Key benchmark indices edged lower after witnessing intraday volatility as weakness in rupee weighted on sentiment. The S&P BSE Sensex reached its lowest closing level in over 5 weeks. The Sensex lost 48.73 points or 0.25%, up about 115 points from the day's low and off close to 120 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Index heavyweight Reliance Industries dropped in volatile trade after Chairman Mukesh Ambani said that the company plans to invest Rs 1.5 lakh crore in its businesses over the next three years.
The rupee trimmed losses after hitting near one-year low of 57 against the dollar. The rupee was currently hovering at 56.83 per dollar, against Wednesday's close of 56.7250/7350.
The Sensex has lost 240.81 points or 1.21% in this month so far (till 6 June 2013). The Sensex has gained 92.78 points or 0.47% in calendar 2013 so far (till 6 June 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 924.13 points or 4.52%. From a 52-week low of 16,485.02 on 8 June 2012, the Sensex has surged 3,034.47 points or 18.4%.
Coming back to today's trade, bank pivotals were mostly higher. Shares of power generation and distribution firms edged lower. L&T extended Wednesday's rise after the company said that its construction division won new orders worth Rs 2002 crore in various business segments in May and June 2013. Index heavyweight and cigarette maker ITC cut entire intraday losses. Pharma stocks declined.
The S&P BSE Sensex lost 48.73 points or 0.25% to settle at 19,519.49, its lowest closing level since 30 April 2013. The index lost 172.90 points at the day's low of 19,395.32 in morning trade. The index rose 67.15 points at the day's high of 19,635.37 in late trade, its highest level since 4 June 2013.
The CNX Nifty lost 2.45 points or 0.04% to 5,921.40, its lowest closing level since 4 June 2013. The index hit a low of 5,869.50 in intraday trade, its lowest level since 30 April 2013. The index hit a high of 5,956.55 in intraday trade, its highest level since 4 June 2013.
The BSE Mid-Cap index rose 0.11% and the BSE Small-Cap index gained 0.14%. Both these indices outperformed the Sensex.
The BSE Bankex (up 0.83%), BSE Realty index (up 0.48%), BSE Capital Goods index (up 0.28%), BSE Auto index (down 0.02%), BSE IT index (down 0.18%), BSE FMCG index (down 0.21%) and BSE PSU index (down 0.23%), outperformed the Sensex.
The BSE HealthCare index (down 1.19%), BSE Oil & Gas index (down 0.72%), BSE Power index (down 0.59%), BSE Metal index (down 0.41%), BSE Teck index (down 0.4%) and BSE Consumer Durables index (down 0.38%) underperformed the Sensex
The total turnover on BSE amounted to Rs 1656 crore, lower than Rs 1720.27 crore on Wednesday, 5 June 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,226 shares fell and 1,140 shares rose. A total of 136 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks fell and rest of them rose.
Bank pivotals were mostly higher. Kotak Mahindra Bank, ICICI Bank, Axis Bank and State Bank of India rose by 0.63% to 1.44%. But, HDFC Bank fell 0.73%.
UCO Bank (up 4.8%), Canara Bank (up 3.86%), Syndicate Bank (up 3.41%), Union Bank of India (up 3.01%), Bank of Baroda (up 2.32%), Vijaya Bank (up 2.25%), Andhra Bank (up 2.16%), Indian Bank (up 1.81%), edged higher.
L&T rose 0.61%, with the stock extending Wednesday's 0.73% rise after the company said during market hours today, 6 June 2013, that its construction division won new orders worth Rs 2002 crore in various business segments in May and June 2013. L&T during market hours on Wednesday, 5 June 2013 said that a joint venture company viz. Larsen Toubro Arabia LLC, has achieved a major breakthrough in the Kingdom of Saudi Arabia by securing a large engineering, procurement and construction (EPC) project from the Saudi Arabian Oil Company (Saudi Aramco). The project is scheduled to be completed in 37 months.
Shares of power equipment major Bhel declined 1.16%.
Index heavyweight Reliance Industries (RIL) lost 1.03%, with the stock dropping in the volatile trade after Chairman Mukesh Ambani said that the company plans to invest Rs 1.5 lakh crore in its businesses over the next three years. Addressing the shareholders of company at its thirty ninth annual general meeting (AGM) held today, 6 June 2013, Mr. Ambani said that the company is making significant investments in all its five businesses -- exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G -- simultaneously.
Ambani said that RIL is making huge investments in its businesses at a time when the global economy is facing one of its most challenging periods in modern times. "It is our belief that the new projects will come on stream as the global economy recovers and margins in our core businesses are on the upswing", he added.
Commenting on the company's business and financial performance, Mr. Ambani said that RIL continues to be debt free on a net basis.
Ambani said that RIL has undertaken the single largest expansion in the petrochemicals sector in the world. In polyester, the company is expanding its capacity by 1.5 million tonnes per annum (MTPA) to reach 4 MTPA.
Shares of power generation and distribution firms edged lower. NTPC, Tata Power Company, Power Grid Corporation of India, NHPC and Adani Power shed by 0.4% to 1.85%.
Index heavyweight and cigarette maker ITC was flat at Rs 334.30. The stock hit high of Rs 336.50 and low of Rs 330.35.
Pharma stocks declined. Ranbaxy Laboratories dropped 1.16%.
