Key benchmark indices dropped in choppy trade as European stocks declined as gauges of manufacturing in China -- the world's second-biggest economy -- declined. The barometer index, the S&P BSE Sensex, reached two-week closing low below the psychological 21,000 mark. The 50-unit CNX Nifty settled at two-week low. The Sensex shed 252.15 points or 1.19%, off 442.99 points from the day's high and up 41.66 points from the day's low. The market breadth, indicating the overall health of the market, was weak.
Indian stocks fell for the second day in a row today, 2 January 2014. The Sensex has lost 282.35 points or 1.33% in two trading days from a recent high of 21,170.68 on 31 December 2013. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,439.62 points or 19.71%. From a record high of 21,483.74 hit on 9 December 2013, the Sensex is off 595.41 points or 2.77%.
Coming back to today's trade, realty stocks edged lower on profit booking. Bank stocks reversed intraday gains. Index heavyweights, ITC and Reliance Industries, both, declined. Capital goods stocks dropped. Shares of public sector oil refining-cum-marketing companies (PSU OMCs) reversed initial gains as crude oil prices rose. Bharti Airtel declined after two bulk deals were executed on the counter on BSE today, 2 January 2014.
The market edged higher in early trade. The Sensex extended initial gains and hit fresh intraday high in morning trade. Firmness continued on the bourses in mid-morning trade after the result of a survey showed that India's manufacturing sector ended 2013 on an encouraging footing as operating conditions improved for the second successive month in December 2013, as both output and new orders increased. The Sensex trimmed gains in early afternoon trade. The Sensex retained positive zone in afternoon trade. Volatility ruled the roost after a sudden steep slide pushed key benchmark indices into negative zone from positive zone in mid-afternoon trade. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in almost two weeks as European stocks reversed initial gains as gauges of manufacturing in China declined. The Sensex extended losses and hit fresh intraday low in late trade.
The S&P BSE Sensex lost 252.15 points or 1.19% to settle at 20,888.33, its lowest closing level since 19 December 2013. The index fell 293.81 points at the day's low 20,846.67 in late trade. The index jumped 190.84 points at the day's high of 21,331.32 in morning trade, its highest level since 9 December 2013.
The CNX Nifty lost 80.50 points or 1.28% to settle at 6,221.15, its lowest closing level since 19 December 2013. The index hit a low of 6,211.30 in intraday trade. The index hit a high of 6,358.30 in intraday trade, its highest level since 10 December 2013.
The total turnover on BSE amounted to Rs 2590 crore, higher than Rs 1441.17 crore on Wednesday, 1 January 2014.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,564 shares fell and 1,038 shares rose. A total of 129 shares were unchanged.
The BSE Small-Cap index lost 2.03% and the BSE Mid-Cap index fell 1.77%. Both these indices underperformed the Sensex.
The S&P BSE Metal index (down 1.49%), the S&P BSE Oil & Gas index (down 1.72%), the S&P BSE Consumer Durables index (down 1.73%), the S&P BSE FMCG index (down 1.74%), the S&P BSE Bankex (down 1.82%), the S&P BSE Power index (down 2.09%), the S&P BSE PSU index (down 2.15%), the S&P BSE Capital Goods index (down 2.84%) and the S&P BSE Realty index (down 3.07%) underperformed the BSE Sensex.
The S&P BSE IT index (up 0.11%), the S&P BSE Teck index (down 0.42%), the S&P BSE Auto index (down 0.72%) and the S&P BSE Healthcare index (down 0.85%) outperformed the BSE Sensex.
Among the 30-share Sensex pack, 25 stocks declined and the rest rose.
Index heavyweight and cigarette major ITC dropped 1.97% to Rs 315.75. The stock hit a high of Rs 325 and low of Rs 314.95.
Index heavyweight Reliance Industries fell 1.5% to Rs 875.35. The stock hit a high of Rs 895.80 and low of Rs 871.
Shares of public sector oil refining-cum-marketing companies (PSU OMCs) reversed initial gains as crude oil prices rose. HPCL (down 3.49%), BPCL (down 2.75%) and Indian Oil Corporation (down 1.39%) declined. Higher crude oil prices could increase under-recoveries of PSU OMCs at government controlled fuel prices.
Crude oil prices rose after an industry report showed crude inventories fell in the United States, the world's largest oil consumer. Brent crude oil futures for February delivery were up 36 cents or 0.32% at $111.16 a barrel. US crude oil futures for February delivery were up 31 cents or 0.31% at $98.73 a barrel.
