Key benchmark indices were range bound in afternoon trade. The S&P BSE Sensex was down 40.32 points or 0.22%, up about 141 points from the day's low and off close to 79 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Mid-cap and small-cap indices on BSE were in the green.
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 were range bound in afternoon trade.
Most global stocks dropped on Wednesday, 7 August 2013, after overnight losses in the US triggered by monetary-policy concerns after two Federal Reserve officials said they expect the central bank to reduce its asset purchases this year from current $85 billion a month because of economic improvement.
The rupee weakened on Wednesday tracking some losses in regional share markets and currencies while dollar demand from domestic importers also weighed. The partially convertible rupee was hovering at 61.35, 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 13:17 IST, the S&P BSE Sensex was down 40.32 points or 0.22% to 18,692.72. 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 10.40 points or 0.19% to 5,531.85. 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 BSE Mid-Cap index was up 0.67% and the BSE Small-Cap index was down 0.87%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,078 shares rose and 945 shares fell. A total of 129 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose and rest of them fell. Sterlite Industries (India) (up 4.83%), Jindal Steel & Power (up 4.02%), Tata Power (up 3.78%), State Bank of India (up 3.61%), Tata Steel (up 3.47%), Bhel (up 3.01%) and Reliance Industries (up 2.65%), edged higher from the Sensex pack.
HDFC (down 2.82%), Tata Motors (down 2.26%), Larsen & Toubro (down 1.63%), ITC (down 1.62%), TCS (down 1.2%), Bajaj Auto (down 1.08%), Hindustan Unilever (down 0.83%) and Hero MotoCorp (down 0.47%), edged lower from the Sensex pack.
Pharmaceuticals company Lupin fell 0.93% to Rs 877. Lupin announced during trading hours today, 7 August 2013, 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 FDA for the treatment of diarrhea caused by Cryptosporidium and Giardia and is the only FDA-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.
"We are very excited with the addition of Alinia for oral suspension to our brands portfolio. The agreement demonstrates Lupin's commitment to grow its brand franchise in the US and bring meaningful productsto the Pediatric community. Our sales and marketing efforts will commence immediately and we are optimistic that Alinia will contribute to our growth and profitability in the coming quarters and years," said Vinita Gupta, CEO, Lupin Pharmaceuticals Inc. and Group President, Lupin.
Unitech (up 16.05%), Financial Technologies (India) (up 15.30%), Stride Arcolab (up 14.09%), Jaiprakash Power Ventures (up 9.35%) and JSW Energy (up 7.56%), were the top gainers in the BSE's 'A' group.
MCX (down 9.99%), Wockhardt (down 5%), Gitanjali Gems (down 4.95%), Shree Cement (down 4.92%) and Asian Paints (down 3.35%), were the top losers in the BSE's 'A' group.
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 were trading lower in early trade on Wednesday, ahead of the release of the Bank of England's inflation report. Key benchmark indices in UK, France and Germany were down by 0.41% to 0.52%.
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, Taiwan, and South Korea were off 0.67% to 4%. Singapore's Straits Times rose 0.04%.
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 62 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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