Key benchmark indices surged and hit fresh intraday high in mid-morning trade as index heavyweights ITC and Reliance Industries (RIL), both, extended initial gains. The S&P BSE Sensex was up 90.99 points or 0.47%, up about 110 points from the day's low and off close to 50 points from the day's high. The market breadth, indicating the overall health of the market, turned positive from negative.
Coal India reversed initial losses triggered by weak Q1 result. Bank stocks declined, with ICICI Bank, State Bank of India (SBI) and Bank of Baroda (BoB) hitting 52-week low. Interest rate sensitive realty stocks extended recent losses as the Reserve Bank of India (RBI) kept its key lending rate viz. the repo rate and cash reserve ratio unchanged after a monetary policy review on 30 July 2013, as the central bank focused on managing the currency volatility rather than pushing for growth. Realty major DLF hit 52-week low. Bharat Heavy Electricals (Bhel) extended intraday losses after the company reported weak Q1 results on Saturday, 3 August 2013.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between positive and negative zone. The Sensex regained positive terrain after moving into the negative terrain from positive zone in morning trade. The 50-unit CNX Nifty trimmed losses after moving into the negative terrain from positive zone in morning trade. The Sensex surged and hit fresh intraday high in mid-morning trade.
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 11:20 IST, the S&P BSE Sensex was up 90.99 points or 0.47% to 19,255.01. The index rose 142.49 points at the day's high of 19,306.51 in mid-morning trade. The index fell 22.34 points at the day's low of 19,141.68 in early trade.
The CNX Nifty was up 28.90 points or 0.51% to 5,706.80. The index hit a high of 5,721 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, turned positive from negative. On BSE, 860 shares rose and 773 shares fell. A total of 82 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest of them fell. Jindal Steel & Power (up 3.85%), Sterlite Industries (up 2.84%) and M&M (up 2.51%), edged higher.
Index heavyweight and cigarette maker ITC rose 1.58%.
Another index heavyweight Reliance Industries (RIL) rose 1.17%.
Coal India rose 3.32% to Rs 264.45, with the stock reversing initial losses triggered by weak Q1 result. The stock reversed direction after hitting record low of Rs 248 in intraday trade today, 5 August 2013. 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.
Bank stocks declined. HDFC Bank dropped 0.63%.
ICICI Bank shed 0.68% to Rs 881 after hitting a 52-week low of Rs 869.35 in intraday trade today, 5 August 2013.
State Bank of India declined 1.02% to Rs 1664.15 after hitting a 52-week low of Rs 1656 in intraday trade today, 5 August 2013.
Bank of Baroda fell 1.11% to Rs 482.30 with the stock extending recent losses triggered by rise in sticky loans in Q1. The stock hit 52-week low of Rs 471.85 in intraday trade today, 5 August 2013. The bank's ratio of gross non-performing assets (NPA) to gross advances increased to 2.99% as on 30 June 2013, from 2.4% as on 31 March 2013 and 1.84% as on 30 June 2012. The ratio of net NPA to net advances increased to 1.69% as on 30 June 2013, from 1.28% as on 31 March 2013 and 0.65% as on 30 June 2012.
The bank's net profit rose 2.54% to Rs 1167.87 crore on 14.89% rise in total income to Rs 10717.49 crore in Q1 June 2013 over Q1 June 2012. The bank announced Q1 result on 1 August 2013.
Interest rate sensitive realty stocks extended recent losses as the Reserve Bank of India (RBI) kept its key lending rate viz. the repo rate and cash reserve ratio unchanged after a monetary policy review on 30 July 2013, as the central bank focused on managing the currency volatility rather than pushing for growth. Purchases of both residential and commercial property are largely driven by finance. HDIL (down 1.8%), Unitech (down 1.32%) and Anant Raj Industries (down 0.11%), edged lower.
Realty major DLF fell 1.91% to Rs 125.85 after hitting a 52-week low of Rs 124.35 in intraday trade today, 5 August 2013.
Bharat Heavy Electricals (Bhel) was now trading 14.09% lower at Rs 128.35 on weak Q1 results. The stock hit 52-week low of Rs 127.50 in intraday trade today, 5 August 2013. The stock had hit the intial 10% lower circuit in early trade. 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.
JSW Steel rose 1.77% after the company today, 5 August 2013, said its crude steel production rose 12% to 9.91 lakh tons in July 2013 over July 2012. Production of long steel products jumped 31% to 1.86 lakh tons in July 2013 over July 2012. Production of flat steel products rose 15% to 7.96 lakh tons in July 2013 over July 2012. JSW Steel said that the capacity utilization was lower at Vijayanagar works due to shutdown of one of its Corex furnaces for relining and capacity enhancement. The furnace is expected to recommence production by the end of September 2013.
Companies in India's vast services sector suffered a fall-off in activity for the first time in nearly two years in July, according to a survey released on Monday, 5 August 2013. The HSBC Markit Services Purchasing Managers' Index fell to 47.9 in July from 51.7 in the previous month. The latest PMI is the first time since October 2011 the headline index has fallen below the 50 mark that divides growth from contraction, and the lowest since April 2009, dashing hopes of a quick turnaround for Asia's third-largest economy. The service sector accounts for nearly 60% of an economy that grew at a decade low of 5% in the last fiscal year.
The monsoon session of the Parliament begins today, 5 August 2013. The session ends on 30 August 2013. 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 0.21% to 0.44%. Key benchmark indices in Japan, Singapore, and South Korea fell by 0.31% to 1.25%.
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.
Trading in US index futures indicated that the Dow could fall 14 points at the opening bell 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 increases 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%, partly due to more people leaving the labor force.
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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