The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas on Wednesday, 1 January 2014, said that the under-recovery on High Speed Diesel (HSD) applicable for first fortnight of January 2014 fell to Rs 9.74 per/litre, from Rs 10.48 per litre during the second fortnight of December 2013.
The under-recovery on PDS Kerosene rose to Rs 37.33 per litre for the month of January 2014, from 36.20/litre for December 2013. The under-recovery on Domestic LPG rose to Rs 762.70 per cylinder for January 2014, from Rs 542.71/cylinder for December 2013. PSU OMCs are now incurring combined daily under-recovery of about Rs 481 crore on the sale of Diesel, PDS Kerosene and Domestic LPG at government controlled prices. This is a higher than the Rs 434-crore daily under-recoveries during the second fortnight of December 2013.
PSU OMCs reported a total of Rs 60907 crore as under-recoveries during first half of 2013-14 on Diesel, PDS Kerosene and Domestic LPG, the Ministry of Petroleum and Natural Gas said.
PSU OMCs reportedly on Wednesday, 1 January 2014, increased the price of aviation turbine fuel (ATF) by 2.7%.
The price of non-subsidised cooking gas (LPG), which customers buy after consuming their quota of subsidised cylinders, was hiked by a steep Rs 220 per bottle on Wednesday on firming international rates. The 14.2-kg cooking gas cylinder that consumers buy beyond their entitled nine bottles at subsidised rates, will now cost Rs 1,241, up from Rs 1,021. This is the third increase in non-subsidised LPG rates in the past month. The price was hiked by Rs 63 a cylinder to Rs 1,017.50 on 1 December 2013.
PSU OMCs suffer under recoveries 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.
Coal India lost 2.5%. The company said during market hours that the combined production of the company and its subsidiaries as per provisional figures was 99% of the target at 44.49 million tonnes in December 2013. The coal offtake was 99% of the target at 42.92 million tonnes in December 2013.
Bharti Airtel declined 2.64% to Rs 328.70 after two bulk deals were executed on the counter on BSE today, 2 January 2014. A bulk deal of 4.50 lakh shares was struck on the Bharti Airtel counter at Rs 334.50 per share at 10:58 IST on BSE today, 2 January 2014. Another bulk deal of 2.50 lakh shares was executed on the scrip at Rs 334.50 per share at 10:59 IST on BSE today, 2 January 2014. These bulk deals saw 0.0175% equity of Bharti Airtel changing hands.
Auto stocks were mixed. Maruti Suzuki India rose 0.38%. The company said during market hours on Wednesday, 1 January 2014, that its total sales fell 4.4% to 90,924 units in December 2013 over December 2012. Domestic sales rose 5.5% to 86,613 units in December 2013 over December 2012. Exports fell 67% to 4,311 units in December 2013 over December 2012.
Mahindra & Mahindra (M&M) declined 1.68%, with the stock reversing intraday gain.
M&M today, 2 January 2014, said SsangYong Motor's total sales rose 11.8% at 13,271 units in December 2013 over December 2012. The total sales of 13,271 units in December 2013 comprised sales of 6,584 units in the domestic market and 6,687 of exports with CKD kits. SsangYong Motor is a Korean subsidiary of M&M.
SsangYong Motor's total sales jumped 20.7% to 145,649 units in calendar year 2013 over calendar year 2012. SsangYong said its annual sales rose for the fourth consecutive year in 2013. The company stressed that such performance was largely driven by the successful launches of the face-lifted models which reflect consumer needs, settlement of healthy relations between labor and management, and the workers' efforts and cooperation in order to expand supply.
Lee Yoo-il, CEO of SsangYong Motor, commented: "We achieved a great upward trend for four straight years backed by the successful launches of the face-lifted models and the labor's efforts to increase the production. We will further expand our global sales this year through the differentiated marketing strategies and efforts to explore new overseas markets based on constructive labor-management relations."
Separately, M&M today, 2 January 2014, said that its total two-wheeler sales jumped 252% to 19,715 units in December 2013 over December 2012. Two-wheeler sales in the domestic market jumped 267% to 19,054 units in December 2013 over December 2012.
