Key benchmark indices edged lower on caution ahead of the release of minutes of the Federal Open Market Committee meeting on 19 June, which may provide more insight into the Federal Reserve's outlook on monetary stimulus. The S&P BSE Sensex was provisionally down 153.24 points or 0.79%, off about 220 points from the day's high and up close to 50 points from the day's low. The market breadth, indicating the overall health of the market, turned negative from positive in late trade.
PSU OMCs edged lower on higher crude oil price. Auto stocks edged lower. Reliance Industries (RIL) dropped on reports that the finance ministry has told oil ministry that RIL must deliver outstanding gas at old rate of $4.2 per million metric British thermal units (mmBtu). IndusInd Bank fell on profit booking after reporting strong Q1 results.
The market edged higher in early trade. The Sensex slipped into the red to hit fresh intraday low after paring initial gains in morning trade. The market hit fresh intraday low in mid-morning trade. Key benchmark indices alternately moved between positive and negative zone near the flat line in early afternoon trade. Key benchmark indices were range bound in afternoon trade. The market lost ground to hit fresh intraday low in mid-afternoon trade.
As per provisional figures, the S&P BSE Sensex was down 153.24 points or 0.79% to 19,286.24. The index fell 201.57 points at the day's low of 19,237.91 in mid-afternoon trade, its lowest level since 8 July 2013. The index rose 66.45 points at the day's high of 19,505.93 in early trade, its highest level since 5 July 2013.
The CNX Nifty was down 46.55 points or 0.79% to 5,812.45, as per provisional figures. The index hit a low of 5,802.85 in intraday trade, its lowest level since 8 July 2013. The index hit a high of 5,879.35 in intraday trade, its highest level since 5 July 2013.
The total turnover on BSE amounted to Rs 1615 crore, higher than Rs 1751.70 crore on Tuesday, 9 July 2013.
The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On BSE, 1,166 shares fell and 1,156 shares rose. A total of 137 shares were unchanged.
From the 30-share Sensex pack, 23 stocks fell and rest of them rose. Hindalco Industries (down 2.78%), Tata Steel (down 2.2%) and Bhel (down 1.93%), edged lower.
Reliance Industries (RIL) dropped 1.79% on reports that the finance ministry has told oil ministry that RIL must deliver outstanding gas at old rate of $4.2 per million metric British thermal units (mmBtu). The Cabinet Committee on Economic Affairs (CCEA) had on 27 June 2013 approved new gas pricing formula from 1 April 2014. The price of gas as per the formula is likely to be about $8.4 mmBtu as opposed to $4.2 mmBtu currently.
PSU OMCs edged lower as US crude oil futures traded near the highest level in 14 months on speculation that shrinking crude stockpiles in the United States indicate increased demand in the world's biggest oil consumer. HPCL (down 3.4%), BPCL (down 2.66%), and Indian Oil Corporation (down 0.34%), edged lower. US crude oil futures for August delivery added $1.2 to $104.73 a barrel in electronic trade today, 10 July 2013. The contract had risen 39 cents a barrel or 0.37% to settle at $103.53 a barrel on the New York Mercantile Exchange on Tuesday, 9 July 2013. Higher crude oil price will increase under-recovery of PSU OMCs on domestic sales of diesel, LPG and kerosene at government controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.
IndusInd Bank fell 2.13% on profit booking after reporting good Q1 results. The stock fell on profit booking after rising 5.93% in the preceding two sessions to Rs 502 on 9 July 2013, from Rs 473.90 on 5 July 2013. The bank's net profit rose 41.72% to Rs 334.84 crore on 22.14% rise in total income to Rs 2382.81 crore in Q1 June 2013 over Q1 June 2012. The bank announced Q1 results during market hours today, 10 July 2013.
IndusInd Bank's ratio of net non-performing assets (NPAs) to net advances stood at 0.21% as on 30 June 2013, compared with 0.31% as on 30 June 2013 and 0.27% as on 30 June 2012.
The bank's ratio of gross NPAs to gross advances stood at 1.06% as on 30 June 2013, compared with 1.03% as on 31 March 2013 and 0.97% as on 30 June 2012.
Provisions and contingencies surged 146.84% to Rs 132.06 crore in Q1 June 2013 over Q1 June 2012. The bank has created floating provision of Rs 50 crore in Q1 June 2013. This provision is made in excess of minimum requirement prescribed by the Reserve Bank of India (RBI) under income recognition and asset classification (IRAC) norms without reference to any specific NPA and the same has been computed while computing the position of net NPAs.
The bank's Capital Adequacy Ratio (CAR) as per Basel II norms stood at 14.42% as on 30 June 2013, compared with 15.36% as on 31 March 2013 and 12.86% as on 30 June 2012.
Most auto stocks edged lower. M&M (down 2.58%) and Tata Motors (down 1.44%), edged lower.
Shares of car major Maruti Suzuki India rose 0.31%. As per recent reports, the company has stopped the third shift at its diesel engine plant in Manesar due to low demand. With increase in prices of diesel, the demand for diesel cars has tapered off.
The company on Monday, 8 July 2013, said its production fell 25.36% to 61,668 vehicles in June 2013 over June 2012. Earlier, the company had reported 12.6% fall in total sales to 84,455 units in June 2013 over June 2012. The company's domestic sales fell 7.8% to 77,002 units in June 2013 over June 2012. Exports declined 43% to 7,453 units in June 2013 over June 2012. The company announced the monthly sales data on 1 July 2013.
Two wheeler stocks declined. Bajaj Auto fell 2.27%. Hero MotoCorp declined 0.39%.
European stocks edged lower in choppy trade as investors awaited the minutes of the last Federal Reserve meeting for further evidence of how long the central bank's asset-purchase program will operate. Key benchmark indices in UK, France and Germany were down by 0.34% to 0.40%.
Global ratings agency Standard & Poor's cut Italy's sovereign credit rating on Tuesday to BBB from BBB-plus and left its outlook on negative, citing concerns about prospects for an economy stuck in its worst recession since World War Two.
Most Asian stocks rose on Wednesday, 10 July 2013, after an improved economic outlook clinched a fourth day of improvement for US equities on Tuesday, 9 July 2013. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, and Taiwan rose by 0.3% to 2.17%. Key benchmark indices in South Korea and Japan fell by 0.34% to 0.39%.
Chinese stocks rose on expectations that policy makers will ensure economic stability.
China's exports and imports both unexpectedly declined in June in a sign that weakness in global and domestic demand will intensify the slowdown in the world's second-biggest economy. Overseas shipments fell 3.1% from a year earlier, the General Administration of Customs said in Beijing today, 10 July 2013. Imports declined 0.7% after a 0.3% drop in May.
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell on Wednesday, 10 July 2013. US stocks closed solidly higher for the fourth straight day on Tuesday, 9 July 2013, pushing the S&P 500 to within 1% of its all-time closing high, as Wall Street embraced an improving economy and higher interest rates.
The minutes of Federal Open Market Committee's (FOMC) policy meeting held on 19 June 2013, will be released later in the global day today, 10 July 2013. The minutes may provide more insight into the Federal Reserve's outlook on monetary stimulus. Fed Chairman Ben Bernanke is also due to deliver a speech today, 10 July 2013. Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.
World economic growth will struggle to accelerate this year as a US expansion weakens, China's economy levels off and Europe's recession deepens, the International Monetary Fund said. Global growth will be 3.1% this year, unchanged from the 2012 rate, and less than the 3.3% forecast in April, the Washington-based fund said yesterday, trimming its prediction for this year a fifth consecutive time.
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