Key benchmark indices hovered in red in early afternoon trade as weakness in Asian stocks dampened sentiment. The S&P BSE Sensex was down 60.64 points or 0.31%, off close to 80 points from the day's high and up about 45 points from the day's low. The market breadth, indicating the overall health of the market, once again turned negative from positive.
Dr Reddy's Laboratories inched higher to scale record high. ONGC extended intraday gains. Shares of search service provider Just Dial surged on debut. TCS reversed intraday losses after the company secured a four year contract from UK based Network Rail Infrastructure. Index heavyweight and cigarette major ITC extended intraday losses. Infosys also extended intraday losses.
The market edged lower amid initial volatility. The Sensex and the 50-unit CNX Nifty, both, hit over 5-week low. The market once again slipped into the red after reversing losses to hit fresh intraday high in mid-morning trade. The Sensex hovered in red in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was down 60.64 points or 0.31% to 19,485.14. The index lost 104.43 points at the day's low of 19,441.35 in early trade, its lowest level since 30 April 2013. The index rose 19.13 points at the day's high of 19,564.91 in mid-morning trade.
The CNX Nifty was down 21.40 points or 0.36% to 5,898.05. The index hit a low of 5,883.70 in intraday trade, its lowest level since 30 April 2013. The index hit a high of 5,921.80 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive. The market breadth alternately swung between positive and negative zone earlier during the trading session. On BSE, 996 shares fell and 876 shares rose. A total of 134 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks fell and the rest of them rose. Sun Pharmaceutical Industries, GAIL (India) and Hindalco Industries rose by 1.09% to 1.66%. HDFC, Coal India and Wipro dropped by 0.63% to 0.82%.
Index heavyweight and cigarette major ITC declined 1.91%, with the stock extending intraday losses.
Infosys declined 0.95%, with the stock extending intraday losses.
Dr Reddy's Laboratories rose 0.7% to Rs 2,167.95, with the stock gaining for the third straight day. The stock hit record high of Rs 2,173.40 in intraday trade today, 5 June 2013. The company on Monday, 3 June 2013, said that FUJIFILM Corporation and the company have decided to terminate the memorandum of understanding (MoU) to enter into a exclusive partnership in the generic drugs business for the Japanese market and to establish joint venture in Japan. Based on MoU signed on 28 July 2011, the two companies had conducted detailed studies on the establishment of a joint venture for developing and manufacturing generic drugs in Japan. However, as Fujifilm realigns its long term growth strategy in pharmaceutical business, both companies have decided to terminate the MoU.
The two companies will continue to explore partnerships/alliance in other pharmaceutical businesses such as active pharmaceutical ingredients (API) development and manufacturing, contract research and development and manufacturing, and the development and marketing of super-generics.
ONGC gained 0.91%, with the stock extending intraday gains.
Mahindra Forgings (up 9.18%), Hanung Toys (up 6.34%), Sandur Manganese (up 5.66%) and Minda Industries (up 5.59%), were the biggest gainers from the BSE Small-Cap index in that order.
Shares of search service provider Just Dial were trading at Rs 622.80, a premium of 17.51% over the initial public offer price of Rs 530 per share. The stock hit high of Rs 631.90 and low of Rs 589 so far during the day. The stock opened at Rs 590, a premium of 11.32% to the initial public offer (IPO) price. On BSE, 32.16 lakh shares changed hands in the counter.
TCS rose 0.15%, with the stock reversing intraday losses. The company said during market hours today, 5 June 2013, that it has been selected by UK based Network Rail Infrastructure as part of the latter's strategic information technology (IT) transformation journey. The IT solutions and system integration framework agreement for four years encompasses identifying, defining, designing, building and integration of next generation IT solutions for Network Rail.
India's services activity expanded last month at its fastest pace since February as burgeoning new orders drove optimism to a five-month high, a business survey showed on Wednesday. The HSBC Markit Services Purchasing Managers' Index, based on a survey of around 400 companies, rose to 53.6 in May from 50.7 in April. The April reading was the weakest since October 2011. Services make up almost 60% of India's economy.
Asian stocks declined on Wednesday on prospects the Federal Reserve will scale back stimulus efforts as the US economy improves. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Taiwan, Singapore and South Korea shed by 0.11% to 3.83%.
Activity in China's services sector expanded in May but at a pace little changed from the month before, the latest sign that the world's No. 2 economy is struggling to regain momentum. The HSBC/Markit Purchasing Managers' Index (PMI) for the services industry, released on Wednesday, inched up to 51.2 in May 2013 after seasonal adjustment, the second-lowest reading since August 2011. The services sector accounted for 46 percent of China's gross domestic product in 2012.
Australia's economy expanded less than economists forecast last quarter as machinery and equipment investment declined. First-quarter gross domestic product advanced 0.6% from the previous three months, when it expanded at the same pace, a Bureau of Statistics report released in Sydney today showed.
Trading in US index futures indicated that the Dow could fall 40 points at the opening bell on Wednesday, 5 June 2013. US stocks fell on Tuesday as Wall Street remained on alert for clues as to central-bank policy moves ahead.
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