A bout of volatility was witnessed as key benchmark indices trimmed losses in early afternoon trade. The market breadth, indicating the overall health of the market, was negative. The S&P BSE Sensex was down 155.75 points or 0.73%, up about 85 points from the day's low and off close to 75 points from the day's high. In the foreign exchange market, the rupee reversed intraday losses against the dollar.
Realty stocks edged higher. Metal stocks declined. Tata Motors and Asian Paints scaled record high. Zee Entertainment Enterprises hit 52-week high. Pharma stocks edged lower.
The market edged lower in early trade on weak Asian stocks. Key benchmark indices extended initial losses and hit fresh intraday low in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade after a survey showed continued contraction in the service sector activity. A bout of volatility was witnessed as key benchmark indices trimmed losses in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was down 155.75 points or 0.73% to 21,085.35. The index fell 239.07 points at the day's low of 21,000.29 in mid-morning trade, its lowest level since 31 October 2013. The index dropped 80.80 points at the day's high of 21,158.56 in early trade.
The CNX Nifty was down 33.20 points or 0.53% to 6,284.15. The index hit a low of 6,247.55 in intraday trade, its lowest level since 31 October 2013. The index hit a high of 6,293.75 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,055 shares fell and 1,029 shares rose. A total of 111 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks fell and rest of them rose. TCS (down 2.12%), ONGC (down 1.45%) and Bhel (down 1.45%), edged lower.
Index heavyweight and cigarette maker ITC was off 2.99% at Rs 320.55. The scrip hit high of Rs 330.20 and low of Rs 319.10 so far during the day.
Realty stocks edged higher. DLF (up 2.6%), HDIL (up 2.58%) and Unitech (up 0.55%), gained.
Metal stocks declined. Bhushan Steel (down 0.38%), Tata Steel (down 1.31%), Sail (down 1.93%), Hindustan Zinc (down 0.36%), Sesa Sterlite (down 2.34%) and Jindal Steel & Power (down 1.21%), dropped.
Hindalco Industries rose in choppy trade after the company's US subsidiary Novelis on Monday, 4 November 2013, announced a price increase on its aluminum automotive sheet products in North America. The stock was up 0.56% at Rs 116.65. The stock hit high of Rs 117.15 and low of Rs 114.60 so far during the day. The price increase of $0.11 per pound for 6000-series, 5182-series and 5000-series automotive alloys will be effective for all new orders on or after 1 January 2014, Novelis said in a statement. Novelis fabrication pricing for specified volumes under current contracts will be honored throughout the contract period, the company said. The price increase is in addition to the previously announced pricing adjustment made on 23 April 2013. "This increase reflects the dynamics of the rapidly growing market for aluminum automotive sheet in North America. We officially commissioned our two new automotive sheet finishing lines in Oswego, NY, last month, which will increase our automotive capacity by 240,000 tons per year. That's five times our current automotive capacity in North America and an important milestone as we remain globally positioned to build on our supply and technology leadership in this important market," said Marco Palmieri, Senior Vice President and President, Novelis North America.
In addition to the Oswego expansion, a new automotive sheet finishing plant is under construction in Changzhou, China, which is expected to commence production in mid-2014 and will have a capacity of 120,000 tons. The company also recently certified automotive sheet production at its Gottingen, Germany plant that will ultimately add 40,000 tons of additional capacity. These new locations will join the company's existing automotive facilities in Kingston, Ontario, Canada; Sierre, Switzerland and Nachterstedt, Germany.
Novelis is the world's leading provider of aluminum automotive sheet, used for making structural components and exterior body panels.
Pharma stocks edged lower. Dr Reddy's Laboratories (down 1.64%), Lupin (down 1.28%), Ranbaxy Laboratories (down 1.99%) and Sun Pharmaceutical Industries (down 2.07%), declined. But, Cipla rose 0.38%.
Tata Motors rose 1.88% to Rs 398.50 after hitting record high of Rs 399.40 in intraday trade.
Asian Paints rose 1.12% to Rs 545 after hitting record high of Rs 546.40 in intraday trade.
Zee Entertainment Enterprises gained 2.04% to Rs 278.05 after hitting 52-week high of Rs 280.55 in intraday trade.
