Market slips for the fifth day in a row

Key benchmark indices declined on first trading session of the week as market sentiment was impacted adversely on concerns the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected after latest data showed better than expected US October jobs report. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.

The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their fresh lowest level in 3-1/2 weeks in late trade. The Sensex was provisionally down 163.27 points or 0.79%, up close to 50 points from the day's low and off about 170 points from the day's high. The market breadth, indicating the overall health of the market, was negative.

Indian stocks fell for the fifth day in a row today, 11 November 2013.

Tata Motors declined despite the company reported a strong Q2 result. Shares of two-wheeler makers dropped. Capital goods pivotals also declined. Realty stocks dropped. Suven Life Sciences surged on strong Q2 result. Central Bank of India dropped after the bank reported a reverse turnaround in Q2 September 2013.

The market edged lower in early trade. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their lowest level in 3-1/2 weeks. It weakened once again after it pared initial losses and hit fresh intraday high in morning trade. It hovered in negative terrain in mid-morning trade. It continued to hover in negative terrain in early afternoon trade. Key benchmark indices cut losses in afternoon trade. It weakened once again in mid-afternoon trade. It extended losses and hit fresh intraday low in late trade.

The rupee fell below the 63 level against the dollar. 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.

As per provisional figures, the S&P BSE Sensex was down 163.27 points or 0.79% to 20,502.88. The index shed 213 points at the day's low of 20,453.15 in late trade, its lowest level since 17 October 2013. The index rose 6.38 points at the day's high of 20,672.53 in afternoon trade.

The CNX Nifty was down 57.80 points or 0.94% to 6,082.95, as per provisional figures. The index hit a low of 6,067.75 in intraday trade, its lowest level since 17 October 2013. The index hit a high of 6,141.65 in intraday trade.

The total turnover on BSE amounted to Rs 1840 crore, lower than Rs 2001.86 crore on Friday, 8 November 2013.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,339 shares fell and 1,056 shares rose. A total of 145 shares were unchanged.

Among the 30-share Sensex pack, 24 stocks fell and rest of them rose. SBI (down 2.55%), Jindal Steel & Power (down 1.81%) and ONGC (down 2.28%), declined.

Hindalco Industries tumbled 4.55% ahead of company's US subsidiary Novelis Inc. Q2 results today, 11 November 2013. Hindalco Industries unveils Q2 result tomorrow, 12 November 2013.

Capital goods pivotals also declined. L&T (down 3.04%) and Bhel (down 1.44%), fell.

Central Bank of India dropped 2.91% after the bank reported a reverse turnaround in Q2 September 2013. The bank has reported during market hours a net loss of Rs 1508.74 crore in Q2 September 2013 compared with net profit of Rs 329.92 crore in Q2 September 2012. Total income rose 9.78% to 6236.51 crore in Q2 September 2013 over Q2 September 2012.

Realty stocks declined. DLF (down 3.31%), HDIL (down 8.69%), Sobha Developers (down 0.59%) and Unitech (down 3.23%), declined.

Tata Motors declined 1.95% despite the company reported a strong Q2 result. The company's consolidated net profit surged 70.7% to Rs 3542 crore on 31.1% rise in revenues to Rs 56882 crore in Q2 September 2013 over Q2 September 2012. The company said revenues grew despite weak operating environment in the India business which was more than offset by increase in wholesale volumes and richer product and market mix at Jaguar Land Rover (JLR).

JLR wholesale and retail volumes for the quarter ended 30 September 2013 grew by 31.6% and 21.1%, respectively, over the corresponding period last year and stood at 101,931 units and 102,644 units, respectively. Following strong response to its new products and powertrain options, Jaguar wholesale and retail volumes grew by 91.6% and 56.5% to 18,834 units and 20,024 units, respectively, as against 9,832 units and 12,798 units, respectively, in the corresponding quarter last year. Strong response to the All-New Range Rover and continued strong growth in Evoque and other products, Land Rover wholesale and retail volumes stood at 83,097 units and 82,620 units (growth of 22.9% and 14.8% over corresponding quarter last year).

