Key benchmark indices edged lower, snapping a five-day winning streak, after a survey showed that India's vast service sector activity remained weak in the month just gone by. Weakness in European stocks also dampened sentiment on the domestic bourses. The barometer index, the S&P BSE Sensex, fell below the psychological 21,000 mark. The Sensex lost 264.57 points or 1.25%, off close to 184 points from the day's high and up close to 23 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
The Sensex and the 50-unit CNX Nifty had both attained record closing high during the special Diwali Muhurat trading session held on Sunday, 3 November 2013. The stock market was closed on Monday, 4 November 2013, on account of Diwali-Balipratipada.
Indian stocks snapped five-day winning streak today, 5 November 2013. The Sensex had risen 669.08 points or 3.25% in five trading sessions to settle at a record 21,239.36 on Sunday, 3 November 2013, from a recent low of 20,570.28 on 28 October 2013. The Sensex has garnered 1,548.08 points or 7.97% in calendar 2013 so far (till 5 November 2013). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,526.08 points or 20.21%. From a record high of 21,321.53 on 3 November 2013, the Sensex has fallen 346.74 points or 1.63%.
Coming back to today's trade, capital goods pivotals edged lower. Bhel declined ahead of its Q2 result tomorrow, 6 November 2013. PSU OMCs rose as US crude oil futures traded near the lowest level in more than 4 months. Tyre shares rose across the board.
The S&P BSE Sensex lost 264.57 points or 1.25% to settle at 20,974.79, its lowest closing level since 29 October 2013. The index fell 287.65 points at the intraday low of 20,951.71. The index dropped 80.80 points at the day's high of 21,158.56 in early trade.
The CNX Nifty shed 64.20 points or 1.02% to settle at 6,253.15, its lowest closing level since 30 October 2013. The index hit a low of 6,244.30 in intraday trade. The index hit a high of 6,304.75 in intraday trade.
The S&P BSE Mid-Cap index rose 0.89% and the S&P BSE SMall-Cap index rose 0.54%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,265 shares rose and 1,121 shares fell. A total of 135 shares were unchanged.
The total turnover on BSE amounted to Rs 2206 crore.
The S&P BSE Realty index (up 0.27%), the S&P BSE PSU index (up 0.15%), the S&P BSE Metal index (down 0.01%), the S&P BSE Auto index (down 0.29%), the S&P BSE Oil & Gas index (down 0.38%), the S&P BSE Capital Goods index (down 0.76%), the S&P BSE Bankex (down 0.92%) and the S&P BSE Consumer Durables index (down 1.03%), outperformed the Sensex. The S&P BSE Power index was unchanged for the day.
The S&P BSE FMCG index (down 2.53%), the S&P BSE Healthcare index (down 1.55%) and the S&P BSE IT index (down 1.28%), underperformed the Sensex.
Among the 30-share Sensex pack, 22 stocks fell and rest of them rose.
Index heavyweight and cigarette maker ITC lost 3.52% at Rs 318.95. The scrip hit high of Rs 330.20 and low of Rs 318.30.
Capital goods pivotals edged lower. L&T dropped 1.09%.
Bhel declined 1.62% ahead of its Q2 result tomorrow, 6 November 2013.
Among other capital goods shares, Siemens (down 2.83%), Thermax (down 1.97%), ALSTOM India (down 1.52%), Jindal Saw (down 0.91%), Pipavav Defence (down 0.86%), Praj Industries (down 0.75%), Alstom T&D India (down 0.65%), Havells India (down 0.6%), Bharat Electronics (down 0.41%) and ABB (down 0.29%), edged lower.
Pharmaceutical shares declined. Glenmark Pharmaceuticals (down 3.4%), Sun Pharmaceutical Industries (down 2.96%), Dr. Reddy's Laboratories (down 2.88%), Ranbaxy Laboratories (down 2.56%), Lupin (down 1.52%), Wockhardt (down 1.43%), IPCA Laboratories (down 1.26%), Cadila Healthcare (down 0.49%), Divi's Laboratories (down 0.19%) and Strides Arcolab (down 0.08%), edged lower.
