Key benchmark indices snapped three-day winning streak as weakness in European stocks weighed on sentiment. The S&P BSE Sensex shed 113.57 points or 0.58%, off close to 125 points from the day's high and up about 20 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Indian stocks today, 2 July 2013, snapped their three-day winning streak. From a recent low of 18,552.12 on 26 June 2013, the Sensex had risen 1,025.27 points or 5.52% in three trading sessions to settle at 19,577.39 on Monday, 1 July 2013. The Sensex has gained 68.01 points or 0.35% in first two trading sessions of July 2013 (till 2 July 2013). The Sensex has gained 37.11 points or 0.19% in calendar 2013 so far (till 2 July 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 979.80 points or 4.79%. From a 52-week low of 16,598.48 on 26 July 2012, the Sensex has surged 2,865.34 points or 17.26%.
Coming back to today's trade, index heavyweight and cigarette major ITC was marginally lower. Reliance Industries also declined. Auto stocks were in red. Realty stocks declined. Ranbaxy Laboratories reversed intraday fall in late trade. Hindustan Copper slumped on reports that a meeting of the Empowered Group of Ministers (EGoM) on disinvestment will be held today, 2 July 2013, to decide the base price for divestment of government's 4.01% stake in the state-run copper miner.
The S&P BSE Sensex lost 113.57 points or 0.58% to 19,463.82, its lowest closing level since 28 June 2013. The index lost 134.64 points at the day's low of 19,442.75 in late trade. The index rose 11.75 points at the day's high of 19,589.14 in morning trade.
The CNX Nifty lost 41.30 points or 0.7% to 5,857.55, its lowest closing level since 28 June 2013. The index hit a low of 5,852.30 in intraday trade. The index hit a high of 5,898.80 in intraday trade.
The BSE Mid-Cap index fell 0.37% and the BSE Small-Cap index declined 0.1%. Both these indices outperformed the Sensex.
The BSE Consumer Durables index (up 0.77%), BSE Healthcare index (up 0.52%), BSE FMCG index (down 0.05%), BSE Power index (down 0.44%), BSE Teck index (down 0.44%) and BSE Metal index (down 0.49%) outperformed the Sensex. The BSE Realty index (down 1.78%), BSE PSU index (down 1.05%), BSE Oil & Gas index (down 1.01%), BSE Bankex (down 0.78%), BSE Auto index (down 0.76%), BSE IT index (down 0.65%) and BSE Capital Goods index (down 0.6%) underperformed the Sensex.
The total turnover on BSE amounted to Rs 1751 crore, higher than Rs 1719 crore on Monday, 1 July 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,213 shares declined and 1,131 shares advanced. A total of 148 shares were unchanged. The breadth alternately moved between positive and negative in intraday trade today, 2 July 2013.
Among the 30-share Sensex pack, 18 stocks declined and rest of them gained.
Jindal Steel & Power fell 4.21%. The stock was the biggest loser from the Sensex pack.
Index heavyweight and cigarette major ITC shed 0.34% to Rs 324.95.
Reliance Industries (RIL) fell 1.3% to Rs 871.30. The stock had edged higher recently after the government on Thursday, 27 June 2013, decided to raise natural gas prices sharply to help fund investment in exploration and reverse declining domestic gas output.
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.
Auto stocks dropped after Monday's upmove. Tata Motors fell 1.1%. The company said after market hours on Monday, 1 July 2013, that total sales of Tata commercial and passenger vehicles declined 18.08% to 52,708 units in June 2013 over June 2012. The company's domestic sales of Tata commercial and passenger vehicles declined 16.40% to 48,712 units in June 2013 over June 2012. Exports declined 34.17% to 3,996 units in June 2013 over June 2012.
Ashok Leyland lost 2.18% after the company said its total sales declined 31.3% to 6,967 units in June 2013 over June 2012. The company announced the sales numbers after market hours on Monday, 1 July 2013.
