Key benchmark indices provisionally closed a tad higher as European stocks rose. The S&P BSE Sensex was provisionally up 24.58 points or 0.13%, up about 50 points from the day's low and off close to 120 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Coal India reversed initial losses triggered by weak Q1 result. Bharat Heavy Electricals (Bhel) tumbled after the company reported weak Q1 results on Saturday, 3 August 2013. Telecom stocks dropped. Some metal stocks rose on bargain hunting after recent losses.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between positive and negative zone. The Sensex surged and hit fresh intraday high in mid-morning trade. The market trimmed gains in early afternoon trade. The Sensex was trading slightly higher in mid-afternoon trade. The market regained positive terrain after falling briefly into the red in late 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.
As per provisional figures, the S&P BSE Sensex was up 24.58 points or 0.13% to 19,188.60. The index jumped 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 3.35 points or 0.06% to 5,681.25, as per provisional figures. The index hit a high of 5,721 in intraday trade. The index hit a low of 5,661.50 in intraday trade.
The total turnover on BSE amounted to Rs 1752 crore, lower than Rs 1855.70 crore on Friday, 2 August 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,123 shares fell and 1,084 shares rose. A total of 132 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and rest of them fell. NTPC (up 3.54%), Wipro (up 2.62%) and ICICI Bank (up 1.7%), edged higher.
Telecom stocks dropped. Bharti Airtel (down 2.05%), Idea Cellular (down 2.49%), MTNL (down 3.84%) and Reliance Communications (down 1.9%) decliined.
Grasim Industries dropped 0.07% to Rs 2560 on weak Q1 result. The stock recouped almost the entire intraday losses after hitting 52-week low of Rs 2477.75 in intraday trade today, 5 August 2013. The company's consolidated net profit fell 15% to Rs 610.01 crore on 1.5% growth in net sales to Rs 6895.08 crore in Q1 June 2013 over Q1 June 2012. The result was announced on Saturday, 3 August 2013.
Grasim Industries said that the performance of the company during the quarter has been satisfactory considering the prolonged subdued economic environment in India and across the world.
On future business outlook, Grasim said that given the prevailing global economic conditions, coupled with the surplus capacity in China, the VSF industry continues to face a challenging environment in the immediate term. In cement, the demand is expected to grow by 6% in FY 2014 due to the slowdown in GDP growth rate, the company said. It has the potential to recover to over 8% with the improvement in the economic environment, it added. Capacity expansions in VSF and cement will provide additional volumes, driving growth and further consolidate the company's leadership, Grasim said. This will enable Grasim to move forward rapidly, with the recovery in the market, the company added. Grasim said it will continue to focus on cost reduction measures, improving asset productivity to maintain its position as the lowest cost producer and expanding specialty products portfolio for sustained shareholder value creation.
Shares of motorcycle maker Hero MotoCorp rose 3.41% to Rs 1,858 after two bulk deals aggregating 11.25 lakh shares were executed on BSE at Rs 1,800 per share at 13:14 IST. One block deal was of 4 lakh shares while the other was of 7.25 lakh shares. The two block deals constitute 0.56% of Hero MotoCorp's equity.
The company said on 1 August 2013, its total sales rose 0.68% to 4.87 lakh units in July 2013 over July 2012.
Coal India gained 4.03% to Rs 264.80, 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.
Bharat Heavy Electricals (Bhel) tumbled 19.41% to Rs 120.40 on weak Q1 results. The stock hit 52-week low of Rs 120.05 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.
Some metal stocks rose on bargain hunting. Jindal Steel & Power jumped 8.35% to Rs 202.50. The stock had hit a 52-week low of Rs 181.55 in intraday trade on Friday, 2 August 2013.
Steel major Tata Steel rose 2.52% to Rs 207.40. The stock reversed direction after hitting a 52-week low of Rs 198.50 in intraday trade today, 5 August 2013.
Sterlite Industries gained 4.7%. Sail rose 1.01%.
T.V. Today Network rose by maximum permissible limit of 20% at Rs 65.50 after the company reported net profit of Rs 11.98 crore in Q1 June 2013 as against net loss of Rs 0.35 crore in Q1 June 2012. The result was announced after market hours on Friday, 2 August 2013. Net sales rose 25.90% to Rs 88.85 crore in Q1 June 2013 over Q1 June 2012.
Divi's Laboratories rose 2.3% after net profit rose 4.4% to Rs 174.71 crore on 10.1% growth in net sales to Rs 515.88 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced on Saturday, 3 August 2013. Divi's Laboratories' tax provision rose 14.89% to Rs 54 crore in Q1 June 2013 over Q1 June 2012. The company reported a foreign exchange (forex) gain of Rs 43 crore during the quarter, as against forex gain of Rs 30 crore in corresponding quarter last year.
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.
European markets edged higher on Monday, 5 August 2013, as investors welcomed a rise in euro-zone services PMI data. Key benchmark indices in UK, France and Germany were up by 0.18% to 0.31%.
Euro-area services output shrank at a slower pace than initially estimated in July, adding to evidence the economy is gathering strength to pull out of a record-long recession. An index of activity in the services industry based on a survey of purchasing managers rose to 49.8 from 48.3 in June, London-based Markit Economics said in a report today. That's above an initial estimate of 49.6 on July 24. A reading below 50 indicates contraction.
The composite index for the euro zone rose to 50.5, above a preliminary reading of 50.4 and better than June's 48.7. The July reading marked the first time since January 2012 the index has climbed above the 50 level that separates expansion from contraction.
UK services growth accelerated more than economists forecast to the fastest pace in more than six years, adding to evidence Britain's economic recovery is gathering momentum. A gauge of activity rose to 60.2 from 56.9 in June, Markit Economics and the Chartered Institute of Purchasing and Supply said in a statement today in London.
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.
Asian stocks were mixed on Monday, 5 August 2013. Key benchmark indices in Hong Kong, China, and Taiwan rose by 0.14% to 1.04%. Key benchmark indices in Japan, Singapore, and South Korea fell by 0.37% to 1.44%.
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 a flat opening of US stocks 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 increase 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.
The US Federal Reserve is watching for progress in the US economy as it shapes its outlook for monetary policy. 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.
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