Key benchmark indices alternately moved hovered between positive and negative terrain in mid-afternoon trade. The S&P BSE Sensex was down 16.04 points or 0.08%, off close to 240 points from the day's high and up about 160 points from the day's low. The market breadth, indicating the overall health of the market, was weak.
Mahindra & Mahindra (M&M) extended intraday losses after the company said that as part of aligning its production with sales requirements, the company would be observing no production days at its automotive plants for a period ranging from 0 to 6 days in the forthcoming months. Some pharma stocks rose on renewed buying. But, Ranbaxy Laboratories tumbled, with the stock hitting 52-week low. Infrastructure sector lender IDFC hit 52-week low.
The market surged in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices trimmed initial gains in morning trade. High volatility was witnessed as key benchmark indices reversed strong initial gains after the results of a private survey data showed that slowdown in factory activity deepened last month. Immense volatility was witnessed as key benchmark indices regained positive terrain in early afternoon trade. The BSE Sensex pared gains while the CNX Nifty slipped into the red in afternoon trade. Key benchmark indices alternately moved hovered between positive and negative terrain in mid-afternoon trade.
At 14:20 IST, the S&P BSE Sensex was down 16.04 points or 0.08% to 19,329.66. The index jumped 223.50 points at the day's high of 19,569.20 in early trade, its highest level since 30 July 2013. The index fell 175.24 points at the day's low of 19,170.46 in early afternoon trade.
The CNX Nifty was down 13.30 points or 0.23% to 5,728.70. The index hit a high of 5,808.50 in intraday trade, its highest level since 30 July 2013. The index hit a low of 5,676.85 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,359 shares fell and 658 shares rose. A total of 130 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. ONGC (down 3.85%), Bhel (down 4.08%) and Hindalco Industries (down 2.88%), declined.
Some pharma stocks rose on renewed buying. Cipla, Dr Reddy's Laboratories, and Sun Pharmaceutical Industries rose by 0.11% to 0.61%.
Ranbaxy Laboratories declined 7.56% to Rs 264.20 after hitting a 52-week low of Rs 260.80 in intraday trade today, 1 August 2013.
Infrastructure sector lender IDFC declined 4.48% to Rs 104.50 after hitting a 52-week low of Rs 101.20 in intraday trade today, 1 August 2013.
Mahindra & Mahindra (M&M) dropped 4.4% after the company said that as part of aligning its production with sales requirements, the company would be observing no production days at its automotive plants for a period ranging from 0 to 6 days in the forthcoming months. Mahindra Vehicle Manufacturers, a wholly owned subsidiary of the company, would also be observing similar no production days for its plant at Chakan. The management would be having a close watch on the market conditions and would from time to time be reviewing such no production days to adjust production in line with the demand, M&M said.
M&M during market hours today, 1 August 2013, said its auto sales fell 21% to 37,096 units in July 2013 over July 2012.
Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, M&M said: "Over the last few months, the auto industry has been going through one of its worst phases of the last decade with planned shutdowns being taken by companies to correct demand-supply mismatch. The industry is in desperate need for an immediate stimulus from the government. With interest rates remaining unchanged and the rupee plunging to new lows, lowering of excise duty is the need of the hour which will rev up demand for auto products, leading up to the festive season".
M&M separately also said that its total tractor sales rose 12% to 18,469 units in July 2013 over July 2012. Its domestic tractor sales rose 15% to 17,771 units in July 2013 over July 2012. Exports declined 32% to 698 units in July 2013 over July 2012.
Speaking on the monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, M&M said: "The second quarter of FY 2014 has begun well and we are happy with our domestic volume of 17,771 units and 15% growth achieved in July 2013. The monsoon this year has been normal, which augurs well for the farm sector. A revival in agri-production will provide greater impetus to the economy amidst the overall slowdown".
Adani Ports and Special Economic Zone jumped 8.13% after consolidated net profit surged 51.12% to Rs 417.50 crore on 73.35% growth in total income to Rs 1567.97 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced during trading hours today, 1 August 2013. Adani Ports and Special Economic Zone's (APSEZ) consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) surged 42% to Rs 943 crore in Q1 June 2013 over Q1 June 2012.
The consolidated cargo handled by APSEZ rose 39% to 26.67 MMT in Q1 June 2013 over Q1 June 2012.
The cargo handled by Dahej port rose 24% to 2.22 MMT year on year (YoY) during the quarter. The cargo handled by Hazira port stood at 0.87 MMT in Q1 June 2013, beginning its journey to be a large diversified port, adding to the overall Adani Ports' synergy. The progress at all other ports in Goa, Vizag, Tuna Tekra are on schedule, APSEZ said in a statement.
During the quarter, the company raised Rs 1000 crore via Institutional Placement Programme.
European stock markets edged higher on Thursday, 1 August 2013, after the US Federal Reserve kept its multibillion-dollar bond-buying program in place and China data signaled an improvement in the manufacturing sector. Key benchmark indices in UK, Germany and France were up by 0.22% to 0.63%.
The European Central Bank (ECB) and the Bank of England (BoE) will announce their policy decisions later in the global day today, 1 August 2013.
Asian stocks rose on Thursday, 1 August 2013, after the Federal Reserve maintained its bond-buying program at current levels. Key benchmark indices in Hong Kong, China Japan, Singapore, Indonesia and South Korea rose by 0.35% to 2.47%. Taiwan's Taiwan Weighted fell 0.64%.
A privately compiled gauge of China's manufacturing activity sank to an 11-month low, the index's publishers HSBC and Markit said Thursday. The HSBC manufacturing Purchasing Managers' Index fell to 47.7, down from June's final reading 48.2. The result contrasted with an official version of the manufacturing PMI, which unexpectedly rose to 50.3 from June's 50.1. Any reading above 50 indicates activity is expanding, and the July data marked the third straight month the HSBC registered contraction, and also the third month the two PMIs differed on whether factory activity was rising. HSBC's PMI covers a smaller number of firms and focuses on smaller manufacturers, while the official PMI includes more of the large state-run firms. HSBC's survey also showed new orders falling at their fastest rate in almost a year, though pace of the contraction for new export orders slowed.
China's government pledged to prevent growth from slipping below a reasonable level as manufacturing gauges gave a mixed picture of the strength of the world's second-biggest economy. The nation can't blindly stimulate economic growth, nor can it allow economic growth to decelerate to a level out of the reasonable zone, the State Council Information Office said in Beijing after a Purchasing Managers' Index reading of 50.3 for July, up from 50.1 in June.
Chinese leaders pledged at a Politburo meeting earlier this week to maintain steady second-half growth while pressing on with economic reforms.
Trading in US index futures indicated that the Dow could gain 73 points at the opening bell on Thursday, 1 August 2013. US stocks ended mixed on Wednesday after a busy day of news that included a policy statement from the Federal Reserve and a mixed report on US economic growth. Second-quarter US gross domestic product grew 1.7%, above the 1.1% pace expected. However, the report also included a steep downgrade in first-quarter GDP growth, which is now estimated at 1.1% instead of 1.8%.
The Federal Open Market Committee, which has floated the prospect of reductions to its stimulus program should economic risks abate, said yesterday after a two-day long meet that while growth should pick up, persistently low inflation may hamper the recovery. Policy makers, however, expect inflation to move back toward its 2% objective over the next 18 months. The Fed slightly downgraded its view of economic recovery. The Fed said that that the world's largest economy was expanding at a "modest" pace. It had called the pace "moderate" in June.
The Fed offered no clues as to when it plans to slow the pace of monetary stimulus. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.
The influential US non-farm payroll data for July 2013 is due tomorrow, 2 August 2013.
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