Key benchmark indices edged lower in choppy trade after a survey showed that India's vast service sector activity remained weak in the month just gone by. Weakness in European stocks also dampened sentiment on the domestic bourses. The barometer index, the S&P BSE Sensex, fell below the psychological 21,000 mark in late trade. The Sensex was provisionally down 287.65 points or 1.35%, off close to 210 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
The Sensex and the 50-unit CNX Nifty had both attained record closing high during the special Diwali Muhurat trading session held on Sunday, 3 November 2013.
Capital goods pivotals edged lower. Bhel declined ahead of its Q2 result tomorrow, 6 November 2013. PSU OMCs rose as US crude oil futures traded near the lowest level in more than 4 months. Tyre shares rose across the board.
The market edged lower in early trade on weak Asian stocks. Key benchmark indices extended initial losses and hit fresh intraday low in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade after a survey showed continued contraction in the service sector activity. A bout of volatility was witnessed as key benchmark indices trimmed losses in early afternoon trade. Weakness continued on the bourses in afternoon trade. Key benchmark indices extended intraday losses in mid-afternoon trade. The market extended losses and hit fresh intraday low in late trade.
As per provisional figures, the S&P BSE Sensex was down 287.65 points or 1.35% to 20.951.71, the day's low and also its lowest level since 30 October 2013. The index dropped 80.80 points at the day's high of 21,158.56 in early trade.
The CNX Nifty was down 71.90 points or 1.14% to 6,245.45, as per provisional figures. The index hit a low of 6,244.30 in intraday trade, its lowest level since 31 October 2013. The index hit a high of 6,304.75 in intraday trade.
The total turnover on BSE amounted to Rs 2206 crore.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,264 shares rose and 1,122 shares fell. A total of 135 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks fell and rest of them rose. Dr Reddy's Laboratories (down 2.88%), Sun Pharmaceutical Industries (down 2.95%), and ICICI Bank (down 3.33%), edged lower from the Sensex pack.
Capital goods pivotals edged lower. L&T dropped 1.23%.
Bhel declined 1.83% ahead of its Q2 result tomorrow, 6 November 2013.
Index heavyweight and cigarette maker ITC lost 3.42% at Rs 319.30. The scrip hit high of Rs 330.20 and low of Rs 318.30.
PSU OMCs rose as US crude oil futures traded near the lowest level in more than 4 months. HPCL (up 4.48%) and Indian Oil Corporation (up 1.91%), gained. Lower crude oil prices could reduce under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at 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.
US crude oil futures traded near the lowest level in more than 4 months amid speculation crude inventories increased for a seventh week in United States, the world's biggest oil consumer. US crude oil futures for December 2013 delivery were down 9 cents a barrel at $94.53 a barrel in the electronic trading today, 5 November 2013. The contract had inched up 1 cent a barrel or 0.01% to settle at $94.62 a barrel on the New York Mercantile Exchange on Monday, 4 November 2013.
BPCL rose 2.12%. Videocon Industries fell 1.06%. Videocon Industries today, 5 November 2013, said that Anadarko Petroleum Corporation in its Q3 Operations Report announced that the Wahoo-5 appraisal well in BM-C-30 Concession drilled the eastern flank of the Wahoo structure and encountered more than 200 net feet of high-quality pay in a pre-salt reservoir, with a total hydrocarbon column now established at 460 feet. Anadarko, through a wholly owned subsidiary, holds a 30-percent working interest and is the operator of BM-C-30. BP holds a 25-percent working interest, IBV Brasil holds 25-percent and Maersk holds the remaining 20-percent working interest. Wahoo-5 Appraisal Well was spudded on 17 June 2013 using Blackford Dolphin Rig.
IBV Brasil is a Brazilian joint venture company equally held by Videocon Energy Brazil, a wholly owned overseas subsidiary of Videocon, and BPRL Ventures N.V., a wholly owned subsidiary of Bharat Petroleum Corporation (BPCL).
Mr. Pradeep N. Dhoot, Dubai based Director of Global E&P Business of Videocon Hydrocarbon Holdings, said: "The notable success of the Appraisal Well 'Wahoo-5' in the BM-C-30 Campos Block has further added to the hydrocarbon resources already indicated in the said Block, and is a further addition to the 'discoveries' in our Brazilian concessions in Sergipe Basin and Espirito Santos, underlining the value of our efforts in Brazil".
Tyre shares rose across the board. Apollo Tyres (up 1.73%), JK Tyre & Industries (5.07%), CEAT (up 10.73%) and MRF (up 3.11%), edged higher.
