Key benchmark indices hit fresh intraday low in afternoon trade after European market opened lower. The S&P BSE Sensex was down 156.03 points or 0.79% at the day's low of 19,604.27, off close to 256 points from the day's high. The market breadth, indicating the overall health of the market, was negative. The results of a private survey indicating slowdown in India's manufacturing activity in May 2013 and weakness in global stocks dampened sentiment.
Index heavyweight and cigarette major ITC extended intraday losses. Index heavyweight Reliance Industries (RIL) extended intraday losses. Coal India rose after declaring positive production and offtake figures for May 2013. Mahindra & Mahindra bounced back after initial weakness.
Foreign institutional investors (FIIs) sold shares worth a net Rs 504.02 crore on Friday, 31 May 2013, as per provisional data from the stock exchanges.
A bout of initial volatility was witnessed as key benchmark indices recovered after slipping into the red after a firm start. Key benchmark indices alternately moved between positive and negative terrain near the flat line in morning trade. The market lost ground to hit fresh intraday low in mid-morning trade. The market trimmed losses in early afternoon trade. Key benchmark indices hit fresh intraday low in afternoon trade after European market opened lower.
At 13:19 IST, the S&P BSE Sensex was down 156.03 points or 0.79% to 19,604.27, which is also an intraday low. The index rose 99.89 points at the day's high of 19.860.19 in opening trade.
The CNX Nifty was down 50.80 points or 0.85% to 5,935.15. The index hit a low of 5,928.25 in intraday trade, its lowest level since 24 May 2013. The index hit a high of 6,011 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1227 shares fell and 913 shares rose. A total of 121 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks declined and the rest of them gained. Bajaj Auto (down 4.15%), Maruti Suzuki India (down 2.84%), Hero MotoCorp (down 2.56%) and ONGC (down 2.02%), edged lower from the Sensex pack.
GAIL (India) (up 1.48%), Dr Reddy's Laboratories (up 1.4%), Bharti Airtel (up 1.38%) and Jindal Steel & Power (up 1.02%), edged higher from the Sensex pack.
Coal India rose 0.72% to Rs 327.30. The company during trading hours today, 3 June 2013, said its coal production stood at 34.55 million tonnes in May 2013 which was 95% of the target. The coal supply stood at 38.27 million tonnes for the month which was 94% of the target.
Mahindra & Mahindra (M&M) rose 1.89% to Rs 983.50, off the day's low of Rs 945.40. The company on Saturday, 1 June 2013, said its total sales declined 1% at 43,460 units in May 2013 over May 2012. Auto sales in the domestic market rose 5% to 42,104 units in May 2013 over May 2012. The passenger vehicles segment which includes the UVs and Verito registered a growth of 5% at 22,244 units in May 2013 over May 2012. The four-wheeler commercial segment which includes the passenger and load vehicles registered a 12% growth at 14,848 units while the three-wheeler segment witnessed a 7% decline in sales at 4,028 units in May 2013 over May 2012. Exports declined sharply by 67% at 1,356 units in May 2013 over May 2012.
Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, M&M said, "We have achieved an overall growth of 5% in our domestic volumes during May 2013 for our automotive sector, in spite of a challenging environment. The growth in capital investment and private spending have also slowed down which is a cause for concern. At Mahindra, we remain cautiously optimistic of the situation and do hope that on the back of the new product launches, the auto industry will rev up sooner than later".
Pharmaceutical major Sun Pharmaceutical Industries declined 2.82%. The company is reportedly in talks to buy Sweden's Meda AB for between $5 billion and $6 billion to boost its generics business in developed markets. Meda makes speciality products, over-the-counter drugs and branded generics -- the same areas of focus as Sun.
Index heavyweight and cigarette major ITC dropped 1.72 %, with the stock extending intraday losses.
Index heavyweight Reliance Industries (RIL) fell 1.97 % to Rs 789.75, with the stock extending intraday losses. RIL and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India. RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
Select stocks that last week entered MSCI India index declined on profit booking. GlaxoSmithkline Consumer Healthcare (down 5.11%), Oil India (down 3.07%), Wockhardt (down 2.14%) and Apollo Hospitals Enterprise (down 1.74%), edged lower.
These stocks were included in MSCI India index from close of trading on Friday, 31 May 2013. MSCI Barra is a leading provider of benchmark indices and risk management analytics products. Many global mutual funds are linked with MSCI indices. Hence, any new stock addition in MSCI index will require the fund tracking that index to include it in its portfolio.
In the past one month till 31 May 2013, GlaxoSmithkline Consumer Healthcare (up 45.10%), Apollo Hospitals Enterprise (up 20.43%) and Oil India (up 7.21%), surged. However, Wockhardt slumped 35.74%.
