Key benchmark indices extended losses to hit fresh intraday low in mid-morning trade as weakness in Asian stocks dampened sentiment. The S&P BSE Sensex hit 2-1/2-week low. The 50-unit CNX Nifty hit its lowest level in almost three weeks. The Sensex was down 119.24 points or 0.6%, off close to 120 points from the day's high and up about 5 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
IT major Wipro surged as the company issued upbeat revenue guidance for Q2 September 2013 at the time of announcing Q1 June 2013 results after trading hours on Friday, 26 July 2013. Shares of other IT firms also gained after Wipro's upbeat Q2 revenue guidance. Engineering and construction giant L&T hit 52-week low. Shares of steel companies recovered after recent steep losses.
The market edged lower in early trade on weak Asian stocks. The market extended initial losses to hit fresh intraday low in morning trade. The market weakened further to hit fresh intraday low in mid-morning trade.
At 11:20 IST, the S&P BSE Sensex was down 119.24 points or 0.6% to 19.631.34. The index declined 122.93 points at the day's low of 19,625.26 in mid-morning trade, its lowest level since 11 July 2013. The index rose 2.84 points at the day's high of 19,751.03 in early trade.
The CNX Nifty was down 39.50 points or 0.67% to 5,846.70. The index hit a low of 5,843.95 in intraday trade, its lowest level since 10 July 2013. The index hit a high of 5,886 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,041 shares declined and 764 shares rose. A total of 84 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. Hindustan Unielever (down 4.8%), Hindalco Industries (down 2.97%), and ITC (down 2.4%), edged lower.
IT major Wipro surged 7.17%, with the stock extending initial gain as the company issued upbeat revenue guidance for Q2 September 2013 at the time of announcing Q1 June 2013 results after trading hours on Friday, 26 July 2013. Wipro expects 1.99% to 3.88% growth in revenue from IT services business at between $1.62 billion to $1.65 billion in Q2 September 2013 over Q1 June 2013.
The company's consolidated net profit rose 3% to Rs 1623.30 crore on 1% growth in revenue to Rs 9734.60 crore in Q1 June 2013 over Q4 March 2013. The results are as per International Financial Reporting Standards. The results are after adjusting for the spinoff of its non-technology businesses, completed in April.
IT services revenue rose 0.2% to $1.58 billion in Q1 June 2013 over Q4 March 2013. Non-GAAP constant currency IT services revenue in dollar terms was $1.60 billion, which was within the company's guidance range of $1.575 billion to $1.61 billion.
Wipro said that the pricing environment was largely stable during the quarter, and the growth was largely volume led. Effective from 1 June 2013, Wipro gave annual wage hike of between 6-8% for offshore employees and 2-3% for onsite employees.
Wipro added 28 new customers in Q1 June 2013.
Shares of other IT firms also gained after Wipro's upbeat Q2 revenue guidance. Infosys gained 0.7%. Tech Mahindra gained 1.24%. But, HCL Technologies fell 0.27%.
TCS rose 0.12%. TCS said during market hours today, 29 July 2013, that it has won a three year contract from the Zambia Revenue Authority (ZRA) for the modernisation of its domestic tax system.
Shares of TCS turned ex-dividend today, 29 July 2013, for interim dividend of Rs 4 per share for the year ended 31 March 2013 (FY 2013).
Engineering and construction giant L&T lost 0.48% to Rs 841.55. The stock hit 52-week low of Rs 836 in intraday trade today, 29 July 2013. L&T's net profit declined 12.46% to Rs 756.03 crore on 3.69% growth in total income to Rs 13027.66 crore in Q1 June 2013 over Q1 June 2012. L&T attributed the decline in net profit to unfavorable job mix, lower margin accruals and lower other income. The Q1 result was announced on 22 July 2013.
Shares of steel companies recovered after recent losses. Sail (up 0.92%), JSW Steel (up 1.2%), Tata Steel (up 2.15%) and Jindal Steel & Power (up 2.34%), edged higher.
Shares of power equipment major Bharat Heavy Electricals dropped 0.63% to Rs 157.80. The stock had hit 52-week low of Rs 156.10 in intraday trade on Friday, 26 July 2013.
