A bout of volatility was witnessed as key indices extended losses and hit fresh intraday low after erasing most of the intraday losses in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 114.80 points or 0.44% at 25,793.21. The market breadth indicating the overall health of the market was positive. Banking and auto stocks declined. Hero MotoCorp dropped after the company reported a marginal rise in bottom line in Q1 June 2014.
Key indices have been in red since the beginning of the trading session on weak Asian stocks and after drop in US stocks on Tuesday, 5 August 2014.
At 12:17 IST, the S&P BSE Sensex was down 114.80 points or 0.44% to 25,793.21. The index declined 139.04 points at the day's low of 25,768.97 in early afternoon trade. The index fell 6.33 points at the day's high of 25,901.68 in morning trade.
The CNX Nifty was down 36.25 points or 0.47% to 7,710.30. The index hit a low of 7,700.05 in intraday trade. The index hit a high of 7,740.95 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,503 shares rose and 1,090 shares fell. A total of 94 shares were unchanged.
The BSE Mid-Cap index was up 1.88 points or 0.02% at 9,274.42. The BSE Small-Cap index was up 55.93 points or 0.55% at 10,167.20. Both these indices outperformed the Sensex.
Most auto stocks declined. Maruti Suzuki India lost 0.08%. The company announced after market hours on Tuesday, 5 August 2014, that its production rose 12.45% to 1.11 lakh units in July 2014 over July 2013. The company on 1 August 2014 said its total vehicles sales rose 21.7% to 1.01 lakh units in July 2014 over July 2013.
Tata Motors dropped 1.19%. The company on 1 August 2014 said that its total sales declined 23% to 39,623 units in July 2014 over July 2013. Domestic sales of Tata commercial and passenger vehicles dropped 25% to 35,256 units in July 2014 over July 2013. Exports rose 2% to 4,367 units in July 2014 over July 2013.
Mahindra & Mahindra (M&M) gained 0.41%. The company on 1 August 2014 reported 6% decline in its total tractor sales to 17,407 units in July 2014 over July 2013. Domestic sales declined 8% to 16,379 units in July 2014 over July 2013. Exports surged 47% to 1,028 units in July 2014 over July 2013. Exports include CKD units.
Separately, M&M on 1 August 2014, reported 4% drop in its total auto sales at 35,567 units in July 2014 over July 2013. Exports dropped 3% to 2,520 units in July 2014 over July 2013.
Bajaj Auto rose 0.43%, with the stock extending recent gains triggered by the company announcing good July sales. The company said during market hours on Monday, 4 August 2014, that its total sales rose 13% to 3.19 lakh units in July 2014 over July 2013. Commercial vehicles sales rose 49% to 51,451 units in July 2014 over July 2013. Motorcycles sales rose 9% to 2.67 lakh units in July 2014 over July 2013. Exports rose 54% to 1.69 lakh units in July 2014 over July 2013.
TVS Motor Company shed 0.24%. The company recorded 32% growth in sales to 2.03 lakh units in July 2014 over July 2013. The sales figures were announced on 2 August 2014.
Hero MotoCorp dropped 0.55% to Rs 2,570 after the company reported a marginal rise in net profit in Q1 June 2014. The stock hit high of Rs 2,575 and low of Rs 2,525 so far during the day. The company's net profit rose 2.58% to Rs 562.76 crore on 14% increase in total income to Rs 7,149.59 crore in Q1 June 2014 over Q1 June 2013. EBITDA margin stood at 13.46% in Q1 June 2014. The result was announced after market hours on Tuesday, 5 August 2014.
The company reported highest ever quarterly sales of 17.15 lakh units of two-wheeler in Q1 June 2014.
The board of Hero MotoCorp approved increasing the investment limits of foreign institutional investors (FIIs) from 40% to 49%. The boad also appointed Pawan Munjal as Vice Chairman of the company in addition to Managing Director & CEO from 5 August 2014.
Suzlon Energy (up 4.79%) Jaypee Infratech (up 4.68%), Godrej Consumer Products (up 4.02%), CESC (up 3.34%) and Shree Cement (up 2.8%) were the biggest gainers from the BSE A group in that order.
KRBL jumped 8.18% after consolidated net profit surged 46.8% to Rs 72.89 crore on 17.5% growth in total income to Rs 810.81 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Tuesday, 5 August 2014.
JB Chemicals & Pharmaceuticals spurted 15.01% after net profit jumped 56.44% to Rs 31.79 crore on 12.01% growth in net sales to Rs 256.71 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Tuesday, 5 August 2014. JB Chemicals said that top line during the quarter is not strictly comparable due to commencement of sales and distribution in Russia & CIS countries by the wholly owned subsidiary company during the quarter. In order to tap opportunities, the company has undertaken expansion programme to create additional capacity for tablets, liquid, ointments, vials, eye drops, lozenges and Diclofenac API plant. The company plans to invest about Rs 140 crore in this new capacity and related infrastructure in the next 12-18 months. The capital expenditure will be met out of internal accruals, JB Chemicals said in a statement.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.3525, compared with its close of 60.84 on Tuesday, 5 August 2014.
Asian stocks dropped today, 6 August 2014, after US stocks fell yesterday, 5 August 2014, amid escalating tensions in Ukraine. Key benchmark indices in Japan, Indonesia, Hong Kong, Singapore, and South Korea were off 0.27% to 1.06%. Key benchmark indices in China and Taiwan rose 0.03% to 0.11%.
Trading in US index futures indicated that the Dow could gain 10 points at the opening bell on Wednesday, 6 August 2014. US stocks fell on Tuesday, 5 August 2014, as energy shares tumbled and concern increased over escalating tensions in Ukraine.
Service industries in the US expanded in July at the fastest pace since December 2005, according to data from the Institute for Supply Management, indicating the economy was building more momentum at the start of the second half of 2014. Another release showed factory orders rose 1.1% in June, which was higher than market expectations.
Poland's foreign minister warned that a renewed buildup of Russian troops on Ukraine's border may signal an invasion as Russian President Vladimir Putin ordered a response to US and European sanctions. Putin is showing no sign of backing down over Ukraine since the US and the European Union tightened sanctions last week, with Russia amassing forces on its neighbor's border in the biggest military buildup since troops were withdrawn from the area in May.
In Europe, German factory orders dropped by the most in more than 2 1/2 years in a sign that geopolitical tension with Russia is leaving its mark on Europe's largest economy. Orders, adjusted for seasonal swings and inflation, slid 3.2% in June from May, when they fell a revised 1.6%, the Economy Ministry in Berlin said today.
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