Key benchmark indices edged lower after witnessing intraday volatility. The S&P BSE Sensex was provisionally down 62.80 points or 0.32%, up about 110 points from the day's low and off close to 130 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Index heavyweight Reliance Industries dropped in volatile trade after Chairman Mukesh Ambani said that the company plans to invest Rs 1.5 lakh crore in its businesses over the next three years.
Bank pivotals were mostly higher. Shares of power generation and distribution firms edged lower. L&T extended Wednesday's rise after the company said that its construction division won new orders worth Rs 2002 crore in various business segments in May and June 2013. Index heavyweight and cigarette maker ITC cut entire intraday losses. Pharma stocks declined.
The market edged lower in early trade. The market trimmed losses after hitting their lowest level in over five weeks in morning trade. Key benchmark indices traded off initial lows in mid-morning trade. It further pared intraday losses to hit fresh intraday high in early afternoon trade. The market extended recovery to hit fresh intraday high in afternoon trade after European markets opened higher. The market reversed intraday losses to hit fresh intraday high in mid-afternoon trade. Volatility continued as the Sensex once again slipped into the red in late trade.
As per provisional figures, the S&P BSE Sensex was down 62.80 points or 0.32% to 19,505.42. The index lost 172.90 points at the day's low of 19,395.32 in morning trade, its lowest level since 30 April 2013. The index rose 67.15 points at the day's high of 19,635.37 in late trade, its highest level since 4 June 2013.
The CNX Nifty was down 6.15 points or 0.1% to 5,917.70, as per provisional figures. The index hit a low of 5,869.50 in intraday trade, its lowest level since 30 April 2013. The index hit a high of 5,956.55 in intraday trade, its highest level since 4 June 2013.
The total turnover on BSE amounted to Rs 1656 crore, lower than Rs 1720.27 crore on Wednesday, 5 June 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,226 shares fell and 1,140 shares rose. A total of 136 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks fell and rest of them rose.
Bharti Airtel, Infosys and Tata Steel were down by 1.3% to 2.17%.
Wipro, Maruti Suzuki India and TCS rose by 0.27% to 1.38%.
Bank pivotals were mostly higher. ICICI Bank, Axis Bank and State Bank of India rose by 0.86% to 2.46%. But, HDFC Bank fell 0.73%.
UCO Bank (up 4.8%), Canara Bank (up 3.86%), Syndicate Bank (up 3.41%), Union Bank of India (up 3.01%), Bank of Baroda (up 2.32%), Vijaya Bank (up 2.25%), Andhra Bank (up 2.16%), Indian Bank (up 1.81%), edged higher.
United Bank of India lost 3.15% as the stock turned ex-dividend today, 6 June 2013, for final dividend of Rs 2.10 per share for the year ended 31 March 2013.
L&T rose 0.61%, with the stock extending Wednesday's 0.73% rise after the company said during market hours today, 6 June 2013, that its construction division won new orders worth Rs 2002 crore in various business segments in May and June 2013. L&T during market hours on Wednesday, 5 June 2013 said that a joint venture company viz. Larsen Toubro Arabia LLC, has achieved a major breakthrough in the Kingdom of Saudi Arabia by securing a large engineering, procurement and construction (EPC) project from the Saudi Arabian Oil Company (Saudi Aramco). The project is scheduled to be completed in 37 months.
Index heavyweight Reliance Industries lost 1.03%, with the stock dropping in the volatile trade after Chairman Mukesh Ambani said that the company plans to invest Rs 1.5 lakh crore in its businesses over the next three years. Addressing the shareholders of company at its thirty ninth annual general meeting (AGM) held today, 6 June 2013, Mr. Ambani said that the company is making significant investments in all its five businesses -- exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G -- simultaneously.
Ambani said that RIL is making huge investments in its businesses at a time when the global economy is facing one of its most challenging periods in modern times. "It is our belief that the new projects will come on stream as the global economy recovers and margins in our core businesses are on the upswing", he added.
Commenting on the company's business and financial performance, Mr. Ambani said that RIL continues to be debt free on a net basis.
Ambani said that RIL has undertaken the single largest expansion in the petrochemicals sector in the world. In Polyester, the company is expanding its capacity by 1.5 million tonnes per annum (MTPA) to reach 4 MTPA.
Gujarat Fluorochemicals jumped 4.07% to Rs 266.05. More than 3.48 lakh equity shares changed hands in a block deal at Rs 265 a piece on National Stock Exchange.
Shares of power generation and distribution firms edged lower. NTPC, Tata Power Company, Power Grid Corporation of India, NHPC and Adani Power shed by 0.4% to 1.85%.
Index heavyweight and cigarette maker ITC was flat at Rs 334.30. The stock hit high of Rs 336.50 and low of Rs 330.35.
Sun Pharmaceutical Industries dropped 1.87%. The stock had moved higher on Wednesday after Sweden's Meda denied recent reports that the company is in talks to sell itself to Sun Pharma. "Due to the recent speculation in the press and news media concerning Meda merging with another pharmaceutical company, we have decided to inform the market that there are currently no such discussions. Meda's policy is not to comment on speculation and will not do so in the future. This announcement is an exception to our policy", the company said in a statement. Media reports had said recently that Sun Pharma is talks to buy Meda for between $5 billion and $6 billion to boost its generics business in developed markets.
Dr Reddy's Laboratories dropped 1.16%.
Cipla fell 0.05%. Swedish drug firm Meda on Wednesday, 5 June 2013, said it had broadened its collaboration with Cipla, thereby expanding its exclusive rights to Dymista -- a novel nasal treatment of allergic rhinitis. Meda and Cipla will cooperate on product development of Dymista. Cipla will be responsible for formulation, while Meda will be responsible for clinical development, registration, marketing and sales. The companies will also collaborate on future production of Dymista and any new products developed.
Most European markets edged higher as investors awaited policy announcements from the European Central Bank and Bank of England. Key benchmark indices in Germany and France were up by 0.1% to 0.32%. UK's FTSE 100 fell 0.01%.
Asian stocks fell on Thursday after US jobs and factory data missed estimates and investors speculated whether the Federal Reserve will scale back bond purchases. Key benchmark indices in Hong Kong, Japan, China, Singapore and Taiwan shed by 0.07% to 1.05%. South Korea's market was closed for a public holiday.
Trading in US index futures indicated that the Dow could gain 32 points at the opening bell on Thursday, 6 June 2013. US stocks declined on Wednesday, extending losses into a second day, as data finds US private-sector job growth and productivity below expectations.
A report from ADP Research Institute showed companies in the US hired fewer workers than projected in May amid federal budget cuts and higher taxes. Separate data from the Commerce Department showed factory orders in April fell short of estimates. The Fed's Beige Book showed the US economy expanded at a "modest to moderate" pace in 11 of 12 central-bank districts, with broad-based gains ranging from business services to construction and manufacturing. The survey is based on data collected by Fed regional banks on or before May 24.
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