Key benchmark indices extended intraday losses and hit fresh intraday low in afternoon trade as European and Asian stocks dropped and as trading in US index futures indicated a lower opening of US stocks later in the global day. The barometer index, the S&P BSE Sensex, was down 241.58 points or 1.16%, off close to 300 points from the day's high and up about 35 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Shares of cement major ACC dropped in choppy trade after the company reported poor Q3 results. Index heavyweight Reliance Industries and auto major Tata Motors, both, extended intraday losses. Capital goods pivotals edged lower. Realty stocks also edged lower.
Key benchmark indices trimmed initial gains triggered by expectations that lackluster US September jobs report will lead to the Federal Reserve maintaining stimulus for the US economy in the foreseeable future. A bout of volatility was witnessed as the key benchmark indices trimmed losses after reversing initial gains in morning trade. Key benchmark indices hovered in negative zone in mid-morning trade. Key benchmark indices extended intraday losses and hit fresh intraday low in early afternoon trade. The market further extended intraday losses and hit fresh intraday low in afternoon trade as Euroepan shares opened broadly lower.
At 13:20 IST, the S&P BSE Sensex was down 241.58 points or 1.16% to 20,623.39. The index lost 275.25 points at the day's low of 20,589.72 in afternoon trade, its lowest level since 18 October 2013. The index gained 57.35 points at the day's high of 20,922.32 in early trade.
The CNX Nifty was down 75.05 points or 1.21% to 6,127.75. The index hit a low of 6,118.65 in intraday trade, its lowest level since 18 October 2013. The index hit a high of 6,217.95 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,279 shares declined and 973 shares rose. A total of 160 shares were unchanged.
From the 30-share Sensex pack, 25 stocks fell and rest rose. Wipro (down 4.49%), Bajaj Auto (down 2.35%) and Dr Reddy's Laboratories (down 2.21%), declined.
Tata Motors dropped 2.79%, with the stock extending intraday losses.
Index heavyweight and cigarette maker ITC lost 0.6% to Rs 339.70. The scrip was volatile. The stock hit high of Rs 344.40 and low of Rs 338.65 so far during the day.
Another index heavyweight Reliance Industries declined 1.3% to Rs 891.70. The scrip hit high of Rs 909.45 and low of Rs 888.55 so far during the day
Shares of cement major ACC dropped in choppy trade after the company reported poor Q3 results. The stock was off 1.96% at Rs 1,114. The scrip hit high of Rs 1,130.50 and low of Rs 1,100 so far during the day. ACC's consolidated net profit plunged 50.85% to Rs 118.90 crore on 1.32% drop in sales turnover at Rs 2508.65 crore in Q3 September 2013 over Q3 September 2012. Operating EBITDA (earnings before interest, taxation, depreciation and amortization) dropped 38.51% to Rs 286.56 crore in Q3 September 2013 over Q3 September 2012. The result hit the market during trading hours today, 23 October 2013.
Capital goods pivotals edged lower. L&T fell 0.47%. The company during market hours on Tuesday, 22 October 2013, said that its construction division has secured new orders worth Rs 1333 crore in October 2013 in various business segments.
Bhel declined 1.07%.
Realty stocks edged lower. DLF (down 3.78%), HDIL (down 2.05%), D B Realty (down 2.33%) and Unitech (down 2.16%), edged lower.
In the foreign exchange market, the rupee gave away almost entire initial gains. The partially convertible rupee was hovering at 61.65, compared with its close of 61.655/665 on Tuesday, 22 October 2013. The rupee had surged to a high 61.05 in early trade after soft US jobs data led to hopes that the Federal Reserve would not start tapering monetary stimulus until 2014.
European stocks dropped in early trade on Wednesday, 23 October 2013, following the longest rally for the region's equities in 40 months, as companies from Orange SA to STMicroelectronics NV reported quarterly sales that dropped. Key benchmark indices in France, Germany and UK were off 0.43% to 0.69%.
The European Central Bank in November will begin a thorough review of the balance sheets of 130 financial institutions from Latvia to Germany, opening a year-long process aimed at removing doubts about the strength of European banks and restoring credit to the private sector. As part of the asset-review exercise, and subsequent stress tests of bank balance sheets, the ECB said Wednesday it will ask all banks included in the assessment to set aside 8% of their risk-adjusted capital as a buffer against losses on loans and other parts of their balance sheets. The central bank, which assumes a new role as single supervisor of euro-zone banks at the end of next year, said the asset review will include on-balance sheet and off-balance sheet exposures such as credit derivatives. The ECB will examine the banking and trading books of financial institutions. The euro bloc consists of 17 countries and will rise to 18 in January when Latvia adopts the euro.
Asian markets on Wednesday, 23 October 2013, reversed their initial gains triggered by expectations that lackluster US September jobs report will lead to the Federal Reserve maintaining stimulus for the US economy in the foreseeable future. Key benchmark indices in Japan, Hong Kong, China, South Korea and Taiwan fell by 0.29% to 1.95%. Key benchmark indices in Indonesia and Singapore rose by 0.02% to 1%.
Trading in US index futures indicated that the Dow could fall 69 points at the opening bell on Wednesday, 23 October 2013. US stocks gained on Tuesday, 22 October 2013, further propelling the S&P 500's record rise, as the September nonfarm-payrolls report supported the notion that the Federal Reserve's monthly bond purchases would continue into next year.
The US created a modest 148,000 jobs in September but the number of people hired in August was higher than previously reported, indicating an economy on a zigzag course heading into the government shutdown. The nation's unemployment rate, meanwhile, fell a tick to a five-year low of 7.2%, as more people found work, according to figures released Tuesday by the Labor Department.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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