Key benchmark indices hit fresh intraday low in early afternoon trade on worries foreign funds may press sales following a likely early US rollback of monetary stimulus. The S&P BSE Sensex was down 471.31 points or 2.43%, off 414.70 points from the day's high and up 79 points from the day's low. The market breadth, indicating the overall health of the market, was weak. Indian bourses were closed on Thursday, 15 August 2013, on account of Independence Day.
Index heavyweight and cigarette major ITC reversed direction after hitting an intraday high in early trade. Reliance Industries recovered from intraday low. Shares of PSU banking giant SBI hit 52-week low. Metal stocks fell across the board.
Key benchmark indices declined in early trade on negative Asian stocks. Key benchmark indices tumbled in morning trade as the rupee dropped to a record low against the dollar. The S&P BSE Sensex dropped below the psychological 19,000 mark. Key benchmark indices tumbled in morning trade as the rupee dropped to a record low against the dollar. Key benchmark indices hit fresh intraday low in mid-morning trade on worries foreign funds may press sales following a likely early US rollback of monetary stimulus. Key benchmark indices hit fresh intraday low in early afternoon trade.
The rupee dropped to a record low against the dollar in early trade on increased selling of the US currency by banks after RBI announced stern measures to curb foreign exchange outflow amid weakening of the US currency overseas. The partially convertible rupee was hovering at 61.75 after hitting a record low of 62.02, weaker than its close of 61.43/ 61.44 on Wednesday, 14 August 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 247.96 crore on Wednesday, 14 August 2013, as per provisional data from the stock exchanges.
At 12:26 IST, the S&P BSE Sensex was down 471.31 points or 2.43% to 18,896.25. The index lost 550.34 points at the day's low of 18,817.25 in early afternoon trade, its lowest level since 12 August 2013. The index fell 56.64 points at the day's high of 19,310.95 in early trade.
The CNX Nifty was down 157 points or 2.73% to 5,585.30. The index hit a low of 5,558.60 in intraday trade, its lowest level since 12 August 2013. The index hit a high of 5,716.60 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,441 shares declined and 592 shares rose. A total of 96 shares were unchanged.
The total turnover on BSE amounted to Rs 982 crore by 12:20 IST on BSE compared to Rs 753 crore by 11:20 IST.
Among the 30-share Sensex pack, 28 stocks declined and only two of them gained. Wipro (up 0.88%) and Hero MotoCorp (up 0.62%) edged higher from the Sensex pack.
Index heavyweight and cigarette major ITC fell 1.57% to Rs 329.30. The stock reversed direction after hitting an intraday high of Rs 337.95 in early trade.
Reliance Industries dropped 2.21% to Rs 846, with the stock recovering from intraday low. The stock hit a high of Rs 866 and low of Rs 835.40 so far during the day.
State-run banking giant SBI lost 3.39% to Rs 1,570.05 after hitting a 52-week low of Rs 1,553.40.
Bharti Airtel fell 1.81%, with the stock reversing intraday gain. Reportedly Singapore Telecommunications (SingTel) will increase its effective stake in Bharti Airtel to 32.34% from 30.76%. South-East Asia's biggest telecom company SingTel will buy 3.62% stake of Bharti Airtel's holding company Bharti Telecom for $302 million (Rs 1851 crore). Bharti Telecom currently holds 43.57% stake in Bharti Airtel. The deal is expected to be completed by 28 August 2013.
Metal stocks fell across the board. Tata Steel lost 3.22% on profit booking. The stock had gained 25.78% in five trading sessions to Rs 249.80 on 14 August 2013 from a recent low of Rs 198.60 on 6 August 2013. The company's consolidated net profit jumped 90.46% to Rs 1139 crore on 3% fall in turnover to Rs 32805 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 13 August 2013. This improvement was on the back of robust performance by the Indian operations and improved performance at the European operations, Tata Steel said.
Sterlite Industries (India) dropped 4.18%, with the stock reversing recent gains. The company on 8 August 2013 said that the National Green Tribunal (NGT) has in its judgment upheld its interim order of 31 May 2013, and has allowed the company's Tuticorin Copper Smelter to continue to operate.
