Volatility continued as the key benchmark indices trimmed gains after moving into positive zone from negative zone to hit fresh intraday high in afternoon trade. The barometer index, the S&P BSE Sensex, was up 2.99 points or 0.01%, off about 25 points from the day's high and up close to 85 points from the day's low. Index heavyweight and cigarette major ITC extended intraday gains on defensive buying. The market breadth, indicating the overall health of the market was negative.
Capital goods pivotals were mixed. Bank stocks were mostly higher. Power Finance Corporation (PFC) rose on good Q4 results.
Key benchmark indices edged lower in early trade on weak Asian stocks. The market recovered in morning trade. Intraday recovery proved short lived as weakness in Asian stocks pulled Indian stocks lower again in mid-morning trade. Intraday volatility continued as the key benchmark indices once again trimmed losses in early afternoon trade. The Sensex trimmed gains after hitting fresh intraday high in afternoon trade.
The market may continue to remain volatile today, 30 May 2013, as traders roll over positions in the futures & options (F&O) segment from the near-month May 2013 series to June 2013 series. The May 2013 derivatives contracts expire today, 30 May 2013.
At 13:20 IST, the S&P BSE Sensex was up 2.99 points or 0.01% to 20,150.63. The index rose 29.65 points at the day's high of 20,177.29 in afternoon trade. The index fell 81.50 points at the day's low of 20,066.14 in early trade.
The CNX Nifty was down 7.05 points or 0.12% to 6,097.25. The index hit a high of 6,109.85 in intraday trade. The index hit a low of 6,072.15 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,228 shares declined and 866 shares rose. A total of 131 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks declined and the rest of them gained. Tata Motors, M&M and HDFC rose by 1.95% to 3.39%. Cipla, Tata Steel and Bharti Airtel dropped by 1.62% to 3.82%.
Index heavyweight and cigarette major ITC was up 1.97% at Rs 349 on defensive buying. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013.
Power Finance Corporation rose 0.26% on good Q4 results. The company's net profit jumped 58.14% to Rs 1294.13 crore on 26.62% rise in total income from operations to Rs 4663.52 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results during market hours today, 30 May 2013.
Capital goods pivotals were mixed. Bhel rose 0.42%.
L&T dropped 0.61%. The company, last week, reported 6.9% fall in net profit to Rs 1787.94 crore on 9.9% rise in total income to Rs 20686.93 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 22 May 2013.
Bank stocks were mostly higher. State Bank of India (SBI) rose 0.23%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank rose by 0.32% to 2.11%.
HDFC Bank rose 0.86% to Rs 721.30. The stock had hit a record high of Rs 724 hit in intraday trade on 20 May 2013.
ICICI Bank fell 2.6% after turning ex-dividend today, 30 May 2013 for dividend of Rs 20 per share for the year ended 31 March 2013.
On the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data tomorrow, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
European stock markets were mostly higher on Thursday, 30 May 2013. Key benchmark indices in France and UK rose by 0.11% to 0.18%. Germany's DAX fell 0.18%.
Asian stocks declined on Thursday, undermined by an overnight pullback in global equities as investors assessed the implications of a potential softening of the Federal Reserve's massive monetary stimulus programme. Key benchmark indices in Hong Kong, South Korea, Singapore, China, Taiwan and Indonesia were down by 0.05% to 1.29%.
Japan's Nikkei 225 dropped 5.15% amid concerns about market volatility as the yen strengthened against the dollar.
Trading in US index futures indicated that the Dow could slide 22 points at the opening bell on Thursday, 30 May 2013. US stocks fell sharply on Wednesday, with Wall Street giving back the prior day's gains, amid worries over global-growth prospects and fears the Federal Reserve will begin to scale back its bond-buying program.
In remarks prepared for a speech in Minneapolis, Federal Reserve of Boston President Eric Rosengren on Wednesday reiterated testimony last week by Federal Reserve Chairman Ben Bernanke, saying "significant accommodation remains appropriate at this time."
The Organization for Economic Cooperation and Development (OECD) on Wednesday cautioned that global growth could get hit as governments pare back easy-money programs. The OECD gave a bleaker forecast for the euro-zone economy this year. Also, the International Monetary Fund on Wednesday cut its estimate for China's economic growth in 2013 and 2014.
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