Key benchmark indices extended losses and hit intraday low in mid-afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit 2-1/2-week low. The Sensex was down 97.51 points or 0.47%, off 159.97 points from the day's high and up 31.84 points from the day's low. Investor sentiment was hit adversely after Markit Economics said business conditions in the Indian private sector economy continued to deteriorate in December 2013. In the foreign exchange market, the rupee edged lower against the dollar as the US Federal Reserve prepared to start cutting bond purchases amid data that signaled the recovery of the world's biggest economy is picking up speed.
Tata Motors extended initial gains as its British luxury car unit Jaguar Land Rover North America on Friday, 3 January 2014, reported decent growth in sales in the US market for December 2013. Infosys edged lower in volatile trade. Tata Consultancy Services (TCS) regained positive zone in volatile trade.
Among side counters, Delta Corp struck 52-week high. Alembic Pharmaceuticals, Atul and CEAT hit record high.
The market breadth, indicating the overall health of the market, was positive.
Key benchmark indices reversed direction after a positive start. Key benchmark indices cut losses after hitting fresh intraday low in morning trade. Key benchmark indices hovered in negative zone in mid-morning trade after Markit Economics said business conditions in the Indian private sector economy continued to deteriorate in December 2013. Key benchmark indices languished in red in afternoon trade. Key benchmark indices extended losses and hit intraday low in mid-afternoon trade. The Sensex and the 50-unit CNX Nifty, both, hit 2-1/2-week low.
Foreign institutional investors (FIIs) sold shares worth a net Rs 18.06 crore on Friday, 3 January 2014, as per provisional data from the stock exchanges.
At 14:15 IST, the S&P BSE Sensex was down 97.51 points or 0.47% to 20,753.82. The index fell 129.35 points at the day's low of 20,721.98 in mid-afternoon trade, its lowest level since 19 December 2013. The index rose 62.46 points at the day's high of 20,913.79 in opening trade, its highest level since 2 January 2014.
The CNX Nifty was down 32.60 points or 0.52% to 6,178.55. The index hit a low of 6,170.25 in intraday trade, its lowest level since 19 December 2013. The index hit a high of 6,224.70 in intraday trade, its highest level since 2 January 2014.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,348 shares gained and 1,034 shares fell. A total of 166 shares were unchanged.
Among the 30 Sensex shares, 21 declined and the rest of them rose.
Tata Motors rose 1.79%, with the stock extending initial gains. Jaguar Land Rover's US sales jumped 17% to 7,308 units in December 2013 over December 2012. Jaguar sales rose 47% to 1,544 units in December 2013 over December 2012. Land Rover sales rose 11% to 5,764 units in December 2013 over December 2012.
Coal India rose 0.68% to Rs 279.65 in volatile trade. The stock hit a high of Rs 280.20 and low of Rs 274.10 so far during the day.
Infosys lost 1.87% to Rs 3,498.65, with the stock reversing initial gain in volatile trade. The stock hit a high of Rs 3,581 and low of Rs 3,470 so far during the day. Infosys after market hours on Friday, 3 January 2014, said that it has appointed Mr. B. G. Srinivas and Mr. U. B. Pravin Rao as Presidents of the company, reporting to Mr. S. D. Shibulal, Chief Executive Officer & Managing Director. These appointments are effective immediately. The business portfolios will be realigned under the two Presidents.
Financial services, insurance, manufacturing, engineering services, energy & communications, Infosys public services, Infosys Lodestone, strategic global sourcing, marketing and alliances will report to Mr. Srinivas.
Retail, consumer packaged goods and logistics, life sciences, resources and utilities, services, growth markets, cloud & mobility, quality & productivity and Infosys Leadership Institute wil report to Mr. Rao.
In addition, Mr. Srinivas will focus on global markets and Mr. Rao will focus on global delivery and service innovation. In view of these changes, the Executive Council, as a forum, will cease to exist with effect from 1 April 2014, Infosys said.
Infosys unveils Q3 December 2013 results on Friday, 10 January 2014. At the time of announcement of Q2 September 2013 results in October 2013, Infosys had raised its revenue guidance in both dollar and rupee terms. The increase in revenue growth guidance in rupee terms was driven by weakness in rupee against the dollar. The company had at that time forecast 9% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014). At that time, the company had issued a forecast of 21% to 22% growth in revenue in rupee terms based on the assumption of rupee dollar conversion rate of 62.61 for the rest of the fiscal year.
Tata Consultancy Services (TCS) rose 0.45% to Rs 2,232, with the stock regaining positive zone in volatile trade. The stock hit a high of Rs 2,243.65 and low of Rs 2,197 so far during the day.
TCS on Saturday, 4 January 2014, announced that it is setting up the world's largest corporate learning and development centre with a total capacity to train 15,000 professionals at one time and 50,000 professionals annually. The proposed TCS Learning Campus in Thiruvananthapuram will be located on a 97-acre property in the Technopark area of the city. The campus will be built over an area of 6.1 million square feet and feature residential accommodation for professionals and faculty at the center.
Alembic Pharmaceuticals surged 3.99% to Rs 219 after hitting a record high of Rs 226.45 in intraday trade.
Atul gained 2.55% to Rs 463.85 after hitting a record high of Rs 474.50 in intraday trade.
CEAT was locked at 5% upper circuit at Rs 371.50, also its record high.
Delta Corp jumped 5.82% to Rs 124.75 after hitting a 52-week high of Rs 125.70 in intraday trade.
In the foreign exchange market, the rupee edged lower against the dollar as the US Federal Reserve prepared to start cutting bond purchases amid data that signaled the recovery of the world's biggest economy is picking up speed. The partially convertible rupee was hovering at 62.29, weaker than its close of 62.16/17 on Friday, 3 January 2014.
