Key benchmark indices further extended losses and hit fresh intraday low in early afternoon trade. The market breadth, indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was down 131.85 points or 0.59%, off close to 155 points from the day's high and up about 10 points from the day's low. Weakness in Asian stocks hit sentiment on the domestic bourses adversely.
Metal stocks fell after latest data showed services index in China from HSBC Holdings Plc and Markit Economics dropped in April from March.
The market edged lower amid initial volatility. Key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. The Sensex extended losses and hit fresh intraday low in mid-morning trade. The Sensex further extended losses and hit fresh intraday low in early afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 45.93 crore on Tuesday, 6 May 2014, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was down 131.85 points or 0.59% to 22,376.57. The index fell 143.06 points at the day's low of 22,365.36 in early afternoon trade, its lowest level since 5 May 2014. The index rose 24.40 points at the day's high of 22,532.82 in early trade.
The CNX Nifty was down 31.60 points or 0.47% to 6,683.70. The index hit a low of 6,681.55 in intraday trade, its lowest level since 5 May 2014. The index hit a high of 6,718.75 in intraday trade.
The BSE Mid-Cap index was up 27.09 points or 0.37% at 7,397.78. The BSE Small-Cap index was up 16.13 points or 0.21% at 7,548.96. Both these indices outperformed the Sensex.
Also Read
The market breadth, indicating the overall health of the market turned negative from positive in early afternoon trade. On BSE, 1,189 shares dropped and 1,162 shares rose. A total of 138 shares were unchanged.
Infosys (down 2.74%), Bharti Airtel (down 2.16%) and Wipro (down 1.9%) edged lower from the Sensex pack.
Metal stocks fell after latest data showed services index in China from HSBC Holdings Plc and Markit Economics dropped in April from March. China is the World's largest consumer of copper and aluminum. Sesa Sterlite (down 0.67%), JSW Steel (down 1.12%), Hindalco Industries (down 1.05%), Bhushan Steel (down 0.6%), Tata Steel (down 0.29%), Steel Authority of India (Sail) (down 0.82%), and Hindustan Copper (down 0.75%) declined. Hindustan Zinc (up 1.09%), National Aluminum Company (up 0.13%) and NMDC (up 0.2%) gained.
IndusInd Bank rose 0.72%. The bank said during market hours today, 7 May 2014, that the bank and Rapid Metro Gurgaon (RMGL) inaugurated IndusInd Bank Cybercity Rapid Metro Station today, 7 May 2014. This is the first and the only metro station in the country which has been named and branded by a bank, thus making it an excellent example of transit mode of advertising in India opted by IndusInd Bank, the private sector bank said in a statement. The bank and RMGL have inked a 5 year contract for naming rights of the metro station.
IndusInd Bank said it has a strong retail focus and with the presence at Rapid Metro, the bank aims to reach out to more customers in Gurgaon and Delhi NCR.
HCL Technologies was off 1.34% at Rs 1,365. The stock was volatile. The stock hit high of Rs 1,403.25 and low of Rs 1,362.45 so far during the day. HCL Technologies and DNB Bank ASA, Norway's largest bank and one of the world's leading maritime shipping banks, today, 7 May 2014, announced a $400 million-strategic engagement. HCL will manage the IT infrastructure services and application operations for all DNB businesses across Norway and its key international locations.
As part of the deal HCL will migrate and transform DNB systems and infrastructure from its existing IT partner to create two new data centers in Norway. The key focus will be driving a world-class user experience to the bank's 2.5 million retail banking customers and end-users across all DNB's products, including retail and online banking, cards, insurance, capital markets, payments and finance, HCL Technologies said in a statement.
Everonn Education jumped 4.13% after the company said its board will meet on 15 May 2014, inter alia to consider offer of shares through rights issue. The announcement was made before market hours today, 7 May 2014. Everonn Education reported a net loss of Rs 21.64 crore in Q3 December 2013, lower than net loss of Rs 129.27 crore in Q3 December 2012. Net sales declined 28.2% to Rs 11.22 crore in Q3 December 2013 over Q3 December 2012.
