A brief intraday recovery was derailed by fresh selling as the key benchmark indices extended fall in afternoon trade. World stocks tumbled after disappointing data from China and comments from the US Federal Reserve about tapering its stimulus program stoked worries about slower global growth and less liquidity. The Sensex was down 346.34 points or 1.73%, off 311.66 points from the day's high and up 18.46 points from the day's low. Index heavyweight and cigarette major ITC edged lower. Another index heavyweight Reliance Industries (RIL) extended intraday losses. State Bank of India (SBI) tumbled over 6% after the state-run banking giant reported weak Q4 results during market hours today, 23 May 2013. The market breadth, indicating the overall health of the market, was extremely weak. All the 13 sectoral indices on BSE were in the red.
India's largest power equipment maker by sales Bhel dropped ahead of its Q4 results today, 23 May 2013. L&T extended Wednesday's slump triggered after the company reported poor results during market hours on Wednesday, 22 May 2013. Hindalco Industries fell after two bulk deals were executed on the counter on the BSE today, 23 May 2013.Tata Steel slipped ahead of its Q4 results today, 23 May 2013.
The market edged lower in early trade on weak Asian stocks. It weakened to hit fresh intraday low in morning trade. It extended losses to hit fresh intraday low in mid-morning trade. It trimmed losses after hitting fresh intraday low in early afternoon trade. Market extended fall in afternoon trade as European markets opened weak.
Foreign institutional investors (FIIs) bought shares worth a net Rs 540.18 crore on Wednesday, 22 May 2013, as per provisional data from the stock exchanges.
At 13:28 IST, the S&P BSE Sensex was down 346.34 points or 1.73% to 19,715.90. The index declined 364.80 points at the day's low of 19,697.44 in early afternoon trade, its lowest level since 14 May 2013. The index fell 34.68 points at the day's high of 20,027.56 in early trade.
The CNX Nifty was down 109.80 points or 1.8% to 5,984.70. The index hit a low of 5,972.40 in intraday trade, its lowest level since 14 May 2013. The index hit a high of 6,081.45 in intraday trade.
The market breadth, indicating the overall health of the market, was extremely weak. On BSE, 1,627 shares fell and 558 shares rose. A total of 133 shares were unchanged.
The total turnover on BSE amounted to Rs 2965 crore by 13:25 IST.
Among the 30-share Sensex pack, 26 stocks fell and only four of them rose. Bharti Airtel (down 3.59%), Maruti Suzuki India (down 3.3%) and ICICI Bank (down 3.26%) edged lower from the Sensex pack.
TCS (up 0.38%), ONGC (up 0.55%) and HDFC (up 0.23%) edged higher from the Sensex pack.
State Bank of India (SBI) tumbled 6.6% after reporting 18.54% fall in net profit to Rs 3299.22 crore on 6.98% rise in total income to Rs 36330.87 crore in Q4 March 2013 over Q4 March 2012. The result was announced during market hours today, 23 May 2013.
Index heavyweight Reliance Industries (RIL) declined 2.78% to Rs 795. The stock hit high of Rs 817 and low of Rs 792.15 so far during the day.
Index heavyweight and cigarette major ITC fell 0.97% to Rs 332.55. The stock hit high of Rs 336.10 and low of Rs 330.35 so far during the day. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
India's largest power equipment maker by sales Bhel shed 3.91% ahead of its Q4 results today, 23 May 2013.
L&T dropped 4.97%, extending Wednesday's 5.57% slump triggered after the company reported poor results during market hours on Wednesday, 22 May 2013. L&T reported 6.9% fall in net profit to Rs 1787.94 crore on 9.9% rise in total income to Rs 20686.93 crore in Q4 March 2013 over Q4 March 2012.
Hindalco Industries fell 1.45% to Rs 108.75 after two bulk deals were executed on the counter on the BSE today, 23 May 2013. A bulk deal of 10 lakh shares was struck on Hindalco Industries counter at Rs 108.25 at 11:26 IST on BSE today, 23 May 2013. Another bulk deal of 4 lakh shares was struck on the counter at Rs 107.45 at 11:33 IST on BSE today, 23 May 2013. The bulk deals constituted 0.07% equity of Hindalco Industries.
Tata Steel shed 1.31% ahead of its Q4 results today, 23 May 2013.
As per the Q4 results calendar, Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. DLF, M&M and Tata Power unveil Q4 results on 30 May 2013.
Global credit rating agency Standard & Poor's (S&P) on 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. 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 at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. 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 opened with sharp losses on Thursday, after disappointing data from China and comments from the U.S. Federal Reserve about tapering its stimulus program stoked worries about slower global growth and less liquidity. Key benchmark indices in UK, France and Germany were down by 1.59% to 2.06%.
Asian stocks slid on Thursday after China's manufacturing output unexpectedly contracted and amid speculation the Federal Reserve may soon wind back stimulus. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, Taiwan and South Korea shed by 1.16% to 2.52%. Japan's Nikkei Average tumbled 7.32%, the most since the aftermath of the March 2011 tsunami and nuclear disaster, as financial companies plunged amid rising bond yields. The rout triggered a halt in Nikkei 225 Stock Average futures trading in Osaka.
China's manufacturing is contracting in May for the first time in seven months, adding to signs that economic growth is losing steam for a second quarter. The preliminary reading of 49.6 for a Purchasing Managers' Index released today by HSBC Holdings Plc and Markit Economics compares with a final 50.4 for April. A reading above 50 indicates expansion.
Singapore's economy unexpectedly expanded last quarter as services and construction strengthened, reducing pressure on the central bank to ease monetary policy to boost growth. Gross domestic product rose an annualized 1.8% in the three months through March from the previous quarter, when it grew 3.3%, the Trade Ministry said in a statement today, revising an earlier estimate for a 1.4% contraction last quarter.
Trading in US index futures indicated that the Dow could fall 135 points at the opening bell on Thursday, 23 May 2013. US stocks slid Wednesday, reversing gains after minutes from the Federal Reserve's latest meeting and comments from the Fed chief Ben Bernanke suggested the central bank may begin tapering its bond-buying program in coming months. The minutes of the last Fed meeting said a number of officials expressed a willingness to taper bond purchases as early as the upcoming meeting on June 18-19 if there were signs of sufficiently strong and sustained growth. But views differed both on how to gauge progress and on how likely it was that that threshold would be met.
The Federal Reserve's monetary stimulus is helping the U.S. economy recover but the central bank needs to see further signs of traction before taking its foot off the gas pedal, Fed Chairman Ben Bernanke said on Wednesday. A decision to scale back the $85 billion in bonds the Fed is buying each month could come at one of the central bank's "next few meetings" if the economy looked set to maintain momentum, Bernanke told Congress. In testimony that showed little immediate desire to retreat from the Fed's third and latest round of bond buying, Bernanke emphasized the high costs of both unemployment and inflation, which respectively continue to run above and below the Fed's targets.
The central bank is currently buying $45 billion in Treasury bonds and $40 billion in mortgage-backed debt each month to keep borrowing costs low and encourage investment, hiring and economic growth. It is the third round of asset purchases, or quantitative easing, since the Fed drove interest rates to near zero in late 2008.
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