Videocon Industries rose 0.64%. BPCL fell 0.19%. Videocon Industries today, 5 November 2013, said that Anadarko Petroleum Corporation in its Q3 Operations Report announced that the Wahoo-5 appraisal well in BM-C-30 Concession drilled the eastern flank of the Wahoo structure and encountered more than 200 net feet of high-quality pay in a pre-salt reservoir, with a total hydrocarbon column now established at 460 feet. Anadarko, through a wholly owned subsidiary, holds a 30-percent working interest and is the operator of BM-C-30. BP holds a 25-percent working interest, IBV Brasil holds 25-percent and Maersk holds the remaining 20-percent working interest. Wahoo-5 Appraisal Well was spudded on 17 June 2013 using Blackford Dolphin Rig.
IBV Brasil is a Brazilian joint venture company equally held by Videocon Energy Brazil, a wholly owned overseas subsidiary of Videocon, and BPRL Ventures N.V., a wholly owned subsidiary of Bharat Petroleum Corporation (BPCL).
Mr. Pradeep N. Dhoot, Dubai based Director of Global E&P Business of Videocon Hydrocarbon Holdings, said: "The notable success of the Appraisal Well 'Wahoo-5' in the BM-C-30 Campos Block has further added to the hydrocarbon resources already indicated in the said Block, and is a further addition to the 'discoveries' in our Brazilian concessions in Sergipe Basin and Espirito Santos, underlining the value of our efforts in Brazil".
In the foreign exchange market, the rupee reversed intraday losses against the dollar. The partially convertible rupee was hovering at 61.7175, compared with its close of 61.74/75 on Friday, 1 November 2013.
Indian services firms recovered slightly last month from the worst slump in over four years in September but activity still shrank and a shortage of new orders means a rebound looks some way off, a survey showed on Tuesday, 5 November 2013. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, rose to 47.1 last month from 44.6 in September, which was the weakest reading since April 2009. But the PMI still lingered below the 50 mark that divides growth and contraction for the fourth consecutive month. Services contribute about 60% of India's gross domestic product.
Asian stocks were mixed on Tuesday, 5 November 2013. Key benchmark indices in Hong Kong, Taiwan, and South Korea shed 0.38% to 1.1%. Key benchmark indices in China, Singapore and Japan rose 0.17% to 0.33%.
A HSBC and Markit Economics China services index released today, 5 November 2013, rose in October 2013, after an official non-manufacturing gauge rose to the highest level this year. The HSBC/Markit services PMI rose to 52.6 from September's 52.4, holding well above the 50 line that separates expansion from contraction. New business growth reached a seven-month high and employment rose for the second straight month.
China's leaders will meet in Beijing on November 9-12 to map out economic policies as the country heads for its slowest annual growth in more than two decades.
Chinese Premier Li Keqiang said late last month that China's economy needs to grow at least 7.2% a year in order to ensure the urban unemployment rate remains around 4%, reports said Tuesday, citing an account of the speech on a trade-union website. Li said that although 7.2% would be the minimum growth rate needed, he added that the government's target remains at 7.5% and will be achieved this year. Li also said China must keep a close watch on credit growth and avoid loose monetary policy.
Australia's central bank left its benchmark interest rates unchanged at a record low and said a lower currency will be needed to achieve balanced growth. Governor Glenn Stevens and his board kept the overnight cash-rate target at 2.5%, the Reserve Bank of Australia said in a statement today in Sydney
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 5 November 2013. US stocks settled with modest gains Monday, 4 November 2013, as investors took a cue from upbeat earnings and shook off fears the market is overdue for a correction.
The US government will on Friday, 8 November 2013, release nonfarm payrolls figures for October 2013. The job data is a key economic indicator that has been watched closely in recent months to see whether the US Federal Reserve will roll back its bond-buying program.
"Monetary policy is likely to need to remain accommodative for some time so that we can achieve full employment within a reasonable forecast horizon. The economy remains challenged," Boston Fed President Eric Rosengren, who votes on monetary policy this year, said in a speech in Boston on Monday, 4 November 2013. Richmond Fed President Jeffrey Lacker gives a speech on the labor market in Charlotte, North Carolina today, 5 November 2013. Earlier this month he said the probability of another recession is "bigger than we thought."
In Europe, European Union Economic and Monetary Affairs Commissioner Olli Rehn will release economic growth forecasts for the region in Brussels today, 5 November 2013. The European Central Bank (ECB) holds a monetary policy meeting on Thursday, 7 November 2013. The ECB is seen retaining its key policy rate at a record-low 0.5%.
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