A bout of initial volatility was witnessed as key benchmark indices alternately swung between positive and negative zone. The S&P BSE Sensex was up 35.93 points or 0.19%, off close to 35 points from the day's high and up about 60 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Bharat Heavy Electricals (Bhel) was locked at initial 10% lower circuit after the company reported weak Q1 results on Saturday, 3 August 2013. Grasim Industries and Coal India also dropped on weak Q1 result.
Foreign institutional investors (FIIs) bought shares worth a net Rs 283.79 crore on Friday, 2 August 2013, as per provisional data from the stock exchanges.
At 9:30 IST, the S&P BSE Sensex was up 35.93 points or 0.19% to 19,199.95. The index rose 69.26 points at the day's high of 19,233.28 in early trade. The index fell 22.34 points at the day's low of 19,141.68 in early trade.
The CNX Nifty was up 4.80 points or 0.09% to 5,682.70. The index hit a high of 5,691.05 in intraday trade. The index hit a low of 5,661.50 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 370 shares fell and 361 shares rose. A total of 43 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose and rest of them fell. Tata Motors (up 1.74%), Jindal Steel & Power (up 1.44%) and M&M (up 1.27%), edged higher.
Coal India declined 1.79% on weak Q1 result. The company's consolidated net profit fell 16.51% to Rs 3731.04 crore on 0.64% rise in total income to Rs 18692.03 crore in Q1 June 2013 over Q1 June 2012. The result was announced on Saturday, 3 August 2013.
Bharat Heavy Electricals (Bhel) was locked at initial 10% lower circuit at Rs 134.60 which is also a 52-week low on weak Q1 results. The company's net profit fell 49.45% to Rs 465.43 crore on 20.54% decline in total income to Rs 6996.60 crore in Q1 June 2013 over Q1 June 2012. The result was announced on Saturday, 3 August 2013.
Bhel had an outstanding order book position of about Rs 108600 crore as on 30 June 2013, lower than to Rs 115160 crore as on 31 March 2013 and Rs 122300 crore as on 30 June 2012.
Bhel's operating profit margin (OPM) crashed to the extent of 820 basis points (bps) year on year (YoY) to 6% during the quarter, largely on account of under recovery of capacity. This resulted in operating profit declining by 68% to Rs 388.58 crore.
Bhel's finance costs surged 402.89% to Rs 27.76 crore in Q1 June 2013 over Q1 June 2012.
Grasim Industries dropped 3.14% on weak Q1 result. The company's consolidated net profit fell 15% to Rs 610.01 crore on 1.5% growth in net sales to Rs 6895.08 crore in Q1 June 2013 over Q1 June 2012. The result was announced on Saturday, 3 August 2013.
Grasim Industries said that the performance of the company during the quarter has been satisfactory considering the prolonged subdued economic environment in India and across the world.
On future business outlook, Grasim said that given the prevailing global economic conditions, coupled with the surplus capacity in China, the VSF industry continues to face a challenging environment in the immediate term. In cement, the demand is expected to grow by 6% in FY 2014 due to the slowdown in GDP growth rate, the company said. It has the potential to recover to over 8% with the improvement in the economic environment, it added. Capacity expansions in VSF and cement will provide additional volumes, driving growth and further consolidate the company's leadership, Grasim said. This will enable Grasim to move forward rapidly, with the recovery in the market, the company added. Grasim said it will continue to focus on cost reduction measures, improving asset productivity to maintain its position as the lowest cost producer and expanding specialty products portfolio for sustained shareholder value creation.
Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for July 2013 today, 5 August 2013.
The monsoon session of the Parliament begins today, 5 August 2013. The session ends on 30 August 2013. Prime Minister Manmohan Singh reached to the Opposition parties on Saturday asking to let Parliament function smoothly. In its last year of office, UPA II has its task cut out, it is pushing the social sector bills, including the top priority Food Security Bill to replace the Food Security ordinance promulgated earlier.
Asian stocks were mixed on Monday, 5 August 2013. Key benchmark indices in Hong Kong, China, and Taiwan rose by 0.15% to 0.26%. Key benchmark indices in Japan, Singapore, and South Korea fell by 0.26% to 0.97%.
China's service industries showed the first pick-up in growth since March, adding to signs the world's second-largest economy may be stabilizing after a two-quarter slowdown. The non-manufacturing Purchasing Managers' Index rose to 54.1 in July from 53.9 in June, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said on Saturday. An official gauge of manufacturing released 1 August 2013 showed an unexpected expansion.
The HSBC Hong Kong Purchasing Managers Index rose to 49.7 in July from 48.7 in June, but remained in contraction mode as new orders fell amid China's economic slowdown, HSBC Holdings PLC said on Monday, 5 August 2013.
US stocks rose on Friday, 2 August 2013, as data showing employers added fewer workers than anticipated in July signaled the Federal Reserve will continue its stimulus efforts. The 162,000 increase in payrolls last month was the smallest in four months and followed a revised 188,000 rise in June that was less than initially estimated, Labor Department figures showed on Friday in Washington. Workers spent fewer hours on the job and hourly earnings fell for the first time since October. The unemployment rate dropped to 7.4% from 7.6%.
Consumer spending rose in line with forecasts in June as Americans' incomes grew, while orders placed with factories increased, pointing to further stabilization in manufacturing that may help lift second-half growth, separate reports showed.
In Europe, the results of two surveys on Monday, 5 August 2013, showed that UK's economic growth this year is expected to be stronger than originally forecast, and that confidence among smaller firms has picked up.
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