Ashok Leyland's sales of commercial vehicles excluding small commercial vehicle (SCV) Dost declined 36.5% to 4,714 units in June 2013 over June 2012. Sales of SCV Dost fell 17.3% to 2,253 units in June 2013 over June 2012.
Maruti Suzuki India slipped 1.62%. The company reported 12.6% fall in total sales to 84,455 units in June 2013 over June 2012. The company's domestic sales fell 7.8% to 77,002 units in June 2013 over June 2012. Exports declined 43% to 7,453 units in June 2013 over June 2012. The company announced the monthly sales data during market hours on Monday, 1 July 2013.
M&M shed 0.25%. The company said during market hours on Monday, 1 July 2013, its domestic tractor sales rose 19% to 26,723 units in June 2013 over June 2012. M&M's total tractor sales rose 17% to 27,749 units in June 2013 over June 2012. Exports declined 19.33% to 1,026 units in June 2013 over June 2012.
M&M's total automobile sales fell 7.81% to 38,092 units in June 2013 over June 2012. Sales of the company's passenger vehicle segment (which includes UVs and Verito) declined 12.93% to 17,232 units in June 2013 over June 2012. The company's domestic sales declined 7.04% to 36,207 units in June 2013 over June 2012. Exports fell 20% to 1,885 units in June 2013 over June 2012.
Hero MotoCorp lost 2.27%. The company reported a 5.95% decline in total sales at 5.02 lakh units in June 2013 over June 2012.
Bajaj Auto slipped 0.27%. The company during market hours today, 2 July 2013, reported 14% fall in total sales to 2.95 lakh units in June 2013 over June 2012. Motorcycles sales fell 20% to 2.54 lakh units in June 2013 over June 2012. The company said that the illegal strike at Chakan caused a loss of production of 20,000 motorcycles in June 2013. The company's commercial vehicles sales jumped 54% to 41,205 units in June 2013 over June 2012. Exports rose 4% to 1.20 lakh units in June 2013 over June 2012.
L&T fell 1.38%. L&T during market hours today said that L&T Hydrocarbon has secured an order of over Rs 1000 crore to construct a paraxylene plant for a leading refinery in India. The order will be executed over a period of 30 months.
Bhel rose 2.74%. The stock was the biggest gainer from the Sensex pack.
Realty stocks declined. DLF (down 3.15%), Unitech (down 2.15%), HDIL (down 1.44%), and Sobha Developers (down 0.99%), edged lower.
Hindustan Copper slumped on reports that a meeting of the Empowered Group of Ministers (EGoM) on disinvestment will be held today, 2 July 2013, to decide the base price for divestment of government's 4.01% stake in the state-run copper miner. The stock was off 6.62% at Rs 72.65. The government currently holds 94.01% in Hindustan Copper. The stake-sale would make the company complaint to the minimum 10% public holding norm of market regulator Sebi. Sebi has mandated minimum public shareholding of 10% for state-run firms by 8 August 2013.
Select pharmaceutical stocks gained. Lupin advanced 3.15% to Rs 801.30. The stock hit record high of Rs 811.80 in intraday trade today, 2 July 2013.
Glenmark Pharmaceuticals rose 1.19%. Glenmark Generics Inc, USA, the United States subsidiary of Glenmark Generics, announced today, 2 July 2013, that the United States Food and Drug Administration (USFDA) has granted final approval for Rizatriptan Benzoate Tablets, its generic version of Merck's Maxalt MLT Tablets. The company has commenced shipping the product immediately. The approval is for the 5 mg and 10 mg of Rizatriptan ODT. According to IMS Health data, Rizatriptan ODT achieved sales of $263 million in the United States for the 12 month period ended March 2013.
Ranbaxy Laboratories surged 6.46% to Rs 345.25, with the stock recovering sharply from an intraday low of Rs 317.60.
Cipla (up 0.04%), Sun Pharmaceutical Industries (up 0.33%) and Wockhardt (up 0.81%) gained. But, Dr Reddy's Laboratories fell 0.23%.