Volume growth is being driven by the innovative Mahindra Centuro motorcycle, which continues to receive an overwhelming response, M&M said. Mahindra Two Wheelers has been steadily expanding production of the Centuro to meet rising consumer demand, while also growing its sales and service touch points to over 1000 across the country in order to make the motorcycle more accessible to buyers, the company said.
Viren Popli, Executive Vice President, Mahindra Two Wheelers said: "Mahindra Two Wheelers is closing 2013 on a high note as increasing demand for the Centuro helped to propel it into the ranks of the top 10 motorcycles in the country within just 6 months of its launch. We have also won several prestigious awards that reflect growing consumer confidence in our technological innovations".
M&M during market hours on Wednesday, 1 January 2014, said that its total tractor sales rose 15% to 17,037 units in December 2013 over December 2012. Tractor sales in the domestic market rose 19% to 16,257 units in December 2013 over December 2012. Exports fell 26% at 780 units in December 2013 over December 2012.
M&M during market hours on Wednesday, 1 January 2014, also said that its total auto sales declined 13% to 39,611 units in December 2013 over December 2012.
Tata Motors fell 1.03%. Total sales (including exports) of Tata commercial and passenger vehicles plunged 42.28% at 37,852 units in December 2013 over December 2012. Tata Motors' exports declined 26.79% at 2,842 units in December 2013 over December 2012. Tata Motors announced the monthly sales volume data on standalone basis after trading hours today, 2 January 2014.
Shares of buses maker Ashok Leyland rose 2.62%.
The Ministry of Urban Development on Wednesday, 1 January 2014, said it has sanctioned buses to a total of 13 cities/cluster of cities after the Central Sanctioning & Monitoring Committee Meeting held on 31 December 2013. The State Govt. has to procure these buses as per the urban bus specifications-II which has been prepared by the Ministry of Urban Development recently, the ministry said in a statement. The first instalment of Government of India share will be released to the State after submission of information/documents within three months as per the conditions given in bus funding guidelines, it said.
The objective behind sanctioning of these buses is to improve the city transport system, to give Metro experience to public in these modern ITS enabled buses and to attract the public to use Public Transport, the urban transport ministry said. The JNNURM buses will change the face of the Urban Transport of these 13 cities and will help in the overall growth of the State/UT, it said.
These cities have also been sanctioned projects relating to ancillary infrastructure viz. Depot, Workshops, ITS etc. for Urban Transport. In addition, ancillary infrastructure project for Bathinda has also been approved. The total estimated project cost for these 13 cities/cluster of cities is about Rs 464 crore.
Shares of two-wheeler makers were mostly lower. Bajaj Auto (down 1.04%) and Hero MotoCorp (down 0.29%) fell.
TVS Motor Company jumped 6.12%. The company after market hours reported 2% rise in total sales at 1.59 lakh units in December 2013 over December 2012. The company's total exports rose 27% to 20,251 units in December 2013 over December 2012.
Escorts tumbled 6.61% after the company's agri machinery segment reported 3.84% decline in total tractor sales to 3,852 units in December 2013 over December 2012. The company made the announcement during trading hours today, 2 January 2014.
Escorts Agri Machinery (EAM) segment sold 3,852 tractors in December 2013, as against 4,006 tractors in December 2012. EAM's domestic tractor sales fell 4.49% to 3,809 units in December 2013 over December 2012. Exports surged 138.89% to 43 units in December 2013 over December 2012.
Capital goods stocks dropped. ABB (down 2.07%), Bhel (down 3.48%), L&T (down 3.31%), Crompton Greaves (down 2.74%) and Punj Lloyd (down 5.91%) declined.
Bank stocks reversed intraday gains. ICICI Bank (down 2.4%), HDFC Bank (down 0.93%), and AXIS Bank (down 1.99%) declined.
Among PSU banks, Bank of India (down 3.29%), Bank of Baroda (down 1.17%), Union Bank of India (down 3.89%), State Bank of India (SBI) (down 1.79%) Canara Bank (down 5.21%) and Punjab National Bank (down 4.31%) declined.
Infosys gained 0.23% to Rs 3,474.25. The stock had hit record high of Rs 3,575 in intraday trade on 30 December 2013. Infosys unveils Q3 December 2013 results on 10 January 2014. At the time of announcement of Q2 September 2013 results in October 2013, Infosys had 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.
