Weakness persisted on the bourses in mid-afternoon trade. The S&P BSE Sensex was down 299.50 points or 1.54%, off 182.79 points from the day's high and up 10.80 points from the day's low. The market breadth, indicating the overall health of the market, was weak. Weakness in European and Asian stocks weighed on sentiment.
ONGC dropped after the company said that the Republic of Kazakhstan has pre-empted ONGC Videsh's bid to acquire 8.4% stake of ConocoPhillips in the North Caspian Sea Production Sharing Agreement. Tata Power Company (TPC) fell for second day in a row after credit rating agency Moody's Investors Service downgraded the outlook on the company to negative from stable. Bharat Heavy Electricals declined on profit booking.
Key benchmark indices dropped in early trade on weak Asian stocks. The market extended initial losses to hit fresh intraday low in morning trade. Key benchmark indices hit fresh intraday low in mid-morning trade. The market extended losses in early afternoon trade. A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in afternoon trade. Weakness persisted on the bourses in mid-afternoon trade.
The rupee fell below the psychological 60 a dollar level and bond prices also declined. The rupee was hovering at 60.17, weaker than Tuesday's close of 59.66/67.
In the government bond market, the yield on the most traded 8.2% GS 2025 was currently at 7.7131%, higher than Tuesday's close at 7.6722%. Bond yield and bond prices are inversely related.
Foreign institutional investors (FIIs) sold shares worth a net Rs 43.20 crore on Tuesday, 2 July 2013, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was down 299.50 points or 1.54% to 19,164.32. The index lost 310.30 points at the day's low of 19,153.52 in afternoon trade, its lowest level since 28 June 2013. The index fell 116.71 points at the day's high of 19,347.11 in opening trade.
The CNX Nifty was down 92.20 points or 1.57% to 5,765.35. The index hit a low of 5,760.40 in intraday trade, its lowest level since 28 June 2013. The index hit a high of 5,815 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,476 shares declined and 709 shares rose. A total of 117 shares were unchanged.
The total turnover on BSE amounted to Rs 1518 crore by 14:25 IST.
Among the 30-share Sensex pack, 26 stocks declined and only four of them gained. Sterlite Industries (India) (down 4.19%), State Bank of India (down 4.19%) and Tata Steel (down 4.02%), edged lower.
Sun Pharmaceutical Industries (up 0.75%), Cipla (up 0.38%), ITC (up 0.35%) and Hindustan Unilever (up 0.19%) edged higher from the Sensex pack.
Oil & Natural Gas Corporation (ONGC) fell 2.71% after the company said that the Republic of Kazakhstan has pre-empted ONGC Videsh's bid to acquire 8.4% stake of ConocoPhillips in the North Caspian Sea Production Sharing Agreement. ONGC said that based on communication received through ConocoPhillips (COP), the Government of Kazakhstan has announced that in accordance with the Republic of Kazakhstan Law (ROK) on Subsurface and Subsurface use, ROK has exercised its priority right and pre-empted the bid by the 100% owned subsidiary of ONGC viz. ONGC Videsh to acquire 8.4% stake of ConocoPhillips in the North Caspian Sea Production Sharing Agreement (NCS PSA). It is understood that KazMunayGaz (KMG), the national oil company of Kazakhstan shall be designated as the buyer, on behalf of the state, ONGC said.
ONGC Videsh had in November 2012 finalized the definitive agreements for acquisition of 8.4% participating interest of ConocoPhillips in NCS PSA. The bid of ONGC Videsh was not pre-empted by the Co-venturers of the NCSPSA within the stipulated time period that ended in January 2013, ONGC said.
NMDC fell 3.1%. The company during market hours today, 3 July 2013, said total production of iron ore on a provisional basis rose 0.29% to 6.83 million tonne in the quarter ended 30 June 2013 over the quarter ended 30 June 2012. Sales of iron ore rose 5.83% to 7.26 million tonne in the quarter ended 30 June 2013 over the quarter ended 30 June 2012
Tata Power Company (TPC) lost 4.9% to Rs 82.50 and was the top loser from the BSE Sensex pack. The stock fell for second day in a row after credit rating agency Moody's Investors Service downgraded the outlook on TPC to negative from stable. The negative outlook reflects renewed uncertainties related to the material covenant breaches on bank debt associated with TPC's Gujarat-based Mundra Ultra Mega Power Project which is being executed under its fully owned subsidiary, Coastal Gujarat Power or CGPL, said Ray Tay, a Moody's Associate Vice President and Analyst.
