Key benchmark indices trimmed losses in early afternoon trade. The S&P BSE Sensex was down 89.55 points or 0.42%, up about 30 points from the day's low and off close to 90 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
IT major Wipro surged as the company issued upbeat revenue guidance for Q2 September 2013 at the time of announcing Q1 June 2013 results after trading hours on Friday, 26 July 2013. Bank stocks were mixed. Punjab National Bank extended Friday's losses triggered by a surge in the bank's gross non-performing assets in Q1 June 2013. Jaiprakash Associates reversed intraday losses after the company's Q1 results. Engineering and construction giant L&T reversed intraday losses after the company said that it has secured an order worth $1.4 billion (Rs 8250 crore) from the ArRiyadh Development Authority for a metro rail project in Riyadh, Saudi Arabia.
The market edged lower in early trade on weak Asian stocks. The market extended initial losses to hit fresh intraday low in morning trade. The market weakened further to hit fresh intraday low in mid-morning trade. The S&P BSE Sensex hit 2-1/2-week low. The 50-unit CNX Nifty hit its lowest level in almost three weeks. The market trimmed losses in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was down 89.55 points or 0.42% to 19,664.50. The index declined 122.93 points at the day's low of 19,625.26 in mid-morning trade, its lowest level since 11 July 2013. The index rose 2.84 points at the day's high of 19,751.03 in early trade.
The CNX Nifty was down 26.75 points or 0.45% to 5,859.45. The index hit a low of 5,843.95 in intraday trade, its lowest level since 10 July 2013. The index hit a high of 5,886 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,090 shares declined and 730 shares rose. A total of 74 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. Hindustan Unilever (down 3.78%), Hindalco Industries (down 3.71%), and Sterlite Industries (down 2.22%), edged lower.
Jaiprakash Associates reversed intraday losses after the company's Q1 results. The stock was up 1.8% at Rs 42.50. Ahead of the results, the stock had lost as much as 6.34% at the day's low of Rs 39.10 in early trade.
The company's net profit surged 140.93% to Rs 334.51 crore on 10.38% rise in total income to Rs 3351.93 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours today, 29 July 2013. The surge in net profit was due to an exceptional non-recurring income on sale of stake in its subsidiary Jaypee Infratech to meet the minimum public shareholding norms (MPS) of Jaypee Infratech. The company made a profit of Rs 395.28 crore on sale of 16 crore equity shares of Jaypee Infratech.
Bank stocks were mixed. HDFC Bank fell 1.98%. ICICI Bank rose 0.22%.
PSU bank major State Bank of India declined 1.07%.
Punjab National Bank fell 2.32%, with the stock extending Friday's 5.15% losses triggered by a surge in the bank's gross non-performing assets in Q1 June 2013. The bank's net profit rose 2.38% to Rs 1275.32 crore on 0.21% rise in total income to Rs 11746.59 crore in Q1 June 2013 over Q1 June 2012. The bank announced Q1 result during market hours on Friday, 26 July 2013.
Lakshmi Vilas Bank lost 3% as the stock turned ex-dividend today, 29 July 2013, for dividend of Rs 3 per share for the year ended 31 March 2013.
IT major Wipro surged 6.27%, with the stock extending initial gain as the company issued upbeat revenue guidance for Q2 September 2013 at the time of announcing Q1 June 2013 results after trading hours on Friday, 26 July 2013. Wipro expects 1.99% to 3.88% growth in revenue from IT services business at between $1.62 billion to $1.65 billion in Q2 September 2013 over Q1 June 2013.
The company's consolidated net profit rose 3% to Rs 1623.30 crore on 1% growth in revenue to Rs 9734.60 crore in Q1 June 2013 over Q4 March 2013. The results are as per International Financial Reporting Standards. The results are after adjusting for the spinoff of its non-technology businesses, completed in April.
IT services revenue rose 0.2% to $1.58 billion in Q1 June 2013 over Q4 March 2013. Non-GAAP constant currency IT services revenue in dollar terms was $1.60 billion, which was within the company's guidance range of $1.575 billion to $1.61 billion.