Metal and mining stocks dropped as gauges of manufacturing in China declined. China is the world's largest consumer of copper and aluminum. Sesa Sterlite (down 1.24%), JSW Steel (down 0.93%), Tata Steel (down 1.8%), Hindalco Industries (down 1.6%), National Aluminum Company (down 2.1%), Hindustan Copper (down 2.86%), NMDC (down 2.55%) and Hindustan Zinc (down 1.4%), Sail (down 3.84%) and Jindal Steel & Power (down 2.08%) edged lower.
Power generation stocks declined across the board. CESC (down 4%), NTPC (down 2.14%), Reliance Power (down 3.64%), Adani Power (down 5.82%), JSW Energy (down 5.3%) edged lower.
Tata Power Company dropped 3.15%. Reliance Infrastructure lost 4.39%. Rejecting the contention of private power distributors, the Delhi government on Wednesday, 1 January 2014, ordered a CAG audit of their finances. The decision comes after Delhi Chief Minister Arvind Kejriwal rejected the contention of the discoms that the matter was sub judice. Kejriwal had early this week announced that the power tariffs in Delhi will be slashed by 50% for up to 400 units. The Delhi government will provide the subsidy and the money will be directly paid to the distribution companies. The cut in electricity tariffs, part of the AAP manifesto for the 4 December state assembly election, will entail a cost of Rs 61 crore over next three months.
Realty stocks reversed intraday gains on profit booking. DLF (down 2.55%), D B Realty (down 10.78%), HDIL (down 5.94%), and Unitech (down 3.17%) fell. Realty stocks had risen recently after top lenders announced reduction in home loan rates for new borrowers last month. Lower interest rates may help perk up demand for properties. Purchases of both residential and commercial property are largely driven by finance.
Just Dial gained 6.33% to Rs 1,507 after hitting a record high of Rs 1,514 in intraday trade.
CEAT surged 4.56% to Rs 352 after hitting a record high of Rs 353.45 in intraday trade.
Arvind surged 3.68% to Rs 143.80 after hitting a 52-week high of Rs 150 in intraday trade. A bulk deal of 36.05 lakh shares was struck on the Arvind counter at Rs 150 per share at 14:14 IST on BSE today, 2 January 2014. The bulk deal saw 1.39% equity of Arvind changing hands.
Bajaj Electricals lost 3.35% to Rs 219.50. The stock reversed direction after hitting a 52-week high of Rs 235.50 in intraday trade.
Delta Corp lost 3.36% to Rs 108. The stock reversed direction after hitting a 52-week high of Rs 121.85 in intraday trade.
Sandur Manganese & Iron Ores fell 5.64% after the company said it suspended its mining operations after mining leases expired on 31 December 2013. The company made the announcement before trading hours today, 2 January 2014. Sandur Manganese & Iron Ores said its mining leases, which were effective for a period of 20 years starting from 1 January 1994, expired on 31 December 2013. The company said that it had applied for its renewal more than 12 months prior to its expiry.
However, the Forest Department has directed suspension of the company's mining operations with effect from 1 January 2014. Accordingly, the company has suspended all activities in its mines and efforts are being made to obtain orders for resumption of operations, the company said.
Pratibha Industries surged 5.54% after the company said it bagged new order aggregating to Rs 589.69 crore. The company made the announcement during trading hours today, 2 January 2014.
Suprajit Engineering rose 3.36% after the company announced robust sales in Q3 December 2013. The announcement was made during market hours today, 2 January 2014.
Suprajit Engineering during market hours today, 2 January 2014 said that standalone sales rose 24% in Q3 December 2013 over Q3 December 2012. Sales rose 24% in Q3 December 2013 over Q2 September 2013.
Suprajit Engineering said that automotive and non-automotive exports as well as domestic aftermarket sales have clocked all time high in Q3 December 2013. For the nine months ended December 2013, the consolidated as well as standalone sales grew by about 14% as compared to the same period last year, against the domestic automotive industry growth for the nine months of about 3%, the company said.
KSK Energy Ventures lost 5.85% at Rs 63.55, after 0.3% equity changed hands in a bulk deal on BSE today, 2 January 2014. A bulk deal of 11.33 lakh shares was struck on KSK Energy Ventures counter at Rs 63 per share at 14:37 IST on BSE today, 2 January 2014.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade as equities dropped. The partially convertible rupee was hovering at 62.26, weaker than its close of 61.90/91 on Wednesday, 1 January 2014.
