Volatility continued as key benchmark indices pared losses once again after hitting fresh intraday low in mid-morning trade. The S&P BSE Sensex trimmed losses after hitting 6-week low. The 50-unit CNX Nifty trimmed losses after hitting 17-week low. The Sensex was down 30.28 points or 0.16%, up about 150 points from the day's low and off close to 70 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Bank stocks edged higher on bargain hunting after steep losses. Some realty stocks also edged higher on bargain hunting after recent steep losses. Tata Power Company reversed intraday losses.
A bout of initial volatility was witnessed as key benchmark indices slipped into the red after opening higher. Volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. The market pared losses once again after hitting fresh intraday low in mid-morning trade.
Most Asian stocks dropped on Wednesday, 7 August 2013, after overnight losses in the US triggered by monetary-policy concerns after two Federal Reserve officials said they expect the central bank to reduce its asset purchases this year from current $85 billion a month because of economic improvement.
The rupee weakened on Wednesday tracking some losses in regional share markets and currencies while dollar demand from domestic importers also weighed. The partially convertible rupee was hovering at 61.30, weaker than its close of 60.77/78 on Tuesday, 6 August 2013. The rupee had staged a strong intraday rebound on Tuesday after hitting record low of 61.80.
At 11:20 IST, the S&P BSE Sensex was down 30.28 points or 0.16% to 18,702.76. The index fell 181.69 points at the day's low of 18,551.35 in mid-morning trade, its lowest level since 26 June 2013. The index rose 38.73 points at the day's high of 18,771.77 in early trade.
The CNX Nifty was down 18.50 points or 0.35% to 5,522.75. The index hit a low of 5,486.85 in intraday trade, its lowest level since 10 April 2013. The index hit a high of 5,553.90 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 937 shares rose and 898 shares fell. A total of 109 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell and rest of them rose. L&T (down 2.44%), Tata Motors (down 3.78%) and ITC (down 2.26%), edged lower.
Tata Power Company rose 3.22% to Rs 73.65, with the stock reversing intraday losses. The stock came off the day's low of Rs 68.60 today, 7 August 2013. The scrip had tumbled 14.76% in a single trading session on Tuesday, 6 August 2013, after the company reported reverse turnaround in Q1. The stock had hit 52-week low of Rs 68.25 in intraday trade on Tuesday. The company reported a consolidated net loss of Rs 114.70 crore in Q1 June 2013, compared with net profit of Rs 145.93 crore in Q1 June 2012. The company's total income rose 24.53% to Rs 9111.57 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours on Tuesday, 6 August 2013.
Oil and Natural Gas Corporation (ONGC) rose 1.23% after two foreign brokerage firms upgraded the state-run refiner, citing attractive valuation and upside to earnings.
Bank stocks edged higher on bargain hunting after recent steep losses. HDFC Bank rose 0.4%. ICICI Bank gained 0.42%.
Among PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained by 1.59% to 2.97%.
State Bank of India rose 1.76% to Rs 1669.70. The stock had hit a 52-week low of Rs 1633.15 in intraday trade on Tuesday, 6 August 2013.
Some realty stocks edged higher on bargain hunting after recent steep losses. DLF gained 3.89% to Rs 126.90. The stock had hit a record low of Rs 120.25 in intraday trade on Tuesday, 6 August 2013.
Unitech rose 3.68%. The company during market hours on Tuesday, 6 August 2013, reported 37.08% rise in consolidated net profit to Rs 62.89 crore on 35.13% rise in total income to Rs 597.67 crore in Q1 June 2013 over Q1 June 2012.
Housing Development and Infrastructure (HDIL) rose 0.74%. HDIL after trading hours on Tuesday, 6 August 2013, said that the company's promoters have taken a mortgage loan from Indiabulls Housing Finance against their property situated at Goa for their personal use and interest on the loan has not paid. The company further said that promoters have informed the company that they will be clearing the dues shortly and matter is being sorted out and resolved with the lenders.
Shares of HDIL had tumbled 12.23% in a single trading session on Tuesday, 6 August 2013, on media reports that the company's promoters have failed to pay interest accrued on their personal loan from Indiabulls Housing Finance.
The government on Tuesday, 6 August 2013, named Dr. Raghuram Rajan as the next Governor of the Reserve Bank of India (RBI) for a term of three years after D Subbarao's tenure ends on 4 September 2013. Rajan, who is currently Chief Economic Adviser in the finance ministry, joined the government last August, having previously been chief economist at the International Monetary Fund and a professor at the University of Chicago.
Most Asian stocks dropped on Wednesday, 7 August 2013, after overnight losses in the US on monetary-policy concerns, with Japan taking an especially heavy hit from gains for the yen. Key benchmark indices in China, Japan, Hong Kong, Taiwan, and South Korea were off 0.03% to 3.12%. Singapore's Straits Times rose 0.21%.
The Bank Of Japan (BoJ) holds two-day policy meet on 7 and 8 August 2013. The BoJ is widely expected to maintain its pledge of increasing the monetary base at an annual pace of about 60 trillion to 70 trillion yen ($600 billion-$700 billion).
Trading in US index futures indicated that the Dow could fall 50 points at the opening bell on Wednesday, 7 August 2013. US stocks extended losses into a second day Tuesday after Fed Bank of Chicago President Charles Evans, who has been among the strongest proponents of the record monetary accommodation in the US said he expects the central bank to begin tapering its asset-purchase program by the end of the year. Separately, Atlanta Fed Bank President Dennis Lockhart said tapering of monetary stimulus, or quantitative easing, could be announced at any of this year's remaining policy meetings.
The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
Data yesterday showed the US trade deficit narrowed more than economists expected in June to the least since October 2009. Separately, job openings rose to 3.94 million in June from 3.91 million in May, the US Department of Labor reported.
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