Shares of state-run Central Bank of India jumped 8.91% to Rs 64.15 after the bank announced that the Capital Raising Committee of the board of the bank at its meeting held today, 5 November 2013, has fixed the issue price at Rs 58.85 per equity share for preferential issue of equity shares in favour of Government of India. Accordingly, the bank will allot 30.58 crore equity shares to Government of India on preferential basis, thereby raising Rs 1800 crore.
Power Finance Corporation (PFC) rose 2.96%. The company said during market hours that the public issue of PFC's Tax Free Bonds 2013-14 will pre close today, 5 November 2013. It was earlier scheduled to close on 11 November 2013.
Shares of Jubilant FoodWorks surged 16.23%.
In the foreign exchange market, the rupee reversed initial losses against the dollar in choppy trade. The partially convertible rupee was hovering at 61.66, compared with its close of 61.74/75 on Friday, 1 November 2013.
Indian services firms recovered slightly last month from the worst slump in over four years in September but activity still shrank and a shortage of new orders means a rebound looks some way off, a survey showed on Tuesday, 5 November 2013. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, rose to 47.1 last month from 44.6 in September, which was the weakest reading since April 2009. But the PMI still lingered below the 50 mark that divides growth and contraction for the fourth consecutive month. Services contribute about 60% of India's gross domestic product.
European stocks edged lower on Tuesday, 5 November 2013, as the European Union (EU) trimmed its growth outlook. Key benchmark indices in France, Germany and UK shed 0.38% to 0.41%.
The EU cut its forecast for euro-area growth next year as the economy struggles to gain momentum with the debt crisis dragging into a fifth year and unemployment at a record. Gross domestic product in the 17-nation currency bloc will rise by 1.1% in 2014, less than the 1.2% forecast in May, the Brussels-based commission said today, 5 November 2013.
The European Central Bank (ECB) holds a monetary policy meeting on Thursday, 7 November 2013. The ECB is seen retaining its key policy rate at a record-low 0.5%.
UK retail sales rose only modestly in October, an industry group said Tuesday, raising doubts about the ability of consumers to support the economy at a time when Britons' incomes are falling in real terms. The British Retail Consortium said sales in shops that have been open at least a year rose 0.8% in October from the comparable month of 2012. That is only a very slight rebound from September, when growth stalled to 0.7% from 1.8% in August.
Asian stocks were mixed on Tuesday, 5 November 2013. Key benchmark indices in Hong Kong, Taiwan, and South Korea shed 0.56% to 1.1%. Key benchmark indices in China, Singapore and Japan rose 0.05% to 0.35%.
A HSBC and Markit Economics China services index released today, 5 November 2013, rose in October 2013, after an official non-manufacturing gauge rose to the highest level this year. The HSBC/Markit services PMI rose to 52.6 from September's 52.4, holding well above the 50 line that separates expansion from contraction. New business growth reached a seven-month high and employment rose for the second straight month.
China's leaders will meet in Beijing on November 9-12 to map out economic policies as the country heads for its slowest annual growth in more than two decades.
Chinese Premier Li Keqiang said late last month that China's economy needs to grow at least 7.2% a year in order to ensure the urban unemployment rate remains around 4%, reports said Tuesday, citing an account of the speech on a trade-union website. Li said that although 7.2% would be the minimum growth rate needed, he added that the government's target remains at 7.5% and will be achieved this year. Li also said China must keep a close watch on credit growth and avoid loose monetary policy.
Australia's central bank left its benchmark interest rates unchanged at a record low and said a lower currency will be needed to achieve balanced growth. Governor Glenn Stevens and his board kept the overnight cash-rate target at 2.5%, the Reserve Bank of Australia said in a statement today in Sydney
Trading in US index futures indicated that the Dow could fall 39 points at the opening bell on Tuesday, 5 November 2013. US stocks settled with modest gains Monday, 4 November 2013, as investors took a cue from upbeat earnings and shook off fears the market is overdue for a correction.
The US government will on Friday, 8 November 2013, release nonfarm payrolls figures for October 2013. The job data is a key economic indicator that has been watched closely in recent months to see whether the US Federal Reserve will roll back its bond-buying program.
"Monetary policy is likely to need to remain accommodative for some time so that we can achieve full employment within a reasonable forecast horizon. The economy remains challenged," Boston Fed President Eric Rosengren, who votes on monetary policy this year, said in a speech in Boston on Monday, 4 November 2013. Richmond Fed President Jeffrey Lacker gives a speech on the labor market in Charlotte, North Carolina today, 5 November 2013. Earlier this month he said the probability of another recession is "bigger than we thought."
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