Key benchmark indices were trading slightly higher in mid-afternoon trade as mild gains in European stocks supported the domestic bourses. The S&P BSE Sensex was up 19.78 points or 0.1%, up about 40 points from the day's low and off close to 120 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Jindal Steel & Power and Tata Steel extended intraday gain. NTPC also extended intraday gain. Bharat Heavy Electricals (Bhel) tumbled after the company reported weak Q1 results on Saturday, 3 August 2013.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between positive and negative zone. The Sensex regained positive terrain after moving into the negative terrain from positive zone in morning trade. The 50-unit CNX Nifty trimmed losses after moving into the negative terrain from positive zone in morning trade. The Sensex surged and hit fresh intraday high in mid-morning trade. The market trimmed gains in early afternoon trade. The Sensex was trading slightly higher in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 283.79 crore on Friday, 2 August 2013, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 19.78 points or 0.1% to 19,183.80. The index jumped 142.49 points at the day's high of 19,306.51 in mid-morning trade. The index fell 22.34 points at the day's low of 19,141.68 in early trade.
The CNX Nifty was up 3.20 points or 0.06% to 5,681.10. The index hit a high of 5,721 in intraday trade. The index hit a low of 5,661.50 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,128 shares fell and 918 shares rose. A total of 111 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks rose and rest of them fell. Sterlite Industries (up 3.18%), Coal India (up 2.93%) and ICICI Bank (up 2.11%), edged higher.
Bharat Heavy Electricals (Bhel) was now trading 16.9% lower at Rs 124.15 on weak Q1 results. The stock hit 52-week low of Rs 120.65 in intraday trade today, 5 August 2013. The stock had hit the intial 10% lower circuit in early trade. The company's net profit fell 49.45% to Rs 465.43 crore on 20.54% decline in total income to Rs 6996.60 crore in Q1 June 2013 over Q1 June 2012. The result was announced on Saturday, 3 August 2013.
Bhel had an outstanding order book position of about Rs 108600 crore as on 30 June 2013, lower than to Rs 115160 crore as on 31 March 2013 and Rs 122300 crore as on 30 June 2012.
Bhel's operating profit margin (OPM) crashed to the extent of 820 basis points (bps) year on year (YoY) to 6% during the quarter, largely on account of under recovery of capacity. This resulted in operating profit declining by 68% to Rs 388.58 crore.
Bhel's finance costs surged 402.89% to Rs 27.76 crore in Q1 June 2013 over Q1 June 2012.
NTPC gained 3.36%, with the stock extending intraday gain.
Jindal Steel & Power rose 5.19%, with the stock extending intraday gain.
Steel major Tata Steel rose 2.17% to Rs 206.70. The stock reversed direction after hitting a 52-week low of Rs 198.50 in intraday trade today, 5 August 2013.
Maruti Suzuki India rose 0.8%. The car maker announced during market hours today, 5 August 2013, that its total production rose 31.07% to 99,236 units in July 2013 over July 2012.
Maruti Suzuki India's total sales rose 1.3% to 83,299 units in July 2013 over July 2012. The company's domestic sales rose 5.8% to 75,145 units in July 2013 over July 2012. Export sales declined 27.3% to 8,154 units in July 2013 over July 2012. The company announced the monthly sales data on 1 August 2013.
Redington (India) fell 3.48% after consolidated net profit fell 4.1% to Rs 60.85 crore on 12.1% increase in net sales to Rs 6020.09 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Friday, 2 August 2013.
PI Industries spurted 8.92% after net profit jumped 107% to Rs 48.54 crore on 69.8% growth in total income from operations to Rs 406.07 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced on Saturday, 3 August 2013.
PI Industries said that contributions from both the domestic Agri Input and custom synthesis exports to the revenue showed remarkable enhancement during the quarter. Revenue growth is mainly driven by volume growth. In the domestic market, PI's differentiated model demonstrated its ability to maximize the benefit from a conducive monsoon where sowing was higher in key cropping areas for the Kharif season, the company said. Custom synthesis exports reflect the uniqueness and advantages of its IPR allied model, resulting in sustained revenue momentum and deep engagement style that has potential to scale-up in a consistent manner. Stabilization of the Jambusar facility has also helped revenue scale up at an attractive pace, P I Industries said in a statement.
TV Today Network (up 20%), NDTV (up 17.07%), Gokul Refoils and Solvent (up 16.46%), Hindustan Construction Company (up 11.51%) were the among the biggest gainers from the BSE Small-Cap index.
Companies in India's vast services sector suffered a fall-off in activity for the first time in nearly two years in July, according to a survey released on Monday, 5 August 2013. The HSBC Markit Services Purchasing Managers' Index fell to 47.9 in July from 51.7 in the previous month. The latest PMI is the first time since October 2011 the headline index has fallen below the 50 mark that divides growth from contraction, and the lowest since April 2009, dashing hopes of a quick turnaround for Asia's third-largest economy. The service sector accounts for nearly 60% of an economy that grew at a decade low of 5% in the last fiscal year.
European markets edged higher on Monday, 5 August 2013, as investors welcomed a rise in euro-zone services PMI data. Key benchmark indices in UK, France and Germany were up by 0.16% to 0.37%.
Euro-area services output shrank at a slower pace than initially estimated in July, adding to evidence the economy is gathering strength to pull out of a record-long recession. An index of activity in the services industry based on a survey of purchasing managers rose to 49.8 from 48.3 in June, London-based Markit Economics said in a report today. That's above an initial estimate of 49.6 on July 24. A reading below 50 indicates contraction.
The composite index for the euro zone rose to 50.5, above a preliminary reading of 50.4 and better than June's 48.7. The July reading marked the first time since January 2012 the index has climbed above the 50 level that separates expansion from contraction.
The results of two surveys on Monday, 5 August 2013, showed that UK's economic growth this year is expected to be stronger than originally forecast, and that confidence among smaller firms has picked up.
Asian stocks were mixed on Monday, 5 August 2013. Key benchmark indices in Hong Kong, China, and Taiwan rose by 0.14% to 1.04%. Key benchmark indices in Japan, Singapore, and South Korea fell by 0.37% to 1.44%.
China's service industries showed the first pick-up in growth since March, adding to signs the world's second-largest economy may be stabilizing after a two-quarter slowdown. The non-manufacturing Purchasing Managers' Index rose to 54.1 in July from 53.9 in June, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said on Saturday. An official gauge of manufacturing released 1 August 2013 showed an unexpected expansion.
The HSBC Hong Kong Purchasing Managers Index rose to 49.7 in July from 48.7 in June, but remained in contraction mode as new orders fell amid China's economic slowdown, HSBC Holdings PLC said on Monday, 5 August 2013.
Trading in US index futures indicated a flat opening of US stocks on Monday, 5 August 2013. US stocks rose on Friday, 2 August 2013, as data showing employers added fewer workers than anticipated in July signaled the Federal Reserve will continue its stimulus efforts. The 162,000 increases in payrolls last month was the smallest in four months and followed a revised 188,000 rise in June that was less than initially estimated, Labor Department figures showed on Friday in Washington. Workers spent fewer hours on the job and hourly earnings fell for the first time since October. The unemployment rate dropped to 7.4% from 7.6%, partly due to more people leaving the labor force.
Consumer spending rose in line with forecasts in June as Americans' incomes grew, while orders placed with factories increased, pointing to further stabilization in manufacturing that may help lift second-half growth, separate reports showed.
The US Federal Reserve is watching for progress in the US economy as it shapes its outlook for monetary policy. 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.
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