Cairn India rose 1.06% as US crude oil futures traded near the highest level in more than a week amid hopes of US economic recovery and speculation that unrest in Egypt may spread and disrupt Middle East oil supplies. US crude oil futures for August 2013 delivery were up 26 cents a barrel at $98.25 a barrel in the electronic trading today, 2 July 2013. The contract had surged $1.43 or 1.48% to settle at $97.99 a barrel on the New York Mercantile Exchange on Monday, 1 July 2013, its highest closing level since 19 June 2013. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms like Cairn India.
Tech Mahindra declined 3.02%. Mahindra Satyam fell 3.51%. Mahindra Satyam announced its formal amalgamation with Tech Mahindra on 25 June 2013. The board of directors of Tech Mahindra at its meeting held on 25 June 2013 fixed 5 July 2013 as the record date for determining the shareholders of Mahindra Satyam who would be entitled to receive shares of Tech Mahindra as per the amalgamation scheme. The swap ratio for merger has been fixed at two shares of Tech Mahindra for every 17 shares held in Mahindra Satyam.
Tech Mahindra acquired erstwhile fraud-hit Satyam Computer at an auction overseen by government-appointed directors in April 2009. Satyam Computer was later renamed Mahindra Satyam.
Shares of power generation and power distribution companies edged lower. Torrent Power, Power Grid Corporation of India, NTPC, Reliance Infrastructure and Reliance Power shed by 1.32% to 2.4%.
Tata Power Company (TPC) slipped 1.87%. Credit rating agency Moody's Investors Service has reportedly downgraded the outlook on TPC to negative from stable. The negative outlook reflects renewed uncertainties related to the material covenant breaches on bank debt associated with TPC's Gujarat-based Mundra Ultra Mega Power Project which is being executed under its fully owned subsidiary, Coastal Gujarat Power or CGPL, said Ray Tay, a Moody's Associate Vice President and Analyst.
Coal India fell 1.43%. The company during market hours today said its coal production provisionally rose 0.4% to 102.87 million tonnes during April to June 2013 over the corresponding previous year period. Coal offtake rose 2% to 115.25 million tonnes.
MMTC dropped by maximum permissible level of 5% of the day to Rs 92.90, also its 52-week low, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake in the firm at a huge discount to the stock's ruling market price. On 13 June 2013, the Government of India (GoI) sold 9.33% stake in MMTC via Offer for Sale (OFS) through stock exchanges mechanism at an indicative price of Rs 60.86 per share, at a discount of 71.21% to the closing price of the stock of Rs 211.45 on 12 June 2013.
Shares of diamond jewellery maker Gitanjali Gems dropped by maximum permissible level of 5% of the day to Rs 213.50, also its 52-week low. The stock has witnessed a steep slide recently.
European stocks retreated on Tuesday as investors awaited reports on UK construction activity and US factory orders. Key benchmark indices in France, Germany and UK fell by 0.48% to 0.95%.
Asian stocks were mostly lower on Tuesday, 2 July 2013, as anemic manufacturing data from China raised growth fears. Key benchmark indices in Hong Kong, Indonesia, Taiwan and South Korea were down 0.04% to 1.02%. Key benchmark indices in China, Singapore and Japan were up 0.57% to 1.78%.
The Reserve Bank of Australia (RBA) held interest rates steady at a record-low 2.75% Tuesday. The RBA last cut the cash rate on May 7 by a quarter-percentage point, while having kept the rate steady at the last meeting on June 4.
Trading in US index futures indicated that the Dow could gain 45 points at the opening bell on Tuesday, 2 July 2013. US stocks edged higher on Monday, 1 July 2013, after the Institute for Supply Management reported an increase in its US manufacturing index. The Institute for Supply Management reported its manufacturing index in the United States rose to 50.9% in June from 49% in May. Readings over 50% indicate expansion.
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