fresh affidavit filed in the Supreme Court on its probe into the coal blocks allocation that changes were made by law minister, coal ministry, attorney general and officials of the Prime Minister's Office in CBI's draft status report on coal scam. The barometer index, the S&P BSE Sensex, was up 19.23 points or 0.1%, off close to 100 points from the day's high and up about 40 points from the day's low. Index heavyweight and cigarette major ITC hovered in the red. Other FMCG stocks also declined. Another index heavyweight Reliance Industries (RIL) held firm. The market breadth, indicating the overall health of the market, was positive.
Realty stocks edged lower after the Reserve Bank of India (RBI) said after a monetary policy review on Friday, 3 May 2013 that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. Capital goods stocks edged higher on renewed buying.
Key benchmark indices edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as the key benchmark indices regained positive zone after slipping into the red in morning trade. The market retained positive zone in mid-morning trade. Volatility continued as key benchmark indices pared gains after striking fresh intraday high in early afternoon trade. The market regained positive terrain after slipping into the red for a brief period in afternoon trade.
The Central Bureau of Investigation (CBI) said in a fresh affidavit filed in the Supreme Court on its probe into the coal blocks allocation today, 6 May 2013, said that changes were made by law minister, coal ministry, attorney general and officials of the Prime Minister's Office in CBI's draft status report on coal scam. Last week, the Supreme Court had issued strong observations against CBI sharing the draft coal block scam report with the government. The apex court had asserted that the probe agency must be liberated and should not be controlled by political masters.
At 13:20 IST, the S&P BSE Sensex was up 19.23 points or 0.1% to 19,594.87. The index jumped 118.65 points at the day's high of 19,694.29 in early afternoon trade. The index declined 21.33 points at the day's low of 19,554.31 in morning trade.
The CNX Nifty was up 0.95 points or 0.02% to 5,944.95. The index hit a high of 5,976.50 in intraday trade. The index hit a low of 5,928.45 in intraday trade, its lowest level since 2 May 2013.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 1,216 shares advanced and 870 shares declined. A total of 112 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks gained while rest of them declined. ONGC, HDFC Bank and NTPC shed by 1.48% to 1.57%. Hindalco Industries, TCS and Tata Steel rose by 2.63% to 3.26%.
Index heavyweight Reliance Industries (RIL) rose 1.97% to Rs 817. The scrip hit high of Rs 824.70 and a low of Rs 802.50 so far during the day.
Index heavyweight and cigarette major ITC shed 1.28% to Rs 326.50 on profit booking. The scrip hit high of Rs 332.40 and a low of Rs 325.70 so far during the day. The stock had hit record high of Rs 335.90 in intraday on 30 April 2013. The Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14.
Among other FMCG stocks, Hindustan Unilever, Nestle India, Godrej Consumer Products and Dabur India dropped by 0.06%t o 1.78%.
Many capital goods stocks edged higher on renewed buying. ABB, Siemens, Bhel and BEML rose by 0.02% to 3.85%. But, L&T fell 0.27%.
Realty stocks edged lower after the Reserve Bank of India (RBI) said after a monetary policy review on Friday, 3 May 2013 that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. Purchases of both residential and commercial property are largely driven by finance. DLF, Unitech and Sobha Developers shed by 0.11% to 1.52%.
Reliance Communications (RCom) declined 0.27%. The company reportedly had reported increased voice call prices on some of its plans by about a fifth and cut promotional offers and discounts on some others by up to 65%.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. HDFC and Lupin unveil Q4 results on Wednesday, 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on Thursday, 9 May 2013. NTPC announces Q4 results on Friday, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Indian services sector growth eased sharply during April as new orders came in at a much slower pace, a business survey showed today, 6 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 50.7 in April 2013, its lowest since October 2011. It was the third straight month of decline, and took the index dangerously close to the 50 mark that separates growth from contraction. The index had stood at 51.4 in March. Services make up over 60% of India's economy.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 on Friday, 10 May 2013. Industrial production rose 0.6% in February 2013.
The Budget session of the Parliament ends on Friday, 10 May 2013.
The RBI on Friday, 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 that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. 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 stocks opened lower on Monday. Key benchmark indices in France and Germany fell by 0.05% to 0.09%. The stock market in US was closed for a holiday.
Asian stocks rose on Monday as investors gave thumbs up to an upbeat US labor force report that sent Wall Street to an all-time closing high on Friday, 3 May 2013. Key benchmark indices in China, Hong Kong, Taiwan, Indonesia and Singapore rose by 0.42% to 1.16%. South Korea's KOSPI Composite index fell 0.22%. Japanese financial markets are shut on Monday for a public holiday and will reopen on Tuesday.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Monday, 6 May 2013. US stocks on Friday, 3 May 2013, rose to record highs, with the Dow industrials soaring above 15,000 and the S&P 500 index above 1,600, as Wall Street celebrated an upbeat April jobs report. US nonfarm payrolls rose by 165,000 last month and the jobless rate fell to a four-year low of 7.5%, the Labor Department said on Friday, 3 May 2013.
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