Key benchmark indices retained positive zone after witnessing a bout of initial volatility. The barometer index, the S&P BSE Sensex, was up 54.13 points or 0.26%, up 59.19 points from the day's low and off 32.17 points from the day's high. The market breadth, indicating the overall health of the market, was strong. In the foreign exchange market, the rupee edged higher against the dollar on global risk on sentiment.
IT stocks edged higher, with HCL Technologies hitting record high. JSW Steel rose after the company during market hours unveiled production data for December 2013.
Key benchmark indices edged higher amid initial volatility on firm Asian stocks. The Sensex retained positive zone in morning 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.
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.
At 10:15 IST, the S&P BSE Sensex was up 54.13 points or 0.26% to 20,747.37. The index gained 86.30 points at the day's high of 20,779.54 in early trade. The index fell 5.06 points at the day's low of 20,688.18 in early trade.
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The CNX Nifty was up 19.05 points or 0.31% to 6,181.30. The index hit a high of 6,189.35 in intraday trade. The index hit a low of 6,160.35 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,207 shares gained and 568 shares fell. A total of 98 shares were unchanged.
The total turnover on BSE amounted to Rs 488 crore by 10:15 IST, compared with Rs 186 crore by 09:25 IST.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
AXIS Bank (down 1.59%), Bharat Heavy Electricals (Bhel) (down 1.06%) and Sesa Sterlite (down 1%) edged lower from the Sensex pack.
IT stocks edged after strong trade data boosted expectations for US economic growth. US is the biggest outsourcing market for the Indian IT firms.
HCL Technologies rose 1.5% to Rs 1,275 after hitting a record high of Rs 1,277 in intraday trade.
Infosys rose 0.08%. Infosys unveils Q3 December 2013 results on Friday, 10 January 2014. At the time of announcement of Q2 September 2013 results in October 2013, Infosys had raised its revenue guidance in both dollar and rupee terms. The increase in revenue growth guidance in rupee terms was driven by weakness in rupee against the dollar. At that time, the company had issued a forecast of 21% to 22% growth in revenue in rupee terms based on the assumption of rupee dollar conversion rate of 62.61 for the rest of the fiscal year. The company had at that time forecast 9% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014).
Tata Consultancy Services (TCS) gained 1.45%.
Tech Mahindra advanced 2.56%.
Wipro declined 0.18%.
JSW Steel rose 0.13% after the company during market hours unveiled production data for December 2013. JSW Steel's crude steel production rose 11% to 1.05 million tonnes in December 2013 over December 2012. Production of flat rolled products rose 6% to 0.87 million tonnes in December 2013 over December 2012. Production of long rolled products declined 1% to 0.15 million tonnes in December 2013 over December 2012. JSW Steel said that the figures are after giving effect to the merger of JSW ISPAT Steel with the company.
In the foreign exchange market, the rupee edged higher against the dollar on global risk on sentiment. The partially convertible rupee was hovering at 62.225, 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.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 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 Taiwan, Hong Kong, Singapore and Japan rose by 0.63% to 1.17%. Key benchmark indices in China, South Korea and Indonesia fell by 0.1% to 0.39%.
China is due to publish December trade data today, 8 January 2014. China will release December inflation figures tomorrow, 9 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 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.
The IMF expects to upgrade its outlook for global economic growth, IMF Managing Director Christine Lagarde told reporters in Kenyan capital of Nairobi. The organization plans to announce new forecast "in about three weeks from now," she said.
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