Volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. The S&P BSE Sensex trimmed losses after hitting 6-week low. The 50-unit CNX Nifty trimmed losses after hitting 17-week low. The Sensex was down 67.79 points or 0.36%, up about 85 points from the day's low and off close to 110 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Metal and mining stocks declined, with Tata Steel, Sail and Hindalco Industries hitting 52-week low. L&T also hit 52-week low. Index heavyweight and cigarette maker ITC dropped. Tata Motors extended intraday losses ahead of its Q1 results today, 7 August 2013.
A bout of initial volatility was witnessed as key benchmark indices slipped into the red after opening higher. Volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in morning trade.
Most Asian stocks dropped on Wednesday, 7 August 2013, after overnight losses in the US triggered by monetary-policy concerns.
The rupee weakened on Wednesday tracking some losses in regional share markets and currencies while dollar demand from domestic importers also weighed. The partially convertible rupee was hovering at 61.37, weaker than its close of 60.77/78 on Tuesday, 6 August 2013. The rupee had staged a strong intraday rebound on Tuesday after hitting record low of 61.80.
At 10:20 IST, the S&P BSE Sensex was down 67.79 points or 0.36% to 18,665.25. The index fell 154.09 points at the day's low of 18,578.95 in morning trade, its lowest level since 26 June 2013. The index rose 38.73 points at the day's high of 18,771.77 in early trade.
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The CNX Nifty was down 25 points or 0.45% to 5,517.25. The index hit a low of 5,492.60 in intraday trade, its lowest level since 10 April 2013. The index hit a high of 5,553.90 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 633 shares fell and 507 shares rose. A total of 56 shares were unchanged.
Among the 30-share Sensex pack, 21 stocks fell and rest of them rose. Maruti Suzuki India (down 1.23%), Tata Power Company (down 1.47%) and Coal India (down 1.1%), edged lower.
Index heavyweight and cigarette maker ITC dropped 2.74%.
Metal and mining stocks declined. Sterlite Industries (down 0.91%), Sesa Goa (down 1%), Jindal Steel & Power (down 1.74%), and JSW Steel (down 2.95%), declined.
NMDC fell 1.63% ahead of its Q1 results today, 7 August 2013.
Steel major Tata Steel dropped 1.01% to Rs 196.60 after hitting a 52-week low of Rs 195.40 in intraday trade today, 7 August 2013.
Sail declined 1.05% to Rs 37.75 after hitting a 52-week low of Rs 37.65 in intraday trade today, 7 August 2013.
Hindalco Industries shed 2.63% to Rs 93.25 after hitting a 52-week low of Rs 83.10 in intraday trade today, 7 August 2013.
L&T lost 1.85% to Rs 780.55 after hitting a 52-week low of Rs 778.05 in intraday trade today, 7 August 2013.
Tata Motors dropped 3.53%, with the stock extending intraday losses ahead of its Q1 results today, 7 August 2013.
Strides Arcolab jumped 14.78% to Rs 797 after the finance ministry on Tuesday, 6 August 2013, said that the government has kept in abeyance decision on Strides Arcolab's proposal to sell its specialties subsidiary, Agila Specialties to US based Mylan Inc. till DIPP finalizes policy on FDI in brown field pharma projects involving transfer of control. Strides Arcolab had in February 2013 announced the sell of Agila Specialties to Mylan Inc. for a net consideration of about $1.725 billion.
Bosch rose 3.07% after net profit rose 1.7% to Rs 251.68 crore on 5.2% increase in net sales to Rs 2269.19 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 6 August 2013. Bosch's profit before tax (PBT) increased by 7.1% to Rs 366 crore in Q1 June 2013 over Q1 June 2012. Exports increased by 14% during the period under review.
Shalimar Paints lost 2.85% after net profit fell 41.85% to Rs 1.82 crore on 10.81% decline in total income from operations to Rs 109.20 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Tuesday, 6 August 2013.
The government on Tuesday, 6 August 2013, named Dr. Raghuram Rajan as the next Governor of the Reserve Bank of India (RBI) for a term of three years after D Subbarao's tenure ends on 4 September 2013. Rajan, who is currently Chief Economic Adviser in the finance ministry, joined the government last August, having previously been chief economist at the International Monetary Fund and a professor at the University of Chicago.
Most Asian stocks dropped on Wednesday, 7 August 2013, after overnight losses in the US on monetary-policy concerns, with Japan taking an especially heavy hit from gains for the yen. Key benchmark indices in Japan, Hong Kong, Taiwan, and South Korea were off 0.28% to 2.9%. Key benchmark indices in China and Singapore rose by 0.34% to 0.37%.
The Bank Of Japan (BoJ) holds two-day policy meet on 7 and 8 August 2013. The BoJ is widely expected to maintain its pledge of increasing the monetary base at an annual pace of about 60 trillion to 70 trillion yen ($600 billion-$700 billion).
Trading in US index futures indicated that the Dow could fall 34 points at the opening bell on Wednesday, 7 August 2013. US stocks extended losses into a second day Tuesday after Fed Bank of Chicago President Charles Evans, who has been among the strongest proponents of the record monetary accommodation in the US said he expects the central bank to begin tapering its asset-purchase program by the end of the year.
The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
Data yesterday showed the US trade deficit narrowed more than economists expected in June to the least since October 2009. Separately, job openings rose to 3.94 million in June from 3.91 million in May, the US Department of Labor reported.
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