Key benchmark moved a narrow range in negative zone in afternoon trade. The barometer index, the S&P BSE Sensex, was down 37.30 points or 0.18%, up close to 36 points from the day's low and off close to 37 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Weakness in Asian stocks hit investor sentiment today. Government bond prices dropped as crude oil futures rose on Tuesday, 3 December 2013.. In the foreign exchange market, the rupee reversed initial losses against the dollar.
The market edged lower in early trade on weak Asian stocks. Key benchmark indices hovered in negative terrain in morning trade. A bout of volatility was witnessed as key benchmark indices edged lower once again after recouping almost entire intraday losses in mid-morning trade. Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. The Sensex moved a narrow range in negative zone in afternoon trade.
At 13:15 IST, the S&P BSE Sensex was down 37.30 points or 0.18% to 20,817.62. The index lost 72.93 points at the day's low of 20,781.99 in early afternoon trade, its lowest level since 2 December 2013. The index declined 0.35 points at the day's high of 20,854.57 in mid-morning trade.
The CNX Nifty was down 8.80 points or 0.14% to 6,193.05. The index hit a low of 6,180.05 in intraday trade, its lowest level since 2 December 2013. The index hit a high of 6,201.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,220 shares rose and 1,073 shares dropped. A total of 173 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks fell and rest rose. ICICI Bank (down 2.03%), Larsen & Toubro (down 1.36%), Hindustan Unilever (down 1.23%), Hindalco Industries (down 0.93%), M&M (down 0.91%), ONGC (down 0.75%), Tata Motors (down 0.7%) and ITC (down 0.6%), edged lower from the Sensex pack.
Sesa Sterlite (up 2.76%), Tata Power (up 2.75%), Jindal Steel & Power (up 1.6%), Bharti Airtel (up 1.32%), Wipro (up 1.28%), Infosys (up 0.97%) and Tata Steel (up 0.93%), edged higher from the Sensex pack.
Godrej Properties was down 0.36% at Rs 167.35. The company today, 4 December 2013, said that in terms of the agreement with Red Fort India Real Estate Babur (Red Fort) for the project Godrej Genesis at Kolkatta, the company has given exit to Red Fort by purchasing its 49% stake in the equity share capital of its subsidiary Godrej Developers (GDPL). Pursuant to the above, GDPL has become wholly-owned subsidiary of the company. The announcement was made during trading hours today, 4 December 2013.
Adani Power (up 10.28%), Dish TV India (up 3.54%), Jaiprakash Power Ventures (up 3.38%), Jaypee Infratech (up 3.33%) and Bharti Infratel (up 2.92%), were among the major gainers from the BSE's 'A' group.
In the foreign exchange market, the rupee reversed initial losses against the dollar. The partially convertible rupee was currently hovering at 62.325, compared with its close of 62.36/37 on Tuesday, 3 December 2013.
Government bond prices dropped as crude oil futures rose on Tuesday, 3 December 2013. The yield on 10-year benchmark federal paper, 7.16% GS 2023, was hovering at 9.0932%, higher than its close of 9.069% on Tuesday, 3 December 2013. Bond yield and bond prices are inversely related.
The Organization of Petroleum Exporting Countries (OPEC) holds a meeting in Vienna on today, 4 December 2013, to decide production quota. The OPEC is expected to assess the impact of rising US oil production and the potential return of Iranian oil barrels to the market. OPEC countries will have to accommodate any additional oil supply into the market without changes to the cartel's overall production ceiling of 30-million-barrels-a-day, Venezuela Oil Minister Rafael Ramirez said on 28 November 2013.
The downturn in services activity eased slightly in November although a dearth of new orders prompted firms to rein in hiring plans, a business survey showed on Wednesday. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, nudged up to 47.2 last month from 47.1 in October. While the services PMI reading was a little better than the previous month, it has now spent five straight months below the 50 mark that divides contraction from growth, prompting firms to freeze hiring plans. The employment sub-index fell to 49.9 in November from 50.1.
New business in November fell at a slightly slower pace than in October, but it was the fifth month running that demand has declined. For inflation, the survey showed a mixed picture, with firms ramping up their prices faster despite some moderation in rising input costs.
Commenting on the India Services PMI survey, Leif Eskesen, Chief Economist for India & ASEAN at HSBC said: "Service sector activity remains subdued, but would at least appear to be stabilizing. The inflation picture is a bit mixed, with prices charged rising at a faster pace while input price inflation eased somewhat. Looking ahead, economic activity is expected to remain soft in coming months as high inflation, tighter financial conditions, and structural constraints continue to weigh on growth".
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
On the political front, Delhi goes to polls today, 4 December 2013. Polls for assembly election in Chattisgarh, Rajasthan, Madhya Pradesh and Mizoram are already over. Counting of votes for assembly elections in Delhi, Madhya Pradesh, Chhattisgarh and Rajasthan takes place on 8 December 2013. Counting of votes for assembly elections in Mizoram takes place on 9 December 2013.
The outcome of the assembly elections could provide clues as to which party comes to power in the national elections that are due by May 2014. Many investors are hoping the state elections will show strong support for the Bharatiya Janata Party whose prime ministerial candidate Narendra Modi is considered a pro-business leader.
The winter session of parliament begins tomorrow, 5 December 2013. The session will end on 20 December 2013. It will have 12 sittings in which government is likely to introduce a bill to create a separate Telangana.
Asian stocks fell on Wednesday, 4 December 2013, with investors awaiting influential US job data later this week that may provide further evidence as to when the Federal Reserve will reduce stimulus to the US economy. Key benchmark indices in Indonesia, Hong Kong, Japan, Singapore and South Korea were down 0.55% to 2.17%. Key benchmark indices in China and Taiwan rose 0.3% to 1.31%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
Chinese President Xi Jinping said the environment for economic and social development next year isn't optimistic.
Trading in US index futures indicated that the Dow could advance 31 points at the opening bell on Wednesday, 4 December 2013. US stocks declined for a third day on Tuesday, 3 December 2013, as investors assessed reports on car and retail sales before US jobs data later this week that may offer clues on when the Federal Reserve will reduce stimulus.
Investors are keeping a close watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth. The US government will release the influential US non-farm payrolls data for November 2013 on Friday, 6 December 2013. The Fed has said improvement in the labor market is a key factor in its policy assessment.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. 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. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
In Europe, the European Central Bank (ECB) holds its monthly monetary policy meeting tomorrow, 5 December 2013. The ECB unexpectedly cut the benchmark interest rate by a quarter-percentage point last month to a record-low 0.25% after inflation slowed in October to the least in four years.
UK's central bank -- Bank of England -- is also expected to keep its key policy rate steady at 0.5% after a monetary policy review tomorrow, 5 December 2013.
Brazil's economy contracted in the third quarter for the first time since early 2009, falling short of expectations yet again as plunging investment underscored eroding confidence in what was recently one of the world's most promising emerging markets. The economy shrank 0.5% between July and September from the prior three months, government statistics agency IBGE said on Tuesday.
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