Key benchmark indices registered small losses, with turnover on BSE seeing a sharp decline due to a 3-hour shutdown caused by network outage. The barometer index, the S&P BSE Sensex, lost 17.46 points or 0.07%, off 175.33 points from the day's high and up 30.05 points from the day's low. The market breadth indicating the overall health of the market was negative. The total turnover on BSE amounted to Rs 1429.99 crore, much lower than Rs 4315.78 crore on Wednesday, 2 July 2014. Trading on BSE was halted at 9.42 IST due to technical glitch. It took 3 hours for trading on the exchange to resume at 12:45 IST.
Index heavyweight Reliance Industries (RIL) declined. Realty stocks edged lower. Steel Authority of India (Sail) dropped after reports that the government could sell a 5% stake in the state-run steel manufacturer in the last week of this month in its effort to speed up divestments to bolster revenue generation at a time of weak economic growth.
Among auto makers, Tata Motors scaled record high. Bajaj Auto and Hero MotoCorp dropped as both these stocks turned ex-dividend. TVS Motor Company edged higher after the company reported strong growth in sales for June 2014.
The S&P BSE Sensex lost 17.46 points or 0.07% to settle at 25,823.75, its lowest closing level since 1 July 2014. The index fell 47.51 points at the day's low of 25,793.70 in late trade. The Sensex jumped 157.87 points at the day's high of 25,999.08 in early trade, a lifetime high for the index.
The CNX Nifty shed 10.35 points or 0.13% to settle at 7,714.80, its lowest closing level since 1 July 2014. The index hit a low of 7,706.80 in intraday trade. The index hit a high of 7,754.65 in intraday trade, a lifetime high for the index.
The total turnover on BSE amounted to Rs 1429.99 crore, much lower than Rs 4315.78 crore on Wednesday, 2 July 2014, due to a 3-hour shutdown caused by network outage.
The market breadth indicating the overall health of the market was negative. On BSE, 1,475 shares declined and 1,287 shares gained. A total of 101 shares were unchanged.
The BSE Mid-Cap index shed 16.32 points or 0.17% to settle at 9,490.58. The BSE Small-Cap index was down 14.80 points or 0.14% to settle at 10,419.38. Both these indices underperformed the Sensex.
The S&P BSE Bankex (down 0.28%), the S&P BSE Metal index (down 0.55%), the S&P BSE Power index (down 0.86%), the S&P BSE Oil & Gas index (down 1.19%) and the S&P BSE Realty index (down 1.47%) underperformed the Sensex.
The S&P BSE Healthcare index (up 1.12%), the S&P BSE Auto index (up 0.8%), the S&P BSE Consumer Durables index (up 0.59%), the S&P BSE IT index (up 0.34%), the S&P BSE FMCG index (up 0.28%), the S&P BSE Teck index (up 0.15%) and the S&P BSE Capital Goods index (down 0.04%) outperformed the Sensex.
Among the 30-share Sensex pack, 20 stocks declined and rest of them gained.
Hindalco Industries (down 2.36%), ONGC (down 2.12%) and Tata Power Company (down 1.47%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) declined 1.29% to Rs 1,005.10. The stock hit high of Rs 1,023 and low of Rs 977.
Sun Pharmaceutical Industries gained 1.54%. As per reports, Sun Pharmaceutical Industries is recalling 200 vials of the chemotherapy drug gemcitabine in the United States due to a lack of assurance of sterility. The drug being recalled was manufactured by Sun Pharma's unit Caraco Pharmaceutical Laboratories at its plant in Gujarat, reports added.
Report further informed that the voluntary recall was initiated in April and was classified by the FDA as Class II, meaning that use of or exposure to the recalled drug may cause temporary or medically reversible adverse health consequences.
Sesa Sterlite rose 0.37% to Rs 310.55. The stock was volatile. The scrip hit high of Rs 314.95 and low of Rs 309.25. The company's vice president Aniruddha Joshi, was quoted by the media as saying that the company expects to resume production in Goa in September following a court-imposed ban of nearly two years. Sesa Sterlite expects its total iron ore output from India, where it operates in Goa and neighbouring Karnataka, jumping to 9.29 million tonnes in the current financial year ending 31 March 2015 (FY 201%) from about 1.5 million in FY 2014, he added.
The Supreme Court in April lifted the ban on iron ore mining in Goa, which was aimed at curbing illegal mining, but ordered firms to renew mining leases and environmental clearances before restarting work. The court also capped Goa's total annual output at 20 million tonnes.
