Market trims losses after initial slide

Key benchmark indices recovered after slipping into the red after opening slightly higher. The S&P BSE Sensex was down 38.47 points or 0.2%, off close to 40 points from the day's high and up about 55 points from the day's low. Weakness in Asian stocks weighed on sentiment. Some pharma stocks gained. Index heavyweight and cigarette maker ITC declined in early trade. The market breadth, indicating the overall health of the market, was strong.

Car major Maruti Suzuki India declined as the company has decided to suspend production for a day at both of its plants in Manesar and Gurgaon today, 7 June 2013, to adjust inventory levels in response to falling sales. Mahindra Satyam rose after the company won a new multiyear contract from Bridgestone Europe.

Foreign institutional investors (FIIs) sold shares worth a net Rs 270.47 crore on Thursday, 6 June 2013, as per provisional data from the stock exchanges.

At 9:30 IST, the S&P BSE Sensex was down 38.47 points or 0.2% to 19,481.02. The index lost 94.52 points at the day's low of 19,424.97 in early trade. The index rose 2.82 points at the day's high of 19,522.31 in opening trade.

The CNX Nifty was down 15.05 points or 0.25% to 5,906.35. The index hit a low of 5,886.60 in intraday trade. The index hit a high of 5,908.45 in intraday trade.

The market breadth, indicating the overall health of the market, was weak. On BSE, 462 shares rose and 249 shares fell. A total of 30 shares were unchanged.

Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. HDFC, ICICI Bank and Jindal Steel & Power dropped by 0.76% to 0.95%. Hero MotoCorp, Tata Power Company and Reliance Industries rose by 0.61% to 1.42%.

Index heavyweight and cigarette maker ITC declined 0.64%.

Some pharma stocks gained. Dr Reddy's Laboratories and Sun Pharmaceutical Industries rose by 0.05% to 0.4%.

Mahindra Satyam rose 1.33% after the company said after market hours on Thursday, 6 June 2013, that it has won a new multiyear contract from Bridgestone Europe for its managed services. The company will work on SAP based mission critical applications for Bridgestone Europe. Mahindra Satyam has been working with Bridgestone since 2005 in providing IT application development and support services.

At the end of FY 2012-13, 23% of Mahindra Satyam's total earnings came from Europe. Europe is also a key market for the company in terms of banking, aerospace and defense, sales domains, Mahindra Satyam said.

Car major Maruti Suzuki India declined 1.93% as the company has decided to suspend production for a day at both of its plants in Manesar and Gurgaon today, 7 June 2013, to adjust inventory levels in response to falling sales.

Asian stocks fell on Friday as gains in yen weighed on Japanese shares and as investors awaited a US jobs report later in the global day. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore and South Korea shed by 0.28% to 2.46%. Taiwan's Taiwan Weighted rose 0.08%.

US stocks ended higher on Thursday, snapping a two-session losing streak, as investors eagerly awaited Friday's May employment report for clues about monetary policy. Data showed that US jobless claims fell by 11,000 to 346,000 in the week ended June 1, essentially in line with expectations.

The European Central Bank (ECB) and the Bank of England (BoE) on Thursday, 6 June 2013, held their main interest rates at record lows, with the ECB saying data supports its forecast of a gradual economic recovery across the region. The ECB and BoE both held their benchmark interest rates at the record-low level of 0.5%.

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