Key benchmark indices recovered from lower level after erasing almost entire intraday gains in afternoon trade. The barometer index, the S&P BSE Sensex, was up 74.75 points or 0.36%, up 79.81 points from the day's low and off 15.58 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Shares of state-run coal miner Coal India jumped after the company said that a meeting of the board of directors of the company will be held on 14 January 2014, to consider payment of interim dividend, if any, for the year ending 31 March 2014. Index heavyweight and cigarette major ITC regained positive zone in volatile trade. Tata Power Company rose on bargain hunting after recent steep slide triggered by media reports that the state government in Maharashtra is planning to cut power tariffs. Siemens rose on bargain hunting. Gillette India slumped after the company clarified that it has no plans for an open offer or delisting.
Key benchmark indices edged higher amid initial volatility on firm Asian stocks. The Sensex retained positive zone in morning trade. Key benchmark indices extended intraday gains in mid-morning trade. Key benchmark indices trimmed gains after striking fresh intraday high in early afternoon trade. The Sensex further trimmed gains in afternoon trade. Key benchmark indices recovered from lower level after erasing almost entire intraday gains in afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 567.02 crore on Tuesday, 7 January 2014, as per provisional data from the stock exchanges.
At 14:15 IST, the S&P BSE Sensex was up 74.75 points or 0.36% to 20,767.99. The index gained 90.33 points at the day's high of 20,783.57 in mid-morning trade. The index fell 5.06 points at the day's low of 20,688.18 in early trade.
The CNX Nifty was up 23.05 points or 0.37% to 6,185.30. The index hit a high of 6,191.20 in intraday trade. The index hit a low of 6,160.35 in intraday trade.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 1,444 shares gained and 982 shares fell. A total of 153 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined. Sesa Sterlite (down 1.64%), L&T (down 1.5%) and AXIS Bank (down 1.4%) declined.
Cipla (up 2.84%), GAIL (India) (up 2.54%) and Sun Pharmaceutical Industries (up 1.64%) gained.
Shares of state-run coal miner Coal India jumped 5.08% to Rs 289.60 after the company said that a meeting of the board of directors of the company will be held on 14 January, 2014, inter alia, to consider payment of interim dividend, if any, for the year ending 31 March 2014. The announcement sent the stock surging as the market has been abuzz with rumours that the government may force cash rich state-run firms to declare hefty interim dividend to enable the government to meet the fiscal deficit target for the current year.
Coal India has fixed 20 January 2014 as the record date for the purpose of payment of interim divided.
Index heavyweight and cigarette major ITC rose 0.02% to Rs 316.80, with the stock regaining positive zone in volatile trade. The stock hit a high of Rs 317.80 and low of Rs 313.90 so far during the day.
Tata Power Company rose 2.2% to Rs 81.30, with the stock recovering on bargain hunting after recent steep slide triggered by media reports that the state government in Maharashtra is planning to cut power tariffs.
Shares of Tata Power had declined 12.91% in five trading sessions to settle at Rs 79.55 on Tuesday, 7 January 2014, from a recent high of Rs 91.35 on 31 December 2013.
According to reports, the cut in power tariffs in Maharashtra would be only for farmers, domestic consumers and small businesses consuming less than a set amount of electricity.
A cut in power tariff in Maharashtra would come after the ruling Aam Aadmi Party's push in Delhi to cut power tariff in the state.
Siemens rose 1.04% to Rs 631, with the stock recovering on bargain hunting. Shares of Siemens had declined 5.93% in four trading sessions to settle at Rs 624.50 on Tuesday, 7 January 2014, from a recent high of Rs 663.90 on 1 January 2014.
Titagarh Wagons jumped 6.32% after the company said it divested its entire holding in Barrackpore Enterprises on 31 December 2013. The company made the announcement during trading hours today, 8 January 2014.
Titagarh Wagons said it divested its entire holding in Barrackpore Enterprises (BEPL) (formerly Titagarh FreightCar) on 31 December 2013. Accordingly, BEPL is no longer a wholly-owned subsidiary of the company, Titagarh Wagons said in a statement.
Gillette India slumped 5.6% to Rs 2,082 after the company clarified that it has no plans for an open offer or delisting. The company issued the clarification during trading hours today, 8 January 2014.
