Weakness continued on the bourses in afternoon trade. The barometer index, the S&P BSE Sensex, was down 187.02 points or 0.89%, up 17.58 points from the day's low and off 128.58 points from the day's high. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in more than a one week as a sharp uptick in consumer price inflation in November 2013 raised the likelihood of the Reserve Bank of India (RBI) hiking its main lending rate viz. the repo rate at a monetary policy review next week. The market breadth, indicating the overall health of the market, was weak. The rupee fell and bonds yields rose after retail inflation spiked, raising bets of a rate hike at the RBI's policy meeting next week.
Index heavyweight and cigarette major ITC slipped in volatile trade. Index heavyweight and IT major Infosys edged lower in volatile trade. Many pharmaceutical shares edged lower. Tyre stocks reversed recent gains on profit booking.
The market edged lower in early trade after weak macroeconomic data announced after trading hours on Thursday, 12 December 2013. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in more than a week. A bout of volatility was witnessed as key benchmark indices weakened once again after trimming initial losses in morning trade. The Sensex extended losses and hit fresh intraday low in early afternoon trade. Weakness continued on the bourses in afternoon trade.
At 13:15 IST, the S&P BSE Sensex was down 187.02 points or 0.89% to 20,738.59. The index fell 204.60 points at the day's low of 20,721.01 in afternoon trade, its lowest level since 4 December 2013. The index declined 58.44 points at the day's high of 20,867.17 in opening trade.
The CNX Nifty was down 59.85 points or 0.96% to 6,177.20. The index hit a low of 6,170.45 in intraday trade, its lowest level since 4 December 2013. The index hit a high of 6,208.60 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,462 shares fell and 758 shares rose. A total of 151 shares were unchanged.
The total turnover on BSE amounted to Rs 961 crore by 13:20 IST.
From the 30-share Sensex pack, 23 stocks fell and rest rose. Bhel (down 3.93%), ICICI Bank (down 3.59%) and Hero MotoCorp (down 2.61%) declined from the Sensex pack. Tata Motors (up 2.36%), Coal India (up 1.9%) and Wipro (up 1.08%) edged higher from the Sensex pack.
Index heavyweight and cigarette major ITC slipped 0.39% to Rs 315.50 in volatile trade. The stock hit a high of Rs 317.50 and low of Rs 312.70 so far during the day.
Index heavyweight and IT major Infosys fell 0.16% to Rs 3,358 in volatile trade. The stock hit a high of Rs 3,380 and low of Rs 3,345 so far during the day
Many pharmaceutical shares edged lower. Cipla (down 0.92%), Cadila Healthcare (down 0.12%), Glenmark Pharmaceuticals (down 0.32%), Lupin (down 0.1%) and Wockhardt (down 3.69%) declined. Dr Reddy's Laboratories rose 0.09%.
Sun Pharmaceutical Industries fell 0.93% to Rs 570 in volatile trade. The stock hit a high of Rs 579.50 and low of Rs 569.55 so far during the day. The company after market hours on Thursday, 12 December 2013, announced that the US FDA has granted its subsidiary final approval for its Abbreviated New Drug Application (ANDA) to market a generic version of Cymbalta, Duloxetine Delayed-Release Capsules USP, 20 mg, 30 mg and 60 mg. Duloxetine Delayed-Release Capsules USP, 20 mg, 30 mg and 60 mg are therapeutic equivalents of Eli Lilly & Company's Cymbalta Delayed-Release Capsules. These Capsules have annual sales of approximately $5.5 billion in the US. Duloxetine Delayed-Release Capsules USP are indicated for the treatment of major depressive disorder (MDD), generalized anxiety disorder (GAD) and diabetic peripheral neuropathic pain (DPNP).
Sun Pharma's subsidiary, being one of the first-to-file ANDAs for generic Cymbalta with a para IV certification, is eligible for shared 180-day marketing exclusivity in the US.
Ranbaxy Laboratories dropped 1.15%. The company after trading hours on Thursday, 12 December 2013, said that its foreign promoter -- Daiichi Sankyo Company, Japan -- has confirmed that it has no intention to delist Ranbaxy shares from Indian bourses.
Reliance Power (RPower) declined 1.65%. The company during market hours today, 13 December 2013, said that the second 660 megawatts (MW) of the 3,960 MW Sasan Ultra Mega Power Project (UMPP) has commenced power generation. The unit has commenced power generation in shortest of just about a month from boiler light up, RPower said in a statement. This was made possible by adopting innovative commissioning methods, RPower said. With this unit, RPower's power generation capacity has increased to 3,205 MW which includes 3,120 MW of thermal capacity and 85 MW of renewal energy based capacity. The balance four units are in advanced stage of construction and will be commissioned over the next few months, RPower said.
