Key benchmark indices hovered in the negative terrain in morning trade. Index heavyweight and cigarette major ITC hovered in red. Another index heavyweight Reliance Industries (RIL) was slightly lower. The barometer index, the S&P BSE Sensex, was down 70.94 points or 0.36%, off close to 65 points from the day's high and up about 35 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Bharti Airtel edged higher after the company announced that it has entered into a binding agreement with Qatar Foundation Endowment (QFE), under which the company will issue 19.98 crore of its new shares to QFE representing a shareholding of 5% in the company, post issuance of the new shares. Interest rate sensitive realty stocks edged lower after the Reserve Bank of India on Thursday, 2 May 2013, said in a report that it sees limited space to cut rates. Many pharma stocks edged lower.
The market edged lower in early trade. The market hovered in the negative terrain in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1429.94 crore on Thursday, 2 May 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was down 70.94 points or 0.36% to 19,664.83. The index fell 4.14 points at the day's high of 19,731.63 in early trade. The index declined 105.22 points at the day's low of 19,630.55 in early trade.
The CNX Nifty was down 21.65 points or 0.36% to 5,977.70. The index hit a high of 6,000.30 in intraday trade. The index hit a low of 5,965 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 710 shares fell and 595 shares rose. A total of 66 shares were unchanged.
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Among the 30-share Sensex pack, 22 stocks fell while rest of them rose. Tata Motors, State Bank of India and ICICI Bank shed by 1.54% to 2.26%. TCS, NTPC and Jindal Steel & Power rose by 0.46% to 1.04%.
Index heavyweight Reliance Industries (RIL) declined 0.22% to Rs 801.50. The scrip hit high of Rs 804.50 and a low of Rs 798 so far during the day. The company said on Tuesday, 30 April 2013, that its telecom unit Reliance Jio Infocomm (India) has joined a consortium of telecom companies building an 8,000 kilometre submarine cable system to link Malaysia and Singapore with the Middle East. The Bay of Bengal Gateway (BBG) cable system, which will have connections to India and Sri Lanka, is expected to carry commercial traffic by end of 2014, RIL said.
At the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the next 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Index heavyweight and cigarette major ITC fell 0.43% to Rs 332 on profit booking. The scrip hit high of Rs 333.30 and a low of Rs 330.10 so far during the day. The stock had hit record high of Rs 335.90 in intraday on Tuesday, 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.
Interest rate sensitive realty stocks edged lower after the Reserve Bank of India on Thursday, 2 May 2013, said in a report that it sees limited space to cut rates to support economic growth due to elevated consumer-price inflation and high current-account deficit. Purchases of both residential and commercial property are largely driven by finance. DLF, HDIL, D B Realty, Sobha Developers and Unitech shed by 0.77% to 2.64%.
Many pharma stocks edged lower. Ranbaxy Laboratories, Dr Reddy's Laboratories and Cipla dropped by 0.06% to 0.23%. Sun Pharmaceutical Industries rose 0.38%.
Bharti Airtel advanced 1.64% after the company before market hours today, 3 May 2013, announced that it has entered into a binding agreement with Qatar Foundation Endowment (QFE), under which Bharti will issue 19.98 crore of its new shares to QFE representing a shareholding of 5% in the company, post issuance of the new shares. As per the agreement, QFE will subscribe to 19.98 crore new shares of Bharti at a price of Rs 340 per share amounting to a total consideration of $1.26 billion (Rs 6796 crore). The investment will further strengthen the capital structure and provide further flexibility for the company to deliver on its growth strategy, Bharti said in a statement.
The focus of the market is on Q4 results. Grasim and Jaiprakash Associates will unveil their Q4 results tomorrow, 4 May 2013. HDFC and Lupin unveil Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on 9 May 2013. NTPC announces Q4 results on 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 announces Q4 results on 30 May 2013.
India's factories lost momentum in April as output grew at its weakest pace in over four years, but a jump in export orders augured well for the coming months, a survey showed on Thursday, 2 May 2013. The HSBC Manufacturing Purchasing Managers' Index (PMI), fell for the second straight month in April, dipping to 51 from 52 in March. The reading for April was the lowest since November 2011.
The Reserve Bank of India (RBI) is set to announce its Monetary Policy Statement 2013-14 at 11:00 IST today, 3 May 2013. The RBI on Thursday, 2 May 2013, said in a report which serves as a backdrop to the Monetary Policy Statement 2013-14 that the macro-financial risks require cautious monetary policy stance from the central bank ahead. In view of macro-financial risks that stay significant, headline inflation remaining above the threshold and consumer price inflation remaining high, the space for action for 2013-14 remains very limited, the RBI said. If some of the risks come to fore, policy re-calibration may become necessary in either direction, it said. A slow-paced recovery in the economy is likely during the latter part of 2013-14, contingent on improved governance and concerted action to resolve structural bottlenecks, especially in infrastructure sector, the central bank said. Output gap is likely to reduce, but remain negative, it said.
The headline inflation is likely to remain range-bound in 2013-14, with some further moderation in the first half of the year 2013-14 due to subdued producers' pricing power and falling global commodity prices, before it increases somewhat in the second half of the year largely due to base effects. The RBI's survey of outside professional forecasters shows anticipation of a modest recovery with growth in 2013-14 at 6% from 5% and average WPI inflation to moderate to 6.5% from 7.3%. Surveys show that inflation expectations have moderated slightly, while business expectations remain subdued.
The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013.
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.
Asian stocks rose for the first time in three days on Friday as Macquarie Group reported higher earnings and investors awaited the release of US job data. Key benchmark indices in China, Hong Kong, Taiwan and South Korea rose by 0.09% to 1.81%. Key benchmark indices in Japan, Indonesia and Singapore fell by 0.67% to 0.81%.
China's service industries expanded at a slower pace last month, adding to the drag on growth in the world's second-biggest economy after manufacturing lost momentum. The non-manufacturing Purchasing Managers' Index fell to 54.5 from 55.6 in March, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in a statement today in Beijing.
Trading in US index futures indicated a flat opening of US stocks on Friday, 3 May 2013. US stocks rose on Thursday, sending the Standard & Poor's 500 index to a record high, as the European Central Bank cut its key interest rate and American jobless claims unexpectedly fell. Applications for US unemployment insurance payments fell 18,000 to 324,000 in the week ended April 27, the fewest since January 2008, Labor Department figures showed yesterday.
In Europe, the European Central Bank lowered its benchmark rate to a record low yesterday and President Mario Draghi signaled another reduction is possible. European policy makers cut the main refinancing rate to a record-low 0.5% yesterday from 0.75%, and reduced the marginal lending rate to 1% from 1.5%.
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