A media report suggested that investors have been speculating about a possible open offer and delisting of Gillette India. The firm's shares have risen sharply in the past few days on high volumes on buzz that such an offer is imminent.
Shares of Gillette India rose 9.04% in the preceding three trading sessions to Rs 2,205.45 on Tuesday, 7 January 2014, from a recent low of Rs 2,022.65 on 2 January 2014.
However, Gillette India clarified to the bourses that it has no plans for an open offer or delisting. "In fact, the company has recently successfully completed a sell-down of shares to deliver compliance with SEBI's minimum public shareholding requirement," Gillette India said in a statement.
As on 30 December 2013, promoters held 75% in Gillette India.
KSK Energy Ventures (up 16.06%), Future Retail (up 8.67%), D B Corp (up 7%), Tube Investments of India (up 6.46%) and Syndicate Bank (up 5.98%) were among the major gainers from the BSE's Mid-Cap index.
West Coast Paper Mills (up 12.96%), Financial Technologies (India) (up 9.98%), Sanwaria Agro Oils (up 8.75%), HCL Infosystems (up 8.16%) and Vinati Organics (up 6.89%) were among the major gainers from the BSE's Small-Cap index.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.125, compared with its close of 62.30/31 on Tuesday, 7 January 2014.
The next major trigger for the stock market is Q3 December 2013 corporate earnings. 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 Q3 earnings season begins later this week when IT major Infosys and private sector bank IndusInd Bank unveil their earnings on Friday, 10 January 2014.
Prime Minister Dr. Manmohan Singh today, 8 January 2014, said India's economic growth in the current fiscal year will likely remain flat at 5%. A number of international as well as domestic factors have contributed to slow down in India's economic growth in the recent past, Dr. Singh said. He said that India's economic fundamentals remain strong. "Our savings and investment rates are still over 30% of our GDP and the entrepreneurial spirit in India is very much alive and kicking," Dr. Singh said at the Pravasi Bharatiya Diwas, 2014, in New Delhi.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
European stocks took a breather on Wednesday, 8 January 2014, before a report on hiring by US companies that may help investors assess the pace of Federal Reserve stimulus. Key benchmark indices in UK, France and Germany were down by 0.03% to 0.25%.
The European Central Bank holds a monetary policy meeting tomorrow, 9 January 2014. UK's central bank -- Bank of England -- also undertakes monthly monetary policy review tomorrow, 9 January 2014.
Asian stocks edged higher on Wednesday, 8 January 2014, as the International Monetary Fund said it will raise its global economic growth forecast and as the US trade deficit narrowed. Key benchmark indices in Indonesia, Taiwan, Hong Kong, Singapore and Japan rose by 0.51% to 1.94%. Key benchmark indices in China and South Korea fell by 0.02% to 0.15%.
China is due to publish December trade data today, 8 January 2014. China will release December inflation figures tomorrow, 9 January 2014.
Trading in US index futures indicated that the Dow could advance 9 points at the opening bell on Wednesday, 8 January 2014. US stocks rallied on Tuesday, 7 January 2014, helped by data showing a smaller-than-expected trade gap and gains by health-care stocks following an upgrade for UnitedHealth Group Inc. The US trade deficit fell almost 13% to $34.3 billion in November from a revised $39.4 billion in the prior month, the Commerce Department said Tuesday.
Boston Fed President Eric Rosengren on Tuesday said the central bank should only wind down its bond-buying program gradually. San Francisco Fed President John Williams said the Fed likely will end its bond buys this year, adding that he sees "newfound momentum" in the economy.
The US Federal Reserve will release minutes of its December Federal Open Market Committee policy meeting later in the global day today, 8 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The 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 this year.
The ADP Research Institute reports the change in US company payrolls later in the global day today, 8 January 2014.
The US government will unveil the influential non-farm payroll report for December 2013 on Friday, 10 January 2014.
The IMF expects to upgrade its outlook for global economic growth, IMF Managing Director Christine Lagarde told reporters in Kenyan capital of Nairobi on Tuesday, 7 January 2014. The organization plans to announce its new forecast in about three weeks, she said. The IMF currently estimates the global economy will expand by 3.6% this year.
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