The Sasan UMPP is the largest integrated power plant and coal mining project in the world. Coal production has already commenced from the 20 million tonnes Moher and Moher-Amlohri coal mines associated with the power project.
Tyre stocks reversed recent gains on profit booking. Apollo Tyres (down 0.72%), Goodyear India (down 1.07%), TVS Srichakra (down 1.15%) and MRF (down 1.48%) declined. CEAT rose 1.17%.
Gujarat Pipavav Port gained 3.49% to Rs 63.75 after hitting a 52-week high of Rs 63.90 in intraday trade. A bulk deal of 3 lakh shares was executed on the Gujarat Pipavav Port counter at Rs 63 per share at 10:46 IST on BSE today, 13 December 2013. The bulk deal saw 0.06% equity of Gujarat Pipavav Port changing hands.
Torrent Power (down 4.19%), Indiabulls Real Estate (down 4.16%), Petronet LNG (down 4.07%), IndusInd Bank (down 3.93%) and Jaiprakash Associates (down 3.87%) were among the major losers from the BSE's 'A' group.
In the foreign exchange market, the rupee edged lower against the dollar and fell below 62 level after two sets of economic data released after market hours on Thursday, 12 December 2013, which showed a spike in consumer price inflation in November and a worse-than-expected contraction in industrial production in October. The partially convertible rupee was hovering at 62.0875, compared with its close of 61.81/82 on Thursday, 12 December 2013.
Bond prices fell as a sharp uptick in consumer price inflation in November 2013 raised the likelihood of the Reserve Bank of India (RBI) hiking its main lending rate viz. the repo rate at a monetary policy review next week. The yield on 10-year federal paper 8.83% GS 2023 was hovering at 8.8969%, higher than its close of 8.8498% on Thursday, 12 December 2013. Bond yield and bond prices are inversely related.
Provisional annual inflation rate based on all India general consumer price index (CPI) (combined) rose 11.24% in November 2013 as compared to 10.17% (final) in October 2013. The data was announced after market hours on Thursday, 12 December 2013.
Index of industrial production (IIP) declined 1.8% in October 2013, against 2% growth in the previous month September 2013. The decline in the output of manufacturing sector at 2% and mining sector at 3.5% mainly led to decline in IIP for October 2013. Meanwhile, the marginal 1.3% growth in the electricity generation restricted further dip in industrial production during October 2013.
The IIP growth for the month of September 2013 has been retained unchanged at 2%, while the growth for the month of July 2013 has been scaled down to 2.6% from 2.8% reported at first revision. However, the final growth rate for July 2013 is similar to the provisional level of 2.6%. The data was announced after market hours on Thursday, 12 December 2013.
The government will unveil data on inflation based on the wholesale price index (WPI) for November 2013 on 16 December 2013. WPI is seen easing a bit at 6.9% in November 2013, from 7% in October 2013, as per the median estimate of a poll of economists carried out by Capital Market.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian markets were mostly higher in choppy trade on Friday, 13 December 2013, after a report showed US retail sales in November 2013 beat market expectations and after US House of Representatives on Thursday, 12 December 2013, passed a federal budget plan. Key benchmark indices in Hong Kong, Japan, Singapore and Taiwan were up 0.1% to 0.4%. Key benchmark indices in China, Indonesia and South Korea were off 0.32% to 0.83%.
The Bank of Japan (BoJ), which buys more than 7 trillion yen ($67.6 billion) of Japanese Government Bonds (JGBs) every month in its bid to stoke inflation, holds a two-day monetary policy meeting on 19 and 20 December 2013.
Trading in US index futures indicated that the Dow could advance 32 points at the opening bell on Friday, 13 December 2013. US stocks dropped on Thursday, 12 December 2013, sending the Standard & Poor's 500 Index to a one-month low, as improving economic data spurred speculation the Federal Reserve will cut stimulus as early as next week.
Data showed retail sales rose more than forecast in November as Americans bought cars and took advantage of discounts going into the holiday-shopping season. Sales increased 0.7 percent in November from the previous month, the most since June, the Commerce Department figures showed. A separate report indicated applications for unemployment benefits jumped last week from an almost three-month low.
The US House of Representatives on Thursday passed the first bipartisan federal budget in four years, which would ease $63 billion in automatic spending cuts and avert another government shutdown. The legislation now heads to the Senate. The House voted 332-94 for the $1.01 trillion compromise budget crafted by Senator Patty Murray and Representative Paul Ryan, the chairman of a special bipartisan panel. President Barack Obama said he'll sign the final measure.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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