India's manufacturing sector ended 2013 on an encouraging footing, according to a monthly survey from Markit Economics. Operating conditions improved for the second successive month in December, as both output and new orders increased. Consequently, firms raised their workforce numbers further in the latest month.
Down slightly from 51.3 in November to 50.7 in December, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) signalled a second consecutive monthly improvement in business conditions. Although weaker than its long-run trend, the PMI average for the final quarter of the year at 50.5 was greater than that seen for Q3 at 49.4. Manufacturing production rose for the second month running, but at only a marginal rate. Supporting the latest increase in total output was a further gain in incoming new business. Sector data indicated that the overall expansion in production volumes was largely centred on the consumer goods sub-sector, Markit Economics said.
New orders placed at Indian manufacturers rose in December, albeit marginally. Panelists linked higher levels of new work to improved domestic and overseas demand. However, the latest increase was mainly focused in the consumer goods category. Export order growth was registered for the third consecutive month. Although quickening since November, the overall rate of expansion was modest and below the series average.
Indian manufacturing employment rose in December, stretching the current period of job creation to three months. However, the rate of growth was only marginal. All three broad areas of the goods-producing sector registered higher staffing levels.
Price indicators moved lower in December. Average purchasing costs increased at the slowest pace for four months, but the overall rate of inflation remained robust. Most of the increase was attributed by surveyed companies to higher prices paid for raw materials such as metals, chemicals and textiles. Output prices rose for the seventh month in a row, although competition between manufacturers meant that the rate of increase was historically muted.
December data pointed to a further, albeit fractional, rise in purchasing activity. Consumer goods was the only sub-category of the manufacturing economy to post higher input buying. The overall increase in quantity of purchases was insufficient to prevent a drop in holdings of raw materials. Pre-production inventories fell for the first time since September, but the rate of contraction was moderate. Conversely, stocks of finished goods rose in December. The overall increase was, however, unchanged from the fractional rate seen in November. Backlogs of work rose again during the latest survey period, with the rate of accumulation climbing to a six-month high. Anecdotal evidence highlighted raw material shortages at vendors and power cuts, Markit Economics said.
Commenting on the India Manufacturing PMI survey, Leif Eskesen, Chief Economist for India & ASEAN at HSBC said: "Manufacturing activity decelerated slightly in December as a slowdown in domestic order flows led to slower output growth. By sector, however, the consumer goods segment held up. Despite the deceleration in order flows, backlogs of work picked up due to raw material shortages and power outages.
Inflation gauges were broadly steady, although they declined marginally. Today's numbers show that growth remains moderate and struggles to take off due to lingering structural constraints. Even so, inflation pressures remain firm and are proving sticky. RBI may yet again have to flex its muscles and tighten monetary policy to bring down the elevated level of inflation".
The next major trigger for the market is Q3 December 2013 corporate earnings. The Q3 earnings season will begin around mid-January 2014 and continue till mid-February 2014. 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 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 Thursday, 2 January 2014, as gauges of manufacturing in China declined. Key benchmark indices in France, Germany and UK were off 0.52% to 1.06%.
Final readings today, 2 January 2014, confirmed that manufacturing in the euro zone expanded last month at the fastest pace since May 2011, while output in Germany, the currency bloc's largest economy, expanded for a sixth consecutive month.
Asian stocks edged higher on Thursday, 2 January 2014. Key benchmark indices in Hong Kong, Taiwan, Singapore and Indonesia were up 0.01% to 1.24%. Key benchmark indices in China and South Korea were off 0.31% to 2.2%. Japanese stock markets were closed for holiday.
China's manufacturing purchasing managers' index came in at 51 for December, the National Bureau of Statistics and the nation's logistics federation said yesterday, 1 January 2014. A separate manufacturing PMI report from HSBC Holdings Plc and Markit Economics today showed the gauge coming in at 50.5, from 50.8 in November.
Singapore's economy contracted more than expected in the fourth quarter as manufacturing activity weakened, data showed on Thursday, casting some doubt on market expectations for a slight pick-up in growth over 2014. According to advance estimates from Singapore's Ministry of Trade and Industry, GDP contracted an annualised and seasonally adjusted 2.7% in the final quarter of 2013 from the July-September period. That reversed a 2.2% expansion in the third quarter.
The US stock market was closed on Wednesday, 1 January 2014, for New Year's Day holiday.
The US 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 over the next year.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014.
Powered by Capital Market - Live News
