Key benchmark indices extended losses to hit fresh intraday low in afternoon trade. The BSE Sensex was down 95.82 points or 0.5%, off 230.33 points from the day's high and up 4.25 points from the day's low. Index heavyweight Reliance Industries (RIL) pared intraday gains. Metal and mining stocks declined. Shares of realty major DLF hit 52-week low. Shares of IRB Infrastructure Developers gained on bargain hunting after steep recent fall. The market breadth, indicating the overall health of the market, was weak.
A bout of initial volatility was witnessed as key benchmark indices trimmed gains after a firm start triggered by the government's decision on Thursday, 1 August 2013, to relax foreign direct investment (FDI) rules in a number of sectors. Intraday volatility continued as the barometer index, the S&P BSE Sensex, regained positive zone after slipping into the red in morning trade. The Sensex once again moved into positive terrain after hitting fresh intraday low in mid-morning trade. The market skidded to hit fresh intraday low in early afternoon trade. Key benchmark indices extended losses to hit fresh intraday low in afternoon trade.
At 13:20 IST, the S&P BSE Sensex was down 95.82 points or 0.5% to 19,221.37. The index fell 100.07 points at the day's low of 19,217.12 in afternoon trade. The index jumped 134.51 points at the day's high of 19,451.70 in early trade.
The CNX Nifty was down 28.15 points or 0.49% to 5,699.70. The index hit a low of 5,692.10 in intraday trade. The index hit a high of 5,761.85 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,325 shares fell and 664 shares rose. A total of 128 shares were unchanged.
The total turnover on BSE amounted to Rs 1032 crore by 13:20 IST.
Among the 30-share Sensex pack, 21 stocks fell and rest of them rose.
Index heavyweight Reliance Industries (RIL) rose 1.61% to Rs 863.35, off day's high of Rs 871.90.
Metal and mining stocks declined. Steel giant Tata Steel fell 2.47% to Rs 204.95. The stock had hit a 52-week low of Rs 202.50 in intraday trade on 31 July 2013.
Hindalco Industries fell 0.97% to Rs 86.80. The stock had hit a 52-week low of Rs 84.50 in intraday trade on 31 July 2013.
Sterlite Industries (India) lost 4.72% to Rs 71.70. The stock had hit a 52-week low of Rs 70.50 in intraday trade on 31 July 2013.
Jindal Steel & Power slumped 8.78% to Rs 183.90 after hitting a 52-week low of Rs 181.55 in intraday trade today, 2 August 2013. It was the top loser from the Sensex pack.
JSW Steel (down 4.34%), Sail (down 3.99%), National Aluminium Company (down 2.67%), Hindustan Zinc (down 0.81%) and NMDC (down 1.62%) edged lower.
Realty major DLF fell 1.96% to Rs 135.20 after hitting a 52-week low of Rs 133.45 in intraday trade today, 2 August 2013.
IRB Infrastructure Developers jumped 9.7% to Rs 59.40 on bargain hunting after Thursday's steep slide. Shares of IRB Infrastructure Developers tanked 25.52% to Rs 54.15 on Thursday, 1 August 2013, after media reports suggested that the company, which had formed a consortium to bid for the Rs 9630-crore Mumbai TransHarbour Link project, decided not to participate in the bidding process. The IRB-Hyundai Engineering consortium was among the five shortlisted firms to develop the project.
The company's chief Virendra Mhaiskar was quoted by media as saying that the decision to quit the project was taken due to the bitter experience the company had in one of its toll BOT (build-operate-transfer) projects in Kolhapur where the company did not receive the expected support from the government.
The Reserve Bank of India Governor D. Subbarao today, 2 August 2013, said that the central bank would roll back recent cash tightening measures only after it determines stability has been restored in the foreign exchange market. Last month, the RBI raised short-term rates and also placed restrictions on banks to borrow from the central bank to make funds costlier for stemming the rupee's decline.
RBI on Thursday, 1 August 2013, said that foreign institutional investors who have issued a participatory note, can hedge their forex risk in these securities provided they have a mandate from the participatory note holder.
The Union Cabinet on Thursday, 1 August 2013, approved proposals to relax foreign-investment rules in a number of sectors including telecommunications, multibrand retail and defense.
European stock markets moved in a narrow range on Friday, 2 August 2013, as investors remained cautious ahead of the much awaited nonfarm-payrolls report from the US. Key benchmark indices in UK, Germany and France were up 0.01% to 0.14%.
The European Central Bank on Thursday, 1 August 2013, kept its key financing rate at a record low, and ECB President Mario Draghi said interest rates would remain at or below present levels for an extended period of time. The Bank of England also on Thursday also left its benchmark interest rate and bond-buying program unchanged.
Asian stocks rose on Friday, 2 August 2013, as global manufacturing reports beat forecasts and central banks in Europe vowed to maintain stimulus. Key benchmark indices in Hong Kong, China, Japan, Singapore, Taiwan and South Korea rose by 0.14% to 3.29%. Indonesia's Jakarta Composite shed 0.09%.
China's non-manufacturing purchasing managers' index is scheduled to be released tomorrow, 3 August 2013 after the manufacturing gauge unexpectedly strengthened in July, data yesterday showed.
Indonesia's economy grew less than 6% last quarter, adding to risks for the Southeast Asian nation as investments ease, inflation accelerates and the currency slumps. Gross domestic product increased 5.81% in the three months ended June 30 from a year earlier, the Central Bureau of Statistics said in Jakarta today.
Trading in US index futures indicated that the Dow could gain 14 points at the opening bell on Friday, 2 August 2013. US stocks kicked off the month by rallying Thursday, 1 August 2013, to all-time highs in the wake of upbeat economic signals from around the globe. Factory output from the US to China and Europe expanded in July, reports on Thursday showed, while American jobless claims fell to a five-year low. The Institute for Supply Management's US factory index increased to 55.4 in July 2013, the strongest since June 2011, from 50.9 in June 2013. Readings above 50 indicate expansion.
The influential US non-farm payroll data for July 2013 is due later in the global day today, 2 August 2013. The job data is a key piece of data which the Federal Reserve monitors in its assessment of its monetary-stimulus program. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.
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