Bond prices rose after strong bidding at bond auction held on Friday, 3 January 2014. The yield on 10-year federal paper, 8.83% GS 2023, was hovering at 8.8182%, lower than its close of 8.8343% on Friday, 3 January 2014. Bond yield and bond prices are inversely related.
Markit Economics today, 6 January 2014, said that business conditions in the Indian private sector economy continued to deteriorate in December 2013. At 48.1, the seasonally adjusted HSBC India Composite Output Index posted below the crucial 50 threshold for the sixth consecutive month. The index dropped from November's 48.5, indicating a slightly faster rate of contraction. While manufacturing production expanded, services output fell in December 2013, Markit Economics said.
Adjusted for seasonal factors, the HSBC Services Business Activity Index fell from 47.2 in November to 46.7 in the latest month, indicating a solid and accelerated rate of contraction. This was the sixth consecutive monthly drop in output levels, which is the longest period of continuous reduction since the 2008/2009 global financial crisis, Markit Economics said. Underpinning the latest fall in services output was a solid decrease in incoming new work. New business contracted at the quickest pace since September, with panelists reporting an increasingly fragile economy and competitive pressures, Markit Economics said. There were a few mentions that the upcoming elections had also contributed to the latest drop in new orders. Across the private sector as a whole, new business decreased at a faster, but moderate pace.
Four of the six broad areas of the service economy registered lower output volumes, while new business contracted in five categories. As with the trend for output, the sharpest decline in new orders was noted at Hotels & Restaurants. The Post & Telecommunication sub-sector remained resilient, with growth of both business activity and new orders recorded.
Outstanding business at both service providers and manufacturers increased in December, leading to a further accumulation of unfinished work in the Indian private sector. Although modest, the overall rate of increase was above the long-run survey average.
December data indicated that private sector employment rose. The latest increase in payroll numbers was broad-based with both manufacturers and service providers posting job creation.
Average purchase costs at services companies rose further in December, amid reports of higher prices paid for fuel, food, transportation and electricity. But, the rate of cost inflation was only moderate and the weakest since July, Markit Economics said. Input price inflation in the private sector as a whole eased to a six-month low. Additional cost burdens were passed on, as prices charged by private sector firms were raised for the fifty-fifth consecutive month in December. The latest increase in tariffs was, however, marginal and below its average.
Indian service providers remained upbeat about the prospects for business activity in 2014, Markit Economics said. Furthermore, the degree of confidence was the strongest in five months. Positive sentiment was linked by companies to forecasts of better economic conditions and hopes of higher demand. Some firms also mentioned that output is anticipated to grow after the elections.
Commenting on the India Services PMI survey, Leif Eskesen, Chief Economist for India & ASEAN at HSBC said: "The service sector continues to face head winds, with weakening new business dragging down activity. On a positive note, inflation pressures are easing and optimism about the coming year is rising".
The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Q3 earnings season begins later this week when IT major Infosys and private sector bank IndusInd Bank unveil their earnings on Friday, 10 January 2014.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
European stocks reversed initial gains on Monday, 6 January 2014, as data showed a Chinese non-manufacturing gauge dropped. Key benchmark indices in UK, France and Germany were off 0.15% to 0.29%.
The European Central Bank holds a monetary policy meeting on Thursday, 9 January 2014. UK's central bank -- Bank of England -- also undertakes monthly monetary policy review on the same day.
Asian stocks declined on Monday, 6 January 2014, as a gauge of China's services industries dropped, signaling growth may slow in the world second-biggest economy. Key benchmark indices in Taiwan, Hong Kong, Singapore, China, Japan and Indonesia fell by 0.28% to 2.35%. South Korea's Seoul Composite rose 0.37%.
A private index of China's services industry released today, 6 January 2014, by HSBC and Markit Economics fell to 50.9 last month from 52.5 in November. A number above 50 indicates expansion. China's official nonmanufacturing PMI fell to 54.6 in December from 56.0 in November, according to a statement on Friday, 3 January 2014, from the China Federation of Logistics and Purchasing.
China is due to publish December trade data on Wednesday, 8 January 2014, and December inflation figures on Thursday, 9 January 2014.
Trading in US index futures indicated that the Dow could drop 11 points at the opening bell on Monday, 6 January 2014. US stocks ended a choppy trading session mostly lower on Friday, 3 January 2014, after Federal Reserve Chairman Ben Bernanke defended the extraordinary measures undertaken by the central bank to boost the economic recovery. Bernanke, in a speech in Philadelphia four weeks before his term expires, said the economy "has made considerable progress." He cited payroll employment rising by 7.5 million since 2010 and growth in 16 of the 17 quarters after the recession ended as evidence the Fed's policies have succeeded. "The combination of financial healing, greater balance in the housing market, less fiscal restraint, and, of course, continued monetary policy accommodation bodes well for US economic growth in coming quarters," Bernanke said.
The US central bank will make its first Treasuries purchase under the smaller program on 6 January 2014, buying as much as $1.5 billion of securities due from February 2036 to November 2043. The Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually this year.
The central bank will release minutes of its December Federal Open Market Committee policy meeting on Wednesday, 8 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014.
The US government will unveil the influential non-farm payroll report for December 2013 on Friday, 10 January 2014.
The US Senate on Monday evening was slated to vote, and likely approve, the nomination of Janet Yellen as the Fed's new chief. She would succeed Fed Chairman Ben Bernanke on Feb. 1 if confirmed.
Powered by Capital Market - Live News
