Key benchmark indices trimmed losses in mid-morning trade after the latest data showed that consumer price inflation eased in April 2013. The S&P BSE Sensex regained the psychological 20,000 mark after falling below that mark earlier in the day. The Sensex was down 93.02 points or 0.46%, up close to 65 points from the day's low and off about 80 points from the day's high. Index heavyweight and cigarette major ITC extended intraday losses. Another index heavyweight Reliance Industries (RIL) reversed intraday losses. Capital goods stocks edged lower. IT stocks also declined.
The market edged lower in early trade. The market extended initial losses to hit fresh intraday low in morning trade. The market trimmed losses in mid-morning trade after the latest data showed that consumer price inflation eased in April 2013.
At 11:20 IST, the S&P BSE Sensex was down 93.02 points or 0.46% to 20.029.30. The index declined 159.71 points at the day's low of 19,962.61 in morning trade, its lowest level since 10 May 2013. The index declined 13.24 points at the day's high of 20,109.08 in early trade.
The CNX Nifty was down 21.30 points or 0.35% to 6,085.90. The index hit a low of 6,063.40 in intraday trade, its lowest level since 10 May 2013. The index hit a high of 6,104.95 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 964 shares fell and 773 shares rose. A total of 101 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks fell while rest of them rose. Dr Reddy's Laboratories, ICICI Bank and HDFC Bank rose by 0.56% to 2.56%.
Index heavyweight Reliance Industries (RIL) rose 0.74% to Rs 819.35. The stock hit a high of Rs 820 and low of Rs 809.20 so far during the day.
Index heavyweight and cigarette major ITC shed 3.74% to Rs 341.50 on profit booking. The stock hit a high of Rs 354 and low of Rs 340.90 so far during the day. The stock had hit record high of Rs 355 in intraday trade during the special trading session held on Saturday, 11 May 2013. The Uttar Pradesh state government on 7 May 2013 slashed VAT on cigarette/cigar from existing 50% to 25%. The state government had last year increased VAT on cigarette/cigar and tobacco products from 12.5% to 50%.
The Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14.
Capital goods stocks edged lower. ABB, Thermax, Bhel and L&T shed by 0.31% to 1.51%.
Siemens declined 1.49%. The company said on Saturday, 11 May 2013, that the company has fixed 15 May 2013, as the record date for the purpose of determining the members of Winergy Drive Systems India to whom the equity shares will be issued and allotted by the company consequent upon the amalgamation of Winergy Drive Systems with the company with effect from 31 March 2013.
IT stocks also declined. Infosys, Tech Mahindra, HCL Technologies and Tata Consultancy Services (TCS) shed by 0.33% to 1.93%.
Wipro fell 0.9%. The company on 9 May 2013 said that the Securities & Exchange Board of India (Sebi) has approved its proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an 'Irrevocable Independent Trust' with trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries. Wipro said that the company and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement including Offer for Sale (OFS). The demerger of the 'diversified' business is also expected to increase public shareholding. Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the 'Irrevocable Independent Trust' and the trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement, Wipro said.
Meanwhile, the rupee weakened to its lowest level in more than two months on Monday weighed down by weaker domestic shares and broad gains in the dollar against global currencies. The partially convertible rupee was trading at 54.92 per dollar, after hitting as low as 55.01, its lowest since 4 March 2013. The rupee closed at 54.80/81 on Friday. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
The focus of the market is on Q4 results. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results tomorrow, 14 May 2013. Bajaj Auto announces Q4 results on Thursday, 16 May 2013. ITC unveils Q4 results on Friday, 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
The latest data showed that the consumer price inflation fell below the 10% mark in April 2013. The combined consumer price inflation for rural and urban India eased to 9.39% in April 2013 from 10.39% in March 2013, data released by the government today, 13 May 2013, showed. Within the consumer price index, inflation with respect to food and beverages stood at 10.61% in April 2013.
The government will unveil data on the wholesale price index (WPI) for April 2013 tomorrow, 14 May 2013. WPI eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013.
Industrial production rose 2.5% in March 2013, compared with a revised growth of 0.46% in February 2013, data released by the government on Friday, 10 May 2013, showed. Industrial production rose 1% for the year ended 31 March 2013 (FY 2013).
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
Asian stocks edged lower on Monday, 13 May 2013, with sentiment hit by selling in commodities triggered by a strong dollar, which rose to a fresh 4-1/2-year peak against the yen on the back of growing confidence in the US economy. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, and Taiwan fell by 0.12% to 1.01%. South Korea's Kospi gained 0.11%.
Japanese stocks on Monday jumped to their highest level in more than five years, boosted by an improved profit outlook and further yen weakness after the Group of Seven major economies refrained from criticizing Tokyo's easing policies. The Nikkei Average rose 0.84%.
China's industrial production rose 9.3% in April 2013, improving from a gain of 8.9% in March 2013, and a 9.9% rise for the January-February period, which China's statistics bureau reports as one figure due to seasonal distortions from the Lunar New Year holiday. Retail sales rose 12.8% in April 2013, accelerating from a 12.6% advance in March 2013. The growth, however, was slower than that seen during 2012.
Urban fixed-asset investment, which is a gauge of construction and infrastructure spending, rose 20.6% in the January-April period, lower than 20.9% increase for January-March period. The January-April result matched fixed-asset investment growth during the full year of 2012.
Trading in US index futures indicated that the Dow could fall 26 points at the opening bell on Monday, 13 May 2013. The US Federal Reserve has reportedly sketched out a plan for winding down its stimulus program of buying $85 billion in bonds each month. As per reports, the Fed intends to clarify the strategy so that the financial markets don't overreact to the Fed's announcements in this regard.
The US Commerce Department unveils monthly report on retail sales for April 2013 later in the global day today, 13 May 2013.
Group of Seven finance officials agreed on Saturday to redouble efforts to deal with failing banks and gave a green light to Japan's drive to galvanize its economy.
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