Axis Bank, IDFC hit 52-week low

Key benchmark indices extended losses to hit fresh intraday low in morning trade as weakness in Asian stocks hurt sentiment. Slide in rupee against the dollar also spoiled sentiment. The S&P BSE Sensex was down 240.64 points or 1.3%, off about 140 points from the day's high and up close to 35 points from the day's low. The market breadth, indicating the overall health of the market, was weak. IT stocks rose on weak rupee. Axis Bank and IDFC hit 52-week low.

The market edged lower in early trade. It extended losses to hit fresh intraday low in morning trade.

Asian stocks fell on Tuesday after US Secretary of State John Kerry said the US President will hold Syria's government accountable for using chemical weapons against Syrian civilians.

The market sentiment was also affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Monday, 26 August 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 607.43 crore on Monday, 26 August 2013, as per provisional data from the stock exchanges.

Meanwhile, the rupee weakened past 65 against the dollar today, 27 August 2013. The partially convertible rupee was trading at 65.34 per dollar, sharply lower than its close of 64.30 on Monday, 26 August 2013. It was trading close to its all-time low of 65.56 hit last week. Rupee depreciation fuels inflation, increases import bill and current account deficit. It also increases the government's spending on fuel subsidies, potentially widening the fiscal deficit.

The market is expected to remain volatile in the near term as traders roll over positions in the futures & options (F&O) segment from the near month August 2013 series to September 2013 series. The near month August 2013 derivatives contract expire on Thursday, 29 August 2013.

At 10:20 IST, the S&P BSE Sensex was down 240.64 points or 1.3% to 18,317.49. The index fell 276.52 points at the day's low of 18,281.61 in morning trade, its lowest level since 23 August 2013. The index declined 97.41 points at the day's high of 18,460.72 in early trade.

The CNX Nifty was down 80.05 points or 1.46% to 5,396.45. The index hit a low of 5,389.65 in intraday trade, its lowest level since 23 August 2013. The index hit a high of 5,427.40 in intraday trade.

The market breadth, indicating the overall health of the market, was weak. On BSE, 708 shares fell and 369 shares rose. A total of 47 shares were unchanged.

Among the 30-share Sensex pack, 25 stocks fell and rest of them rose. HDFC (down 4.02%), HDFC Bank (down 4.34%) and M&M (down 2.55%), declined.

Axis Bank lost 3.47% to Rs 904 after hitting a 52-week low of Rs 901.55 in intraday trade today, 27 August 2013.

IDFC tumbled 6.53% to Rs 88.75 after hitting a 52-week low of Rs 86.10 in intraday trade today, 27 August 2013. The company said on Monday that the ceiling limit in respect of overall foreign shareholding in the company's shares has been reduced to 54% of the company's equity from 74% earlier. The announcement was made during trading hours on Monday, 26 August 2013. IDFC also said that the current foreign shareholding in IDFC is 53.71%, hence the company has advised all the custodian banks vide its email dated 26 August 2013 to not make any further purchases of the company's shares through secondary markets on behalf of Fll & NRI clients with immediate effect.

IT stocks rose on weak rupee. TCS (up 0.65%), Infosys (up 1%), Wipro (up 0.52%) and HCL Technologies (up 1.12%), edged higher. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Lok Sabha on Monday passed the Food Security Bill after considering all the amendments, with the Opposition saying they will support the bill even though it is half-baked. The bill seeks to provide cheap foodgrains to 82 crore people in the country, ushering in the biggest programme in the world, to fight hunger. The ambitious bill was adopted by the House through a voice vote after a nine-hour combined discussion on the measure and a statutory resolution seeking to disapprove the ordinance promulgated on 5 July. Over 300 amendments moved by the opposition were rejected. The bill proposes subsidised foodgrain for up to 75% of the rural and up to 50% of the urban population. It proposes meal entitlement to specific groups. Eligible households would get five kg of foodgrain per person every month at Rs 3 per kilo of rice, Rs 2 per kilo of wheat and Rs 1 per kilo of coarse grains.It still needs to be passed by the upper house, the Rajya Sabha, to become law.

Meanwhile, the government has reportedly extended the monsoon session of parliament by seven days until September 6, giving the Congress party-led ruling coalition more time to pass economic reforms after weeks of disruptions in the house. The government will try to pass a bill to allow foreign investment in the pension sector during the extended session, a law seen as a first step to building a viable private pension industry in India. Also up for debate is a bill setting rules for compensation for land acquired for infrastructure projects and industry, a move seen as raising costs but potentially reducing protests that have plagued India's industrialization drive.

Based on the current assessment of prevailing and evolving market conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the government securities for an aggregate amount of Rs 8000 crore on 30 August 2013 through multi-security auction using the multiple price method.

Asian stocks fell on Tuesday after US Secretary of State John Kerry said the US President will hold Syria's government accountable for using chemical weapons against Syrian civilians. Key benchmark indices in China, Singapore, Taiwan, Hong Kong and Indonesia fell by 0.19% to 2.84%. Key benchmark indices in South Korea and Japan rose by 0.18% to 0.21%.

China's industrial-profit growth rebounded in July, adding to signs that the world's second-biggest economy is stabilizing after a two-quarter slowdown and an interbank lending squeeze in June. Net income rose 12% from a year earlier after gaining 6.3% in June, the statistics bureau said in Beijing today.

Economic data in South Korea showed the nation's consumer confidence was unchanged in August.

Trading in US index futures indicated that the Dow could fall 15 points at the opening bell on Tuesday, 24 August 2013. US stocks closed lower on Monday after Secretary of State John Kerry warned that the United States would demand accountability after an obscene chemical weapons attack on Syrian civilians. More than 100,000 people have died in clashes between forces loyal to Assad and rebels trying to oust him from power in Syria over the past two and a half years.

On US economic data front, the Commerce Department reported new orders for durable manufactured goods plunged 7.3% in July, much sharper than the 5% drop expected.

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