Volatility struck bourses in morning trade as the key benchmark indices trimmed initial losses only to weaken once gain. The barometer index, the S&P BSE Sensex, briefly turned positive only to sink in negative zone amid volatility. The S&P BSE Sensex was down 48.60 points or 0.23%, off 56.99 points from the day's high and up 31.83 points from the day's low. The market breadth, indicating the overall health of the market, was positive. In the foreign exchange market, the rupee weakened against the dollar.
Index heavyweight and cigarette major ITC rose ahead of its Q2 results today, 25 October 2013. ICICI Bank also rose ahead of its Q2 results today, 25 October 2013. But, GAIL (India) lost ahead of its Q2 results today, 25 October 2013. IT stocks gained as the rupee dropped against the dollar.
Key benchmark indices trimmed initial losses triggered by negative Asian stocks. Volatility struck bourses in morning trade as the key benchmark indices trimmed initial losses only to weaken once gain.
Foreign institutional investors (FIIs) bought shares worth a net Rs 991.83 crore on Thursday, 24 October 2013, as per provisional data from the stock exchanges.
At 10:16 IST, the S&P BSE Sensex was down 48.60 points or 0.23% to 20,676.83. The index lost 80.43 points at the day's low of 20,645 in early trade, its lowest level since 23 October 2013. The index rose 8.39 points at the day's high of 20,733.82 in morning trade.
The CNX Nifty was down 23.70 points or 0.38% to 6,140.65. The index hit a low of 6,133.85 in intraday trade, its lowest level since 23 October 2013. The index hit a high of 6,161.10 in intraday trade.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 692 shares gained and 643 shares fell. A total of 69 shares were unchanged.
The total turnover on BSE amounted to Rs 398 crore by 10:20 IST as compared to Rs 149 crore by 09:30 IST.
Among the 30-share Sensex pack, 20 stocks declined and rest of them gained.
Index heavyweight and cigarette major ITC rose 0.26% ahead of its Q2 results today, 25 October 2013.
ICICI Bank rose 0.47% ahead of its Q2 results today, 25 October 2013.
GAIL (India) lost 1.34% ahead of its Q2 results today, 25 October 2013.
IT stocks gained as the rupee dropped against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Infosys rose 0.26% to Rs 3,318.60. The scrip had hit a 52-week high of Rs 3,372 in intraday trade on Thursday, 24 October 2013. The company announced after market hours on Thursday, 24 October 2013 that the head of its banking services solution platform Finacle, Haragopal Mangipudi, and 11 others have been inducted to its top decision-making body, the Executive Council.
The Council is the company's top-level body, which is responsible for strategic decision-making.
It includes the company's executive board, the heads of its key business units and strategic business-enabler units, the company said in a filing with the Bombay Stock Exchange and the U.S. Securities Exchange Commission.
The head of the company's Growth Markets segment, Dheeshjith V. G., Eric Paternoster, Ganesh T. Gopalakrishnan, Ganesh Thakkar, Jackie Korhonen, Manish Tandon, Muralikrishna K, Ravi Kumar S, Ronald Hafner, Sanjay Jalona and Subrahmanyam Goparaju have been appointed as members of the Council.
The appointments would take effect from November 1, the company said. Those appointed would be entitled to an annual allowance of $150,000. The council at present has a strength of 16 members and the expansion is the biggest since N. R. Narayana Murthy returned to assume leadership of Infosys.
TCS rose 1.36% to Rs 2,036. The stock turned ex-dividend today, 25 October 2013, for a second interim dividend of Rs 4 per share for the year ending 31 March 2014. The stock had hit record high of Rs 2,258.05 in intraday trade on 15 October 2013. The company after market hours on Monday, 21 October 2013, announced that it has been selected by Bombardier Transportation, a global leader in rail transportation technology, to manage its IT infrastructure for newly commissioned data centers. The multi-year, multi-million deal is the first that TCS has signed with a rail-transportation technology provider, TCS said.
Wipro gained 2.04% on bargain hunting after recent steep fall triggered by the company's dollar revenue growth from IT services in Q2 September 2013 lagging that of its peer companies. Wipro announced the result after market hours on Tuesday, 22 October 2013.
Wipro reported 28% growth in consolidated net profit from continuing operations to Rs 1932 crore on 19% growth in revenue from continuing operations at Rs 10992 crore in Q2 September 2013 over Q2 September 2012. The results are as per International Financial Reporting Standards. Wipro said non-GAAP adjusted net profit from continuing operations jumped 29% to Rs 1932 crore in Q2 September 2013 over Q2 September 2012.
Non-GAAP constant currency IT services revenue in dollar terms grew 3.2% sequentially and 7.9% year-on-year (YoY), Wipro said. IT services revenue stood at $1.6311 billion in Q2 September 2013, a sequential increase of 2.7% and YoY increase of 5.9%. IT services revenues in rupee terms stood at Rs 10068 crore in Q2 September 2013, an increase of 20% YoY. IT services Earnings Before Interest and Tax (EBIT) was Rs 2264 crore in Q2 September 2013, an increase of 31% YoY.
Wipro expects 1.77% to 3.61% growth in revenues from IT services business at $1.66 billion to $1.69 billion in Q3 December 2013 over Q2 September 2013.
HCL Technologies gained 2.42% to Rs 1,080. The stock had hit record high of Rs 1,177 in intraday trade on 15 October 2013. The company last week said its consolidated net profit as per US accounting standards jumped 18.7% to Rs 1416 crore on 14% growth in revenue to Rs 7961 crore in Q1 September 2013 over Q4 June 2013.
In the foreign exchange market, the rupee weakened against the dollar. The partially convertible rupee was hovering at 61.66, compared with its close of 61.46 on Thursday, 24 October 2013.
Asian markets declined as forecasts from Canon Inc. to Posco disappointed investors. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea fell by 0.18% to 2%.
South Korea's economic growth maintained the same robust pace in the third quarter as the preceding quarter, beating market expectations and bolstering hopes that Asia's fourth-largest economy stays on a recovery track.
Gross domestic product rose a seasonally adjusted 1.1% in the July-September period from the previous quarter, when the economy grew at the same pace, the Bank of Korea said Friday. That is the strongest pace since the first quarter of 2011, when the economy grew 1.3% on quarter. On a year-on-year basis, the economy expanded 3.3% in the third quarter, accelerating from the second-quarter's 2.3% gain.
Japan chalked up a fourth month in a row of core consumer inflation in September, with a leading indicator for October prices showing a milder rise. The nationwide core consumer price index, which excludes volatile fresh-food prices, rose 0.7% from a year earlier, little changed from August's 0.8% increase. The index was up 0.1% on a monthly basis.
Trading in US index futures indicated that the Dow could fall 4 points at the opening bell on Friday, 25 October 2013. US stocks climbed on Thursday, with the S&P 500 gaining a day after halting a run to a record high, as economic data underscored views US monetary stimulus will be in place for long time.
The preliminary reading of Markit's US flash manufacturing purchasing managers index slipped to 51.1 in October from 52.8 in September, the lowest level for a year. Readings above 50 indicate expansion and the PMI in October signals only modest manufacturing growth.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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