Sun Pharmaceutical Industries dropped 1.87%. The stock had moved higher on Wednesday after Sweden's Meda denied recent reports that the company is in talks to sell itself to Sun Pharma. "Due to the recent speculation in the press and news media concerning Meda merging with another pharmaceutical company, we have decided to inform the market that there are currently no such discussions. Meda's policy is not to comment on speculation and will not do so in the future. This announcement is an exception to our policy", the company said in a statement. Media reports had said recently that Sun Pharma is talks to buy Meda for between $5 billion and $6 billion to boost its generics business in developed markets.
Dr Reddy's Laboratories declined 1.16%.
Cipla fell 0.05%. Swedish drug firm Meda on Wednesday, 5 June 2013, said it had broadened its collaboration with Cipla, thereby expanding its exclusive rights to Dymista -- a novel nasal treatment of allergic rhinitis. Meda and Cipla will cooperate on product development of Dymista. Cipla will be responsible for formulation, while Meda will be responsible for clinical development, registration, marketing and sales. The companies will also collaborate on future production of Dymista and any new products developed.
Indian Oil Corporation (IOC) dropped after the government issued an advertisement for appointing merchant bankers for divesting its 10% stake in the state-run oil refining cum marketing firm. The stock was down 1.58%. The government intends to divest 10% stake in IOC through Offer for Sale (OFS) via the stock exchanges mechanism. The government currently holds 78.92% stake in IOC.
Two wheeler makers extended Wednesday's losses. Bajaj Auto and Hero MotoCorp shed by 0.69% to 1.27%.
Maruti Suzuki India rose 1.19%, with the stock extending Wednesday's 1.28% gains. Maruti has reportedly decided to suspend production for a day at both of its plants in Manesar and Gurgaon on Friday, 7 June 2013, to adjust inventory levels in response to falling sales.
The company said during market hours on Tuesday, 4 June 2013, that its production fell 2.54% to 1.01 lakh units in May 2013 over May 2012. The company on 1 June 2013, reported 14.4% fall in total sales to 84,677 units in May 2013 over May 2012. The company's domestic sales declined 13% to 77,821 units in May 2013 over May 2012. Exports fell 27.1% to 6,856 units in May 2013 over May 2012.
Mahindra & Mahindra (M&M) rose 0.27%, with thee stock reversing intraday losses. The company on Wednesday, 5 June 2013, unveiled sub 4 metre compact car, the Verito Vibe. Designed and developed in-house by Mahindra, the Verito Vibe marks Mahindra's entry into the high volume compact car market. The Verito Vibe redefines the compact car segment in terms of its spaciousness, reliability and unique crossover style for the Indian consumer, M&M said. Priced at an attractive Rs 5.63 (ex-showroom Mumbai) the New Verito Vibe will be available in three distinct and attractive variants namely D2, D4, D6. The new Verito Vibe will be available in Diesel engine only. The price range for the Vibe will be from Rs 5.63 lacs (ex-showroom Mumbai) for the base D2 model, to Rs 6.49 lac (ex showroom Mumbai) for the fully loaded top end D6.
Telecom stocks were mostly lower. Bharti Airtel and Idea Cellular shed by 2.17% to 2.35%.
Shares of Reliance Communications were up 1.46% to Rs 118.05. The stock was volatile. The scrip hit high of Rs 119.15 and low of Rs 114.55.
IT stocks were mostly higher on weak rupee. A rupee was trading at 56.83 after hitting 57 a dollar today, 6 June 2013, versus its previous close of 56.7250/7350. Wipro and HCL Technologies rose by 1.38% to 2.79%. Infosys fell 1.41%. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
IT major TCS rose 0.27%, with the stock reversing initial losses. The stock turned ex-dividend today, 6 June 2013, for the dividend of Rs 13 for the financial year ended 31 March 2013.
Shares of jewellery makers fell government on Wednesday raised the import duty on gold to 8% from 6% in a bid to rein in import of the yellow metal and help curb a yawning current account deficit. Titan Industries and Rajesh Exports shed by 0.52% to 0.64%. This is the second time that the government has raised the import duty on the yellow metal in a desperate attempt to curb imports. In January, the government had raised the duty to 6% from 4%.
Gujarat Fluorochemicals jumped 5.34% to Rs 269.30. More than 3.48 lakh equity shares changed hands in a block deal at Rs 265 a piece on National Stock Exchange.
European markets edged higher as investors awaited policy announcements from the European Central Bank and Bank of England. Key benchmark indices in UK, Germany and France were up by 0.13% to 0.46%.
Asian stocks fell on Thursday after US jobs and factory data missed estimates and investors speculated whether the Federal Reserve will scale back bond purchases. Key benchmark indices in Hong Kong, Japan, China, Singapore and Taiwan shed by 0.07% to 1.05%. South Korea's market was closed for a public holiday.
Trading in US index futures indicated that the Dow could gain 35 points at the opening bell on Thursday, 6 June 2013. US stocks declined on Wednesday, extending losses into a second day, as data finds US private-sector job growth and productivity below expectations.
A report from ADP Research Institute showed companies in the US hired fewer workers than projected in May amid federal budget cuts and higher taxes. Separate data from the Commerce Department showed factory orders in April fell short of estimates. The Fed's Beige Book showed the US economy expanded at a "modest to moderate" pace in 11 of 12 central-bank districts, with broad-based gains ranging from business services to construction and manufacturing. The survey is based on data collected by Fed regional banks on or before May 24.
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