Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade as weakness in Asian stocks dampened sentiment. The barometer index, the S&P BSE Sensex, was down 110.82 points or 0.54%, off close to 165 points from the day's high and up about 10 points from the day's low. The 50-unit CNX Nifty hit nearly one-week low.The market breadth, indicating the overall health of the market, was negative.
Bank stocks fell across the board after latest data announced after market hours on Wednesday, 12 February 2014 showed that inflation based on the combined consumer price index (CPI) for urban and rural India for January 2014 eased to 24-month low level. Cipla extended intraday losses on weak Q3 results.
The market edged higher in early trade. It slipped into the red and hit fresh intraday low in morning trade. It extended losses and hit fresh intraday low in mid-morning trade.
At 11:20 IST, the S&P BSE Sensex was down 110.82 points or 0.54% to 20,337.67. The index dropped 121.86 points at the day's low of 20,326.63 in mid-morning trade, its lowest level since 10 February 2014. The index gained 55.37 points at the day's high of 20,503.86 in early trade.
The CNX Nifty was down 37.65 points or 0.62% to 6,046.35. The index hit a low of 6,038.75 in intraday trade, its lowest level since 7 February 2014. The index hit a high of 6,094.40 in intraday trade.
The BSE Mid-Cap index w down 15.64 points or 0.25% to 6,342.11. The BSE Small-Cap index was down 32.58 points or 0.51% at 6,316.03. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,111 shares fell and 752 shares rose. A total of 95 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks fell and rest rose. Coal India (down 2.19%), ONGC (down 1.34%) and Bhel (down 1.75%) edged lower from the Sensex pack.
Cipla lost 6.37%, with the stock extending initial losses on weak Q3 results. The company's consolidated net profit fell 17% to Rs 284 crore on 22% growth in income from operations to Rs 2581 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Wednesday, 12 February 2014.
Cipla's EBITDA (earnings before interest, taxation, depreciation and amortization) declined 10% to Rs 467 crore in Q3 December 2013 over Q3 December 2012.
Cipla said that the current year figures include the relevant results of Cipla's subsidiaries from the date they became subsidiary of the company and therefore the corresponding figures for the previous period are not comparable.
Domestic revenue rose 12.6% to Rs 1044 crore in Q3 December 2013 over Q3 December 2012. The growth in domestic revenues was largely on account of growth in respiratory, anti-infectives and cardiology.
Exports of formulations rose 34.4% to Rs 1352 crore in Q3 December 2013 in Q3 December 2012. Previous year's results include one-time profit share revenues from Escitalopram through the company's US partner, Cipla said. Exports of APIs rose 14% to Rs 157 crore in Q3 December 2013 over Q3 December 2012. The growth in export revenue was primarily due to growth in anti-retroviral, anti-cancer, anti-allergic and anti-biotic segments, Cipla said in a statement.
Bank stocks fell across the board after latest data announced after market hours on Wednesday, 12 February 2014 showed that inflation based on the combined consumer price index (CPI) for urban and rural India for January 2014 eased to 24-month low level. Among private sector banks, ICICI Bank (down 0.56%), Yes Bank (down 1.55%), HDFC Bank (down 1.2%), Kotak Mahindra Bank (down 1.2%) and Axis Bank (down 0.38%), declined.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank shed 1.05% to 3.02%.
NCC lost 5.77% after consolidated net profit declined 61.58% to Rs 4.76 crore on 22% growth in turnover to Rs 1903.18 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Wednesday, 12 February 2014. NCC's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) rose 15.01% to Rs 204.17 crore in Q3 December 2013 over Q3 December 2012.
In the current year, the company has so far secured orders aggregating Rs 5865 crore and the order book stood at Rs 19612 crore as on 31 December 2013, NCC said in a statement.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.27, lower than its close of 62.10 on Wednesday, 12 February 2014.
Finance Minister P Chidambaram will present the Vote-on-Account or interim budget on 17 February 2014. 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.
Inflation based on the combined consumer price index (CPI) for urban and rural India for January 2014 eased to 24-month low level at 8.79% (y-o-y), marking an deceleration from 9.87% (y-o-y) seen in previous month. Moreover, the index for December decreased to 0.43% (m-o-m) from 1% (m-o-m) seen previous month. The fall in index of food category, especially vegetables helped the CPI inflation to ease. The falling vegetable prices helped the combined CPI to record single digit growth. The data was announced after market hours on Wednesday, 12 February 2014.
Industrial output fell 0.6% in December 2013 over December 2012 after contracting a revised 1.3% in November. The indices of industrial production for the Mining, Manufacturing and Electricity sectors for the month of December 2013 were 0.4%, - 1.6% and 7.5% respectively. The data was announced after market hours on Wednesday, 12 February 2014.
Inflation based on the wholesale price index (WPI) is also expected to ease in January 2014. WPI inflation is seen easing to 5.9% in January 2014 from 6.16% in December 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on inflation based on the wholesale price index (WPI) for January 2014 at 12 noon tomorrow, 14 February 2014.
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.
Asian stocks dropped on Thursday after the recent advances. Key benchmark indices in Japan, Hong Kong, South Korea, Indonesia and Taiwan fell by 0.15% to 1.69%. Key benchmark indices in Singapore and China were up 0.1% to 0.35%.
Trading in US index futures indicated that the Dow could fall 61 points at the opening bell on Thursday, 13 February 2014. US stocks edged lower on Wednesday on weak earnings from tobacco company Lorillard and household products maker Procter & Gamble.
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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