JLR's revenues for the quarter ended September 30, 2013 of 4,612 million pounds, represented a growth of 40.3% over 3,288 million pounds in the corresponding quarter last year. Operating margins for the quarter ended 30 September 2013 stood at 17.8%. Operating profit (EBITDA) of 823 million pounds in the quarter, represented a growth of 69.3% over 486 million pounds in the corresponding quarter last year. Continued strong revenue growth and operating performance were supported by increase in wholesale volume, richer product mix, launch of new Range Rover Sport, new Range Rover and Jaguar F-TYPE. The profit before tax for the quarter ended 30 September 2013 grew by 55.0% over the corresponding quarter last year to 668 million pounds (431 million pounds in the corresponding quarter last year). Profit after tax for the quarter grew by 66.2% over the corresponding quarter last year to 507 million pounds (305 million pounds in the corresponding quarter last year).

Shares of two-wheeler makers dropped. Hero MotoCorp (down 2.38%) and Bajaj Auto (down 1.86%), declined.

Suven Life Sciences surged 15.38% on strong Q2 result. The company's net profit surged 602% to Rs 45.50 crore on 202% spurt in revenues to Rs 151.50 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours today, 11 November 2013. EBITDA (earnings before interest, taxes, depreciation and amortization) surged 550% to Rs 71.50 crore in Q2 September 2013 over Q2 September 2012.

Suven Life Sciences said the growth in profit was a result of one new product, in addition to 2 products already commercialised during the first quarter, totaling 3 products under CRAMS (contract research and manufacturing services).

In the foreign exchange market, the rupee fell below the 63 level against the dollar as better than expected October US jobs report fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. The partially convertible rupee was hovering at 63.30, compared with its close of 62.475/485 on Friday, 8 November 2013.

On the macro front, Exports rose 13.47% to $ 27.27 billion in October 2013 over October 2012. Imports fell 14.5% to $ 37.82 billion in October 2013 over October 2012. Trade deficit was $ 10.55 billion in October 2013 lower than trade deficit of $ 20.21 billion in October 2012.

The government will unveil industrial production data for September 2013 tomorrow, 12 November 2013. Industrial output is projected to jump 3.7% in September 2013, as per the median estimate of the poll carried out by Capital Market. Index of industrial production (IIP) rose 0.6% in August 2013, showing moderation in growth from 2.8% growth recorded in July 2013.

Data on inflation based on the consumer price index (CPI) for October 2013 will also be unveiled tomorrow, 12 November 2013. The headline CPI inflation (combined) is projected to increase to 10% in October 2013, as per the median estimate of the poll carried out by Capital Market. The headline CPI inflation (combined) for September 2013 was placed at 9.84% (y-o-y), which came in higher than 9.52% (y-o-y) seen in August 2013.

European stocks edged higher on Monday, extending a fifth straight week of gains as China's industrial output growth unexpectedly accelerated. Key benchmark indices in France, Germany and UK rose 0.05% to 0.12%.

Most Asian stocks edged higher on Monday. Key benchmark indices in China, Singapore, Japan and Hong Kong rose 0.16% to 1.3%. Key benchmark indices in Taiwan, South Korea and Indonesia shed 0.38% to 0.78%.

China's industrial output rose a more-than-estimated 10.3% from a year earlier in October, according to data released Nov 9 by the National Bureau of Statistics. October inflation was a less-than-forecast 3.2%, producer prices fell 1.5% from a year earlier and retail sales rose 13.3%.

The meeting of China's leaders in Beijing will end tomorrow, 12 November 2013 to map out economic policies as the country heads for its slowest annual growth in more than two decades.

Trading in US index futures indicated that the Dow could gain 2 points at the opening bell on Monday, 11 November 2013. US stocks applauded a better-than-expected October jobs report and rose on Friday amid hopes a more buoyant economy will improve business for American companies over the long run.

American employers added 204,000 workers last month after a revised 163,000 gain in September that was larger than previously estimated, Labor Department figures showed Nov. 8. The increase in payrolls topped the most optimistic forecast in a survey of economists.

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