Key benchmark indices extended fall to slide to fresh intraday low in morning trade on weak Asian stocks. The S&P BSE Sensex was down 247.32 points or 1.27%, off 130.61 points from the day's high and up 6.09 points from the day's low. The market breadth, indicating the overall health of the market, was weak.
Reliance Industries extended initial fall. IT stocks rose as the rupee weakened against the dollar on heavy dollar demand tracking strengthening of the US currency overseas. Telecom stocks edged lower.
Key benchmark indices dropped in early trade on weak Asian stocks. Market extended fall to slide to fresh intraday low in morning trade.
The rupee weakened and the bond price fell in early deals. The rupee fell below 60 a dollar in early deals before regaining that psychological mark. The rupee was hovering at 59.9900, weaker than Tuesday's close of 59.66/67.
In the government bond market, the yield on the most traded 8.2% GS 2025 was currently at 7.100%, higher than Tuesday's close at 7.6722%.
Foreign institutional investors (FIIs) sold shares worth a net Rs 43.20 crore on Tuesday, 2 July 2013, as per provisional data from the stock exchanges.
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At 10:21 IST, the S&P BSE Sensex was down 247.32 points or 1.27% to 19,216.50. The index lost 253.41 points at the day's low of 19,210.41 in morning trade, its lowest level since 28 June 2013. The index fell 116.71 points at the day's high of 19,347.11 in opening trade.
The CNX Nifty was down 72.85 points or 1.24% to 5,784.70. The index hit a low of 5,781.80 in intraday trade, its lowest level since 28 June 2013. The index hit a high of 5,815 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 877 shares declined and 421 shares rose. A total of 58 shares were unchanged.
The total turnover on BSE amounted to Rs 589 crore by 10:20 IST compared to Rs 309 crore by 09:30 IST.
Among the 30-share Sensex pack, 27 stocks declined and only three of them gained.
Reliance Industries (RIL) fell 1.92% to Rs 854.55, with the stock extending initial fall. The government on Thursday, 27 June 2013, agreed to double natural gas prices to industrial and retail consumers to help fund investment in exploration and reverse declining domestic gas output. The price of gas could go up to $8.4 per million metric British thermal units (mmBtu), effective 1 April next year, from current $4.2 mmBtu.
IT stocks rose as the rupee weakened against the dollar on heavy dollar demand tracking strengthening of the US currency overseas. The rupee was hovering at 59.9900, weaker than Tuesday's close of 59.66/67. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Infosys (up 1.22%), HCL Technologies (up 1.1%) and Tata Consultancy Services (TCS) (up 0.09%) gained. Wipro shed 0.3%.
Telecom stocks edged lower. Bharti Airtel (down 3.34%), Idea Cellular (down 1.23%), MTNL (down 0.55%), Tata Teleservices (Maharashtra) (down 0.86%) and Reliance Communications (down 0.11%) declined.
The Telecom Commission on Tuesday reportedly approved the enhancement of the foreign direct investment (FDI) limit in the telecom sector to 100% from 74%, where 49% of investment in an entity can be done through automatic route and FIPB's (Foreign Investment Promotion Board) approval will be required to raise further stake. The Telecom Commission's decision will now be submitted to the Union Cabinet for its approval.
Markit Economics will today, 3 July 2013, unveil the result of a monthly survey on the performance of India's services sector for June 2013. The HSBC Markit Services Purchasing Managers' Index rose to 53.6 in May from 50.7 in April.
Asian stocks fell on Wednesday, 3 July 2013, as concerns about growth in China's services sector added to the selling pressure amid caution ahead of US jobs data later in the week. Key benchmark indices in China, Hong Kong, Indonesia, South Korea, Taiwan, Singapore and Japan were down 0.09% to 1.87%.
A pair of surveys monitoring China's services sector released Wednesday showed weak growth for June. The government-sponsored version of China's services Purchasing Managers' Index fell to 53.9 for June from May's 54.3, though it remained above the 50 level dividing expansion from contraction.
Later in the morning, HSBC said its privately compiled China Services Business Activity Index ticked up to 51.3 last month, compared to 51.2 the previous month.
Trading in US index futures indicated that the Dow could fall 18 points at the opening bell on Wednesday, 3 July 2013. US stocks edged lower on Tuesday, 2 July 2013, losing steam gained from reports showing solid growth for car sales and factory orders as investors anticipated the jobs report at the end of the week. The US government will unveil the influential nonfarm payrolls data for June 2013 on Friday, 5 July 2013.
The US stock market is open for a short duration today, 3 July 2013, and remains closed tomorrow, 4 July 2013, for Independence Day holiday.
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