Key benchmark indices lost ground and hit fresh intraday low in mid-morning trade after a private survey indicated that India's manufacturing activity slowed in May 2013. The S&P BSE Sensex hit lowest level in one week. The 50-unit CNX Nifty hit lowest level in over one week. The Sensex was down 63.08 points or 0.32%, off close to 165 points from the day's high and up about 15 points from the day's low. The market breadth, indicating the overall health of the market, turned negative from positive.
Shares of two wheeler makers extended intraday losses as PSU OMCs raised petrol price, with Bajaj Auto also hit by weak sales for the month just gone by. Maruti Suzuki India pared intraday losses triggered by the company reporting fall in sales in May 2013. Index heavyweight Reliance Industries (RIL) extended intraday losses. Capital goods stocks declined on worries slowing economy could adversely affect new order flow. Infosys trimmed initial gains triggered the return of founder and former chairman N.R. Narayana Murthy as executive chairman. CRISIL hit an upper circuit limit of 20% at Rs 1,126.60 after McGraw Hill Financial announced a voluntary open offer to raise its stake in the company to 75% from 52.77%.
Foreign institutional investors (FIIs) sold shares worth a net Rs 504.02 crore on Friday, 31 May 2013, as per provisional data from the stock exchanges.
A bout of initial volatility was witnessed as key benchmark indices recovered after slipping into the red after a firm start. Key benchmark indices alternately moved between positive and negative terrain near the flat line in morning trade. The market lost ground to hit fresh intraday low in mid-morning trade.
At 11:20 IST, the S&P BSE Sensex was down 63.08 points or 0.32% to 19,697.22. The index lost 80.88 points at the day's low of 19,679,42 in mid-morning trade, its lowest level since 27 May 2013. The index rose 99.89 points at the day's high of 19.860.19 in opening trade.
The CNX Nifty was down 26.45 points or 0.44% to 5,959.50. The index hit a low of 5,953.45 in intraday trade, its lowest level since 24 May 2013. The index hit a high of 6,011 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in mid-morning trade. On BSE, 944 shares fell and 721 shares rose. A total of 91 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks declined and the rest of them gained.
Capital goods stocks declined on worries slowing economy could adversely affect new order flow. L&T and Bhel shed by 0.15% to 0.64%.
Maruti Suzuki India was down 2.48% to Rs 1567 after the company reported fall in sales in May 2013. The stock came off the day's low of Rs 1,548. The company on Saturday, 1 June 2013, reported 14.4% fall in total sales to 84,677 units in May 2013 over May 2012. The company's domestic sales declined 13% to 77,821 units in May 2013 over May 2012. Exports fell 27.1% to 6,856 units in May 2013 over May 2012.
Shares of two wheeler makers extended intraday losses as PSU OMCs raised petrol price. Hero MotoCorp shed 2.24%.
Bajaj Auto slumped 3.61% on fall in sales in May 2013. The company said during market hours today, 3 June 2013, that total sales fell 4% to 3.39 lakh units in May 2013 over May 2012. Motorcycle sales fell 5% to 3.04 lakh units in May 2013 over May 2012. Domestic motorcycle sales rose 3% to 2.12 lakh units in May 2013 over May 2012, owing to the launch of new Discover models. Sales of Commercial vehicles rose 14% to 34,568 units in May 2013 over May 2012. Total exports declined 14% to 1.11 lakh units in May 2013 over May 2012.
Index heavyweight Reliance Industries (RIL) fell 1.59% to Rs 792.80, with the stock extending intraday losses. RIL and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India. RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
CRISIL hit an upper circuit limit of 20% at Rs 1,126.60 after McGraw Hill Financial announced a voluntary open offer to increase its stake in the company to 75% from 52.77%. McGraw Hill Financial is making a voluntary open offer to acquire up to 1.56 crore shares, representing 22.23% of the total equity shares outstanding in CRISIL at Rs 1,210 per share. The cash offer of Rs 1,210 per share represents a premium of 28.88% to the closing share price of Rs 938.85 on Friday, 31 May 2013.
The tender offer period is expected to begin in July 2013 and conclude in early August 2013. All requirements and procedures under Indian law will be strictly followed, McGraw Hill Financial said in a statement.
CRISIL and S&P Ratings Services first signed an affiliation agreement in 1996. The relationship was further strengthened in 1997 when McGraw Hill Financial acquired its initial equity stake in CRISIL. In 2005, McGraw Hill Financial became CRISIL's majority shareholder.