Wipro said that the pricing environment was largely stable during the quarter, and the growth was largely volume led. Effective from 1 June 2013, Wipro gave annual wage hike of between 6-8% for offshore employees and 2-3% for onsite employees.
Wipro added 28 new customers in Q1 June 2013.
Engineering and construction giant L&T reversed intraday losses after the company said that it has secured an order worth $1.4 billion (Rs 8250 crore) from the ArRiyadh Development Authority for a metro rail project in Riyadh, Saudi Arabia. The stock was up 0.28% at Rs 849.80. The stock reversed direction after hitting 52-week low of Rs 836 in intraday trade after the company said during market hours today, 29 July 2013, that its construction division secured an order worth $ 1403 million (Rs 8250 crore) from the ArRiyadh Development Authority, kingdom of Saudi Arabia for the design, construction and comissioning of metro project in Riyadh, Saudi Arabia. L&T has secured the order as a JV partner of ArRiyadh New Mobility consortium. The total value of the order is $5.94 billion. The project is to be completed during a period of four years, which will be preceded by eight months to prepare the detailed designs and to carry out the enabling works, the coordination for utilities diversion and the site preparation works, and followed by four months of system demonstration, trial run and project handing over.
Prime Minister Dr. Manmohan Singh will meet the captains of Indian industry today, 29 July 2013, to review steps to revive the economy. The discussion will cover measures to correct the Current Account Deficit, measures to revive industrial growth, depreciation of the rupee and its impact on trade and industry, skill development and ways of accelerating it and development of the Delhi-Mumbai Industrial Corridor (DMIC), the Chennai-Bangalore Industrial Corridor (CBIC), and the Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC).
Asian stocks retreated on Monday, 29 July 2013, with Japanese equities skidding as a firm yen further dragged on the nation's exporters, while Chinese shares lost ground amid economic worries. Key benchmark indices in South Korea, Singapore, Indonesia and Taiwan were off 0.13% to 1.48%
Mainland Chinese and Hong Kong stocks retreated amid lingering economic worries, with sentiment weighed by official data released over the weekend showing profits at Chinese industrial firms slowed in June. The Shanghai Composite index was off 1.89%. In Hong Kong, the Hang Seng was off 0.67%. Data released over the weekend by the National Bureau of Statistics showed profits at industrial companies rose 6.3% in June from the year-earlier month, slowing sharply from a 15.5% increase in May, according to reports.
The drop in Chinese equities also came after Beijing ordered China's National Audit Office to conduct an urgent review of overall public debt.
In Japan, the Nikkei 225 Average was off 3.32%. The benchmark had retreated 3% on Friday, 26 July 2013.
Japanese retail sales rose 1.6% from a year earlier in June, figures today showed, which was below the market expectations.
Bank of Japan Governor Haruhiko Kuroda indicated little concern that a planned sales-tax rise would derail the nation's economic rebound. A two-step sales tax increase won't give major damage to growth in Japan's economy, Kuroda said in a speech today in Tokyo, referring to the BOJ's growth forecasts. We consider a downturn in overseas economies to be the largest risk factor to the outlook for economic activity and prices.
Trading in US index futures indicated that the Dow could fall 34 points at the opening bell on Monday, 29 July 2013. US stocks inched higher on Friday, 26 July 2013, to end the week virtually flat, as investors digested earnings reports and prepared for a busy economic calendar in the week ahead.
On the economic front, US consumer confidence unexpectedly rose at the end of this month, according to the Thomson-Reuters/University of Michigan's consumer-sentiment index.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on Tuesday (30 July 2013) and Wednesday (31 July 2013), after which it will release a statement on central bank policy. In his two-day testimony to Congress, which concluded on 18 July 2013, Federal Reserve Chairman Ben Bernanke said plans to taper asset purchases were not on a preset path and stressed intentions to be very responsive to data. Additionally, Bernanke said recent data have been "mixed" and it was "way too early" to make a judgment on when the central bank will slow down the pace of its asset purchases. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.
The European Central Bank (ECB) and the Bank of England (BoE) will announce their policy decisions on Thursday, 1 August 2013.
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