A bout of volatility was witnessed in mid-morning trade as key benchmark indices slipped into the red after reversing losses to hit fresh intraday high soon after a private survey showed India's services activity picked up pace in May 2013. Weak Asian stocks dampened sentiment. The S&P BSE Sensex was down 49.03 points or 0.25%, off close to 70 points from the day's high and up about 55 points from the day's low. The market breadth, indicating the overall health of the market, turned positive from negative. IT stocks declined on firm rupee.
L&T rose after the company secured a large engineering, procurement and construction (EPC) project from the Saudi Arabian Oil Company. Pharmaceutical major Sun Pharmaceutical Industries extended intraday gains after the company said that it has received final approval from the United States Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for generic version of an injection.
The market edged lower amid initial volatility. It trimmed losses to hit fresh intraday high after hitting fresh intraday low in early trade. It slipped into the red after reversing losses to hit fresh intraday high in mid-morning trade.
Asian stocks dropped on Wednesday on prospects the Federal Reserve will scale back stimulus efforts as the US economy improves.
At 11:20 IST, the S&P BSE Sensex was down 49.03 points or 0.25% to 19,496.75. The index lost 104.43 points at the day's low of 19,441.35 in early trade, its lowest level since 30 April 2013. The index rose 19.13 points at the day's high of 19,564.91 in mid-morning trade.
The CNX Nifty was down 14.60 points or 0.25% to 5,904.85. The index hit a low of 5,883.70 in intraday trade, its lowest level since 30 April 2013. The index hit a high of 5,921.80 in intraday trade.
The market breadth, indicating the overall health of the market, turned positive from negative. Earlier, breadth had turned negative from positive in morning trade. On BSE, 900 shares rose and 800 shares fell. A total of 112 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose and the rest of them fell. Index heavyweight and cigarette major ITC declined 1.39% to Rs 332.95, off the day's low of Rs 331.70.
Coal India fell 1.4%, with the stock extending intraday losses. ICICI Bank, Bajaj Auto and Cipla shed by 0.65% to 0.89%.
GAIL (India), ONGC and M&M rose by 0.58% to 1.29%.
IT stocks declined on firm rupee. The rupee was trading at 56.36/37, after touching 54.3250, its highest since 30 May 2013, and higher versus its close of 56.44/45 on Tuesday. Infosys, Wipro, and HCL Technologies shed by 0.35% to 1.03%. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
TCS declined 0.46%. The company said during market hours today, 5 June 2013 that it has been selected by UK based Network Rail Infrastructure as part of its strategic information technology (IT) transformation journey. The IT solutions and system integration framework agreement for four years encompasses identifying, defining, designing, building and integration of next generation IT solutions for Network Rail.
L&T rose 0.77% after the company said during market hours today, 5 June 2013 that a joint venture company of L&T-Larsen Toubro Arabia LLC, has achieved a major breakthrough in the kingdom of Saudi Arabia by securing a large engineering, procurement and construction (EPC) project from the Saudi Arabian Oil Company (Saudi Aramco). The project is scheduled to be completed in 37 months.
Pharmaceutical major Sun Pharmaceutical Industries rose 1.59%, with the stock extending intraday gains triggered by the company announcing after market hours on Tuesday, 4 June 2013, that it has received final approval from the United States Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for generic version of an injection which is indicated for replacement therapy in the male in conditions associated with symptoms of deficiency or absence of endogenous testosterone. It is a generic version of Pfizer's Depo-Testosterone Injection. As per April-2013 IMS MAT data, the product had annual revenue of approximately $130 million in the US.
Hindalco Industries rose 1.58%, with the stock extending intraday gains.
HMT jumped 7.68% after the company's board approved increasing authorised share capital of the company to Rs 2100 crore from Rs 1450 crore. HMT said that the government has approved revival and restructuring of the company based on recommendations of the Board of Reconstruction of Public Sector Enterprises (BRPSE). The approved revival plan envisages financial support from government against issue of 8% redeemable preference share capital of the aggregate face value of Rs 425 crore and conversion of Government of India loans into equity share capital to the extent of Rs 443.74 crore. This will entail increase in the authorised share capital of the company from the existing Rs 1450 crore to Rs 2100 crore by creation of new preference and equity share capital.
Accordingly, the board of HMT at the meeting held on 29 May 2013 approved increasing authorised share capital of the company from Rs 1450 crore to Rs 2100 crore, subject to approval of the Government and shareholders of the company.
HMT said it will increase the authorised share capital of the company to Rs 2100 crore by creating an additional 23 crore equity shares of face value Rs 10 each and 4.20 crore preference shares of face value Rs 100 each.
Further, the board also approved allotment of fully paid redeemable cumulative 3.5% preference share capital of the face value of Rs 443 crore in favour of President of India, as per the terms of sanction of the investment by Government.
HMT will hold an extraordinary general meeting (EGM) of its shareholders on 21 June 2013.
Indian services activity expanded last month at its fastest pace since February as burgeoning new orders drove optimism to a five-month high, a business survey showed on Wednesday. The HSBC Markit Services Purchasing Managers' Index, based on a survey of around 400 companies, rose to 53.6 in May from 50.7 in April. The April reading was the weakest since October 2011. Services make up almost 60% of Asia's third largest economy.
Asian stocks declined on Wednesday on prospects the Federal Reserve will scale back stimulus efforts as the U.S. economy improves. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Taiwan, Singapore and South Korea shed by 0.07% to 2.49%.
Activity in China's services sector expanded in May but at a pace little changed from the month before, the latest sign that the world's No. 2 economy is struggling to regain momentum. The HSBC/Markit Purchasing Managers' Index (PMI) for the services industry, released on Wednesday, inched up to 51.2 in May 2013 after seasonal adjustment, the second-lowest reading since August 2011. It had registered 51.1 in April. The services sector accounted for 46 percent of China's gross domestic product in 2012
Australia's economy expanded less than economists forecast last quarter as machinery and equipment investment declined. First-quarter gross domestic product advanced 0.6% from the previous three months, when it expanded at the same pace, a Bureau of Statistics report released in Sydney today showed.
Trading in US index futures indicated that the Dow could fall 11 points at the opening bell on Wednesday, 5 June 2013. US stocks fell on Tuesday as Wall Street remained on alert for clues as to central-bank policy moves ahead.
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