Key benchmark indices slipped into the red to hit fresh intraday low after paring initial gains and hovering between the gains and losses in morning trade. The S&P BSE Sensex was down 13.40 points or 0.07%, off about 80 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Cipla extended initial gain. Tata Steel hit 52-week low.
IT stocks rose on recent weakness of rupee against the dollar. Shares of companies in the education space rallied for the second straight day. Sugar stocks gained after the government on Tuesday, 9 July 2013, raised the import duty on sugar to 15% from 10% with immediate effect.
The market edged higher in early trade. It slipped into the red to hit fresh intraday low after paring initial gains and hovering between the gains and losses in morning trade.
At 10:20 IST, the S&P BSE Sensex was down 13.40 points or 0.07% to 19,426.08. The index fell 16.14 points at the day's low of 19,423.34 in morning trade. The index rose 66.45 points at the day's high of 19,505.93 in early trade, its highest level since 5 July 2013.
The CNX Nifty was up 2.10 points or 0.04% to 5,861.10. The index hit a high of 5,879.35 in intraday trade, its highest level since 5 July 2013. The index hit a low of 5,854.75 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 674 shares rose and 444 shares fell. A total of 59 shares were unchanged.
From the 30-share Sensex pack, 15 stocks rose and rest of them fell. Tata Power Company (up 1.17%), State Bank of India (up 0.93%) and NTPC (up 0.7%), edged higher. Tata Motors (down 1.05%), Coal India (down 0.94%) and Jindal Steel & Power (down 0.68%), edged lower.
Tata Steel fell 1.86% to Rs 256.55. The stock hit 52-week low of Rs 256.25 in intraday trade today, 10 July 2013.
Cipla rose 1.1%, with the stock extending initial gain.
IT stocks rose on recent weakness of rupee against the dollar. HCL Technologies (up 0.64%), TCS (up 0.95%), and Wipro (up 1.18%), edged higher.
The rupee was trading at 60.13, stronger compared with Tuesday's close of 60.14/15. The rupee had hit a record low of 61.21 in intraday deals on Monday, 8 July 2013. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue.
IT major Infosys rose 0.54%. The company on Tuesday, 9 July 2013, said head of global sales Basab Pradhan has left the company. The company gave no reason for Pradhan's departure.
Infosys unveils Q1 June 2013 results on Friday, 12 July 2013. The company's Q1 results will reflect the impact of salary hike, rupee depreciation and cross-currency movements. Investors will closely watch the management commentary on demand environment. At the time of announcement of Q4 March 2013 results in April this year, Infosys had forecast 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014). Infosys has suspended the practice of giving EPS guidance or outlook on margins citing uncertainty in various factors.
Sugar stocks gained after the government on Tuesday, 9 July 2013, raised the import duty on sugar to 15% from 10% with immediate effect. Bajaj Hindusthan (up 0.64%), Balrampur Chini Mills (up 1.7%), and Shree Renuka Sugars (up 1.73%), gained.
The government on Tuesday, 9 July 2013, raised the import duty on sugar to 15% from 10% with immediate effect to prevent a flood of cheap imports due to a sharp fall in global sugar prices.
Shares of companies in the education space rallied for the second straight day. Everonn Education (up 11.06%), Edserv Softsystems (up 9.68%), Aptech (up 2.56%), NIIT (up 1.32%), MT Educare (up 1.1%), gained.
Educomp Solutions rose 7.25% after jumping 10% on Tuesday. The company said it has initiated discussion with lenders and approached corporate debt restructuring forum to restructure its rupee debt. The company said it has initiated discussions with its lenders and has approached corporate debt restructuring (CDR) forum to restructure its rupee debt to correct the asset liability mismatch on its balance sheet. The company has also approached the CDR forum for restructuring of debt in its K-12 business (second major business, operated through its subsidiary -- Educomp Infrastructure and School Management). The debt-restructuring exercise will enable the company to comprehensively address the liquidity issues by matching the maturity profile of debt with the relatively long-term nature of its investments. The restructuring will also allow the company to focus on and strengthen its core operations, Educomp Solutions said in a statement.
The Prime Minister held a meeting of the High Level Committee on Manufacturing (HLCM) on Tuesday, 9 July 2013. The meeting was attended by all the Ministers and officials of departments relating to the manufacturing sector including the Ministers of Science & Technology, Heavy Industry, Civil Aviation, Steel, Textiles & MSME and the Deputy Chairman of the Planning Commission. The discussion centred around the proposals made by the National Manufacturing Competitiveness Council which were presented by the Chairman, Dr. V. Krishnamurty. The meeting was convened to discuss the strategy for boosting competitiveness and output in two important sectors, textiles and steel and for formulating a long term approach in three strategic industries, civilian aircraft manufacture, electric and hybrid vehicles and advanced materials and composites. Decisions relating to the short term and long term strategies for the five areas were taken and it was agreed to move ahead on all of them.
The HLCM took a major strategic decision for the development of a civilian aircraft, of a 70-100 seater range to begin with, in India. The idea is to house the development and production in an SPV that would be created for this purpose. The design capabilities in NAL, HAL and other institutions in the country would be utilised for this. Development and production partnerships with Indian private sector firms as well as overseas institutions is envisaged.
The HLCM also approved a plan to increase steel production capacity to 300 million tonnes, a 30% increase in textile exports, and domestic manufacturing capabilities in advanced materials, alloys and composites. The additional 300 million tonnes of steel capacity will by the Central Public Sector Enterprises in collaboration with the states. Steel ministry will come out with time-bound action plans in eight weeks to implement the decisions. An inter-ministerial group under textiles secretary will prepare in four weeks a plan to boost textiles exports. Other groups will take forward decision on electric and hybrid transport, civilian aircraft production and advanced materials.
Most Asian stocks rose on Wednesday, 10 July 2013, after an improved economic outlook clinched a fourth day of improvement for US equities on Tuesday, 9 July 2013. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, Japan, and Taiwan rose by 0.1% to 1.26%. South Korea's Kospi declined 0.18%.
China's exports and imports both unexpectedly declined in June in a sign that weakness in global and domestic demand will intensify the slowdown in the world's second-biggest economy. Overseas shipments fell 3.1% from a year earlier, the General Administration of Customs said in Beijing today. Imports declined 0.7% after a 0.3% drop in May.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 10 July 2013. US stocks closed solidly higher for the fourth straight day on Tuesday, 9 July 2013, pushing the S&P 500 to within 1% of its all-time closing high, as Wall Street embraced an improving economy and higher interest rates.
The minutes of Federal Open Market Committee's (FOMC) policy meeting held on 19 June 2013, will be released later in the global day today, 10 July 2013. The minutes may provide more insight into the Federal Reserve's outlook on monetary stimulus. Fed Chairman Ben Bernanke is also due to deliver a speech today, 10 July 2013. Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.
World economic growth will struggle to accelerate this year as a US expansion weakens, China's economy levels off and Europe's recession deepens, the International Monetary Fund said. Global growth will be 3.1% this year, unchanged from the 2012 rate, and less than the 3.3% forecast in April, the Washington-based fund said yesterday, trimming its prediction for this year a fifth consecutive time.
In Europe, global ratings agency Standard & Poor's cut Italy's sovereign credit rating on Tuesday to BBB from BBB-plus and left its outlook on negative, citing concerns about prospects for an economy stuck in its worst recession since World War Two.
Powered by Capital Market - Live News