Sesa Goa fell 3.88%. The company on 12 August 2013 said that the Division Bench of the High Court of Bombay at Goa vide its order dated 12 August 2013 has dismissed the appeal filed by the shareholder of Sesa Goa and sanctioned the Scheme of amalgamation and arrangement amongst Sterlite Industries (India), Madras Aluminium Company, Sterlite Energy, Vedanta Aluminium and Sesa Goa and their respective shareholders and creditors and the scheme of amalgamation of Ekaterina with the company and their respective shareholders and creditors.
Hindalco Industries slipped 3.11%. The company's net profit rose 11.52% to Rs 474 crore on 3.15% decline in revenue from operations to Rs 5838 crore in Q1 June 2013 over Q1 June 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 3.45% to Rs 479 crore in Q1 June 2013 over Q1 June 2012. Hindalco said that the performance in Q1 June 2013 was achieved despite adverse macro-economic headwinds. Hindalco announced the standalone results during trading hours on Tuesday, 13 August 2013.
On future business outlook, the company said that its focus is now on ramping up the new projects already on stream. Depressed LME prices in an otherwise inflationary scenario pose a significant challenge, Hindalco said. However, the company is confident of riding through these challenges with its trust on stabilizing the projects, operational efficiencies and cost control, Hindalco Industries said.
JSW Steel (down 5.15%), Hindustan Copper (down 6.86%), NMDC (down 0.31%), and Hindustan Zinc (down 3.38%) edged lower.
Steel Authority of India fell 4.7%, with the stock extending Wednesday's fall triggered by the company declaring poor Q1 result during trading hours on Wednesday, 14 August 2013. The company's net profit declined 35.25% to Rs 450.91 crore on 5.08% fall in total income to Rs 10494.08 crore in Q1 June 2013 over Q1 June 2012.
Future Retail (down 11.87%), Jain Irrigation Systems (down 8.67%), Jaiprakash Associates (down 7.21%), Prestige Estates Projects (down 7.13%) and LIC Housing Finance (down 6.13%) were among the top losers from BSE's 'A' group.
The Reserve Bank of India on Wednesday, 14 August 2013 announced measures including reducing the limit for Overseas Direct Investment (ODI) under automatic route for all fresh ODI transactions, from 400% of the net worth of an Indian Party to 100% of its net worth. This reduced limit would also apply to remittances made under the ODI scheme by Indian Companies for setting up unincorporated entities outside India in the energy and natural resources sectors. This reduction in limit, however, would not apply to ODI by Navratna PSUs, ONGC Videsh and Oil India in overseas unincorporated entities and incorporated entities, in the oil sector. The RBI also announced reduction in the limit for remittances made by Resident Individuals, under the Liberalised Remittance Scheme (LRS Scheme), from $200,000 to $75,000 per financial year. Resident Individuals have, however, now been allowed to set up Joint Venture (JV)/Wholly Owned Subsidiary (WOS) outside India under the ODI route within the revised LRS limit.
While current restrictions on the use of LRS for prohibited transactions, such as, margin trading and lottery would continue, use of LRS for acquisition of immovable property outside India directly or indirectly will, henceforth, not be allowed, RBI said.
The present set of measures is aimed at moderating outflows. However, any genuine requirement beyond these limits will continue to be considered by RBI under the approval route.
Asian stocks declined on Friday after some weak earnings and worries the Federal Reserve would soon pare its bond purchases slammed Wall Street. Key benchmark indices in Indonesia, China, South Korea, Hong Kong, Singapore and Japan were down by 0.04% to 1.54%. Taiwan's Taiwan Weighted index rose 0.48%.
Trading in US index futures indicated that the Dow could gain 17 points at the opening bell on Friday, 16 August 2013. US stocks dropped on Thursday for a second day, with the Dow industrials posting their first back-to-back triple-digit drop since June, as Treasury yields spiked to 2011 highs and Wal-Mart Stores Inc. and Cisco Systems Inc. cut their forecasts.
Powered by Capital Market - Live News