Hindalco Industries rose after its US subsidiary Novelis on Monday, 4 November 2013, announced a price increase on its aluminum automotive sheet products in North America. The stock rose 1.47%. The price increase of $0.11 per pound for 6000-series, 5182-series and 5000-series automotive alloys will be effective for all new orders on or after 1 January 2014, Novelis said in a statement. Novelis fabrication pricing for specified volumes under current contracts will be honored throughout the contract period, the company said. The price increase is in addition to the previously announced pricing adjustment made on 23 April 2013. "This increase reflects the dynamics of the rapidly growing market for aluminum automotive sheet in North America. We officially commissioned our two new automotive sheet finishing lines in Oswego, NY, last month, which will increase our automotive capacity by 240,000 tons per year. That's five times our current automotive capacity in North America and an important milestone as we remain globally positioned to build on our supply and technology leadership in this important market," said Marco Palmieri, Senior Vice President and President, Novelis North America.
In addition to the Oswego expansion, a new automotive sheet finishing plant is under construction in Changzhou, China, which is expected to commence production in mid-2014 and will have a capacity of 120,000 tons. The company also recently certified automotive sheet production at its Gottingen, Germany plant that will ultimately add 40,000 tons of additional capacity. These new locations will join the company's existing automotive facilities in Kingston, Ontario, Canada; Sierre, Switzerland and Nachterstedt, Germany.
Novelis is the world's leading provider of aluminum automotive sheet, used for making structural components and exterior body panels.
Bharti Airtel fell 1.56%. The company said during market hours that it has entered into a definitive agreement with the Warid Group (Warid) to fully acquire Warid Congo SA. The agreement is subject to regulatory and statutory approvals. The agreement marks the second in-country acquisition by Airtel in Africa. It had acquired Warid's Uganda operations earlier this year. The latest acquisition will make Airtel the largest mobile operator in Congo Brazzaville with around 2.6 million customers. At present, Airtel is the second largest operator in the country with over 1.6 million customers, while Warid is the third largest with around one million customers.
The agreement aims to bring together the strengths of Airtel and Warid in Congo Brazzaville and benefit customers in the form of affordable tariffs, superior 2G/ 3G network, affordable voice and data services and superior customer care. In addition, existing Warid customers in Congo Brazzaville will join Airtel's global network of over 280 million customers and enjoy the benefits of 'One Airtel' network with affordable roaming rates across Africa and South Asia, besides other exciting bouquet of innovative 2G and 3G services.
Speaking on the agreement, Mr. Manoj Kohli, MD and CEO (International), Bharti Airtel said: "This acquisition is in line with our stated strategy of strengthening our market position through in-country acquisitions, as and when suitable opportunities comes along. We are at an advance stage of successfully integrating Waird's Uganda operations with that of Airtel and look forward to a similarly swift transition in Congo Brazzaville as well. As already demonstrated in Uganda, the merger will bring more value for the customers in the form of affordable data & roaming tariffs, innovative products, Airtel Money, world-class networks and customer care. We would like to express our deep gratitude to the Government and look forward to its support to this deal".
Speaking on the agreement Sriram Yarlagadda, Board Member, Warid, Congo Brazzaville said: "This agreement creates a win-win situation for the customers and provide them with an opportunity to be part of one of the largest mobile services providers in the world. The customers can look forward to enjoy affordable voice tariffs and 3G data services on the most extensive network. On this occasion, we would also like to express our sincere gratitude to the Government for its support and look forward to its continued cooperation towards a successful transaction".
