A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in afternoon trade. The market breadth, indicating the overall health of the market, was negative. The barometer index, the S&P BSE Sensex, was down 146.68 points or 0.70%, off close to 145 points from the day's high and up about 37 points from the day's low. Weakness in Asian stocks hit investor sentiment adversely.
Asian stocks fell on Friday, 8 November 2013, after faster US economic growth fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
Punjab National Bank (PNB) tumbled after weak Q2 outcome. Media stocks declined across the board.
A bout of volatility was witnessed as key benchmark indices trimmed initial losses triggered by weakness in Asian stocks. The Sensex and the 50-unit CNX Nifty, both, hit 1-1/2-week low. Weakness continued on the bourses in morning trade. The Sensex hovered in negative terrain in mid-morning trade. Weakness continued on the bourses in early afternoon trade. A bout of volatilty was witnessd as key benchmark indices trimmed losses after hitting fresh intraday low in afternoon trade.
At 13:15 IST, the S&P BSE Sensex was down 146.68 points or 0.70% to 20,676.09. The index lost 184.11 points at the day's low of 20,638.66 in afternoon trade, its lowest level since 29 October 2013. The index fell 1.76 points at the day's high of 20,821.01 in morning trade.
The CNX Nifty was down 44.65 points or 0.72% to 6,142.60. The index hit a low of 6,129.90 in intraday trade, its lowest level since 29 October 2013. The index hit a high of 6,185.15 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,289 shares dropped and 914 shares rose. A total of 150 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks fell and rest of them rose. Maruti Suzuki India (down 3.28%), HDFC (down 3.17%), ONGC (down 1.66%), Coal India (down 1.57%), HDFC Bank (down 1.53%), TCS (down 1.5%), GAIL (India) (down 1.48%), Hindalco Industries (down 1.33%) and Hero MotoCorp (down 1.22%), edged lower from the Sensex pack.
Tata Steel (up 1.66%), Tata Motors (up 0.83%), Sesa Sterlite (up 0.65%), Dr Reddy's Laboratories (up 0.62%), ITC (up 0.44%), Cipla (up 0.4%) and Larsen & Toubro (up 0.39%), edged higher from the Sensex pack.
Punjab National Bank (PNB) fell 4.49% to Rs 520.55 after net profit fell 52.56% to Rs 505.49 crore on 2.62% increase in total income to Rs 11632.84 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours today, 8 November 2013.
Punjab National Bank's ratio of net non-performing assets (NPAs) to net advances stood at 3.07% as on 30 September 2013, compared with 2.98% as on 30 June 2013 and 2.69% as on 30 September 2012. The bank's ratio of gross NPAs to gross advances stood at 5.14% as on 30 September 2013, compared with 4.84% as on 30 June 2013 and 4.66% as on 30 September 2012.
Provisions and contingencies surged 76.82% to Rs 1898.73 crore in Q2 September 2013 over Q2 September 2012. The provisioning coverage ratio as on 30 September 2013 stood at 55.27%.
Government of India holds 57.87% stake in Punjab National Bank (as on 30 September 2013).
In a separate announcement, Punjab National Bank said it has decided to realign the interest rates with the prevailing market rates with effect from 11 November 2013. The rate of interest on single domestic term deposit of less than Rs 1 crore has been increased by 25 basis points (bps) i.e. from 6.75% to 7% in maturity bucket of 91 days to 179 days and by 50 bps from 7.5% to 8% in the bucket of 271 days to less than one year period. In case of maturity period of one year and above up to ten years, uniform interest rates of 9% shall be applicable, the bank said.
In case of single domestic term deposits of Rs 1 crore to Rs 10 crore, the rate of interest has been cut to 8% from 8.25% for maturity period of 180 days to 270 days.
Media stocks declined across the board. Pritish Nandy Communications (down 4.8%), TV18 Broadcast (down 2.18%), Dish TV India (down 1.72%), Balaji Telefilms (down 1.67%), TV Today Network (down 1.52%), Zee Entertainment Enterprises (down 1.52%), B.A.G Films & Media (down 0.97%), New Delhi Television (down 0.63%), Sun TV Network (down 0.59%), Siti Cable Network (down 0.56%), Network 18 Media & Investments (down 0.48%), Zee News (down 0.43%) and Prime Focus (down 0.16%), edged lower.
In the foreign exchange market, the rupee edged lower against the dollar as faster US economic growth fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. The partially convertible rupee was hovering at 62.665, compared with its close of 62.41/42 on Thursday, 7 November 2013.
Indian government bond prices dropped as faster US economic growth fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. The yield on 10-year benchmark government paper -- 7.16% GS 2023 -- was hovering at 8.901%, higher than its close of 8.8492% on Thursday, 7 November 2013. Bond yield and bond prices are inversely related.
Asian stocks fell on Friday, 8 November 2013, after faster US economic growth fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. Key benchmark indices in Singapore, China, Japan, Hong Kong, Taiwan, Indonesia and South Korea shed 0.36% to 1.09%.
China's trade surplus expanded more than forecast to $31.1 billion last month from $15.21 billion in September. Exports grew 5.6% after contracting last month. Among the other October data, imports rose 7.6% in October 2013.
China is due to issue a heavy slate of other October data, including industrial production, consumer inflation and retail sales tomorrow, 9 November 2013.
China's leaders will meet in Beijing on November 9-12 to map out economic policies as the country heads for its slowest annual growth in more than two decades.
Trading in US index futures indicated that the Dow could gain 6 points at the opening bell on Friday, 8 November 2013. US stocks tumbled on Thursday, 7 November 2013, as speculation the Federal Reserve may scale back stimulus amid faster-than-estimated economic growth overshadowed a move by the European Central Bank to cut a key interest rate.
Data yesterday showed growth in the world's biggest economy accelerated to a 2.8% annualized rate last quarter, faster than the 2% median market estimates. Fewer Americans filed applications for unemployment benefits last week, indicating firings haven't picked up following the partial government shutdown. Jobless claims decreased by 9,000 to 336,000 in the week ended Nov. 2 from 345,000 the prior period, the Labor Department reported in Washington.
The US government will today, 8 November 2013, release nonfarm payrolls figures for October 2013. The job data is a key economic indicator that has been watched closely in recent months to see whether the US Federal Reserve will roll back its bond-buying program.
In Europe, global ratings agency Standard and Poor's cut France's sovereign credit rating by one notch to AA from AA+ on Friday, citing lack of progress in government reforms of the country's economy. In a statement, S&P said that it had lowered France's rating because it believed the French government's reforms to taxation, as well as to product, services, and labor markets, "will not substantially raise France's medium-term growth prospects, and that ongoing high unemployment is weakening support for further significant fiscal and structural policy measures". "Furthermore, we believe lower economic growth is constraining the government's ability to consolidate public finances," the agency said. S&P's outlook on France is stable, reflecting its view that the probability it will raise or lower France's rating over the next two years "is less than one-in-three."
The European Central Bank (ECB) on Thursday cut its benchmark interest rate to a record low after a drop in inflation to the slowest pace in four years threatened its mission to keep prices stable. Policy makers meeting in Frankfurt on Thursday reduced the main refinancing rate by a quarter point to 0.25%.
The Bank of England kept its benchmark rate at a record-low 0.5% in London on Thursday, while its bond-purchase plan stayed at 375 billion pounds ($603 billion).
Powered by Capital Market - Live News
