Key benchmark indices extended intraday losses in mid-afternoon trade as the Reserve Bank of India (RBI) is expected to raise its main lending rate viz. the repo rate by 25 basis points after a monetary policy review tomorrow, 29 October 2013, on rein in inflation. The market breadth, indicating the overall health of the market, was weak. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest level in more than a week. The Sensex was down 79.53 points or 0.38%, off close to 170 points from the day's high and up about 20 points from the day's low.
Index heavyweight and cigarette major ITC extended Friday's losses as the company's top line growth in Q2 September 2013 disappointed investors. Metal and mining stocks edged lower. FMCG major Hindustan Unilever (HUL) edged lower in choppy trade after the company reported Q2 results on Saturday, 26 October 2013. Neyveli Lignite Corporation declined on weak Q2 result.
The market trimmed initial gains triggered by firm Asian stocks. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving almost entire initial gains in morning trade. Intraday volatility continued as key benchmark indices recovered from lower level after giving away almost entire intraday gains in mid-morning trade. Key benchmark indices were off the day's high in early afternoon trade. Key benchmark indices hit fresh intraday low in afternoon trade. Key benchmark indices extended intraday losses in mid-afternoon trade.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month October 2013 series to November 2013 series. The near month October 2013 derivatives contract expire on Thursday, 31 October 2013.
At 14:20 IST, the S&P BSE Sensex was down 79.53 points or 0.38% to 20,603.99. The index fell 97.45 points at the day's low of 20,586.07 in mid-afternoon trade, its lowest level since 18 October 2013. The index rose 87.84 points at the day's high of 20,771.36 in early trade.
The CNX Nifty was down 34.40 points or 0.56% to 6,110.50. The index hit a low of 6,106.30 in intraday trade, its lowest level since 18 October 2013. The index hit a high of 6,168.75 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,390 shares dropped and 913 shares advanced. A total of 154 shares were unchanged.
More From This Section
Among the 30-share Sensex pack, 20 stocks fell and rest of them rose. SBI (down 1.8%), Coal India (down 0.97%), and Cipla (down 0.88%), edged lower from the Sensex pack.
Index heavyweight and cigarette major ITC extended Friday's losses as the company's top line growth in Q2 September 2013 disappointed investors. The stock was off 3.15%. The company's net profit jumped 21.46% to Rs 2230.53 crore on 9.42% growth in total income to Rs 8108.72 crore in Q2 September 2013 over Q2 September 2012. The company declared Q2 result at fag end of the day's trading session on Friday, 25 October 2013.
Metal and mining stocks edged lower. Sesa Sterlite (down 2.97%), Hindustan Zinc (down 1.02%), Tata Steel (down 2.24%), Jindal Steel & Power (down 0.15%), Sail (down 1.16%), and Hindalco Industries (down 1.74%), declined.
FMCG major Hindustan Unilever (HUL) edged lower in choppy trade after the company reported Q2 results on Saturday, 26 October 2013. The stock was off 0.94% at Rs 588.60. The stock hit high of Rs 619.95 and low of Rs 588.10 so far during the day. The company's net profit rose 13.24% to Rs 913.80 crore on 9.04% increase in total income to Rs 7043.63 crore in Q2 September 2013 over Q2 September 2012. HUL announced Q2 results on Saturday, 26 October 2013. HUL said its recurring profit after tax before exceptional items rose 10% to Rs 883 crore in Q2 September 2013 over Q2 September 2012. Despite a sharp increase in advertising and promotion (A&P) spends, Profit before Interest and Tax (PBIT) grew by 11% with PBIT margin improving 20 basis points (bps), HUL said.
The company said operating context during the quarter was challenging given the volatile cost environment, led by the rupee depreciation, and heightened competitive intensity. Overall industry media spend was up to its highest levels in over 18 quarters, with a particularly sharp increase in Oral Care. HUL's domestic consumer business grew at 10% in Q2 September 2013, driven by 5% underlying volume growth, the company said in a statement.
HUL's Chairman Harish Manwani said: "We have delivered another quarter of competitive and profitable growth. The consistency and resilience of our performance, in what has been a challenging market environment for some quarters now, is a reflection of the discipline with which we are managing our business and executing our strategy. We continue to strengthen our business for the long term by driving innovation, investing behind our brands and further building organizational capabilities."
Neyveli Lignite Corporation lost 1.47% on weak Q2 result. The company's net profit declined 28.3% to Rs 240 crore on 2.5% growth in net sales to Rs 1382.82 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced on Saturday, 26 October 2013.
In the foreign exchange market, the rupee edged lower against the dollar on caution ahead of the Reserve Bank of India's (RBI) monetary policy review tomorrow, 29 October 2013. The partially convertible rupee was hovering at 61.585, compared with its close of 61.46/47 on Friday, 25 October 2013.
Bond prices fell ahead of the Reserve Bank of India's (RBI) monetary policy review tomorrow, 29 October 2013. The yield on the federal benchmark paper 7.16% GS 2023 was hovering at 8.6307%, higher than its close of 8.5795% on Friday, 25 October 2013. Bond yield and bond prices are inversely related.
The Reserve Bank of India (RBI) announces Second Quarter Review of Monetary Policy 2013-14 tomorrow, 29 October 2013. Market men expect RBI to hike its main lending rate viz. the repo rate by 25 basis points to rein in inflation. The wholesale price (WPI) and consumer price inflation, both, accelerated in September 2013. WPI inflation accelerated to 6.46% in September 2013, from 6.1% in August 2013. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India rose 9.84% in September 2013, from 9.52% in August 2013.
The RBI will release its macroeconomic policy review at about 17:00 IST today, 28 October 2013, a day ahead of the Second Quarter Review of Monetary Policy 2013-14.
European stocks edged higher on Monday, 28 October 2013, supported by expectations that the US Federal Reserve will delay tapering its asset purchases. Key benchmark indices in France, Germany and UK were up 0.22% to 0.28%.
Asian stocks rose on Monday, 28 October 2013, after weaker than forecast US consumer confidence spurred bets the Federal Reserve will maintain stimulus. Key benchmark indices in China, Taiwan, Hong Kong, Singapore, Japan, Indonesia and South Korea rose 0.04% to 2.19%.
There are expectations that China's government will unveil economic reforms at a Communist Party meeting next month.
A Bank of Korea survey showed consumer sentiment rose this month to the highest level since May 2012.
Trading in US index futures indicated that the Dow could gain 41 points at the opening bell on Monday, 28 October 2013. US stocks rose on Friday, 25 October 2013, sending the Standard & Poor's 500 Index to a record, as Amazon.com Inc. and Microsoft Corp. sales beat estimates while a drop in consumer confidence added to speculation the Federal Reserve will delay scaling back monetary stimulus.
Data on US industrial production for September 2013 is due for release later in the global day today, 28 October 2013.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting tomorrow, 29 October and Wednesday, 30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
Powered by Capital Market - Live News