L&T was unchanged at Rs 1,754. The stock hit high of Rs 1,763 and low of Rs 1,747.90. The company said during market hours that its construction division has won orders worth Rs 1459 crore across various business segments in June 2014.
Siemens was down marginally by 0.09%. Siemens after market hours said that as part of continuous asset optimization exercise, the company has sold a land parcel in Bangalore today, 3 July 2014, to Prestige City Properties. The proceeds of the sale is approximately Rs 345 crore.
Jaiprakash Associates shed 4.77% after the company said after market hours on Wednesday, 2 July 2014, that the Finance Committee of the Board of Directors of the company at its meeting held on 2 July 2014 decided to open for bidding the issue of shares to qualified institutional buyers (QIBs) on 2 July 2014 to raise up to $250 million or approximately Rs 1550 crore.
Alstom T&D India rose 0.28% after the company said it won a Rs 27.70 crore contract from Himachal Pradesh Power Transmission Corporation. The announcement was made during trading hours today, 3 July 2014.
Hero MotoCorp lost 3% to Rs 2,594 as the stock turning ex-dividend today, 3 July 2014, for the dividend of Rs 65 per share for the year ended 31 March 2014 (FY 2014). Before turning ex-dividend, the stock offered a dividend yield of 2.43% based on the closing price of Rs 2,674.20 on Wednesday, 2 July 2014.
Hero MotoCorp said after market hours on Wednesday, 2 July 2014, that the company's two-wheelers sales rose 8% to 5.41 lakh units in June 2014 over June 2013. Hero MotoCorp reported 10% growth in two-wheelers sales to 17.15 lakh units in Q1 June 2014 over Q1 June 2013.
Since the beginning of FY 2015, Hero MotoCorp has sustained robust volume sales despite the overall sluggish industry environment. The recent extension of the current excise duty rate is expected to act as an impetus for the auto sector and hopefully, it will lift the industry sentiment, Hero MotoCorp said. However, a sub-normal monsoon is likely to dampen demand both in rural as well as urban markets. The need of the hour, therefore, is a long-term, consistent and uniform excise policy for the benefit of customers and sustainable revival of the industry, the company said.
Bajaj Auto declined 2.23% to Rs 2,299 as the stock turned ex-dividend for dividend of Rs 50 per share for the year ended 31 March 2014 (FY 2014). Before turning ex-dividend, the stock offered a dividend yield of 2.12% based on the closing price of Rs 2,351.45 on Wednesday, 2 July 2014.
TVS Motor Company rose 2.39% to Rs 171.50 after scaling a record high of Rs 174.50 in intraday trade. TVS Motor Company's total sales jumped 23% to 2.02 lakh units in June 2014 over June 2013. The company made the announcement after market hours on Wednesday, 2 July 2014.
Total two-wheeler sales increased by 23% to 193,758 units in June 2014 over June 2013. Scooters sales surged 46% to 56,524 units in June 2014 over June 2013. Motorcycles sales grew by 27% to 74,772 units in June 2014 over June 2013. The recently launched TVS StaR City+ has been well received in the market, TVS Motor Company said.
Three-wheeler sales rose 24% to 8,419 units in June 2014 over June 2013.
Total exports grew by 24% to 32,290 units in June 2014 over June 2013. Two wheeler exports registered a growth of 26% to 25,237 units in June 2014 over June 2013.
Mahindra & Mahindra (M&M) rose 0.43%, with the stock extending recent gains triggered by the company announcing decent tractor sales in June. The company's total tractor sales rose 8% to 29,884 units in June 2014 over June 2013. M&M's domestic tractor sales rose 8% to 28,893 units in June 2014 over June 2013. Total tractor exports fell 3% to 991 units in June 2014 over June 2013. The company announced sales figures during trading hours on Tuesday, 1 July 2014.
M&M's total automobile sales rose 1% to 38,471 units in June 2014 over June 2013.
Tata Motors advanced 2.92% to Rs 468.30 after hitting record high of Rs 471.80 in intraday trade. The company's total sales (including exports) of Tata commercial and passenger vehicles declined 27% to 38,557 vehicles in June 2014 over June 2013. The sales figures were announced after market hours on Tuesday, 1 July 2014. The company's exports declined 5% to 3,814 units in June 2014 over June 2013.
Eicher Motors jumped 5.73% to Rs 8,650 after scaling a record high of Rs 8,679.15 in intraday trade. Eicher Motors' total motorcycle sales surged 83% to 25,303 units in June 2014 over June 2013. The company reported the sales figures during market hours on Wednesday, 2 July 2014.
