Key benchmark indices extended losses to hit fresh intraday low in mid-afternoon trade after the latest data showed that the country's trade deficit widened in April 2013. Weakness in European and Asian stocks also weighed on sentiment. The S&P BSE Sensex fell below the psychological 20,000 mark and the 50-unit CNX Nifty fell below the psychological 6,000 mark. The Sensex and the CNX Nifty, both, hit their lowest level in nearly a week. The Sensex was down 347.76 points or 1.73%, off close to 335 points from the day's high and up about 30 points from the day's low. The market breadth was weak. All the 13 sectoral indices on BSE were in the red. All the shares from 30-share Sensex pack declined.
Index heavyweight and cigarette major ITC extended intraday losses and led decline on the bourses today, 13 May 2013. Another index heavyweight Reliance Industries (RIL) edged lower in choppy trade. Auto stocks declined after oil market companies hiked diesel prices by Rs 1.02 per litre effective Saturday, 11 May 2013. Two wheeler markers also fell. Bank of India dropped after weak Q4 results.
The market edged lower in early trade. The market extended initial losses to hit fresh intraday low in morning trade. The market trimmed losses in mid-morning trade after the latest data showed that consumer price inflation eased in April 2013. The intraday recovery proved short lived as key benchmark indices weakened once again to hit fresh intraday low in early afternoon trade. The market extended losses in afternoon trade as latest data showed that the country's trade deficit widened in April 2013. The market further extended losses in mid-afternoon trade.
At 14:20 IST, the S&P BSE Sensex was down 347.76 points or 1.73% to 19,774.56. The index declined 380.22 points at the day's low of 19,742.10 in mid-afternoon trade, its lowest level since 7 May 2013. The index declined 13.24 points at the day's high of 20,109.08 in early trade.
The CNX Nifty was down 107.85 points or 1.77% to 5,999.40. The index hit a low of 5,994.70 in intraday trade, its lowest level since 7 May 2013. The index hit a high of 6,104.95 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,424 shares fell and 740 shares rose. A total of 102 shares were unchanged.
All the shares from 30-share Sensex pack declined. Bharti Airtel, GAIL (India) and L&T dropped by 2.7% to 3.55%.
Index heavyweight Reliance Industries (RIL) fell 0.66% to Rs 807.95. The stock hit a high of Rs 824.70 and low of Rs 806.25 so far during the day.
Index heavyweight and cigarette major ITC dropped 5.4% to Rs 335.55. The stock hit a high of Rs 354 and low of Rs 335.40 so far during the day. The stock had hit record high of Rs 355 in intraday trade during the special trading session held on Saturday, 11 May 2013. The Uttar Pradesh state government on 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.
Bank of India declined 2.8% on weak Q4 results. The bank's net profit fell 20.58% to Rs 756.57 crore on 5.55% rise in total income to Rs 9265.55 crore in Q4 March 2013 over Q4 March 2012. The bank announced the results during market hours today, 13 May 2013.
Auto stocks declined after oil market companies hiked diesel prices by Rs 1.02 per litre effective Saturday, 11 May 2013. Tata Motors declined 1.95%. The company's total sales fell 15% to 51,160 in April 2013 over April 2012. Total domestic sales fell 17% to 47,595 in April 2013 over April 2012. Exports rose 28% to 3,565 during the period. The company announced the monthly sales data on 1 May 2013.
Mahindra & Mahindra (M&M) dropped 1.01%. The company announced after market hours on Friday, 10 May 2103, the launch of a new H-Series Xylo, powered by the refined and world class mHawk engine. The power packed H-Series offers a range of variants starting with the H4 (with ABS option), H8 (with ABS & Airbag option) and fully loaded feature packed H9 version which includes several unique features like Voice Command Technology (VCT), Cruise Control, Digital Drive Assist System, etc. The new H-Series starts at an attractive price of Rs 8.23 lakh (ex showroom Mumbai, BSIV variant).
Maruti Suzuki India fell 1.17% to Rs 1712. The stock reversed direction after striking a 52-week high of Rs 1,742 in intraday trade today, 13 May 2013.
Two wheeler markers also fell. Bajaj Auto declined 1.03%. The company's total sales fell 10% to 3.44 lakh units in April 2013 over April 2012. Motorcycle sales fell 12% to 3 lakh units in April 2013 over April 2012. Commercial vehicle sales rose 10% to 43,351 units in April 2013 over April 2012. Exports fell 23% to 1.30 lakh units in April 2013 over April 2012. The company announced the sales figures on 2 May 2013.
Hero MotoCorp fell 1.1%. The company said on 1 May 2013 its total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.
The focus of the market is on Q4 results. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results tomorrow, 14 May 2013. Bajaj Auto announces Q4 results on Thursday, 16 May 2013. ITC unveils Q4 results on Friday, 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
India's trade deficit widened to $17.787 billion in April 2013 from $14.041 billion in April 2012, data released by the government today, 13 May 2013, showed. While exports rose 1.68% at $24.164 billion, imports jumped 10.96% to $41.951 billion in April 2013 over April 2012.
Another data showed that the consumer price inflation fell below the 10% mark in April 2013. The combined consumer price inflation for rural and urban India eased to 9.39% in April 2013 from 10.39% in March 2013, data released by the government today, 13 May 2013, showed. Within the consumer price index, inflation with respect to food and beverages stood at 10.61% in April 2013.
The government will unveil data on the wholesale price index (WPI) for April 2013 tomorrow, 14 May 2013. WPI eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013.
Industrial production rose 2.5% in March 2013, compared with a revised growth of 0.46% in February 2013, data released by the government on Friday, 10 May 2013, showed. Industrial production rose 1% for the year ended 31 March 2013 (FY 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.
European stock markets retreated on Monday, 13 May 2013, as a mixed bag of Chinese data highlighted growth concerns in the world's second largest economy. Key benchmark indices in UK, France and Germany were down by 0.16% to 0.44%.
Asian stocks edged lower on Monday, 13 May 2013, with sentiment hit by selling in commodities triggered by a strong dollar, which rose to a fresh 4-1/2-year peak against the yen on the back of growing confidence in the US economy. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, and Taiwan fell by 0.22% to 1.42%. South Korea's Kospi gained 0.2%.
Japanese stocks on Monday jumped to their highest level in more than five years, boosted by an improved profit outlook and further yen weakness after the Group of Seven major economies refrained from criticizing Tokyo's easing policies. The Nikkei Average rose 1.2%.
China's industrial production rose 9.3% in April 2013, improving from a gain of 8.9% in March 2013. Retail sales rose 12.8% in April 2013, accelerating from a 12.6% advance in March 2013. The growth, however, was slower than that seen during 2012.
Urban fixed-asset investment, which is a gauge of construction and infrastructure spending, rose 20.6% in the January-April period, lower than 20.9% increase for January-March period. The January-April result matched fixed-asset investment growth during the full year of 2012.
In US, the Federal Reserve has reportedly sketched out a plan for winding down its stimulus program of buying $85 billion in bonds each month. As per reports, the Fed intends to clarify the strategy so that the financial markets don't overreact to the Fed's announcements in this regard.
The US Commerce Department unveils monthly report on retail sales for April 2013 later in the global day today, 13 May 2013.
Group of Seven finance officials agreed on Saturday to redouble efforts to deal with failing banks and gave a green light to Japan's drive to galvanize its economy.
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