Madras Cements lost 2.57% to Rs 170.50 on weak Q1 results. The company's net profit declined 44.02% to Rs 68.85 crore on 0.35% decline in total income to Rs 989 crore in Q1 June 2013 over Q1 June 2012. The result hit the market during trading hours today, 29 July 2013.
Madras Cements said that the board of directors of the company at its meeting held today, 29 July 2013, has decided to form a subsidiary company and transfer windmills of an aggregate capacity of 23.23 megawatts (MW) to the proposed subsidiary company. The company's total wind farm capacity is 159.19 MW. After transfer of the windmills of capacity 23.23 MW to the proposed subsidiary, the balance windmills of capacity 135.96 MW will continue to remain with the company.
Financial Technologies (India) (FTIL) recovered after Friday's near 9% slide. The stock was up 2.84% to Rs 582.95. The stock recovered after the company after trading hours on Friday, 26 July 2013, said bear cartels are working against the interest of the company by spreading a number of malicious rumours and warned that the company reserves its rights to take necessary legal action, including complaining to stock market regulator Securities & Exchange Board of India (Sebi) and all other relevant authorities to investigate and take necessary action into this malicious campaign against the company. The series of rumours that are spread in the market have a pattern more particularly to spread on Friday and such rumours are spread by some unscrupulous elements with a design to depress the share price of FTIL and damage its reputation, the company said.
Prime Minister Dr. Manmohan Singh will meet the captains of Indian industry today, 29 July 2013, to review steps to revive the economy. The discussion will cover measures to correct the Current Account Deficit, measures to revive industrial growth, depreciation of the rupee and its impact on trade and industry, skill development and ways of accelerating it and development of the Delhi-Mumbai Industrial Corridor (DMIC), the Chennai-Bangalore Industrial Corridor (CBIC), and the Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC).
Asian stocks retreated on Monday, 29 July 2013, with Japanese equities skidding as a firm yen further dragged on the nation's exporters, while Chinese shares lost ground amid economic worries. Key benchmark indices in South Korea, Singapore, Indonesia and Taiwan were off 0.21% to 1.37%
Mainland Chinese and Hong Kong stocks retreated amid lingering economic worries, with sentiment weighed by official data released over the weekend showing profits at Chinese industrial firms slowed in June. The Shanghai Composite index was off 1.37%. In Hong Kong, the Hang Seng was off 0.68%. Data released over the weekend by the National Bureau of Statistics showed profits at industrial companies rose 6.3% in June from the year-earlier month, slowing sharply from a 15.5% increase in May, according to reports.
In Japan, the Nikkei 225 Average was off 2.46%. The benchmark had retreated 3% on Friday, 26 July 2013.
Japanese retail sales rose 1.6% from a year earlier in June, figures today showed, which was below the market expectations.
Bank of Japan Governor Haruhiko Kuroda indicated little concern that a planned sales-tax rise would derail the nation's economic rebound. A two-step sales tax increase won't give major damage to growth in Japan's economy, Kuroda said in a speech today in Tokyo, referring to the BOJ's growth forecasts. We consider a downturn in overseas economies to be the largest risk factor to the outlook for economic activity and prices.
Trading in US index futures indicated that the Dow could fall 17 points at the opening bell on Monday, 29 July 2013. US stocks inched higher on Friday, 26 July 2013, to end the week virtually flat, as investors digested earnings reports and prepared for a busy economic calendar in the week ahead.
On the economic front, US consumer confidence unexpectedly rose at the end of this month, according to the Thomson-Reuters/University of Michigan's consumer-sentiment index.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on Tuesday (30 July 2013) and Wednesday (31 July 2013), after which it will release a statement on central bank policy. In his two-day testimony to Congress, which concluded on 18 July 2013, Federal Reserve Chairman Ben Bernanke said plans to taper asset purchases were not on a preset path and stressed intentions to be very responsive to data. Additionally, Bernanke said recent data have been "mixed" and it was "way too early" to make a judgment on when the central bank will slow down the pace of its asset purchases. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.
The European Central Bank (ECB) and the Bank of England (BoE) will announce their policy decisions on Thursday, 1 August 2013.
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