McGraw Hill Financial, a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Its iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power & Associates, McGraw Hill Construction and Aviation Week.
Torrent Pharma (up 6.77%), Opto Circuits (up 5.56%) and Kaveri Seed Company (up 4.56%), and Credit Analysis & Research (up 4.5%) were among major gainers from the BSE Mid-Cap index in that order.
Infosys jumped 4.91% to Rs 2,525.80 after the company announced on Saturday, 1 June 2013, that the board of directors have approved appointing Mr. N R Narayana Murthy as Executive Chairman of the board and Additional Director for a period of five year with effect from 1 June 2013. The stock came off the day's high of Rs 2,624.90 hit during early trade. The stock had jumped 9.02% at the day's high.
Mr. K V Kamath would step down from his position as Chairman of the board and take up the position of Lead Independent Director effective 1 June 2013.
During his five-year term, Mr. Murthy would draw a token compensation of rupee one per year.
Mr. S Gopalakrishnan would be re-designated as Executive Vice Chairman effective 1 June 2013 and would primarily focus on key client relationships and broader industry issues. Mr. S D Shibulal would continue to be the Managing Director and CEO. Mr. S Gopalakrishnan and Mr. S D Shibulal have requested that they draw a compensation of rupee one per year. The board has accepted their requests, subject to necessary shareholder and government approvals.
In order to function more effectively Mr. Narayana Murthy intends to create the Chairman's office to assist him during his tenure and has requested the board to permit him to put together a team for this function. The team will include his son, Dr. Rohan Murty, as Mr. Narayana Murthy's executive assistant. The board has agreed to Mr. Narayana Murthy's requests, subject to necessary approvals.
Bharti Airtel rose 1.9%. Dr Reddy's Laboratories gained 1.17%.
HSBC's India manufacturing PMI eased to 50.1 in May 2013 from 51 in April 2013 led by a fall in output and a slowdown in new orders.
Fiscal deficit for or the fiscal year ended 31 March 2013 (FY 2013) came in lower at 4.9% of GDP against 5.1% budgeted (in February 2012) and revised to 5.2% in February 2013, data released by the government after trading hours on Friday, 31 May 2013, showed. Fiscal deficit for FY 2014 is budgeted at 4.8% of GDP.
The crucial monsoon arrived on cue in Kerala on the southern coast on Saturday, 1 June 2013, boosting farming. 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 weather office last month predicted the monsoon would arrive over Kerala on June 3.
Asian stocks fell on Monday after improving US economic data added to concern the Federal Reserve will scale back its stimulus. Key benchmark indices in Indonesia, Japan, Singapore, Taiwan and South Korea shed by 0.26% to 3.06%. Key benchmark indices in China and Hong Kong rose by 0.26% to 0.27%.
The final version of the HSBC China manufacturing Purchasing Managers' Index for May fell to 49.2, down from a preliminary reading of 49.6, and more than a point off from April's 50.4. HSBC said that while the result marked the first contraction in seven months, "albeit at only a marginal pace," manufacturing output actually registered its seventh straight gain, though that too was small in size.
The official purchasing managers' index (PMI), issued by the National Bureau of Statistics and China Federation of Logistics and Purchasing, indicated activity in China's vast manufacturing sector picked up slightly in May. China's official PMI rose to 50.8 in May from 50.6 in April, data showed on Saturday, 1 June 2013. A reading above 50 indicates expanding activity while a reading below that level points to a contraction.
Separately, a government gauge of services industries today, 3 June 2013 showed the slowest expansion since September. The official China non-manufacturing PMI for May declined to 54.3 from 54.5.
South Korea's exports unexpectedly increased in May as surging smartphone shipments and improving demand from the US and China countered a decline in the yen. Overseas shipments increased 3.2% from a year earlier after a 0.4% gain in April, the Ministry of Trade, Industry and Energy said in a statement on Saturday, 1 June 2013.
Trading in US index futures indicated that the Dow could gain 39 points at the opening bell on Monday, 3 June 2013. US stocks tanked on Friday after positive economic indicators rekindled talk that the Federal Reserve will soon scale back stimulus measures. The Thomson Reuters/University of Michigan's final consumer sentiment index rose to 84.5 in May from 83.7 in April. A separate report showed that the Chicago purchasing managers' index climbed to 58.7 this month from 49 in April, beating expectations for a rise to 50.
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