Key benchmark indices cut losses after hitting fresh intraday low in morning trade. The barometer index, the S&P BSE Sensex, was down 30.50 points or 0.15%, up 80.20 points from the day's low and off 92.96 points from the day's high. Weakness in Asian stocks weighed on sentiment on the domestic bourses. In the foreign exchange market, the rupee edged lower against the dollar as the US Federal Reserve prepared to start cutting bond purchases amid data that signaled the recovery of the world's biggest economy is picking up speed.
Index heavyweight Reliance Industries edged lower. Bank stocks were in red. Tata Power Company and Reliance Infrastructure, both, extended their recent losses triggered by the Delhi government ordering CAG audit of their finances last week. L&T rose after the company said it has won new orders worth Rs 2962 crore across various business segments. The market breadth, indicating the overall health of the market, was strong.
Key benchmark indices reversed direction after a positive start. Key benchmark indices cut losses after hitting fresh intraday low in morning trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 18.06 crore on Friday, 3 January 2014, as per provisional data from the stock exchanges.
At 10:18 IST, the S&P BSE Sensex was down 30.50 points or 0.15% to 20,820.83. The index fell 110.70 points at the day's low of 20,740.63 in morning trade. The index rose 62.46 points at the day's high of 20,913.79 in opening trade, its highest level since 2 January 2014.
The CNX Nifty was down 13.90 points or 0.22% to 6,197.25. The index hit a low of 6,176.15 in intraday trade. The index hit a high of 6,224.70 in intraday trade, its highest level since 2 January 2014.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,045 shares gained and 615 shares fell. A total of 102 shares were unchanged.
The total turnover on BSE amounted to Rs 598 crore by 10:25 IST compared to Rs 253 crore by 09:25 IST.
Among the 30-share Sensex pack, 20 stocks declined and rest of them gained.
ONGC (up 3.06%), Tata Motors (up 1.35%) and GAIL (India) (up 0.89%) edged higher from the Sensex pack.
Index heavyweight Reliance Industries fell 1.09% to Rs 855.55. The stock hit a high of Rs 864 and low of Rs 852 so far during the day.
L&T rose 1.02%. The company during market hours today, 6 January 2013, said it has won new orders worth Rs 2962 crore across various business segments.
Bank stocks dropped. State Bank of India declined 1.1% to Rs 1,697.30. The state-run bank on 2 January 2014 said that the Executive Committee of the Central Board of the bank at its meeting held on 2 January 2014 has accorded its approval for the issuance and allotment of 1.12 crore equity shares at an issue price of Rs 1,782.74 per share to the Government of India (GoI) on preferential basis. The committee also approved the allotment of Basel III compliant Tier 2 bonds of Rs 2000 crore, issued for 120 months (10 year bullet), at an annually payable coupon of 9.69%, by way of private placement.
Canara Bank fell 0.67%. The state-run bank after market hours on Friday, 3 January 2014, said that it has successfully raised Rs 1500 crore under BASEL-III complaint Tier-II Bonds.
Among other PSU bank stocks, Bank of Baroda (down 0.76%), Punjab National Bank (down 1.14%), Bank of India (down 1.6%) and Union Bank of India (down 1.28%) dropped.
Among private bank stocks, AXIS Bank (down 0.78%), HDFC Bank (down 0.76%), ICICI Bank (down 1.48%), Kotak Mahindra Bank (down 0.63%) and Yes Bank (down 1.54%) declined.
Tata Power Company and Reliance Infrastructure, both, extended their recent losses triggered by the Delhi government ordering CAG audit of their finances last week. Tata Power Company dropped 1.9%. Reliance Infrastructure lost 0.42%. Rejecting the contention of private power distributors, the Delhi government on 1 January 2014 ordered a CAG audit of their finances. Delhi Chief Minister Arvind Kejriwal last week announced that the power tariffs in Delhi will be slashed by 50% for up to 400 units. The Delhi government will provide the subsidy and the money will be directly paid to the distribution companies. The cut in electricity tariffs, part of the AAP manifesto for the 4 December state assembly election, will entail a cost of Rs 61 crore over next three months.
In the foreign exchange market, the rupee edged lower against the dollar as the US Federal Reserve prepared to start cutting bond purchases amid data that signaled the recovery of the world's biggest economy is picking up speed. The partially convertible rupee was hovering at 62.37, weaker than its close of 62.16/17 on Friday, 3 January 2014.
Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for December 2013 today, 6 January 2014. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, nudged up to 47.2 in November from 47.1 in October.
The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Q3 earnings season begins later this week when IT major Infosys and private sector bank IndusInd Bank unveil their earnings on Friday, 10 January 2014.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian stocks declined on Monday, 6 January 2014, as a gauge of China's services industries dropped, signaling growth may slow in the world second-biggest economy. Key benchmark indices in Taiwan, Hong Kong, Singapore, China, Japan and Indonesia fell by 0.06% to 1.93%. South Korea's Seoul Composite rose 0.47%.
A private index of China's services industry released today, 6 January 2014, by HSBC and Markit Economics fell to 50.9 last month from 52.5 in November. A number above 50 indicates expansion. China's official nonmanufacturing PMI fell to 54.6 in December from 56.0 in November, according to a statement on Friday, 3 January 2014, from the China Federation of Logistics and Purchasing.
Trading in US index futures indicated that the Dow could drop 4 points at the opening bell on Monday, 6 January 2014. US stocks ended a choppy trading session mostly lower on Friday, 3 January 2014, after Federal Reserve Chairman Ben Bernanke defended the extraordinary measures undertaken by the central bank to boost the economic recovery. Bernanke, in a speech in Philadelphia four weeks before his term expires, said the economy "has made considerable progress." He cited payroll employment rising by 7.5 million since 2010 and growth in 16 of the 17 quarters after the recession ended as evidence the Fed's policies have succeeded. "The combination of financial healing, greater balance in the housing market, less fiscal restraint, and, of course, continued monetary policy accommodation bodes well for US economic growth in coming quarters," Bernanke said.
The US central bank will make its first Treasuries purchase under the smaller program on 6 January 2014, buying as much as $1.5 billion of securities due from February 2036 to November 2043. The Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually this year.
The central bank will release minutes of its December Federal Open Market Committee policy meeting on Wednesday, 8 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014.
The US government will unveil the influential non-farm payroll report for December 2013 on Friday, 10 January 2014.
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