Key benchmark indices trimmed intraday losses in mid-morning trade. The barometer index, the S&P BSE Sensex, regained the psychological 20,000 mark. The Sensex was down 152.68 points or 0.76%, up close to 105 points from the day's low and off about 35 points from the day's high. The market breadth, indicating the overall health of the market was weak. Indian stocks fell today, 4 February 2014, as weakness in Asian stocks and a sharp decline in US stocks on Monday, 3 February 2014, hit sentiment on the domestic bourses adversely. The market sentiment was also affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Monday, 3 February 2014.
Auto stocks extended Monday's losses triggered by auto companies reporting weak sales volumes for January 2014. Some realty shares edged higher.
Indian stocks edged lower in early trade on weak Asian stocks and after sharp decline in US stocks on Monday, 3 February 2014. The 50-unit CNX Nifty fell below the psychological 6,000 level. The Sensex and the Nifty, both, hit their lowest level in almost 17 weeks. The Sensex trimmed intraday losses in mid-morning trade. The barometer index regained the psychological 20,000 level, having alternately moved above and below that mark in intraday trade.
The market sentiment was affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Monday, 3 February 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 735.73 crore on Monday, 3 February 2014, as per provisional data from the stock exchanges.
Investors worldwide pulled $6.4 billion out of emerging market stock funds in the week ended 29 January 2014, accoording to reports.
Asian stocks fell on Tuesday, 4 February 2014, after data showing weaker-than-expected growth in US manufacturing worsened already sour sentiment.
At 11:20 IST, the S&P BSE Sensex was down 152.68 points or 0.76% to 20,056.58. The index tumbled 246.14 points at the day's low of 19,963.12 in early trade, its lowest level since 9 October 2013. The index declined 115.59 points at the day's high of 20,093.67 in mid-morning trade.
The CNX Nifty was down 42.40 points or 0.71% to 5,959.40. The index hit a low of 5,933.30 in intraday trade, its lowest level since 9 October 2013. The index hit a high of 5,971.25 in intraday trade.
The S&P BSE Mid-Cap index was off 19.35 points or 0.31% at 6,193.14. The BSE Small-Cap index was off 37.46 points or 0.6% at 6,179.75. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,224 shares fell and 750 shares rose. A total of 122 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks declined and only seven rose. One was unchanged. Wipro (down 2.83%), Hindalco Industries (down 2.41%) and GAIL (India) (down 3.1%) edged lower.
Auto stocks extended Monday's losses triggered by auto companies reporting weak sales volumes for January 2014.
Mahindra & Mahindra (M&M) declined 2.86%. M&M on Saturday, 1 February 2014, said its total auto sales declined 13.77% to 42,685 units in January 2014 over January 2013. Domestic sales declined 15.71% to 40,324 units in January 2014 over January 2013. Exports surged 42.05% to 2,361 units in January 2014 over January 2013.
The sales of Passenger Vehicles segment declined 25.46% to 19,792 units in January 2014 over January 2013. The four-wheeler commercial vehicle sales rose 4.49% to 15,100 units in January 2014 over January 2013. Three-wheeler sales declined 18.94% to 4,710 units in January 2014 over January 2013.
Separately, the company on Saturday, 1 February 2014, said its total tractor sales rose 15% to 20,109 units in January 2014 over January 2013. Domestic tractor sales rose 18% to 19,389 units in January 2014 over January 2013. Exports declined 33% to 720 units in January 2014 over January 2013.
Maruti Suzuki India (MSIL) fell 0.7%, with the stock extending Monday's losses. The company reported 10.3% decline in total sales at 102,416 vehicles in January 2014 over January 2013. Domestic sales declined 6.3% to 96,569 units in January 2014 over January 2013. Export sales declined 47.7% to 5,847 units in January 2014 over January 2013. The company unveiled January sales numbers on Saturday, 1 February 2014.
