Key benchmark indices traded off the day's low in afternoon trade. The barometer index, the S&P BSE Sensex, was down 146.40 points or 0.72%, up close to 100 points from the day's low and off about 31 points from the day's high. The market breadth, indicating the overall health of the market was negative. Indian stocks fell today, 4 February 2014, as weakness in Asian stocks and a sharp decline in US stocks on Monday, 3 February 2014, hit sentiment on the domestic bourses adversely. The market sentiment was also affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Monday, 3 February 2014.
Bharat Forge declined on weak Q3 December 2013 results on sequential basis. Chambal Fertilisers & Chemicals and TRF fell on weak Q3 results. Kingfisher Airlines (KFA) fell after the High Court of Karnataka passed an order admitting a winding-up petition filed by an unsecured creditor against the company.
Indian stocks edged lower in early trade on weak Asian stocks and after sharp decline in US stocks on Monday, 3 February 2014. The 50-unit CNX Nifty fell below the psychological 6,000 level. The Sensex and the Nifty, both, hit their lowest level in almost 17 weeks. The Sensex trimmed intraday losses in mid-morning trade. The barometer index regained the psychological 20,000 level. The Sensex languished in red in early afternoon trade. Key benchmark indices traded off the day's low in afternoon trade.
The market sentiment was affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Monday, 3 February 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 735.73 crore on Monday, 3 February 2014, as per provisional data from the stock exchanges.
Investors worldwide pulled $6.4 billion out of emerging market stock funds in the week ended 29 January 2014, according to reports.
Asian stocks fell on Tuesday, 4 February 2014, after data showing weaker-than-expected growth in US manufacturing worsened already sour sentiment.
At 13:16 IST, the S&P BSE Sensex was down 146.40 points or 0.72% to 20,062.86. The index tumbled 246.14 points at the day's low of 19,963.12 in early trade, its lowest level since 9 October 2013. The index declined 115.59 points at the day's high of 20,093.67 in mid-morning trade.
The CNX Nifty was down 44.10 points or 0.73% to 5,957.70. The index hit a low of 5,933.30 in intraday trade, its lowest level since 9 October 2013. The index hit a high of 5,971.25 in intraday trade.
The S&P BSE Mid-Cap index was off 9.36 points or 0.15% at 6,248.11. The BSE Small-Cap index was off 18.90 points or 0.3% at 6,214.84. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,360 shares fell and 923 shares rose. A total of 137 shares were unchanged.
Among the 30-share Sensex pack, 21 stocks declined and only nine rose. M&M (down 4.1%), TCS (down 3.35%), GAIL (India) (down 3.08%), Wipro (down 2.5%), Bhel (down 2.12%), Infosys (down 2.03%), Dr. Reddy's Laboratories (down 1.89%), Sesa Sterlite (down 1.48%), Hindalco Industries (down 1.3%) and Sun Pharmaceutical Industries (down 1.1%), edged lower from the Sensex pack.
Bharti Airtel (up 2.35%), Tata Motors (up 2.05%), NTPC (up 1.59%), State Bank of India (up 1.41%), Cipla (up 0.67%), HDFC Bank (up 0.42%), Bajaj Auto (up 0.35%), Tata Power (up 0.07%) and Hindustan Unilever (up 0.02%), edged higher from the Sensex pack.
Kingfisher Airlines (KFA) fell 2.12% to Rs 3.23 after the company said that the High Court of Karnataka has passed an order admitting a winding-up petition filed by Aerotron, an unsecured creditor of the company against the company. The company is in the process of filing an appeal against the aforesaid order of admission, KFA said in a statement.
Bharat Forge fell 1.04% after net profit fell 2.5% to Rs 94 crore on 1.5% fall in total revenue to Rs 832.10 crore in Q3 December 2013 over Q2 September 2013. The result was announced during trading hours today, 4 February 2014.
Bharat Forge's net profit rose 97.9% to Rs 94 crore on 23.7% increase in total revenue to Rs 832.10 crore in Q3 December 2013 over Q3 December 2012.
Chambal Fertilisers & Chemicals lost 1.82% after net profit declined 6% to Rs 90.28 crore on 13% growth in net sales to Rs 2359.25 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Monday, 3 February 2014.
TRF lost 1.79% after the company reported a consolidated net loss of Rs 17.44 crore in Q3 December 2013, higher than net loss of Rs 4.22 crore in Q3 December 2012. The Q3 result was announced after market hours on Monday, 3 February 2014.
In the foreign exchange market the rupee edged lower against the dollar on global risk-off sentiment. The partially convertible rupee was hovering at 62.63, compared with its close of 62.56/57 on Monday, 3 February 2014.
Bond prices rose as the government's borrowing program draws to a close and potentially boosts demand for existing debt. The finance ministry will sell a total of Rs 10000 crore of notes maturing in 2020, 2023 and 2032 on Friday, 7 February 2014, at the final auction for the year through March. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.6929%, lower than its close of 8.7343% on Monday, 3 February 2014. Bond yield and bond prices move in opposite direction.
On macro front, the Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
The second part of the Winter Session of Parliament begins tomorrow, 5 February 2014. The session, subject to exigencies of business, may conclude on 21 February 2014. The UPA hopes to approve the splitting of the state of Andhra Pradesh into two states as well as a number of corruption bills during the Winter Session of Parliament.
The Finance Ministry will present the Vote-on-Account or interim budget during the Winter Session of Parliament. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
Asian stocks fell on Tuesday, 4 February 2014, after data showing weaker-than-expected growth in US manufacturing worsened already sour sentiment. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore and South Korea were off 0.62% to 4.18%
The stock market in Taiwan was closed for the Lunar New Year holiday. Stock markets in mainland China remain closed until 7 February 2014 for the Lunar New Year holiday.
Australia's central bank -- the Reserve Bank of Australia (RBA) -- kept its key interest rate at a record low 2.5% after a monetary policy review today, 4 February 2014. RBA also indicated that it is no longer leaning toward cutting interest rates. "In the board's judgement, monetary policy is appropriately configured ... On present indications, the most prudent course is likely to be a period of stability in interest rates," said RBA Gov. Glenn Stevens in the statement accompanying the decision.
Trading in US index futures indicated that the Dow could advance 30 points at the opening bell on Tuesday, 4 February 2014. The US stock market closed with sharp losses on Monday, 3 February 2014, after a much weaker-than-expected reading on manufacturing data as well as concerns over a slowdown in China, triggered the worst selloff in several months. The implied volatility as measured by the CBOE Vix index, which moves inversely to the S&P 500, jumped 14.6% to 21.09, a level not seen since Dec. 28 2012, when the markets confronted the fiscal cliff.
Data showed factory activity in the US expanded in January at the weakest pace in eight months as orders slumped, a sign manufacturing cooled at the start of the year along with the weather. The Institute for Supply Management's factory index decreased to 51.3 from 56.5 the prior month, the Tempe, Arizona-based group's report showed. Readings above 50 indicate expansion.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
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