Ashok Leyland rose 2.22%. The company's total sales declined 15% to 6,803 units in October 2013 over October 2012. The company announced the sales numbers on Monday, 4 November 2013. The stock market was closed on that day on account of Diwali-Balipratipada. Ashok Leyland's medium and heavy commercial vehicle sales declined 18% to 4,093 units in October 2013 over October 2012. Sales of light commercial vehicles including DOST and STILE fell 11% to 2,710 units in October 2013 over October 2012.
PSU OMCs rose as US crude oil futures traded near the lowest level in more than 4 months. HPCL (up 4.48%) and Indian Oil Corporation (up 1.91%), gained. Lower crude oil prices could reduce under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.
US crude oil futures traded near the lowest level in more than 4 months amid speculation crude inventories increased for a seventh week in United States, the world's biggest oil consumer. US crude oil futures for December 2013 delivery were down 9 cents a barrel at $94.53 a barrel in the electronic trading today, 5 November 2013. The contract had inched up 1 cent a barrel or 0.01% to settle at $94.62 a barrel on the New York Mercantile Exchange on Monday, 4 November 2013.
BPCL rose 2.12%. Videocon Industries fell 1.06%. Videocon Industries today, 5 November 2013, said that Anadarko Petroleum Corporation in its Q3 Operations Report announced that the Wahoo-5 appraisal well in BM-C-30 Concession drilled the eastern flank of the Wahoo structure and encountered more than 200 net feet of high-quality pay in a pre-salt reservoir, with a total hydrocarbon column now established at 460 feet. Anadarko, through a wholly owned subsidiary, holds a 30-percent working interest and is the operator of BM-C-30. BP holds a 25-percent working interest, IBV Brasil holds 25-percent and Maersk holds the remaining 20-percent working interest. Wahoo-5 Appraisal Well was spudded on 17 June 2013 using Blackford Dolphin Rig.
IBV Brasil is a Brazilian joint venture company equally held by Videocon Energy Brazil, a wholly owned overseas subsidiary of Videocon, and BPRL Ventures N.V., a wholly owned subsidiary of Bharat Petroleum Corporation (BPCL).
Mr. Pradeep N. Dhoot, Dubai based Director of Global E&P Business of Videocon Hydrocarbon Holdings, said: "The notable success of the Appraisal Well 'Wahoo-5' in the BM-C-30 Campos Block has further added to the hydrocarbon resources already indicated in the said Block, and is a further addition to the 'discoveries' in our Brazilian concessions in Sergipe Basin and Espirito Santos, underlining the value of our efforts in Brazil".
Tyre shares rose across the board. CEAT (up 10.73%), JK Tyre & Industries (up 5.07%), MRF (up 3.11%) and Apollo Tyres (up 1.78%), edged higher.
Shares of state-run Central Bank of India jumped 8.91% to Rs 64.15 after the bank announced that the Capital Raising Committee of the board of the bank at its meeting held today, 5 November 2013, has fixed the issue price at Rs 58.85 per equity share for preferential issue of equity shares in favour of Government of India. Accordingly, the bank will allot 30.58 crore equity shares to Government of India on preferential basis, thereby raising Rs 1800 crore.
Power Finance Corporation (PFC) rose 2.96% to Rs 147.65. The company said during market hours that the public issue of PFC's Tax Free Bonds 2013-14 will pre close today, 5 November 2013. It was earlier scheduled to close on 11 November 2013.
Shares of Jubilant FoodWorks surged 16.23% to Rs 1,360.70.
State Bank of India clocked a highest turnover of Rs 70.59 crore on BSE. Coal India (Rs 69.19 crore), United Spirits (Rs 53.57 crore), Yes Bank (Rs 53.53 crore) and Bank of India (Rs 50.47 crore), were the other turnover toppers on BSE in that order.
Cals Refineries reported highest volumes of 94.07 lakh shares on BSE. SpiceJet (43.42 lakh shares), Unitech (41.95 lakh shares), Dena Bank (41.59 lakh shares) and Jaiprakash Associates (33.61 lakh shares), were the other volume toppers on BSE in that order.
