Just Dial's scrip on a roll

Key benchmark indices extended losses and hit fresh intraday low in afternoon trade. The barometer index, the S&P BSE Sensex, hit its lowest level in more than two weeks. The Sensex was down 129.50 points or 0.62%, off 97.70 points from the day's high and up 27.50 points from the day's low. The market breadth, indicating the overall health of the market, was weak. Weakness in Asian shares dampened sentiment on the domestic bourses. The rupee edged lower against the dollar.

Index heavyweight and cigarette major ITC extended intraday fall. Shares of local search engine Just Dial surged, with the stock extending its recent strong gains. Havells India also hit record high. Tata Power Company and Reliance Infrastructure, both, dropped for second day in a row after the Delhi government on 1 January 2014 ordered CAG audit of their finances.

A bout of volatility was witnessed as key benchmark indices trimmed losses after a weak opening. The Sensex and the 50-unit CNX Nifty, both, hit two-week low at the onset of the trading session. Volatility continued as key benchmark indices hovered in negative zone in morning trade. The Sensex languished in the negative terrain in early afternoon trade. Key benchmark indices extended losses and hit fresh intraday low in afternoon trade. The Sensex hit its lowest level in more than two weeks.

Foreign institutional investors (FIIs) bought shares worth a net Rs 674.05 crore on Thursday, 2 January 2014, as per provisional data from the stock exchanges.

Asian stocks dropped on Friday, 3 January 2014, after US equities retreated from record highs and a gauge of China's non-manufacturing industries declined. The latest China data added to signs of a slowdown in the world's second-largest economy.

At 13:15 IST, the S&P BSE Sensex was down 129.50 points or 0.62% to 20,758.83. The index dropped 157 points at the day's low 20,731.33 in afternoon trade, its lowest level since 19 December 2013. The index fell 31.80 points at the day's high of 20,856.53 in early trade.

The CNX Nifty was down 41.90 points or 0.67% to 6,179.25. The index hit a low of 6,171.25 in intraday trade, its lowest level since 20 December 2013. The index hit a high of 6,209.05 in intraday trade.

The market breadth, indicating the overall health of the market, was weak. On BSE, 1,360 shares fell and 889 shares rose. A total of 152 shares were unchanged.

The total turnover on BSE amounted to Rs 1069 crore by 13:15 IST.

Among the 30-share Sensex pack, 22 stocks fell and rest of them rose. M&M (down 3.3%), Hindalco Industries (down 2.82%) and ICICI Bank (down 2.57%) declined.

TCS (up 2.46%), Infosys (up 2.11%) and Hero MotoCorp (up 1.01%) gained.

Index heavyweight and cigarette major ITC fell 1.3% to Rs 311.30, with the stock extending intraday losses. The stock hit a high of Rs 315.50 and low of Rs 311 so far during the day.

FMCG stocks were mixed. Dabur India (down 1.38%), Hindustan Unilever (down 0.13%), Marico (down 0.42%) and Godrej Consumer Products (down 2.42%) edged lower. Britannia Industries (up 1.09%), Colgate-Palmolive (India) (up 0.37%) and Nestle India (up 0.91%) rose.

Tata Power Company dropped 6.52%. Reliance Infrastructure lost 2.12%. Rejecting the contention of private power distributors, the Delhi government on 1 January 2014 ordered a CAG audit of their finances. Delhi Chief Minister Arvind Kejriwal had early this week announced that the power tariffs in Delhi will be slashed by 50% for up to 400 units. The Delhi government will provide the subsidy and the money will be directly paid to the distribution companies. The cut in electricity tariffs, part of the AAP manifesto for the 4 December state assembly election, will entail a cost of Rs 61 crore over next three months.

Just Dial gained 4.65% to Rs 1,563.70 after hitting a record high of Rs 1,588 in intraday trade. The scrip has jumped 37.12% from a recent low of Rs 1,140.35 on 16 December 2013.

Havells India gained 1.65% to Rs 809.20 after hitting a record high of Rs 817.60 in intraday trade.