Tata Motors lost 0.18%. Tata Motors on Monday, 3 February 2014, unveiled two all-new cars -- the classy sedan, ZEST and the sporty, dynamic premium hatchback, BOLT that look to redefine the passenger car market with new design aesthetics, segment-defining drive experience and high-tech Infotainment system, the auto major said in a statement. These cars will be launched in 2014 in India and subsequently in other countries. ZEST and BOLT have been designed and developed based on three key fundamental principles, namely, DesigNext, DriveNext, ConnectNext, Tata Motors said. ZEST and BOLT, a result of the collaborative design inputs from the three Tata Motors design studios in Pune, Coventry (UK) and Turin ( Italy), come with several segment first features and a new design language on the exterior and the interior of the car, the company said.
Speaking on the occasion of the launch, Mr. Ranjit Yadav, President, Passenger Vehicles, Tata Motors, said: "We at Tata Motors are delighted to showcase to the global market the much awaited next generation cars -- the ZEST, a stunning and exciting new compact sedan and the BOLT, a dynamic hatch. These cars have been engineered for global markets, through global teams across India, UK and Korea to set new standards in their respective segments. These cars are a true representation of our Horizonext philosophy, with best-in-class offerings for performance that yet offers economy and efficiency."
Ashok Leyland lost 1.57%. The company's total sales declined 26% to 7,847 units in January 2014 over January 2013. The sales numbers were announced during trading hours on Monday, 3 February 2014. Ashok Leyland's sales of medium & heavy commercial vehicles (M&HCV) declined 19% to 5,530 units in January 2014 over January 2013. Sales of light commercial vehicles (LCVs) dropped 37% to 2,317 units in January 2014 over January 2013.
Bajaj Auto shed 0.33%. The company said during market hours on Monday, 3 February 2014, that its total sales fell 8% to 3.18 lakh units in January 2014 over January 2013. Exports rose 7% to 1.37 lakh units in January 2014 over January 2013. Motorcycle sales declined 7% to 2.81 lakh units in January 2014 over January 2013. Commercial vehicles sales dropped 20% to 36,781 units in January 2014 over January 2013.
TVS Motor Company dropped 2.52% The company on Saturday, 1 February 2014 said its total sales rose 6% to 186,313 units in January 2014 over January 2013.
The company's total exports surged 39% to 28,875 units in January 2014 over January 2013. Two wheeler exports registered a growth of 35% to 23,438 units in January 2014 over January 2013.
Total two wheeler sales increased 5% to 179,576 units in January 2014 over January 2013. Domestic two wheeler sales accounted for 156,138 units in January 2014 as against 154,107 units registered in January 2013.
Scooters sales grew 19% to 45,198 units in January 2014 over January 2013. Motorcycles sales grew marginally increasing from 64,555 units in January 2013 to 65,449 units in January 2014.
Three wheeler sales surged 52% to 6,737 units in January 2014 over January 2013.
Hero MotoCorp rose 0.36%. The company said during market hours its total sales rose 0.61% to 5.61 lakh units in January 2014 over January 2013. Riding on record sales in the festive months of October and November, the company had closed 2013 with sales of 61.83 lakh units, its highest ever sales for any calendar year.
Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero MotoCorp said: "The year 2014 is going to be a defining year for Hero MotoCorp in terms of technological breakthroughs and new launches. Clocking over five-and-half-lakh sales in the first month of the calendar, therefore, is a good way to begin the New Year. Going forward, we are expecting to excite the market further as our new launches keep rolling out in a phased manner. We have already given a glimpse of our new line-up with models like the HX25OR and Xtreme Sports and also futuristic concepts like the RNT model. We will showcase these, and several more, at the upcoming Auto Expo later this week".
Delivering on its commitment to bring revolutionary products in the two-wheeler market, Hero MotoCorp recently unveiled a slew of game-changing two-wheelers across-the-spectrum. The next-generation range of two-wheelers includes the new 250-cc sports bike 'HX25OR', the break-through Liquid-cooled Turbocharged Diesel Concept Bike RNT'; India's first series hybrid scooter 'LEAP', 110cc scooter 'Dash' and the all-new 150-cc Xtreme Sports, the company said in a statement.
