Volatility continued as key benchmark indices alternately hovered between gains and losses in morning trade. The S&P BSE Sensex was up 6.06 points or 0.03%, off close to 30 points from the day's high and up about 65 points from the day's low. The market breadth, indicating the overall health of the market, turned positive from negative. IT stocks rose on weak rupee. GMR Infrastructure fell after the net loss widened in Q2 September 2013.
The market regained positive terrain after opening lower. The S&P BSE Sensex and the 50-unit CNX Nifty, both, recovered after hitting their lowest level in nearly five weeks. It alternately hovered between gains and losses in morning trade.
Asian stocks fell on Wednesday after China's leaders failed to outline steps to curb state dominance of the economy and amid bets the Federal Reserve may start reducing U.S. stimulus next month.
The rupee further weakened against the dollar. 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 10:25 IST, the S&P BSE Sensex was up 6.06 points or 0.03% to 20,287.97. The index fell 57.72 points at the day's low of 20,224.19 in early trade, its lowest level since 10 October 2013. The index rose 37.40 points at the day's high of 20,322.53 in morning trade.
The CNX Nifty was down 9.15 points or 0.15% to 6,008.90. The index hit a low of 5,994.25 in intraday trade, its lowest level since 10 October 2013. The index hit a high of 6,025.65 in intraday trade.
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The market breadth, indicating the overall health of the market, turned positive from negative. On BSE, 703 shares rose and 591 shares fell. A total of 52 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks fell and rest of them rose. Sesa Sterlite (down 2.08%), L&T (down 1.49%) and Hero MotoCorp (down 1.29%), declined.
IT stocks rose on weak rupee. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. Infosys (up 0.26%), TCS (up 0.02%), Wipro (up 0.82%) and HCL Technologies (up 0.79%), rose.
GMR Infrastructure fell 1.82% after the net loss widened in Q2 September 2013. The company posted a consolidated net loss of Rs 393.05 crore in Q2 September 2013, higher than the consolidated net loss of Rs 179.30 crore in Q2 September 2012. The result was announced after market hours on Tuesday, 12 November 2013.
GMR Infrastructure's consolidated total income increased 0.86% to Rs 2500.34 crore in Q2 September 2013 over Q2 September 2012.
In a separate announcement after market hours on Tuesday, 12 November 2013, GMR Infrastructure said that the group is establishing 3x350 megawatts (MW) coal-based thermal power plant at Kamalanga in Odisha's Dhenkanal District. The first unit of 350 MW commenced generation on 30 April 2013. The second 350 MW unit of GMR Kamalanga Energy (GKEL) was declared commercially operational on 11 November 2013.
Power produced from GKEL is being supplied to GRIDCO in Odisha in line with the long-term Power Purchase Agreement (PPA). Besides Odisha, GKEL would supply power to Haryana, Bihar and other parts of the country. GKEL secured coal linkage for all its 1050 MW capacity by signing Fuel Supply Agreements with Mahanadi Coalfields, GMR said in a statement.
With the commissioning of GKEL's second unit, the GMR Group's combined generation capacity has touched 2136 MW. Projects totalling 5038 MW are under implementation. Commissioning of GKEL's second unit follows close on the heels of the synchronization of the second unit of GMR's 2x300 MW EMCO Energy at Warora in Chandrapur District of Maharashtra on 27 August 2013. EMCO's first unit of 300 MW became commercially operational in March 2013, the company said.
Speaking on the occasion, GKEL's President & Director Mr. R.V. Sheshan, said, "GKEL is the largest investment made by the GMR Group in the energy sector. It is also one of the earliest private power projects to commence commercial operations in Odisha. GKEL is also making substantial efforts so that the quality of life of individuals in neighbouring communities is enriched by its transformational educational, health care, livelihood and grassroots infrastructure development focused CSR interventions."
The domestic bourses will remain shut tomorrow, 14 November 2013, on account of Moharram.
In the foreign exchange market, the rupee edged lower against the dollar after data showed lower than expected growth of industrial output in September and higher than expected rise in consumer inflation in October. The partially convertible rupee was hovering at 63.785, compared with its close of 63.71 on Tuesday, 12 November 2013.
On macro front, Index of industrial production (IIP) rose 2% in September 2013, showing increase in growth from 0.4% growth recorded in August 2013. The entire growth in IIP was mainly driven by 12.9% surge in electricity generation in September 2013. The mining output also witness rise in output, while the manufacturing sector output showed a marginal rise in September 2013. The industrial production growth for the month of August 2013 has been revised downwards to 0.4% from 0.6% reported earlier, while the growth for the month of June 2013 has undergone final revision, registering growth of (-1.8%). The data was announced after market hours on Tuesday.
The annual consumer price inflation quickened more than expected to 10.09% in October from 9.84% in September, driven by food prices, government data showed on Tuesday. Food prices for consumers last month rose 12.56% from a year earlier, faster than September's 11.44% rise. The data was announced after market hours on Tuesday.
Asian stocks fell on Wednesday after China's leaders failed to outline steps to curb state dominance of the economy and amid bets the Federal Reserve may start reducing U.S. stimulus next month. Key benchmark indices in China, Taiwan, Japan, South Korea, Singapore, Hong Kong and Indonesia shed 0.39% to 1.99%.
China elevated the role of markets while maintaining the state's dominance in the nation's economic strategy, seeking to balance finding new sources of growth with sustaining the Communist Party's grip on power. The nation will make markets "decisive" in allocating resources, according to yesterday's communique from the third full meeting, or plenum, of the party's 18th Central Committee in Beijing, which stopped short of unveiling detailed policy shifts. The state will remain "dominant" in the economy, indicating limits on reducing government involvement. China will set up a party panel to coordinate and supervise policies under the updated principles and more specific measures may follow in the coming weeks or months. The communique also announced the party's determination to draw a red line to protect the environment, after years of economic expansion have polluted China's soil, water and air. China will also reform its judicial system to protect people's rights, it said.
Trading in US index futures indicated that the Dow could fall 52 points at the opening bell on Wednesday, 13 November 2013. US stocks fell on Tuesday, with the Dow Jones Industrial Average retreating from a record, as corporate earnings and an improving economy fueled speculation the Federal Reserve will reduce stimulus next month.
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