Key benchmark indices hovered in red in mid-afternoon trade. The S&P BSE Sensex was down 41.30 points or 0.22%, up about 140 points from the day's low and off close to 80 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Lupin declined after reporting strong Q1 results. Some other pharma stocks also dropped. Asian Paints tumbled for the third straight day. Index heavyweight Reliance Industries (RIL) extended intraday gains.
A bout of initial volatility was witnessed as key benchmark indices slipped into the red after opening higher. Volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. The market pared losses once again after hitting fresh intraday low in mid-morning trade. Volatility continued as key benchmark indices trimmed intraday losses in early afternoon trade. Key benchmark indices hovered in red in mid-afternoon trade.
The rupee dropped against the dollar in choppy trade on Wednesday, 7 August 2013, after Federal Reserve officials on Tuesday, 6 August 2013, said a reduction in asset purchases is likely later this year. The partially convertible rupee was hovering at 61.095, weaker than its close of 60.77/78 on Tuesday, 6 August 2013. The rupee had staged a strong intraday rebound on Tuesday after hitting record low of 61.80.
At 14:20 IST, the S&P BSE Sensex was down 41.30 points or 0.22% to 18,691.74. The index fell 181.69 points at the day's low of 18,551.35 in mid-morning trade, its lowest level since 26 June 2013. The index rose 38.73 points at the day's high of 18,771.77 in early trade.
The CNX Nifty was down 19.45 points or 0.35% to 5,522.90. The index hit a low of 5,486.85 in intraday trade, its lowest level since 10 April 2013. The index hit a high of 5,553.90 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,090 shares rose and 1,003 shares fell. A total of 141 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. HDFC (down 3.16%), Bajaj Auto (down 1.9%) and Tata Motors (down 1.88%), edged lower.
Index heavyweight Reliance Industries (RIL) rose 3.46% to Rs 869.50.
Lupin lost 5.34% to Rs 838. The company's consolidated net profit rose 43.03% to Rs 401.06 crore on 9.1% growth in net sales to Rs 2420.70 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours today, 7 August 2013. The earnings before interest, taxation, depreciation and amortization (EBITDA) jumped 43.5% to Rs 690.50 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin expanded to 28.5% of net sales in Q1 June 2013, from 21.7% in Q1 June 2012.
Earlier during the day, Lupin announced that it has signed a strategic licensing agreement with US pharmaceutical company Romark Laboratories, L.C. (Romark) which grants Lupin exclusive rights to promote, distribute and market Alinia (nitazoxanide) for Oral Suspension in the US. Alinia (nitazoxanide) is the first thiazolide approved by the USFDA for the treatment of diarrhea caused by Cryptosporidium and Giardia and is the only USFDA-approved treatment for Cryptosporidium. Alinia for Oral Suspension is indicated for the treatment of diarrhea caused by Giardia lamblia or Cryptosporidium parvum in patients 1 year of age and older. These are the two most common protozoal causes of diarrhea in the developed and developing world, Lupin said.
Some other pharma stocks were also in red. Sun Pharmaceuticals Industries declined 3.57%. The company unveils Q1 results on Friday, 9 August 2013.
Cipla declined 0.33%.
But, Ranbaxy Laboratories rose 1.58% ahead of its Q2 results today, 7 August 2013. Dr Reddy's Laboratories rose 1.18%.
Asian Paints dropped 4.72%, with the stock extending its recent losses.
Emami lost 2.73% after consolidated net profit surged 30.18% to Rs 60.68 crore on 12.7% growth in total income to Rs 398.77 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced during trading hours today, 7 August 2013.
PTC India Financial Services tumbled 4.74% as the stock turned ex-dividend today, 7 August 2013, for dividend of 40 paise per share for the year ended 31 March 2013.
The government on Tuesday, 6 August 2013, named Dr. Raghuram Rajan as the next Governor of the Reserve Bank of India (RBI) for a term of three years after D Subbarao's tenure ends on 4 September 2013. Rajan, who is currently Chief Economic Adviser in the finance ministry, joined the government last August, having previously been chief economist at the International Monetary Fund and a professor at the University of Chicago.
European shares edged lower on Wednesday, 7 August 2013, after Federal Reserve officials on Tuesday, 6 August 2013, said a reduction in asset purchases is likely later this year. Key benchmark indices in UK, France and Germany were down by 0.37% to 0.53%.
Most Asian stocks dropped on Wednesday, 7 August 2013, after overnight losses in the US on monetary-policy concerns, with Japan taking an especially heavy hit from gains for the yen. Key benchmark indices in China, Japan, Hong Kong, Singapore, Taiwan, and South Korea were off 0.05% to 4%.
The Bank of Japan (BoJ) holds two-day policy meet on 7 and 8 August 2013. The BoJ is widely expected to maintain its pledge of increasing the monetary base at an annual pace of about 60 trillion to 70 trillion yen ($600 billion-$700 billion).
Trading in US index futures indicated that the Dow could fall 70 points at the opening bell on Wednesday, 7 August 2013. US stocks extended losses into a second day Tuesday after Fed Bank of Chicago President Charles Evans, who has been among the strongest proponents of the record monetary accommodation in the US said he expects the central bank to begin tapering its asset-purchase program by the end of the year. Separately, Atlanta Fed Bank President Dennis Lockhart said tapering of monetary stimulus, or quantitative easing, could be announced at any of this year's remaining policy meetings.
The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
Data yesterday showed the US trade deficit narrowed more than economists expected in June to the least since October 2009. Separately, job openings rose to 3.94 million in June from 3.91 million in May, the US Department of Labor reported.
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