Intraday recovery proved short lived as key benchmark indices weakened once again to hit fresh intraday low in early afternoon trade as weakness in Asian stocks hurt sentiment. The S&P BSE Sensex was currently below the psychological 20,000 mark, having alternately moved above and below that mark so far during the day. The Sensex was down 186.38 points or 0.93%, up close to 10 points from the day's low and off about 175 points from the day's high. Index heavyweight and cigarette major ITC extended intraday losses and led decline on the bourses today, 13 May 2013. Another index heavyweight Reliance Industries (RIL) edged higher in choppy trade.
Among bank stocks, HDFC Bank hit record high. Bank of Baroda declined on weak Q4 results. Cement stocks also declined.
The market edged lower in early trade. The market extended initial losses to hit fresh intraday low in morning trade. The market trimmed losses in mid-morning trade after the latest data showed that consumer price inflation eased in April 2013. The intraday recovery proved short lived as key benchmark indices weakened once again to hit fresh intraday low in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was down 186.38 points or 0.93% to 19,935.94. The index declined 198.42 points at the day's low of 19,923.90 in early afternoon trade, its lowest level since 10 May 2013. The index declined 13.24 points at the day's high of 20,109.08 in early trade.
The CNX Nifty was down 51.65 points or 0.85% to 6,055.60. The index hit a low of 6,055.45 in intraday trade, its lowest level since 10 May 2013. The index hit a high of 6,104.95 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,121 shares fell and 800 shares rose. A total of 121 shares were unchanged.
Among the 30-share Sensex pack, 25 stocks fell while rest of them rose. Dr Reddy's Laboratories, and NTPC rose by 0.58% to 1.37%. Bhel, Tata Steel and L&T dropped by 1.6% to 2.04%.
Index heavyweight Reliance Industries (RIL) rose 0.76% to Rs 819.45. The stock hit a high of Rs 824.70 and low of Rs 809.20 so far during the day.
Index heavyweight and cigarette major ITC shed 4.12% to Rs 340.10 on profit booking. The stock hit a high of Rs 354 and low of Rs 339.65 so far during the day. The stock had hit record high of Rs 355 in intraday trade during the special trading session held on Saturday, 11 May 2013. The Uttar Pradesh state government on 7 May 2013 slashed VAT on cigarette/cigar from existing 50% to 25%. The state government had last year increased VAT on cigarette/cigar and tobacco products from 12.5% to 50%.
The Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14.
Bank stocks declined. Bank of Baroda declined 2.54% on weak Q4 results. The bank's net profit fell 32.23% to Rs 1028.85 crore on 13.82% rise in total income to Rs 10262.50 crore in Q4 March 2013 over Q4 March 2012. The bank announced the results during market hours today, 13 May 2013.
Bank of Baroda's net profit fell 10.51% to Rs 4480.72 crore on 17.32% growth in total income to Rs 38827.28 crore in the year ended 31 March 2013 over the year ended 31 March 2012. On a consolidated basis, the state-run bank's net profit fell 8.47% to Rs 4804.23 crore on 18.4% growth in total income to Rs 40952.68 crore in the year ended 31 March 2013 over the year ended 31 March 2012.
Bank of Baroda's board of directors at its meeting held today, 13 May 2013, recommended a dividend of Rs 21.50 per share for the year ended 31 March 2013. The dividend payment date is 8 July 2013, the bank said.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell 0.29%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, and Punjab National Bank dropped by 0.54% to 2.01%.
ICICI Bank fell 0.34%.
But, HDFC Bank rose 1% to Rs 709.50. The stock hit record high of Rs 711.55 in intraday trade today, 13 May 2013. Axis Bank rose 1.32%.
Cement stocks declined. ACC, Ambuja Cements and UltraTech Cement shed by 0.75% to 1.48%.
The focus of the market is on Q4 results. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results tomorrow, 14 May 2013. Bajaj Auto announces Q4 results on Thursday, 16 May 2013. ITC unveils Q4 results on Friday, 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
The latest data showed that the consumer price inflation fell below the 10% mark in April 2013. The combined consumer price inflation for rural and urban India eased to 9.39% in April 2013 from 10.39% in March 2013, data released by the government today, 13 May 2013, showed. Within the consumer price index, inflation with respect to food and beverages stood at 10.61% in April 2013.
The government will unveil data on the wholesale price index (WPI) for April 2013 tomorrow, 14 May 2013. WPI eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013.
Industrial production rose 2.5% in March 2013, compared with a revised growth of 0.46% in February 2013, data released by the government on Friday, 10 May 2013, showed. Industrial production rose 1% for the year ended 31 March 2013 (FY 2013).
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
Asian stocks edged lower on Monday, 13 May 2013, with sentiment hit by selling in commodities triggered by a strong dollar, which rose to a fresh 4-1/2-year peak against the yen on the back of growing confidence in the US economy. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, and Taiwan fell by 0.05% to 1.15%. South Korea's Kospi gained 0.2%.
Japanese stocks on Monday jumped to their highest level in more than five years, boosted by an improved profit outlook and further yen weakness after the Group of Seven major economies refrained from criticizing Tokyo's easing policies. The Nikkei Average rose 1.2%.
China's industrial production rose 9.3% in April 2013, improving from a gain of 8.9% in March 2013. Retail sales rose 12.8% in April 2013, accelerating from a 12.6% advance in March 2013. The growth, however, was slower than that seen during 2012.
Urban fixed-asset investment, which is a gauge of construction and infrastructure spending, rose 20.6% in the January-April period, lower than 20.9% increase for January-March period. The January-April result matched fixed-asset investment growth during the full year of 2012.
Trading in US index futures indicated that the Dow could fall 29 points at the opening bell on Monday, 13 May 2013. The US Federal Reserve has reportedly sketched out a plan for winding down its stimulus program of buying $85 billion in bonds each month. As per reports, the Fed intends to clarify the strategy so that the financial markets don't overreact to the Fed's announcements in this regard.
The US Commerce Department unveils monthly report on retail sales for April 2013 later in the global day today, 13 May 2013.
Group of Seven finance officials agreed on Saturday to redouble efforts to deal with failing banks and gave a green light to Japan's drive to galvanize its economy.
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