Key benchmark indices hit fresh intraday low in mid-morning trade. The S&P BSE Sensex was down 22.05 points or 0.11%, off about 90 points from the day's high and up close to 20 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Steel stocks edged lower, with Tata Steel hitting 52-week low. Others stocks from the metal pack declined on weak trade data in China. Reliance Capital rose after Reliance Life Insurance Company, part of Reliance Capital, has registered 100% increase in its new business premium at Rs 514 crore during Q1 FY14.
The market edged higher in early trade. It slipped into the red to hit fresh intraday low after paring initial gains and hovering between the gains and losses in morning trade. The market hit fresh intraday low in mid-morning trade.
At 11:20 IST, the S&P BSE Sensex was down 22.05 points or 0.11% to 19,417.43. The index fell 45.03 points at the day's low of 19,394.45 in mid-morning 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 1.45 points or 0.02% to 5,857.55. 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 5,851.10 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 900 shares rose and 652 shares fell. A total of 114 shares were unchanged.
From the 30-share Sensex pack, 19 stocks fell and rest of them rose. Tata Motors (down 2.44%), Hindustan Unilever (down 1.23%) and GAIL (India) (down 1.08%), edged lower.
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Steel stocks edged lower. Jindal Steel & Power (down 1.17%), JSW Steel (down 1.08%) and Sail (down 0.83%), edged lower.
Tata Steel fell 1.82% to Rs 256.90. The stock hit 52-week low of Rs 255.80 in intraday trade today, 10 July 2013. Tata Steel said today, 10 July 2013 its hot metal production rose 20% to 2.22 million tonnes in first quarter ended June 2013-14 (Q1 FY 2014) over Q1 FY 2013. The crude steel production rose 22% to 2.46 million tonnes in Q1 FY'14 over Q1 FY 13. Saleable Steel production was higher by 23% to 2.14 million tonnes in Q1 FY'14 over Q1 FY 13 and sales increased by 26% to 2.01 million tonnes in Q1 FY'14 over Q1 FY 13.
The growth strategy endorsed at the meeting headed by Prime Minister on Tuesday, 9 July 2013 aims at the production of 300 million tons of steel by the middle of the next decade. In the short run, pro-active facilitation of projects in the pipeline would be taken up on priority jointly by the Steel Ministry and the new investment facilitation mechanism in the Cabinet Secretariat. SAIL would leverage its existing infrastructure to substantially expand capacity. It would work out its plans for capacity expansion and production of speciality steels by 30 September 2013. A Master Plan for achieving 300 million tons of production would be prepared. As the private sector finds it difficult to assemble land and get clearances, the state would assume a pro-active role in partnership with state governments. Project specific SPVs would be floated for identified sites which would assemble land, get necessary approvals and clearances and tie up water and raw materials. The SPV would then be offered in a transparent manner for takeover by investors through a bidding process. The Steel Ministry would prepare a road map with time lines for the above in 8 weeks.
Others stocks from the metal pack declined on weak trade data in China. China is the world's largest consumer of copper and aluminum. Sterlite Industries (down 1.07%) and Hindalco Industries (down 0.94)%, edged lower.
Reliance Capital rose 0.81%. Reliance Life Insurance Company (RLIC), part of Reliance Capital, has registered 100% increase in its new business premium at Rs 514 crore during Q1 FY14, compared to Rs 251 crore in the corresponding quarter in last fiscal.
The company registered 48% growth in new business (individual) premium at Rs 267 crore in Q1 FY14, as against Rs 181 crore registered in Q1 FY13. The total premium grew by 12% to Rs 914 crore In the first quarter, as against Rs 815 crore in the same period last year. The company increased its average ticket size by over 40% in Q1 FY14, and touched Rs 20,000 by quarter end. Agent productivity also improved 50% during the quarter.
The Prime Minister held a meeting of the High Level Committee on Manufacturing (HLCM) on Tuesday, 9 July 2013. The meeting was attended by all the Ministers and officials of departments relating to the manufacturing sector including the Ministers of Science & Technology, Heavy Industry, Civil Aviation, Steel, Textiles & MSME and the Deputy Chairman of the Planning Commission. The discussion centred around the proposals made by the National Manufacturing Competitiveness Council which were presented by the Chairman, Dr. V. Krishnamurty. The meeting was convened to discuss the strategy for boosting competitiveness and output in two important sectors, textiles and steel and for formulating a long term approach in three strategic industries, civilian aircraft manufacture, electric and hybrid vehicles and advanced materials and composites. Decisions relating to the short term and long term strategies for the five areas were taken and it was agreed to move ahead on all of them.
The HLCM took a major strategic decision for the development of a civilian aircraft, of a 70-100 seater range to begin with, in India. The idea is to house the development and production in an SPV that would be created for this purpose. The design capabilities in NAL, HAL and other institutions in the country would be utilised for this. Development and production partnerships with Indian private sector firms as well as overseas institutions is envisaged.
The HLCM also approved a plan to increase steel production capacity to 300 million tonnes, a 30% increase in textile exports, and domestic manufacturing capabilities in advanced materials, alloys and composites. The additional 300 million tonnes of steel capacity will by the Central Public Sector Enterprises in collaboration with the states. Steel ministry will come out with time-bound action plans in eight weeks to implement the decisions. An inter-ministerial group under textiles secretary will prepare in four weeks a plan to boost textiles exports. Other groups will take forward decision on electric and hybrid transport, civilian aircraft production and advanced materials.
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 0.24% to 1.28%. Key benchmark indices in South Korea and Japan fell by 0.53% to 0.92%.
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. Imports declined 0.7% after a 0.3% drop in May.
Trading in US index futures indicated that the Dow could fall 14 points at the opening bell 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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