Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks. The Sensex was up 63.86 points or 0.31%, off close to 65 points from the day's high and up about 95 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Infosys extended Friday's gains triggered by the company raising its revenue guidance for the full year at the time of announcement of Q2 September 2013 results before trading hours on Friday, 11 October 2013. Many other IT stocks extended Friday's gains triggered by IT major Infosys' upward revision in its revenue guidance for the full year. TCS scaled record high ahead of its Q2 result tomorrow, 15 October 2013. Wipro extended initial gains. Tech Mahindra hit 52-week high after the Reserve Bank of India enhanced the limit for foreign institutional investors to purchase shares in the company to 45% of the paid up capital of the company. Auto stocks extended recent gains, with Tata Motors hitting record high.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between gains and losses. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 11 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1010.45 crore on Friday, 11 October 2013, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar tracking weakness in regional shares and currencies. The partially convertible rupee was hovering at 61.19, weaker than its close of 61.07/08 on Friday, 11 October 2013.
At 10:20 IST, the S&P BSE Sensex was up 63.86 points or 0.31% to 20,592.45. The index jumped 117.35 points at the day's high of 20,645.94 in morning trade, its highest level since 20 September 2013. The index fell 30.71 points at the day's low of 20,497.88 in early trade.
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The CNX Nifty was up 13.75 points or 0.23% to 6,109.95. The index hit a high of 6,124.10 in intraday trade, its highest level since 20 September 2013. The index hit a low of 6,082.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 958 shares gained and 583 shares fell. A total of 93 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose and rest of them fell. Dr Reddy's Laboratories (up 1.48%), Coal India (up 1.45%) and L&T (up 0.69%), edged higher.
Auto stocks extended recent gains. M&M rose 0.74%. Maruti Suzuki India gained 0.2%.
Ashok Leyland rose 2.06% to Rs 17.30. A block deal of 87.85 lakh shares was executed in the counter on BSE at Rs 17.20 per share at 9.42 IST.
Tata Motors gained 1.48% to Rs 390.85, with the stock extending recent rally triggered by the company's British luxury car unit Jaguar Land Rover (JLR) reporting decent growth in retail sales for September 2013. The stock hit record high of Rs 393 in intraday trade. JLR last week said its retail sales jumped 17% to 43,181 vehicles in September 2013 over September 2012. Sustained sales growth continues for JLR, with increase in retail sales in all major regions, JLR said in statement. Retail sales of the Land Rover brand rose 13% to 34,719 vehicles in September 2013 over September 2012. Sales of the Jaguar brand jumped 35% to 8,462 vehicles in September 2013 over September 2012.
Infosys extended Friday's gains triggered by the company raising its revenue guidance for the full year at the time of announcement of Q2 September 2013 results before trading hours on Friday, 11 October 2013. The stock was up 1.16% at Rs 3,311.90. The scrip had hit 52-week high of Rs 3,360 in intraday trade on Friday.
Many other IT stocks extended Friday's gains triggered by IT major Infosys' upward revision in its revenue guidance for the full year. Wipro rose 3.71% to Rs 506.25, with the stock extending intraday gain. The stock hit 52-week high of Rs 507.70 in intraday trade.
IT major TCS gained 1.7% to Rs 2160.20 ahead of its Q2 result tomorrow, 15 October 2013. The stock hit record high of Rs 2166 in intraday trade.
Tech Mahindra rose 1.93% to Rs 1578.45 after the central bank enhanced the limit for foreign institutional investors to purchase shares in the company to 45% of the paid up capital of the company. The stock hit 52-week high of Rs 1585.40 in intraday trade. The Reserve Bank of India (RBI) enhanced the limit for foreign institutional investors (FIIs) to invest to up to 45% of the paid-up capital of Tech Mahindra. This limit has been revised from the earlier limit of 35% of the paid-up capital of the company under the Portfolio Investment Scheme (PIS). FIIs, at the end of September 2013, controlled 32.59% stake in the company, while promoters holding stood at 36.46%.
On the macro front, industrial production growth slowed to 0.6% in August 2013 from an upwardly revised 2.8% pace in July, hurt by weak investment and consumer demand, government data showed on Friday, 11 October 2013. The entire growth in industrial production in August 2013 was mainly driven by 7.2% surge in electricity generation. The mining output continued to witness decline in output, while the manufacturing sector output also recorded fall in August 2013.
Data on inflation based on the wholesale price index (WPI) and the consumer price index (CPI), both, for September 2013, are due today, 14 October 2013. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India is seen easing a bit 9.4% in September 2013 from 9.52% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The CPI had decelerated to 9.52% in August 2013 from 9.64% in July 2013. Inflation for the category 'food and beverages' stood at 11.06% in August 2013.
The annual rate of inflation, based on the monthly wholesale price index (WPI) is seen easing slightly to 6% in September 2013 from 6.1% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The WPI had accelerated to 6.1% in August 2013 from 5.79% in July 2013.
Asian stocks dropped on Monday, 14 October 2014, weighed by an unexpected drop in exports from China and as American lawmakers struggled over an accord to raise the nation's debt limit and restore government operations. Key benchmark indices in Singapore, South Korea, and Taiwan fell 0.04% to 0.78%. China's Shanghai Composite rose 0.46%. Stock markets in Japan, Indonesia and Hong Kong were shut for holidays.
China's exports unexpectedly fell in September and inflation jumped on food prices, signaling constraints on the nation's recovery as Premier Li Keqiang seeks to sustain growth without adding monetary stimulus. Overseas shipments dropped 0.3% from a year earlier, customs data showed on 12 October, while imports rose a more-than-forecast 7.4%. Consumer prices rose 3.1% as food costs advanced the most since May 2012, statistics bureau figures showed in Beijing.
Trading in US index futures indicated that the Dow could fall 96 points at the opening bell on Monday, 14 October 2013. Senate Republicans and Democrats met Sunday in a bid to broker a budget deal as the Republican-led House and President Barack Obama remained deadlocked. The Republicans want compromises on Obama's health-care law, while Democrats have called for one-year deals for "clean" budget and debt-ceiling resolutions that have no cutbacks in funding the health-care program. Much of the US government also remained shut down for the 13th day, with a bill to restore funding for operations seen as likely to feature in any deal.
The Treasury Department's Oct. 17 deadline for raising the debt ceiling is rapidly approaching. Failure to raise the debt limit could be catastrophic for the US economy. Without an increase to the debt limit, the US will exhaust its borrowing authority on Thursday, 17 October 2013, and would run out of funds to pay all of its bills sometime between October 22 and October 31, according to the Congressional Budget Office.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength as policy makers mull the timing of reductions in bond buying. Government data from payrolls to retail sales will be delayed as long as the shutdown continues. 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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