Volatility continued as key benchmark indices regained positive terrain and hit fresh intraday high in early afternoon trade. The S&P BSE Sensex was up 17.26 points or 0.09%, up close to 125 points from the day's low and off about 20 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Auto stocks rose on renwed buying. Most two-wheeler stocks rose on expectations of pick up in sales during the upcoming festive season and on hopes good rains this year will boost rural sales. Dr Reddy's Laboratories rose after the company said it will launch Azacitidine for injection 100 mg/vial, a bioequivalent generic version of VIDAZA (azacitidine for injection) in the United States in the near future. Private sector bank Yes Bank gained after the company raised equivalent to $255 million by way of dual currency, multi-tenor syndicated loan facility which will be utilized for general corporate purposes and trade finance.
The market edged lower after oscillating between positive and negative zone in early trade. Volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. The market hovered in the negative terrain in mid-morning trade. The Sensex regained positive terrain and hit fresh intraday high in early afternoon trade.
In the foreign exchange market, the rupee weakened against the dollar ahead of the Federal Reserve's policy meeting, where it is widely expected to announce tapering of bond purchases. The partially convertible rupee was hovering at 63.30, weaker than its close of 62.83/84 on Monday, 16 September 2013.
The domestic currency has declined against the dollar this year due to fears that India will struggle to fund its current account gap if the US starts to wind down its easy-money policies that have fueled global liquidity in recent years. The rupee has, however, made a strong rebound after hitting record low of 68.85 in intraday deals on 28 August 2013. The recovery in the rupee materialized after new Reserve Bank of India Governor Raghuram Rajan on 4 September 2013 announced plans to bolster the financial industry and stabilize the rupee.
Rupee depreciation fuels inflation, increases import bill and current account deficit. It also increases the government's spending on fuel subsidies, potentially widening the fiscal deficit.
At 12:20 IST, the S&P BSE Sensex was up 17.26 points or 0.09% to 19,759.73. The index declined 107.03 points at the day's low of 19,635.44 in morning trade. The index rose 38.96 points at the day's high of 19,781.43 in early afternoon trade.
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The CNX Nifty was down 3.70 points or 0.06% to 5,836.85. The index hit a low of 5,804.90 in intraday trade. The index hit a high of 5,846.40 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,143 shares fell and 837 shares rose. A total of 111 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks declined and rest of them rose. Wipro (up 4.02%), Sesa Goa (up 3.56%) and TCS (up 1.59%), gained.
Auto stocks rose on renewed buying. Mahindra & Mahindra (M&M) rose for the third straight day on expectations of increase in tractor sales due to good rains this year. The stock was up 0.87%.
Among other auto stocks, Tata Motors gained 1.1%. Maruti Suzuki India rose 0.92%.
Most two-wheeler stocks rose on expectations of pick up in sales during the upcoming festive season and on hopes good rains this year will boost rural sales. The festive season starts with the Durga Puja in October. The festival is followed by Dussehra and Diwali. Bajaj Auto rose 0.07%. TVS Motor Company gained 1.19%. Hero MotoCorp fell 1.23%.
PSU OMCs hiked petrol prices by Rs 1.63 a litre with effect from Saturday, 14 September 2013.
Dr Reddy's Laboratories rose 3.73% after the company announced during market hours today, 17 September 2013, that Azacitidine for injection 100 mg/vial, a bioequivalent generic version of VIDAZA (azacitidine for injection), is approved by the USFDA on 16 September 2013. The launch of product in the US market is planned in the near term, the company said. The VIDAZA brand had US sales of approximately $378.5 million for the twelve months ended July 2013, according to IMS Health data.
Private sector bank Yes Bank rose 2.4% after the bank today, 17 September 2013, said it has successfully closed equivalent to $255 million by way of dual currency, multi-tenor syndicated loan facility which will be utilized for general corporate purposes and trade finance. The facility has a maturity of 1 and 2 years with majority commitments coming in the 2 year tenure bucket. The loan has been widely distributed with commitments from 11 banks representing 8 countries across US, Europe, Middle East and Australia, Yes Bank said.
On the successful completion of the transaction, Mr. Rana Kapoor, Managing Director and CEO, Yes Bank said: "This significant commitment from global banks reinforces our unique financial and business model, and further reposes faith and trust in the Yes Bank management team, despite the challenging global and Indian micro environment".
The recent RBI guidelines on offering swap facility to banks for the foreign currency borrowings at 100 basis points below the market rate will further make the landed rupee cost of these funds extremely competitive vis-vis rupee funds of equivalent maturity, Yes Bank said.
Accelya Kale Solutions lost 5.93% after the stock turned ex-dividend today, 17 September 2013, for final dividend of Rs 40 per share for the year ended 31 March 2013.
At its upcoming mid-quarter monetary policy review on Friday, 20 September 2013, the Reserve Bank of India will have to decide whether to give in to industry demands and lower interest rates in order to boost slowing economic growth, or leave interest rates unchanged for the third straight policy review as it guards against risks of a fresh rise in inflationary pressures.
Asian stocks fell on Tuesday, 17 September 2013, as the Federal Reserve begins a two-day policy meeting at which it is forecast to reduce the pace of its US bond buying. Key benchmark indices in China, Japan, Taiwan, Hong Kong, Indonesia and South Korea fell by 0.07% to 1.61%. Singapore's Straits Times rose 0.06%.
Trading in US index futures indicated that the Dow could fall 11 points at the opening bell on Tuesday, 17 September 2013. Most US stocks rose on Monday, 16 September 2013, after former US Treasury secretary Larry Summers removed himself from consideration to run the Federal Reserve. Summers was seen as relatively hawkish.
Investors across the globe are eyeing the two-day policy meeting of the Federal Open Market Committee (FOMC), considered by many to provide an indication on the timing and size of the Fed's cutbacks in its bond-purchase program. The FOMC's two-day policy meeting on interest rates in the United States begins today, 17 September 2013. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years. Investors are also eyeing Fed's forward guidance on policy.
UN chemical investigators on Monday confirmed the use of sarin nerve agent in an August 21 poison gas attack outside the Syrian capital in a long-awaited report that the United States, Britain and France said proved government forces were responsible. Syria and Russia have blamed the August 21 attack on the rebels. The rebels, the United States and other Western powers blame forces loyal to Assad for the Ghouta attack. The UN confirmation of sarin gas use on August 21 comes as France, Britain and the United States agreed in Paris to seek a strong and robust UN resolution that sets binding deadlines on removal of chemical weapons. Those talks followed a weekend deal on Syria's chemical weapons reached by the United States and Russia that could avert US military action.
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