In the foreign exchange market, the rupee edged higher against the dollar on speculation Federal Reserve Chair Janet Yellen will reiterate a pledge to keep US interest rates low in testimony later in the global day today, 7 May 2014. The partially convertible rupee was hovering at 60.07, compared with its close of 60.11/12 on Tuesday, 6 May 2014.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the ongoing Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Investors are hoping that a stable government which will complete its full term of office i.e. five years comes to power after the elections. Investors are expecting measures for revival of the Indian economy, business-friendly policies and better governance from new government that comes to power after the elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
Asian shares fell on Wednesday, 7 May 2014, amid mounting concern China's economy is slowing after the result of a survey released by HSBC Holdings Plc and Markit Economics showed that services index for China declined in April from March. Key benchmark indices in Japan, Hong Kong, China, Singapore, South Korea and Taiwan were down 0.22% to 2.93%. Indonesia's Jakarta Composite rose 0.24%.
A services index in China from HSBC Holdings Plc and Markit Economics dropped to 51.4 in April from 51.9 in the previous month.
Most members of the Bank of Japan agreed to keep easing monetary policy until inflation stabilizes at 2%, according to minutes of the April 7-8 policy meeting released today, 7 May 2014.
Trading in US index futures indicated that the Dow could slide 20 points at the opening bell on Wednesday, 7 May 2014. US stocks dropped broadly on Tuesday, 6 May 2014, closing at session lows, with AIG pulling financial shares lower after disappointing earnings and as a slide in Twitter took down other names in the technology and internet space.
The US trade deficit narrowed in March as exports grew by the most in nine months, the Commerce Department reported yesterday, 6 May 2014.
US Federal Reserve Chairwoman Janet Yellen is scheduled to testify before the congressional Joint Economic Committee today, 7 May 2014, and the Senate Budget Committee tomorrow, 8 May 2014.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.
In Europe, a monthly meeting of the Monetary Policy Committee of the Bank of England's (BoE) for monetary policy review is scheduled tomorrow, 8 May 2014.
The European Central Bank (ECB) will hold monetary policy meeting tomorrow, 8 May 2014, in Brussels, Belgium.
German factory orders unexpectedly fell in March, signaling that growth in Europe's largest economy remains uneven. Orders, adjusted for seasonal swings and inflation, fell 2.8% from February, when they increased a revised 0.9%, the Federal Statistics Office in Wiesbaden said today.
The global economy will strengthen over the coming two years, but urgent action is still required to further reduce unemployment and address other legacies from the crisis, according to the OECD's latest Economic Outlook.
"Advanced economies are gaining momentum and driving the pick-up in global growth, while once-stalled cylinders of the economic engine, like investment and trade, are starting to fire again," OECD Secretary-General Angel Gurr said while launching the Outlook during the Organisation's annual Ministerial Council Meeting and Forum in Paris.
GDP growth across the 34-member OECD is projected to accelerate to a 2.2% rate in 2014 and 2.8% in 2015, according to the Outlook. The world economy will grow at a 3.4% rate in 2014 and 3.9% in 2015.
Among the major advanced economies, recovery is best established in the United States, which is projected to grow by 2.6% in 2014 and 3.5% in 2015. The euro area will see a return of positive growth after three years of contraction: 1.2% in 2014 and 1.7% in 2015. In Japan, growth will be dented by the launch of much-needed fiscal consolidation measures, and is expected to hover at 1.2% in 2014 and 2015.
The BRICS (Brazil, China, India, Indonesia, Russia and South Africa) are projected to see GDP growth of 5.3% this year on average and 5.7% in 2015. China will again have the fastest growth among these countries, with rates just below 7.5% in 2014 and 2015.
Powered by Capital Market - Live News