Credit rating firm CRISIL hit an upper circuit limit of 20% at Rs 1,126.60. McGraw Hill Financial today, 3 June 2013, announced a voluntary open offer to increase its stake in the company to 75% from 52.77%. McGraw Hill Financial is making a voluntary open offer to acquire up to 1.56 crore shares, representing 22.23% of the total equity shares outstanding in CRISIL at Rs 1,210 per share. The cash offer of Rs 1,210 per share represents a premium of 28.88% to the closing share price of Rs 938.85 on Friday, 31 May 2013.
The tender offer period is expected to begin in July 2013 and conclude in early August 2013. All requirements and procedures under Indian law will be strictly followed, McGraw Hill Financial said in a statement.
CRISIL and S&P Ratings Services first signed an affiliation agreement in 1996. The relationship was further strengthened in 1997 when McGraw Hill Financial acquired its initial equity stake in CRISIL. In 2005, McGraw Hill Financial became CRISIL's majority shareholder.
McGraw Hill Financial, a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Its iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power & Associates, McGraw Hill Construction and Aviation Week.
Shares of other two credit rating firms spurted. ICRA (up 13.71%) and Credit Analysis and Research (CARE) (up 4.28%), surged.
ICRA is an independent and professional investment information and credit rating agency. the international credit rating agency Moody's Investors Service is ICRA's largest shareholder. As on 31 March 2013, Moodys Investment Company India held 28.51% stake in ICRA.
CARE ratings has established itself as the second-largest credit rating agency in India. Its majority shareholders include leading domestic banks and financial institutions in India.
HSBC's India manufacturing PMI, which gauges business activity in Indian factories but not its utilities, eased to 50.1 in May 2013 from 51 in April 2013 led by a fall in output and a slowdown in new orders. Meanwhile, new export orders continued to firm. Quantity of purchases grew at a slower clip, stocks of purchases accelerated and stocks of finished goods grew at broadly the same pace. Backlogs of work rose notably and supplier delivery times continued to lengthen, albeit at a slower pace. Meanwhile, employment rose at a slightly faster pace. Input prices deflated and output prices declined for the first time since the global financial crisis.
With inflation pressures easing, the RBI may cut the policy rate again at the June meeting, but it is not blessed with a lot of room to ease monetary policy settings, said HSBC Economists after the manufacturing data.
Fiscal deficit for or the fiscal year ended 31 March 2013 (FY 2013) came in lower at 4.9% of GDP against 5.1% budgeted (in February 2012) and revised to 5.2% in February 2013, data released by the government after trading hours on Friday, 31 May 2013, showed. Fiscal deficit for FY 2014 is budgeted at 4.8% of GDP.
The crucial monsoon arrived on cue in Kerala on the southern coast on Saturday, 1 June 2013, boosting farming. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The weather office last month predicted the monsoon would arrive over Kerala on June 3.
European indices were trading lower in early trade ahead of a raft of factory activity data coming in from across the eurozone. Key benchmark indices in UK, France and Germany were down by 1.18% to 1.94%.
Investors will be tracking purchasing managers index (PMI) data coming in from the UK, Germany, France, Italy, Spain, Sweden, Hungary, Norway and the Czech Republic during the day.
Asian stocks fell across the board on Monday after improving US economic data added to concern the Federal Reserve will scale back its stimulus. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore, Taiwan and South Korea shed by 0.06% to 3.72%.
The final version of the HSBC China manufacturing Purchasing Managers' Index for May fell to 49.2, down from a preliminary reading of 49.6, and more than a point off from April's 50.4. HSBC said that while the result marked the first contraction in seven months, "albeit at only a marginal pace," manufacturing output actually registered its seventh straight gain, though that too was small in size.
The official purchasing managers' index (PMI), issued by the National Bureau of Statistics and China Federation of Logistics and Purchasing, indicated activity in China's vast manufacturing sector picked up slightly in May. China's official PMI rose to 50.8 in May from 50.6 in April, data showed on Saturday, 1 June 2013. A reading above 50 indicates expanding activity while a reading below that level points to a contraction.
Separately, a government gauge of services industries today, 3 June 2013 showed the slowest expansion since September. The official China non-manufacturing PMI for May declined to 54.3 from 54.5.
South Korea's exports unexpectedly increased in May as surging smartphone shipments and improving demand from the US and China countered a decline in the yen. Overseas shipments increased 3.2% from a year earlier after a 0.4% gain in April, the Ministry of Trade, Industry and Energy said in a statement on Saturday, 1 June 2013.
Trading in US index futures indicated that the Dow could gain 19 points at the opening bell on Monday, 3 June 2013. US stocks tanked on Friday after positive economic indicators rekindled talk that the Federal Reserve will soon scale back stimulus measures. The Thomson Reuters/University of Michigan's final consumer sentiment index rose to 84.5 in May from 83.7 in April. A separate report showed that the Chicago purchasing managers' index climbed to 58.7 this month from 49 in April, beating expectations for a rise to 50.
Powered by Capital Market - Live News
