Key benchmark indices weakened and hit fresh intraday low in mid-afternoon trade. Weakness in European and Asian stocks dampened sentiment. Investors were also worried that the Reserve Bank of India (RBI) may further hike policy rates in its next policy meet after the latest data showed consumer price inflation quickened in October. The S&P BSE Sensex hit lowest level in nearly five weeks. The 50-unit CNX Nifty hit its lowest level in five weeks below the psychological 6,000 mark. The Sensex was down 75.41 points or 0.37%, up close to 45 points from the day's low and off about 160 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Realty stocks declined on concerns the central bank may further hike policy rates after the latest data showed consumer price inflation quickened in October. M&M rose on decent Q2 result. BPCL dropped on weak Q2 result.
Indian stocks declined for the seventh day in a row today, 13 November 2013.
The market regained positive terrain after opening lower. The S&P BSE Sensex and the 50-unit CNX Nifty, both, recovered after hitting their lowest level in nearly five weeks. It alternately hovered between gains and losses in morning trade. It slipped into the red after hitting fresh intraday high in mid-morning trade. It once again regained positive terrain in early afternoon trade. Key benchmark indices extended gains to hit fresh intraday high in afternoon trade. It weakened and hit fresh intraday low in mid-afternoon trade.
At 14:20 IST, the S&P BSE Sensex was down 75.41 points or 0.37% to 20,206.50. The index fell 120.27 points at the day's low of 20,161.64 in mid-afternoon trade, its lowest level since 10 October 2013. The index rose 83.68 points at the day's high of 20,365.59 in afternoon trade.
The CNX Nifty was down 29.30 points or 0.49% to 5,988.75. The index hit a low of 5,972.45 in intraday trade, its lowest level since 9 October 2013. The index hit a high of 6,042.25 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,319 shares fell and 915 shares rose. A total of 150 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. Sesa Sterlite (down 3.49%), Bharti Airtel (down 2.06%) and GAIL (India) (down 1.82%), declined.
BPCL dropped 2.37% on weak Q2 result. The company's net profit slumped 81.5% to Rs 931.13 crore on 8.53% rise in total income to Rs 62241.32 crore in Q2 September 2013 over Q2 September 2012. The company announced result during market hours.
M&M rose 0.77% on decent Q2 result. The company's net profit rose 9.72% to Rs 989.50 crore on 8.34% fall in total income to Rs 9290.20 crore in Q2 September 2013 over Q2 September 2012. The company announced result during market hours.
Realty stocks declined on concerns the central bank may further hike policy rates after the latest data showed consumer price inflation quickened in October. DLF (down 2.49%), HDIL (down 1.89%), Sobha Developers (down 1.39%) and Unitech (down 1.84%), declined.
In the foreign exchange market, the rupee recovered against the dollar in choppy trade. The partially convertible rupee was hovering at 63.61, stronger compared with its close of 63.71 on Tuesday, 12 November 2013. The rupee was weak in early deals.
On macro front, index of industrial production (IIP) rose 2% in September 2013, showing increase in growth from 0.4% growth recorded in August 2013. The entire growth in IIP was mainly driven by 12.9% surge in electricity generation in September 2013. The mining output also witness rise in output, while the manufacturing sector output showed a marginal rise in September 2013. The industrial production growth for the month of August 2013 has been revised downwards to 0.4% from 0.6% reported earlier, while the growth for the month of June 2013 has undergone final revision, registering growth of (-1.8%). The data was announced after market hours on Tuesday.
The annual consumer price inflation quickened more than expected to 10.09% in October from 9.84% in September, driven by food prices, government data showed on Tuesday. Food prices for consumers last month rose 12.56% from a year earlier, faster than September's 11.44% rise. The data was announced after market hours on Tuesday.
European stocks retreated on Wednesday as investors weighed corporate earnings and awaited data that may show euro-area industrial output fell. Key benchmark indices in France, Germany and UK dropped 0.08% to 0.54%.
Asian stocks fell on Wednesday after China's leaders failed to outline steps to curb state dominance of the economy and amid bets the Federal Reserve may start reducing U.S. stimulus next month. Key benchmark indices in China, Taiwan, Japan, South Korea, Singapore, Hong Kong and Indonesia shed 0.15% to 1.97%.
China elevated the role of markets while maintaining the state's dominance in the nation's economic strategy, seeking to balance finding new sources of growth with sustaining the Communist Party's grip on power. The nation will make markets "decisive" in allocating resources, according to yesterday's communique from the third full meeting, or plenum, of the party's 18th Central Committee in Beijing, which stopped short of unveiling detailed policy shifts. The state will remain "dominant" in the economy, indicating limits on reducing government involvement. China will set up a party panel to coordinate and supervise policies under the updated principles and more specific measures may follow in the coming weeks or months. The communique also announced the party's determination to draw a red line to protect the environment, after years of economic expansion have polluted China's soil, water and air. China will also reform its judicial system to protect people's rights, it said.
Trading in US index futures indicated that the Dow could fall 3 points at the opening bell on Wednesday, 13 November 2013. US stocks fell on Tuesday, with the Dow Jones Industrial Average retreating from a record, as corporate earnings and an improving economy fueled speculation the Federal Reserve will reduce stimulus next month.
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