After a narrow movement in negative zone in afternoon trade, key benchmark indices extended losses and hit fresh intraday low in mid-afternoon trade as European stocks extended initial losses. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit two-week low. The Sensex was currently down 256.63 points or 0.99% at 25,638.34. The market sentiment was hit adversely after provisional data showed that foreign investors made heavy selling during the previous trading session. The market breadth indicating the overall health of the market was negative.
Capital goods stocks declined. But, Bharat Heavy Electricals (Bhel) edged higher after the company said that it has commissioned another hydro generating unit of 68 megawatts (MW) at Rampur Hydro Electric Project (HEP) in Himachal Pradesh. HCL Technologies extended Thursday's losses triggered the company reporting a sequential fall in EBITDA in Q4 March 2014 over Q3 June 2014.
Intraday recovery for key indices in early afternoon trade proved short lived. The Sensex and the Nifty have been in red right from the onset of the trading session due to weakness in Asian stocks and steep slide in US stocks on Thursday, 31 July 2014.
At 14:20 IST, the S&P BSE Sensex was down 256.63 points or 0.99% to 25,638.34. The index slumped 257.56 points at the day's low of 25,637.41 in mid-afternoon trade, its lowest level since 18 July 2014. The index declined 32.29 points at the day's high of 25,862.68 in early afternoon trade.
The CNX Nifty was down 73.40 points or 0.95% to 7,647.90. The index hit a low of 7,643.85 intraday trade, its lowest level since 18 July 2014. The index hit a high 7,716.70 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,508 shares fell and 1,195 shares rose. A total of 105 shares were unchanged.
The BSE Mid-Cap index was down 29.20 points or 0.32% at 9,158.99. The BSE Small-Cap index was down 25.92 points or 0.26% at 9.963.50. Both these indices outperformed the Sensex.
Coal India (down 2.4%), Mahindra & Mahindra (down 2.45%), GAIL (India) (down 1.86%), and Sesa Sterlite (down 2.35%) edged lower from the Sensex pack.
HCL Technologies dropped 2.41%, with the stock extending Thursday's losses. The company's consolidated net profit as per US GAAP rose 12.9% to Rs 1834 crore on 0.9% growth rise in revenue to Rs 8424 crore in Q4 June 2014 over Q3 March 2014. EBITDA (earnings before interest, taxes, depreciation and amortization) fell 0.7% to Rs 2216 crore in revenue to Rs 8424 crore in Q4 June 2014 over Q3 March 2014. EBITDA margin declined to 26.3% in Q4 June 2014, from 26.7% in Q3 March 2014. The result was announced before market hours on Thursday, 31 July 2014.
Capital goods stocks declined. ABB (India) (down 1.26%), L&T (down 1.32%), Siemens (down 1.29%) and Thermax (down 0.86%) declined.
Bharat Heavy Electricals (Bhel) rose 0.04% to Rs 228.50. The stock hit high of Rs 230.70 and low of Rs 223.10 so far during the day. The company said during market hours that it has commissioned another hydro generating unit of 68 megawatts (MW) at Rampur Hydro Electric Project (HEP) in Himachal Pradesh. With this, Bhel has successfully commissioned five units of the 412 MW HEP of Sutlej Jal Vidyut Nigam (SJVN). The sixth and last unit is in an advanced stage of execution and is likely to b commissioned by Bhel shortly.
Steel Strips Wheels rose 4.76% after the company said total wheel rim sales rose 25% to 11.03 lakh units in July 2014 over July 2013. The company made the announcement during trading hours today, 1 August 2014.
The market sentiment was hit adversely after provisional data showed that foreign investors made heavy selling during the previous trading session. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1654.86 crore on Thursday, 31 July 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.84, compared with its close of 60.54 on Thursday, 31 July 2014.
Markit Economics today, 1 August 2014, said that the HSBC India Purchasing Managers' Index (PMI) -- a composite gauge designed to give an accurate overview of operating conditions in the manufacturing sector -- reached a 17-month peak of 53 in July, up from 51.5 in June. Details within the survey showed that all monitored categories witnessed a rise in output and order flows. However, employment deteriorated fractionally, while inflationary pressures continued to emerge, particularly on the supply-side.
The index of the eight core industries rose 7.3% in June 2014 over June 2013, data released by the government after trading hours on Thursday, 31 July 2014, showed. The eight core industries have a combined weight of 37.9% in the Index of Industrial Production (IIP).
India's fiscal deficit target for the current fiscal year is "daunting", Finance Minister Arun Jaitley reportedly said today, 1 August 2014. The fiscal deficit for the first quarter of the fiscal year ending 31 March 2015 (FY 2015) was at Rs 297859 crore, which amounted to 56.1% of the budget estimates, data released by the government after market hours on Thursday, 31 July 2014, showed. The month of June 2014 saw a fiscal deficit of Rs 57022 crore, against a fiscal deficit of Rs 127383 crore in May 2014.
US Secretary of State John Kerry reportedly told Prime Minister Narendra Modi today, 1 August 2014, that India's refusal to sign a global trade deal had sent the wrong signal, and urged New Delhi to work to resolve the row as soon as possible.
The World Trade Organization reportedly failed on Thursday to reach a deal to standardise customs rules, which would have been the first global trade reform in two decades but was blocked by India's demands for concessions on agricultural stockpiling. The deadline passed without a breakthrough. WTO ministers had already agreed the global reform of customs procedures known as "trade facilitation" last December, but it needed to be put into the WTO rule book by 31 July 2014.
European stocks fell today, 1 August 2014, as companies including ArcelorMittal (MT) posted worse-than-forecast earnings. Key benchmark indices in UK, France and Germany were off 1.28% to 2.26%.
Developments in Latin America will be closely watched as Argentina missed a deadline yesterday to pay $539 million in interest after two full days of negotiations in New York failed to produce an accord with creditors.
S&P declaring Argentina in default melded with concern over Europe's debt position as Portugal's Banco Espirito Santo SA was told to raise capital. Banco Espirito Santo SA plunged by the most on record and the bonds slumped on Thursday, 31 July 2014, after the Portuguese lender was ordered to raise capital following a 3.6 billion euro ($4.8 billion) first-half net loss.
Asian stocks dropped today, 1 August 2014, extending the biggest global rout in six months that saw the Dow Jones Industrial Average wipe out this year's gains in one session yesterday amid weaker earnings and credit-market concerns. Key benchmark indices in Hong Kong, China, Singapore, Japan, South Korea and Taiwan were off 0.15% to 0.91%.
China's manufacturing purchasing managers' index increased to 51.7 in July from 51 the previous month, according to data released today by the National Bureau of Statistics and China Federation of Logistics. A private gauge of factory activity from HSBC Holdings Plc and Markit Economics rose to 51.7 last month from 50.7 in June. Levels of 50 or higher signal expansion.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Friday, 1 August 2014. US stocks joined a global selloff on Thursday, 31 July 2104, erasing the year's gains for the Dow Jones Industrial Average, as Exxon Mobil Corp. to Micron Technology Inc. tumbled amid weaker corporate results.
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