Sanwaria Agro Oils (down 6.75%), Escorts (down 6.37%), Ashoka Buildcon (down 5.2%), Rupa & Company (down 4.98%) and Orchid Chemicals & Pharmaceuticals (down 4.6%) were among the major losers from the BSE's Small-Cap index.

Dewan Housing Finance Corporation (down 6.13%), Torrent Power (down 3.65%), JSW Energy (down 3.54%), Voltas (down 3.39%) and Indian Bank (down 3.24%) were among the major losers from the BSE's Mid-Cap index.

In the foreign exchange market, the rupee edged lower against the dollar on global risk off sentiment. The partially convertible rupee was hovering at 62.46, weaker than its close of 62.26/27 on Thursday, 2 January 2014.

In a rare news conference Prime Minsiter Manmohan Singh today, 3 January 2014, took to the stump to defend his economic policies and promised recovery. He also said he would "hand the baton over to a new prime minister," after general elections this year, ruling out a third term.

Dr. Singh said that the country is set for better times ahead in terms of economic growth. The cycle of global economic growth is turning for the better, he said. "Many of the steps we have taken to address our domestic constraints are coming into play", he said. India's own growth momentum will revive, Dr. Singh said.

"As we enter the New Year we will continue to implement our policies, with vigor and commitment, aiming to revive growth, promote enterprise, generate employment, eliminate poverty and ensure the safety and security of all our people, particularly women and children. Our Government will work ceaselessly till its last day", Dr. Singh said.

Dr. Singh said that he is concerned that the government has not been as successful to the extent required in generating employment in the manufacturing sector. "This is an aspect of performance which we are working hard to correct. We need a much stronger effort in support of small and medium enterprises which can be a major source of good quality employment. Our Manufacturing Strategy gives high priority to this objective for the future", Dr. Singh said.

He also expressed concern about the failure in controlling persistent inflation. Dr. Singh said that the Food Security Act will to some extent shield the common man from rising food prices. "The worry about inflation is legitimate but we should also recognize that incomes for most people have increased faster than inflation. I have already mentioned that real wages in rural areas have increased faster than before. Per-capita consumption in both rural and urban areas has increased significantly", Dr. Singh said.

The next major trigger for the stock market is Q3 December 2013 corporate earnings. The Q3 earnings season will begin around mid-January 2014 and continue till mid-February 2014. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year.

The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.

Asian stocks dropped on Friday, 3 January 2014, after US equities retreated from record highs and a gauge of China's non-manufacturing industries declined. Key benchmark indices in Hong Kong, Taiwan, Singapore, Indonesia, China and South Korea were off 0.77% to 2.29%. Japanese stock markets were closed for a holiday.

China's non-manufacturing gauge fell to a four-month low in December, after data earlier this week showed two measures of factory output in the world's second-largest economy declined. China's purchasing managers' index for the non-manufacturing sector fell to 54.6, the lowest reading since August, from 56 in November.

Trading in US index futures indicated that the Dow could drop 13 points at the opening bell on Friday, 3 January 2014. Stocks on Wall Street closed sharply lower on the first trading day of 2014 on Thursday, 2 January 2014, after data pointed to a slowdown in manufacturing expansion in China and the United States.

Data indicated applications for US unemployment benefits declined last week to the lowest level in a month. Jobless claims fell by 2,000 to 339,000 in the period ended Dec. 28, Labor Department data showed. A separate report showed the Institute for Supply Management's factory index fell to 57 in December from the prior month's 57.3, which was the highest since April 2011. Readings above 50 indicate expansion.

Federal Reserve Chairman Ben Bernanke, who is slated to leave his post at the end of the month, is scheduled to speak later today, 3 January 2014, at an economics conference in Philadelphia.

The US Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually over the next year.

The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014.

In Europe, final readings on Thursday, 2 January 2014, confirmed that manufacturing in the euro zone expanded last month at the fastest pace since May 2011, while output in Germany, the currency bloc's largest economy, expanded for a sixth consecutive month.