Bharat Heavy Electricals lost 3.02% to Rs 178.15, with the stock sliding on profit booking. Shares of Bharat Heavy Electricals (Bhel) had rallied 12.66% in three trading sessions to settle at Rs 183.70 on Tuesday, 2 July 2013, from a recent low of Rs 163.05 on 27 June 2013.
Crompton Greaves lost 3.09% to Rs 91.10. Shares of Crompton Greaves had surged 17.28% in three trading sessions to settle at Rs 94 on Tuesday, 2 July 2013, from Rs 80.15 on 27 June 2013 after the company during trading hours on 28 June 2013 said its board at a meeting held on 28 June 2013 approved buyback of equity shares from the open market at a price not exceeding Rs 125 per share. Crompton Greaves said it has set aside Rs 265.70 crore for share buyback, being 10% of the total paid-up equity capital plus free reserves as per the audited balance sheet of the company for the year ended 31 March 2012 (FY 2012).
Lanco Infratech lost 4.91% to Rs 7.16, with the stock sliding on profit taking. Shares of Lanco Infratech had rallied 16.02% in four trading sessions to settle at Rs 7.53 on Tuesday, 2 July 2013, from a recent low of Rs 6.49 on 26 June 2013.
Lanco Infratech after market hours on Tuesday, 2 July 2013 said its subsidiary Lanco Hills Technology Park has signed up with Apollo Health Street, which specializes in BPO and technology management services, for developing 80,000 square feet (sq. ft) of SEZ space for conducting IT/ITES operations which will go live from October 2013 and is expected to increase its operations further. Apollo Health Street is a group company of Sutherland Global Services.
Mcleod Russel India tumbled 6% to Rs 278.75 on profit booking after the stock rose 9.35% in the preceding four trading sessions to Rs 296.55 on 2 July 2013 from a recent low of Rs 271.20 on 26 June 2013.
Kolte-Patil Developers lost 4.54% as the stock turned ex-dividend today, 3 July 2013, for final dividend of Rs 1.50 per share for the year ended 31 March 2013.
Indian services firms lost momentum in June as new business trickled in at the slowest pace in nearly two years, dashing hopes of a sustained pick-up in economic growth, a survey showed on Wednesday. The HSBC Markit Services Purchasing Managers' Index fell to 51.7 in June from May's three-month high of 53.6.
European stocks were sharply lower on Wednesday, 3 July 2013, with banks and resource stocks coming under pressure. A growing crisis in Egypt, political turmoil in Portugal and downbeat data from China weighed on sentiment. Key benchmark indices in France, Germany and UK shed by 1.6% to 1.8%.
Fears of a government collapse in Portugal weighed on sentiment. The country's Prime Minister Pedro Passos Coelho said he will not step down after Foreign Minister Paulo Portas resigned on Tuesday afternoon in protest over the country's austerity policies. On Monday, the country's finance minister, Vitor Gaspar, stepped down.
Investors were also keeping a close eye on turmoil in Egypt. Egyptian President Mohammed Morsi refused to step down, as clashes amid protests over his rule turned deadly on Tuesday. Morsi has just a few hours to go to a deadline imposed by the military, which called on him to resolve the country's political crisis or the army will step in.
Meanwhile, the European Central Bank is widely expected to keep interest rates on hold after a monetary policy review tomorrow, 4 July 2013.
Asian stocks fell on Wednesday, 3 July 2013, as concerns about growth in China's services sector added to the selling pressure amid caution ahead of US jobs data later in the week. Key benchmark indices in China, Hong Kong, Indonesia, South Korea, Taiwan, Singapore and Japan were down 0.31% to 2.48%.
A pair of surveys monitoring China's services sector released Wednesday showed weak growth for June. The government-sponsored version of China's services Purchasing Managers' Index fell to 53.9 for June from May's 54.3, though it remained above the 50 level dividing expansion from contraction.
The services PMI in a separate survey by HSBC ticked up to 51.3 from 51.2 in May, but HSBC chief China economist Hongbin Qu said growth in the sector is expected to slow in coming months as the effect of value-added-tax reforms filter through.
Trading in US index futures indicated that the Dow could fall 90 points at the opening bell on Wednesday, 3 July 2013. US stocks edged lower on Tuesday, 2 July 2013, losing steam gained from reports showing solid growth for car sales and factory orders as investors anticipated the jobs report at the end of the week. The US government will unveil the influential nonfarm payrolls data for June 2013 on Friday, 5 July 2013.
The US stock market is open for a short duration today, 3 July 2013, and remains closed tomorrow, 4 July 2013, for Independence Day holiday.
Among US data due later on Wednesday, ADP is slated to release private-sector payroll projections for June, and the Labor Department is scheduled to publish weekly jobless-claims numbers. Also, the Institute for Supply Management is due to report on activity at service-sector companies in June.
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