Apollo Tyres rose 3.33% to Rs 211.05 after scaling a record high of Rs 213.70 in intraday trade. The board of Apollo Tyres approved expansion of the truck and bus radial tyre capacity at the company's Chennai plant from the present 6,000 tyres per day to 8,900 tyres per day and conversion of the company's leased operations at Kalamassery plant in Kerala from bias truck tyres to speciality/industrial tyres involving capital expenditure of $340 million. The company made the announcement after market hours on Wednesday, 2 July 2014.
To pursue the organic growth opportunities and for other corporate purposes, the board approved raising upto $200 million in one or more tranches either by way of rights issue/preferential issue/private placement/QIP/public issue of equity shares at par or premium, convertible or non convertible debentures with warrants and/or by way of issue of FCCB's and/or such other instruments and on such terms and conditions as may be decided by the board and/or a committee of the board.
The board also approved seeking authorisation of the shareholders for private placement of unsecured/secured non convertible debentures not exceeding Rs 500 crore within overall borrowing limits of the company.
Besides, the board also approved a proposal to increase the limit of investments by foreign institutional investors (FIIs) from 40% to 45% in the equity share capital of the company.
Castrol India lost 4.25% after the company said it is not aware of the foreign promoter's plan to delist its equity shares from the stock exchanges. Shares of Castrol India had surged 9% to Rs 361.55 on Wednesday, 2 July 2104, on reports that foreign promoter Castrol is exploring options to delist its India subsidiary Castrol India. Castrol holds 70.92% stake in the Castrol India (as per shareholding pattern as on 31 March 2014).
IT stocks were mixed. TCS (up 0.92%) and Wipro (up 2.3%) gained. HCL Technologies (down 1.04%) and Infosys (down 0.31%) slipped.
Tech Mahindra rose 0.53% after the company said it has formed a joint venture with Midad Holding to provide IT and ITeS solutions in Saudi Arabia. The company made the announcement after trading hours on Wednesday, 2 July 2014. The JV will be called Tech Mahindra Arabia. Tech Mahindra will have 51% ownership while Midad will own 49% stake. The regional strength of Midad Holding and the global connectivity of Tech Mahindra will create a synergic value proposition for customers in KSA, the company said in a statement.
Tech Mahindra Arabia will provide gamut of Information Technology (IT) and IT-enabled services (ITES) to cater to the established and emerging sectors in KSA. The solutions would aim to provide services in the areas of consulting, application development and management, network services, integration, engineering, managed services, remote infrastructure management, operational & maintenance services and business process outsourcing, the company said.
Hexaware Technologies declined 1.96% to Rs 152.90 on reports a foreign brokerage downgraded the stock to underperform. According to reports, the brokerage said there is negative risk-reward ratio in the Hexaware Technologies stock post the outperformance in this year till date. The brokerage reportedly expects the company's revenue outlook to weaken in future and new initiatives taken by the company likely to take time to deliver.
United Spirits (USL) rose 0.06% to Rs 2,488. The stock hit high of Rs 2,528.75 and low of Rs 2,480. Diageo plc on Wednesday, 2 July 2014, said it has acquired an additional 26% stake in USL through tender offer. Diageo said that the company through its wholly-owned subsidiary, Relay B.V., has accepted the tender of 3.77 crore shares in USL, representing 26% stake in USL at a price of Rs 3,030 per share under the tender offer announced on 15 April 2014. The aggregate consideration for these shares is Rs 11448.91 crore. Diageo's prior interest in USL was 28.78%, acquired for Rs 6574.21 crore. Diageo, therefore, will have a total interest of 54.78% in USL acquired for a total consideration of Rs 18023.13 crore.
Tata Global Beverages fell 2.81% to Rs 169.45 on reports a foreign brokerage has maintained underweight rating on the stock. According to reports, the brokerage believes increased competition in the branded tea business, increased product development expenses, sharp increase in ad-spends and likely sub economic returns on the cash that the company has on its books near term may limit stock performance.
Steel Authority of India (Sail) dropped 2.79% to Rs 99.45. The government will reportedly sell a 5% stake in the state-run steel manufacturer in the last week of this month in its effort to speed up divestments to bolster revenue generation at a time of weak economic growth.
JSW Energy declined 1.23% to Rs 84.05. The company during market hours said that the company continues to evaluate various opportunities as part of its growth strategy. However, it is currently not in any conclusive discussions for any particular project. JSW Energy issued this clarification after news reports said that the company is set to acquire Lanco Infratech's 1,200 megawatts (MW) Udupi Power plant which is situated in coastal Karnataka for about Rs 5700 crore.
