Key benchmark indices edged lower in early trade on weak Asian stocks. The barometer index, the S&P BSE Sensex, was down 176.94 points or 0.86%, off 31.56 points from the day's high and up 19.33 points from the day's low. The market breadth, indicating the overall health of the market, was weak.
Asian stocks dropped on Thursday, 30 January 2014, after the US Federal Reserve pressed on with cuts to US economic stimulus and as a report showed China's manufacturing industry contracted.
After a monetary policy review, the Federal Open Market Committee (FOMC) on Wednesday, 29 January 2014, announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing its purchases in the coming months, citing a pickup in economic activity and improvement in the labor market. In emerging markets, the reduction in bond purchases by the Fed has triggered worries of slowdown in capital inflows and fears of capital outflows. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets in recent years.
Hero MotoCorp fell ahead of its Q3 results today, 30 January 2014. Titan Company dropped after the company declared poor Q3 result after trading hours on Wednesday, 29 January 2014. Crompton Greaves gained after the company reported turnaround Q3 earnings after market hours on Wednesday, 29 January 2014.
The market may remain volatile today, 30 January 2014, as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire today, 30 January 2014.
Foreign institutional investors (FIIs) bought shares worth a net Rs 250.48 crore on Wednesday, 29 January 2014, as per provisional data from the stock exchanges.
At 9:25 IST, the S&P BSE Sensex was down 176.94 points or 0.86% to 20,470.36. The index lost 196.27 points at the day's low of 20,451.03 in early trade. The index fell 145.38 points at the day's high of 20,501.92 in early trade.
The CNX Nifty was down 57.25 points or 0.94% to 6,063. The index hit a low of 6,058.65 in intraday trade. The index hit a high of 6,072.95 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 841 shares declined and 305 shares rose. A total of 38 shares were unchanged.
Among the 30-share Sensex pack, 27 stocks declined and only three of them gained.
Hero MotoCorp fell 0.53% ahead of its Q3 results today, 30 January 2014.
NTPC shed 0.63%. The company after market hours on Wednesday, 29 January 2014, said that the 10 megawatt (MW) Solar PV Power Station Phase-I at Ramagundam has been declared on commercial operation with effect from Wednesday, 29 January 2014. With this the total capacity of non-conventional energy projects of NTPC has become 20 MW and the total commercial capacity of NTPC group becomes 40,304 MW.
GAIL (India) declined 0.62%. The company after trading hours on Wednesday, 29 January 2014, said that a meeting of the Board of Directors of the company will be held on 6 February 2014, inter alia, to consider proposal of interim dividend for the year ending 31 March 2014 (FY 2014). The company has fixed 11 February 2014 as the record date for the purpose of payment of interim dividend, if so approved by the board.
Titan Company lost 4.45%. The company's net profit declined 18.8% to Rs 165.57 crore on 11.12% decline in total income to Rs 2701.84 crore in Q3 December 2013 over Q3 December 2012. The result hit the market after trading hours on Wednesday, 29 January 2014.
The overall trend in sales over the last 3 quarters has been similar across all brands and channels with Q3 December 2013 registering the lowest growth this year due to a poor festive season, Titan Company said in a statement. Titan's income from jewellery business fell 15.4% to Rs 2126.67 crore in Q3 December 2013 over Q3 December 2012. The company said the decline in sales was primarily due to lower demand for gold Jewellery. The jewellery industry was adversely impacted by the regulatory measures implemented to restrict gold imports. The first quarter had seen a surge in demand for gold jewellery due to lower gold prices.
Titan's income from watches business rose 7.5% to Rs 455.48 crore in Q3 December 2013 over Q3 December 2012. Titan said that the combined total income of Precision Engineering, a B2B business, the eyewear business and accessories business, jumped 18.6% to Rs 116.52 crore in Q3 December 2013 over Q3 December 2012.
The Titan Company retail chain is 1,039 stores strong (as on 31st December 2013), with the retail area crossing 14 lac sq.ft. nationally for all its brands.
Commenting on the financial performance, Mr. Bhaskar Bhat, Managing Director, Titan Company, said: "The sentiments in the market continue to be weak and the company witnessed an extremely poor retail-sales quarter for both its watches and jewellery businesses. The impact of festive season this quarter was much below our expectations. Although the stock market has picked up, the high inflation levels have resulted in lower disposable income in the hands of consumers. In the last quarter of this financial year we have planned aggressive sales promotions for both watches and jewellery to stimulate demand and generate consumer interest in these categories. We will continue to make adequate investments in mass communication and build our brands".
Crompton Greaves gained 3.08%. The company after market hours on Wednesday, 29 January 2014 reported consolidated net profit of Rs 62.02 crore in Q3 December 2013 as compared to net loss of Rs 189.36 crore in Q3 December 2012. Total income rose 12.99% to Rs 3392.35 crore in Q3 December 2013 over Q3 December 2012.
National Aluminium Company (Nalco) lost 3.01%. The company's net profit rose 10.16% to Rs 131.03 crore on 2.26% decline in total income to Rs 1764.64 crore in Q3 December 2013 over Q3 December 2012. The result hit the market after trading hours on Wednesday, 29 January 2014.
Tata Global Beverages rose 0.53%. On a consolidated basis, Tata Global Beverages' net profit jumped 49% to Rs 120 crore on 9% increase in income from operations to Rs 2081 crore in Q3 December 2013 over Q3 December 2012. The result hit the market after trading hours on Wednesday, 29 January 2014.
The company said that the sharp increase in bottom line mainly reflects the impact of lower tax liability as well as improved performance of some key countries and associate companies. Tata Global Beverages said revenue rose on the back of good performance in some key markets coupled with favourable foreign exchange translation impact.
Asian stocks dropped on Thursday, 30 January 2014, after the US Federal Reserve pressed on with cuts to US economic stimulus and as a report showed China's manufacturing industry contracted. Key benchmark indices in Hong Kong, China, Singapore, Japan and Indonesia fell by 0.48% to 3.33%. Stock markets in South Korea and Taiwan are closed today, 30 January 2014, and Hong Kong and Singapore will shut early for the Chinese New Year holidays. Stock markets in Taiwan are closed until 4 February 2014 for the Lunar New Year holiday.
The final reading on HSBC Holdings Plc and Markit Economics Ltd.'s January purchasing managers' index for Chinese manufacturing was 49.5, the first contraction in six months, from 50.5 in December. Readings above 50 indicate expansion.
US stocks sank on Wednesday, 29 January 2014, as earnings forecasts from Yahoo! Inc. and AT&T Inc. disappointed investors. The Federal Reserve on Wednesday, 29 January 2014, took another gradual step toward exiting its controversial bond-buying program, remaining stoic in the face of market turmoil. As expected, the Fed decided to reduce the pace of monthly asset purchases to $65 billion, from January's $75 billion. The Fed will purchase mortgage-backed securities at a pace of $30 billion per month and add to its holdings of Treasurys at a pace of $35 billion per month beginning in February.
The Fed also signaled that it is likely to keep reducing its purchases in the coming months, citing a pickup in economic activity and improvement in the labor market.
In addition to proceeding with plans to scale back its bond buying, the Fed made no changes to its other main policy plank: its pledge to keep interest rates low for some time to come. It has pledged to hold rates steady "well past" the point that the unemployment rate falls below 6.5% as long as inflation remains low.
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