Some realty shares edged higher. HDIL (up 0.12%), Unitech (up 0.81%) and Sobha Developers (up 0.55%) gained. But, DLF fell 1.04%.
Tata Chemicals lost 3.31% after the company reported a consolidated net loss of Rs 15.93 crore in Q3 December 2013 compared to net profit of Rs 224.07 crore in Q3 December 2012. The Q3 result was announced after market hours on Monday, 3 February 2014.
Tata Chemicals' consolidated total income rose 6.65% to Rs 4598.13 crore in Q3 December 2013 over Q3 December 2012.
Commenting on the Company's Q3 performance, Mr. R Mukundan, Managing Director, Tata Chemicals said, "The company has embarked on executing twin strategy of restructuring its commodity business on one hand and focused growth in the consumer and farm business on the other hand. During the quarter our growth platforms of Consumer business and Non-subsidy farm business revenue grew at 20% and 21% respectively as compared to corresponding quarter of previous year. Consumer business continued to grow the Tata I-shakti and Swach franchise and have grown nearly to Rs 1000 crore sales (sales Rs 972 crore) year to date. Followed by Mumbai and Delhi launches, 'Dal on Call' facility was extended to Bangalore city during the quarter. The non-bulk farm business continued its growth on back of better farm conditions and focus on productivity improvement at farm level. We launched Farmgro and Farmgro G in the previous quarter and product is well received in the market. European restructuring is on track and should yield positive results from FY 2014-15. Current quarter results were impacted by one time charge of Rs 82 crore due to restructuring of European operation. Background work on restructuring Magadi facility continues, plan is expected to be finalised in the Q4 FY 2013-14. We remain positive on demand scenario going forward domestically as well as internationally. Prices internationally are stable. Subsidy outstanding continues to stress the working capital and is a challenge in the near term. Overall while we restructure our commodity businesses, on the strategic front; we continue to focus on building farm and consumer business portfolio".
Divi's Laboratories rose 5.01% after net profit rose 51.84% to Rs 219.02 crore on 25.24% increase in total income to Rs 697.18 crore in Q3 December 2013 over Q3 December 2012. The company announced the result after trading hours on Monday, 3 February 2014. Divi's Laboratories' forex loss amounted to Rs 5 crore in Q3 December 2013 compared with a forex gain of Rs 16 crore in Q3 December 2012.
In the foreign exchange market the rupee edged lower against the dollar on global risk off sentiment. The partially convertible rupee was hovering at 62.72, compared with its close of 62.56/57 on Monday, 3 February 2014.
On macro front, the Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
The second part of the Winter Session of Parliament begins tomorrow, 5 February 2014. The session, subject to exigencies of business, may conclude on 21 February 2014. The UPA hopes to approve the splitting of the state of Andhra Pradesh into two states as well as a number of corruption bills during the Winter Session of Parliament.
The Finance Ministry will present the Vote-on-Account or interim budget during the Winter Session of Parliament. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
Asian stocks fell on Tuesday, 4 February 2014, after data showing weaker-than-expected growth in US manufacturing worsened already sour sentiment. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore and South Korea were off 0.59% to 3.66%
The stock market in Taiwan was closed for the Lunar New Year holiday. Stock markets in mainland China remain closed until 7 February 2014 for the Lunar New Year holiday.
Trading in US index futures indicated that the Dow could advance 41 points at the opening bell on Tuesday, 4 February 2014. The US stock market closed with sharp losses on Monday, 3 February 2014, after a much weaker-than-expected reading on manufacturing data as well as concerns over a slowdown in China, triggered the worst selloff in several months. The implied volatility as measured by the CBOE Vix index, which moves inversely to the S&P 500, jumped 14.6% to 21.09, a level not seen since Dec. 28 2012, when the markets confronted the fiscal cliff.
Data showed factory activity in the US expanded in January at the weakest pace in eight months as orders slumped, a sign manufacturing cooled at the start of the year along with the weather. The Institute for Supply Management's factory index decreased to 51.3 from 56.5 the prior month, the Tempe, Arizona-based group's report showed. Readings above 50 indicate expansion.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
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