Key benchmark indices trimmed intraday losses in early afternoon trade as index heavyweight Reliance Industries (RIL) extended intraday gains. The S&P BSE Sensex was down 40.83 points or 0.23%, up about 140 points from the day's low and off close to 80 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Metal stocks reversed intraday losses. Auto stocks declined.
A bout of initial volatility was witnessed as key benchmark indices slipped into the red after opening higher. Volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. The market pared losses once again after hitting fresh intraday low in mid-morning trade. Volatility continued as key benchmark indices trimmed intraday losses in early afternoon trade
Most Asian stocks dropped on Wednesday, 7 August 2013, after overnight losses in the US triggered by monetary-policy concerns after two Federal Reserve officials said they expect the central bank to reduce its asset purchases this year from current $85 billion a month because of economic improvement.
The rupee weakened on Wednesday tracking some losses in regional share markets and currencies while dollar demand from domestic importers also weighed. The partially convertible rupee was hovering at 61.33, weaker than its close of 60.77/78 on Tuesday, 6 August 2013. The rupee had staged a strong intraday rebound on Tuesday after hitting record low of 61.80.
At 12:20 IST, the S&P BSE Sensex was down 40.83 points or 0.23% to 18,690.21. The index fell 181.69 points at the day's low of 18,551.35 in mid-morning trade, its lowest level since 26 June 2013. The index rose 38.73 points at the day's high of 18,771.77 in early trade.
The CNX Nifty was down 10.70 points or 0.19% to 5,531.55. The index hit a low of 5,486.85 in intraday trade, its lowest level since 10 April 2013. The index hit a high of 5,553.90 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 956 shares rose and 902 shares fell. A total of 108 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and rest of them fell. HDFC (down 2.82%), L&T (down 1.44%) and ITC (down 1.77%), edged lower.
Index heavyweight Reliance Industries (RIL) rose 1.8% to Rs 856. The stock was volatile. The scrip hit high of Rs 859.30 and low of Rs 831.55 so far during the day.
Metal stocks reversed intraday losses on bargain hunting. Sterlite Industries (up 1.1%), Sesa Goa (up 1.16%), Jindal Steel & Power (up 1.64%), Bhushan Steel (up 0.02%), Hindustan Zinc (up 1.79%) and JSW Steel (up 0.83%), gained.
Steel major Tata Steel gained 1.21% to Rs 201, with the stock reversing direction after hitting a 52-week low of Rs 195.40 in intraday trade today, 7 August 2013.
Sail rose 0.92% to Rs 38.50, with the stock reversing direction after hitting a 52-week low of Rs 37.65 in intraday trade today, 7 August 2013.
Hindalco Industries shed 0.64% to Rs 85, with the stock paring losses after hitting a 52-week low of Rs 83.05 in intraday trade today, 7 August 2013.
NMDC fell 0.16% ahead of its Q1 results today, 7 August 2013.
Auto stocks declined. M&M (down 0.92%), Maruti Suzuki India (down 1.01%), Bajaj Auto (down 1.05%), and Hero MotoCorp (down 0.72%), edged lower.
Tata Motors dropped 1.27% to Rs 283.70 in choppy trade ahead of its Q1 results today, 7 August 2013. The stock hit high of Rs 285.40 and low of Rs 274.55 so far during the day.
IT major TCS fell 1.52% to Rs 1,842, with the stock reversing direction after hitting a record high of Rs 1,890.30 in intraday trade today, 7 August 2013. The company announced during market hours today, 7 August 2013, the successful deployment of its core banking solution TCS BaNCS at Panzhihua (PZH) Commercial Bank, China, in a record time of 10 months. To date, TCS BaNCS has won 16 core banking deals in Greater China.
Godrej Properties lost 1.22% to Rs 453.05 after the company priced rights issue of equity shares at Rs 325 per share. The rights issue will be the ratio of 8 equity shares for every 29 equity shares held on record date which has been set as 20 August 2013. The company will raise almost Rs 700 crore from the rights issue.
Welspun Corp lost 7.41% after consolidated adjusted profit after tax declined 55% to Rs 51.50 crore on 5% growth in sales to Rs 2675.70 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Tuesday, 6 August 2013.
Welspun Corp's consolidated operational earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 360.90 crore in Q1 June 2013 over Q1 June 2012. Reported EBITDA declined 5% to Rs 224.50 crore in Q1 June 2013 over Q1 June 2012. Welspun Corp said that the company has made a foreign exchange provision of Rs 204.50 crore in Q1 June 2013 which has impacted the reported figures.
Welspun Corp is in the process of demerging its non-pipe business viz. DRI, infrastructure and oil & gas exploration and energy into a separate company.
Welspun Corp's consolidated net debt stood at Rs 3661 crore as on 30 June 2013, higher than Rs 3123.50 crore as on 31 March 2013.
Welspun Corp's current order book position of pipes business stands at Rs 4700 crore, comprising of 691 K MT of international and domestic orders. The infrastructure business has a cumulative current order book position of Rs 3914.20 crore.
The company said that the outlook for the pipe business continues to be challenging. While there are some key large scale projects in the pipeline, margins have been under pressure, it added. The Americas, Middle East and Europe will be the key regions which will drive demand in the medium term. The plates, DRI (Maxsteel) and infra businesses continue to face challenging business environment, Welspun Corp said in a statement.
Opto Circuits (India) jumped 23.08%. The company said on 5 August 2013 that a meeting of the board of directors of the company will be held on 13 August 2013 to consider rights issue. The company will also announce its Q1 results on 13 August 2013.
The government on Tuesday, 6 August 2013, named Dr. Raghuram Rajan as the next Governor of the Reserve Bank of India (RBI) for a term of three years after D Subbarao's tenure ends on 4 September 2013. Rajan, who is currently Chief Economic Adviser in the finance ministry, joined the government last August, having previously been chief economist at the International Monetary Fund and a professor at the University of Chicago.
Most Asian stocks dropped on Wednesday, 7 August 2013, after overnight losses in the US on monetary-policy concerns, with Japan taking an especially heavy hit from gains for the yen. Key benchmark indices in China, Japan, Hong Kong, Taiwan, and South Korea were off 0.41% to 4%. Singapore's Straits Times rose 0.1%.
The Bank Of Japan (BoJ) holds two-day policy meet on 7 and 8 August 2013. The BoJ is widely expected to maintain its pledge of increasing the monetary base at an annual pace of about 60 trillion to 70 trillion yen ($600 billion-$700 billion).
Trading in US index futures indicated that the Dow could fall 51 points at the opening bell on Wednesday, 7 August 2013. US stocks extended losses into a second day Tuesday after Fed Bank of Chicago President Charles Evans, who has been among the strongest proponents of the record monetary accommodation in the US said he expects the central bank to begin tapering its asset-purchase program by the end of the year. Separately, Atlanta Fed Bank President Dennis Lockhart said tapering of monetary stimulus, or quantitative easing, could be announced at any of this year's remaining policy meetings.
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. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
Data yesterday showed the US trade deficit narrowed more than economists expected in June to the least since October 2009. Separately, job openings rose to 3.94 million in June from 3.91 million in May, the US Department of Labor reported.
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