In the foreign exchange market, the rupee reversed initial losses against the dollar in choppy trade. The partially convertible rupee was hovering at 61.64, compared with its close of 61.74/75 on Friday, 1 November 2013.
Indian services firms recovered slightly last month from the worst slump in over four years in September but activity still shrank and a shortage of new orders means a rebound looks some way off, a survey showed on Tuesday, 5 November 2013. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, rose to 47.1 last month from 44.6 in September, which was the weakest reading since April 2009. But the PMI still lingered below the 50 mark that divides growth and contraction for the fourth consecutive month. Services contribute about 60% of India's gross domestic product.
European stocks edged lower on Tuesday, 5 November 2013, as the European Union (EU) trimmed its growth outlook. Key benchmark indices in France, Germany and UK shed 0.40% to 0.62%.
The EU cut its forecast for euro-area growth next year as the economy struggles to gain momentum with the debt crisis dragging into a fifth year and unemployment at a record. Gross domestic product in the 17-nation currency bloc will rise by 1.1% in 2014, less than the 1.2% forecast in May, the Brussels-based commission said today, 5 November 2013.
The European Central Bank (ECB) holds a monetary policy meeting on Thursday, 7 November 2013. The ECB is seen retaining its key policy rate at a record-low 0.5%.
UK retail sales rose only modestly in October, an industry group said Tuesday, raising doubts about the ability of consumers to support the economy at a time when Britons' incomes are falling in real terms. The British Retail Consortium said sales in shops that have been open at least a year rose 0.8% in October from the comparable month of 2012. That is only a very slight rebound from September, when growth stalled to 0.7% from 1.8% in August.
Asian stocks were mixed on Tuesday, 5 November 2013. Key benchmark indices in Hong Kong, Taiwan, and South Korea shed 0.56% to 1.1%. Key benchmark indices in China, Singapore and Japan rose 0.05% to 0.35%.
A HSBC and Markit Economics China services index released today, 5 November 2013, rose in October 2013, after an official non-manufacturing gauge rose to the highest level this year. The HSBC/Markit services PMI rose to 52.6 from September's 52.4, holding well above the 50 line that separates expansion from contraction. New business growth reached a seven-month high and employment rose for the second straight month.
China's leaders will meet in Beijing on November 9-12 to map out economic policies as the country heads for its slowest annual growth in more than two decades.
Chinese Premier Li Keqiang said late last month that China's economy needs to grow at least 7.2% a year in order to ensure the urban unemployment rate remains around 4%, reports said Tuesday, citing an account of the speech on a trade-union website. Li said that although 7.2% would be the minimum growth rate needed, he added that the government's target remains at 7.5% and will be achieved this year. Li also said China must keep a close watch on credit growth and avoid loose monetary policy.
Australia's central bank left its benchmark interest rates unchanged at a record low and said a lower currency will be needed to achieve balanced growth. Governor Glenn Stevens and his board kept the overnight cash-rate target at 2.5%, the Reserve Bank of Australia said in a statement today in Sydney
Trading in US index futures indicated that the Dow could fall 51 points at the opening bell on Tuesday, 5 November 2013. US stocks settled with modest gains Monday, 4 November 2013, as investors took a cue from upbeat earnings and shook off fears the market is overdue for a correction.
The US government will on Friday, 8 November 2013, release nonfarm payrolls figures for October 2013. The job data is a key economic indicator that has been watched closely in recent months to see whether the US Federal Reserve will roll back its bond-buying program.
"Monetary policy is likely to need to remain accommodative for some time so that we can achieve full employment within a reasonable forecast horizon. The economy remains challenged," Boston Fed President Eric Rosengren, who votes on monetary policy this year, said in a speech in Boston on Monday, 4 November 2013. Richmond Fed President Jeffrey Lacker gives a speech on the labor market in Charlotte, North Carolina today, 5 November 2013. Earlier this month he said the probability of another recession is "bigger than we thought."
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