Immense volatility was witnessed as key benchmark indices regained positive terrain after a sharp intraday slide saw key indices moving into the red from green in mid-morning trade. The S&P BSE Sensex was up 76.88 points or 0.4%, off about 150 points from the day's high and up about 250 points from the day's low. The market breadth, indicating the overall health of the market, was weak. Bank of Baroda declined after Q1 results.
Interest rate sensitive realty stocks extended their recent losses as the Reserve Bank of India (RBI) kept its key lending rate viz. the repo rate and cash reserve ratio unchanged after a monetary policy review on Tuesday, 30 July 2013, as the central bank focused on managing the currency volatility rather than pushing for growth. Realty major DLF hit 52-week low. Index heavyweight Reliance Industries (RIL) declined. Capital goods stocks declined on worries the ongoing slowdown in the economy could restrict new orders, with L&T hitting 52-week low. Pharma major Ranbaxy Laboratories hit 52-week low. State Bank of India also hit 52-week low. Jaiprakash Associates tumbled.
The market surged in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices trimmed initial gains in morning trade. High volatility was witnessed as key benchmark indices reversed strong initial gains after the results of a private survey data showed that slowdown in factory activity deepened last month. Immense volatility was witnessed as key benchmark indices regained positive terrain in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was up 76.88 points or 0.4% to 19,422.58. The index jumped 223.50 points at the day's high of 19,569.20 in early trade, its highest level since 30 July 2013. The index fell 175.24 points at the day's low of 19,170.46 in early afternoon trade.
The CNX Nifty was up 17.35 points or 0.3% to 5,759.35. The index hit a high of 5,808.50 in intraday trade, its highest level since 30 July 2013. The index hit a low of 5,676.85 in intraday trade.
The market breadth, indicating the overall health of the market, weak. On BSE, 1,168 shares fell and 624 shares rose. A total of 105 shares were unchanged.
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Among the 30-share Sensex pack, 18 stocks rose and rest of them fell. Hindustan Unilever (up 3.3%), HDFC (up 2.54%) and Jindal Steel & Power (up 2.76%), gained.
Bank of Baroda declined 3.25% after Q1 results. The bank's net profit rose 2.54% to Rs 1167.87 crore on 14.89% rise in total income to Rs 10717.49 crore in Q1 June 2013 over Q1 June 2012. The bank announced Q1 result during market hours today, 1 August 2013.
PSU banking major State Bank of India declined 2.1% to Rs 1,673.90 after hitting a 52-week low of Rs 1,665 in intraday trade today, 1 August 2013.
Jaiprakash Associates tumbled 10.07% to Rs 32.60 after hitting a 52-week low of Rs 31.10 in intraday trade today, 1 August 2013..
Capital goods stocks dropped on worries the ongoing slowdown in the economy could restrict new orders. Shares of power equipment major Bharat Heavy Electricals (Bhel) declined 3.89% to Rs 152.10. The stock had hit a 52-week low of Rs 148.35 in intraday trade on Wednesday, 31 July 2013.
L&T declined 1.59% to Rs 843.55 after hitting a 52-week low of Rs 828 in intraday trade today, 1 August 2013. L&T after market hours on Wednesday, 31 July 2013, said that company has no immediate plans to sell upto 1% of the company's shareholding in L&T Finance Holdings (LTFH) on the floor of the stock exchanges to achieve the minimum level of public shareholding of 25% in LTFH. L&T said that the company is exploring various ways to achieve 25% minimum public shareholding in LTFH on or before the due date of compliance of minimum public shareholding which is 10 August 2014. The company said approval by the Securities Exchange Board of India (Sebi) to sell upto 1% of the company's shareholding in L&T Finance Holdings (LTFH) on the floor of the stock exchanges is only one of the several methods available to achieve 25% minimum public shareholding in LTFH.
L&T Finance Holdings gained 2.12%.
Index heavyweight Reliance Industries (RIL) declined 2.36%.
Interest rate sensitive realty stocks dropped as the Reserve Bank of India (RBI) kept its key lending rate viz. the repo rate and cash reserve ratio unchanged after a monetary policy review on Tuesday, 30 July 2013, as the central bank focused on managing the currency volatility rather than pushing for growth. Purchases of both residential and commercial property are largely driven by finance. HDIL (down 7.97%), Unitech (down 5.47%) and Anant Raj Industries (down 4%), edged lower.
Realty major DLF dropped 7.29% to Rs 138.70 after hitting a 52-week low of Rs 137.55 in intraday trade today, 1 August 2013.
Pharma major Ranbaxy Laboratories declined 7.1% to Rs 265.50 after hitting a 52-week low of Rs 263.10 in intraday trade today, 1 August 2013.
Asian stocks rose on Thursday, 1 August 2013, after the Federal Reserve maintained its bond-buying program at current levels. Key benchmark indices in Hong Kong, China Japan, Singapore, Indonesia and South Korea rose by 0.35% to 2.47%. Taiwan's Taiwan Weighted fell 0.64%.
A privately compiled gauge of China's manufacturing activity sank to an 11-month low, the index's publishers HSBC and Markit said Thursday. The HSBC manufacturing Purchasing Managers' Index fell to 47.7, down from June's final reading 48.2. The result contrasted with an official version of the manufacturing PMI, which unexpectedly rose to 50.3 from June's 50.1. Any reading above 50 indicates activity is expanding, and the July data marked the third straight month the HSBC registered contraction, and also the third month the two PMIs differed on whether factory activity was rising. HSBC's PMI covers a smaller number of firms and focuses on smaller manufacturers, while the official PMI includes more of the large state-run firms. HSBC's survey also showed new orders falling at their fastest rate in almost a year, though pace of the contraction for new export orders slowed.
Chinese leaders pledged at a Politburo meeting this week to maintain steady second-half growth while pressing on with economic reforms.
Trading in US index futures indicated that the Dow could gain 84 points at the opening bell on Thursday, 1 August 2013. US stocks ended mixed on Wednesday after a busy day of news that included a policy statement from the Federal Reserve and a mixed report on US economic growth. Second-quarter US gross domestic product grew 1.7%, above the 1.1% pace expected. However, the report also included a steep downgrade in first-quarter GDP growth, which is now estimated at 1.1% instead of 1.8%.
The Federal Open Market Committee, which has floated the prospect of reductions to its stimulus program should economic risks abate, said yesterday after a two-day long meet that while growth should pick up, persistently low inflation may hamper the recovery. Policy makers, however, expect inflation to move back toward its 2% objective over the next 18 months. The Fed slightly downgraded its view of economic recovery. The Fed said that that the world's largest economy was expanding at a "modest" pace. It had called the pace "moderate" in June.
The Fed offered no clues as to when it plans to slow the pace of monetary stimulus. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.
The influential US non-farm payroll data for July 2013 is due tomorrow, 2 August 2013.
In Europe, the European Central Bank (ECB) and the Bank of England (BoE) will announce their policy decisions later in the global day today, 1 August 2013.
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