Canara Bank fell 2.75% as the stock turned ex-dividend for dividend of Rs 4.50 per share for the year ended 31 March 2014 (FY 2014).
Realty stocks edged lower. DLF (down 1.46% to Rs 215.55), Sobha Developers (down 1.76% to Rs 481.80), Indiabulls Real Estate (down 3.8% to Rs 94.95) and Unitech (down 4.66% to Rs 32.75) declined.
There are expectations that the government will take steps towards providing the long awaited industry status to the real estate sector and provide boost to low cost housing in the final Union Budget 2014-15 to be unveiled on 10 July 2014. There are also expectations that the tax benefit with respect to interest payment on housing loans will be raised. At present, a maximum deduction of Rs 1.5 lakh is allowed on taxable income towards interest on housing loan.
Reliance Communications fell 1.52%. Reliance Communications after market hours said that the company continues its efforts to deleverage/monetisation of assets. The company issued this clarification after media reports said that Reliance Communications has initiated the process to monetise its real estate assets across the country, aiming to raise Rs 5,000 crore through this.
V-Guard Industries jumped 13.17% to Rs 667 after scaling a record high of Rs 685.50 in intraday trade.
SKF India gained 3.49% to Rs 1126.90 after scaling a record high of Rs 1180 in intraday trade.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 59.8250, compared with its close of 59.6875/6975 on Wednesday, 2 July 2014.
The market edged higher in early trade as crude oil prices dropped. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit lifetime high. Trading on BSE was halted at 9:42 IST due to technical snag. On NSE, the 50-unit CNX Nifty regained positive terrain after slipping into the negative terrain from positive terrain in morning trade. The Nifty moved in a narrow range in positive zone in mid-morning trade. The Nifty regained positive terrain after slipping into the red for a brief period in early afternoon trade. A bout of volatility was witnessed as the Sensex slipped into the red from green after trading resumed on BSE at 12:45 IST after a 3-hour shutdown caused by network outage. Key benchmark indices alternately swung between positive and negative terrain in mid-afternoon trade. Key benchmark indices trimmed losses after hitting fresh intraday low in late trade.
Indian stocks snapped four-day winning streak today, 3 July 2014. The Sensex had risen 778.54 points or 3.1% in four trading days to 25,841.21 on 2 July 2014 from recent low of 25,062.67 on 26 June 2014. The Sensex has gained 4,653.07 points or 21.97% in calendar year 2014 so far (till 3 July 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,375.04 points or 47.99%.
Concerns about India's macroeconomic situation have eased as crude prices have come off 9-month high which it hit last month. Brent crude oil futures for August delivery were down 49 cents at $110.75 a barrel. Brent crude fell $1.05 a barrel, or 0.9%, to settle at $111.24 a barrel on the London-based ICE Futures Europe exchange on Wednesday, 2 July 2014, the lowest settlement price since 11 June 2014. The latest decline in crude oil prices came following reports that the Libyan government had reached an agreement with rebels to reopen two oil ports in the country, which could allow higher crude exports from Libya.
European stocks edged higher on Thursday, 3 July 2014, as investors awaited the outcome of the European Central Bank's policy meeting and a report on American jobs. Key benchmark indices in UK, France and Germany were up 0.52% to 0.68%.
The European Central Bank meets today, 3 July 2014, to make a policy decision after enacting unprecedented stimulus last month.
Asian stocks were mixed on Thursday, 3 July 2014, before US jobs reports and a euro-area monetary-policy decision. Key benchmark indices in South Korea, Hong Kong, Indonesia, and Japan were off 0.08% to 0.21%. Key benchmark indices in China, Singapore and Taiwan were up 0.19% to 0.44%.
The HSBC China services Purchasing Managers' Index rose to 53.1 in June from 50.7 in May. The June reading is the highest since March 2013
Trading in US index futures indicated that the Dow could gain 12 points at the opening bell on Thursday, 3 July 2014. Most US stocks gained on Wednesday, 2 July 2014, on a positive read on private sector employment and ahead of the highly anticipated June payrolls report.
Employment at companies climbed in June by the most since November 2012, a sign the US job market is strengthening along with demand, a private payrolls report showed on Wednesday. The 281,000 surge exceeded the most optimistic forecast and followed a 179,000 increase in May, data from the ADP Research Institute in Roseland, New Jersey, showed.
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