Volatility ruled the roost in afternoon trade as the key benchmark indices once again extended fall after staging a recovery from lower level. The barometer index, the S&P BSE Sensex was down 96.63 points or 0.37% at 25,798.34. Indian stocks fell today, 1 August 2014, tracking weakness in European and Asian stocks following a sharp fall in US stocks on Thursday, 31 July 2014. The market sentiment was also hit adversely after provisional data showed that foreign investors made heavy selling during the previous trading session. The market breadth indicating the overall health of the market was negative. Maruti Suzuki India gained after reporting strong sales in July. NTPC extended Thursday's losses triggered by weak Q1 results. Union Bank of India jumped after declaring good Q1 result. IT stocks edged lower.
At 13:13 IST, the S&P BSE Sensex was down 96.63 points or 0.37% to 25,798.34. The index slumped 215.51 points at the day's low of 25,679.46 in early trade, its lowest level since 21 July 2014. The index declined 32.29 points at the day's high of 25,862.68 in early afternoon trade.
The CNX Nifty was down 33.50 points or 0.43% to 7,687.80. The index hit a low of 7,649.75 intraday trade, its lowest level since 18 July 2014. The index hit a high 7,716.70 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,287 shares fell and 1,273 shares rose. A total of 106 shares were unchanged.
The BSE Mid-Cap index was up 30.53 points or 0.33% at 9,218.72. The BSE Small-Cap index was up 33.19 points or 0.33% at 10,022.61. Both these indices outperformed the Sensex.
Bharti Airtel (up 3.02%), Hindustan Unilever (up 1.97%), ICICI Bank (up 1.48%), Tata Steel (up 1.25%) and State Bank of India (up 1.21%) edged higher from the Sensex pack.
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Sun Pharmaceutical Industries (down 2.21%), Mahindra & Mahindra (down 2.19%), GAIL (India) (down 1.86%), and Tata Power Company (down 1.79%) edged lower from the Sensex pack.
Maruti Suzuki India gained 3.23% on strong sales in July. Maruti Suzuki India said during market hours that the company's total sales jumped 21.7% to 1.01 lakh units in July 2014 over July 2013. Domestic sales rose 19.9% to 90,093 units in July 2014 over July 2013. Exports rose 38.4% to 11,287 units in July 2014 over July 2013.
Maruti Suzuki India's net profit rose 20.7% to Rs 762.30 crore on 10.8% rise in net sales (net of excise) to Rs 11073.50 crore in Q1 June 2014 over Q1 June 2013. The car major said that cost reduction and localization initiatives, growth in volumes and favourable foreign exchange helped improve the bottom line during the quarter. The result was announced during market hours on Thursday, 31 July 2014.
NTPC dropped 2%, with the stock extending Thursday's losses triggered by weak Q1 results. The company's net profit fell 12.89% to Rs 2201.20 crore on 15.21% rise in total income to Rs 1885.14 crore in Q1 June 2014 over Q1 June 2013. The company announced results during market hours on Thursday, 31 July 2014.
IT stocks declined. HCL Technologies (down 2.44%), Wipro (down 1.34%), TCS (down 1.49%), MphasiS (down 1.13%) and Infosys (down 0.73%) edged lower.
Tech Mahindra dropped 2.24% after the company reported a marginal rise profitability in Q1 results. The company reported 2.7% growth in consolidated profit after tax at Rs 631 crore on 1.3% growth in revenue to Rs 5122 crore in Q1 June 2014 over Q4 March 2014. Operating profit (EBITDA) declined 13.4% to Rs 928 crore in Q1 June 2014 over Q4 March 2014. The result was announced after market hours on Thursday, 31 July 2014.
Union Bank of India jumped 5.98% at Rs 202.90 after reporting good Q1 earnings. The bank's net profit rose 18.54% to Rs 664.11 crore on 12.26% growth in total income to Rs 8547.56 crore in Q1 June 2014 over Q1 June 2013. The result was announced during market hours.
The market sentiment was hit adversely after provisional data showed that foreign investors made heavy selling during the previous trading session. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1654.86 crore on Thursday, 31 July 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.81, compared with its close of 60.54 on Thursday, 31 July 2014.
Markit Economics today, 1 August 2014, said that the HSBC India Purchasing Managers' Index (PMI) -- a composite gauge designed to give an accurate overview of operating conditions in the manufacturing sector -- reached a 17-month peak of 53 in July, up from 51.5 in June. Details within the survey showed that all monitored categories witnessed a rise in output and order flows. However, employment deteriorated fractionally, while inflationary pressures continued to emerge, particularly on the supply-side.
The index of the eight core industries rose 7.3% in June 2014 over June 2013, data released by the government after trading hours on Thursday, 31 July 2014, showed. The eight core industries have a combined weight of 37.9% in the Index of Industrial Production (IIP).
India's fiscal deficit target for the current fiscal year is "daunting", Finance Minister Arun Jaitley reportedly said today, 1 August 2014. The fiscal deficit for the first quarter of the fiscal year ending 31 March 2015 (FY 2015) was at Rs 297859 crore, which amounted to 56.1% of the budget estimates. The month of June 2014 saw a fiscal deficit of Rs 57022 crore, against a fiscal deficit of Rs 127383 crore in May 2014. The data was released after market hours on Thursday, 31 July 2014.
The World Trade Organization reportedly failed on Thursday to reach a deal to standardise customs rules, which would have been the first global trade reform in two decades but was blocked by India's demands for concessions on agricultural stockpiling. The deadline passed without a breakthrough. WTO ministers had already agreed the global reform of customs procedures known as "trade facilitation" last December, but it needed to be put into the WTO rule book by 31 July 2014.
European stocks fell in early trade today, 1 August 2014 as companies including ArcelorMittal (MT) posted worse-than-forecast earnings. Key benchmark indices in UK, France and Germany fell by 0.55% to 0.74%.
Asian stocks dropped today, 1 August 2014, extending the biggest global rout in six months that saw the Dow Jones Industrial Average wipe out this year's gains in one session yesterday amid weaker earnings and credit-market concerns. Key benchmark indices in Hong Kong, China, Singapore, Japan, South Korea and Taiwan were off 0.15% to 0.94%.
China's manufacturing purchasing managers' index increased to 51.7 in July from 51 the previous month, according to data released today by the National Bureau of Statistics and China Federation of Logistics. A private gauge of factory activity from HSBC Holdings Plc and Markit Economics rose to 51.7 last month from 50.7 in June. Levels of 50 or higher signal expansion.
Developments in Latin America will be closely watched as Argentina missed a deadline yesterday to pay $539 million in interest after two full days of negotiations in New York failed to produce an accord with creditors.
S&P declaring Argentina in default melded with concern over Europe's debt position as Portugal's Banco Espirito Santo SA was told to raise capital. Banco Espirito Santo SA plunged by the most on record and the bonds slumped on Thursday, 31 July 2014, after the Portuguese lender was ordered to raise capital following a 3.6 billion euro ($4.8 billion) first-half net loss.
Trading in US index futures indicated that the Dow could gain 39 points at the opening bell on Friday, 1 August 2014. US stocks joined a global selloff on Thursday, 31 July 2104, erasing the year's gains for the Dow Jones Industrial Average, as Exxon Mobil Corp. to Micron Technology Inc. tumbled amid weaker corporate results.
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