Key benchmark indices reversed initial gains to fall to intraday low in morning trade. The S&P BSE Sensex was down 16.01 points or 0.08%, off 84.31 points from the day's high and up 25.72 points from the day's low. The market breadth, indicating the overall health of the market, was just about positive.
Index heavyweight and cigarette major ITC hit record high. Another index heavyweight Reliance Industries (RIL) edged lower. Metal stocks fell on demand worries after China's consumer price index rose more than expected in April, while wholesale prices suffered a steeper fall.
Key benchmark indices pared gains after an initial upmove triggered on mostly positive Asian stocks. The barometer index, the S&P BSE Sensex, hit its highest level in over 14 weeks above the psychological 20,000 mark in early trade The CNX Nifty also scaled its highest closing level in more than 14 weeks. Key benchmark indices reversed initial gains to fall to intraday low in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 976.99 crore on Wednesday, 8 May 2013, as per provisional data from the stock exchanges.
At 10:15 IST, the S&P BSE Sensex was down 16.01 points or 0.08% to 19,974.17. The index gained 68.30 points at the day's high of 20,058.48 in early trade, its highest level since 30 January 2013. The index fell 41.73 points at the day's low of 19,948.45 in morning trade.
The CNX Nifty was down 6 points or 0.1% to 6,063.30. The index hit a high of 6,084.70 in intraday trade, its highest level since 29 January 2013. The index hit a low of 6,053.95 in intraday trade.
The market breadth, indicating the overall health of the market, was just about positive. On BSE, 823 shares advanced and 811 shares declined. A total of 98 shares were unchanged.
The total turnover on BSE amounted to Rs 445 crore by 10:20 IST compared to Rs 144 crore by 09:30 IST.
Among the 30-share Sensex pack, 17 stocks declined while rest of them gained.
Index heavyweight Reliance Industries (RIL) shed 0.74% to Rs 823. The scrip hit high of Rs 832 and a low of Rs 822.30 so far during the day.
Index heavyweight and cigarette major ITC rose 0.76% to Rs 345.15, with the stock extending Wednesday's 2.27% gain. The stock had hit record high of Rs 345.70 in intraday trade today, 9 May 2013. The Uttar Pradesh state government on Tuesday, 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.
Hindustan Unilever rose 0.05%. The company after market hours on Wednesday, 8 May 2013, said that the $5.4 billion open offer by its parent firm Unilever Plc to buy 22.52% stake at Rs 600 per share in the company would begin on 21 June 2013 and close on 4 July 2013. Unilever Plc plans to hike its stake in Hindustan Unilever to 75% through the open offer from its current holding of 52.48%.
Metal stocks fell on demand worries after China's consumer price index rose more than expected in April, while wholesale prices suffered a steeper fall. China is the world's largest consumer of copper and aluminum.
Jindal Steel & Power (down 1.06%), JSW Steel (down 0.68%), Tata Steel (down 0.47%), Sterlite Industries (India) (down 1.42%), Sail (down 0.32%) and Hindustan Zinc (down 1.51%) edged lower. Hindalco Industries rose 0.24%.
JSW Steel slipped 0.72%. The company after market hours on Wednesday, 8 May 2013, said that the High Court of Judicature at Bombay has sanctioned the composite scheme of amalgamation and arrangement amongst JSW ISPAT Steel and JSW Building Systems and JSW Steel Coated Products and JSW Steel and their respective shareholders and creditors on 3 May 2013.
Parliament was adjourned sine die on Wednesday, two days before scheduled end of the Budget session without passing crucial bills like the Food Security Bill and the Land Acquisition Bill. The session, one of the least productive on record, has been disrupted for two weeks over various issues.
Meanwhile, the Congress party got majority in Karnataka assembly elections and ousted the BJP to form the government in the state.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. NTPC announces Q4 results tomorrow, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. ITC unveils Q4 results on 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013 BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Indian services sector growth eased sharply during April as new orders came in at a much slower pace, a business survey showed on Monday, 6 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 50.7 in April 2013 from 51.4 in March 2013. Services make up over 60% of India's economy.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 tomorrow, 10 May 2013. Industrial production rose 0.6% in February 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.
Most Asian markets rose Thursday with South Korean stocks jumping after a surprise rate cut by the nation's central bank, while an improved earnings outlook spurred Japanese shares. Key benchmark indices in Japan, Taiwan, South Korea, Indonesia and Singapore rose by 0.38% to 1.22%. Key benchmark indices in China and Hong Kong fell by 0.28% to 0.65%.
China's consumer price index rose more than expected in April, while wholesale prices suffered a steeper fall. The April CPI showed a gain of 2.4% from a year earlier, led by a 4% rise in food prices, the National Bureau of Statistics said Thursday. The rise was more than March's 2.1% increase, though below February's spike of 3.2%. The producer price index, meanwhile, fell by the most since October, dropping 2.6% against a decline of 1.9% in March.
The Bank of Korea on Thursday cut its key interest rate by a quarter-point to 2.5%.
Trading in US index futures indicated a flat opening of US stocks on Thursday, 9 May 2013. US stocks rose Wednesday, with the S&P 500 extending record gains into a fifth session, after companies including Electronic Arts Inc. projected earnings that beat estimates.
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