A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving almost entire initial gains in morning trade. The S&P BSE Sensex was up 48.87 points or 0.24%, up about 45 points from the day's low and off close to 50 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Capital goods pivotals edged higher. Shares of two-wheeler makers also rose. Colgate-Palmolive (India) fell on weak Q2 result. Index heavyweight and cigarette major ITC extended Friday's losses as the company's top line growth in Q2 September 2013 disappointed investors.
The market trimmed initial gains triggered by firm Asian stocks. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving almost entire initial gains in morning trade.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month October 2013 series to November 2013 series. The near month October 2013 derivatives contract expire on Thursday, 31 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 626.99 crore on Friday, 25 October 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 48.87 points or 0.24% to 20,732.39. The index rose 87.84 points at the day's high of 20,771.36 in early trade. The index rose 5.56 points at the day's low of 20,689.08 in early trade.
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The CNX Nifty was up 10.95 points or 0.18% to 6,155.75. The index hit a high of 6,168.75 in intraday trade. The index hit a low of 6,145.50 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 924 shares gained and 767 shares fell. A total of 93 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest of them fell. RIL (up 1.69%), Hindustan Unilever (up 1.6%) and ICICI Bank (up 1.11%), gained.
Shares of two-wheeler makers rose. Hero MotoCorp (up 0.71%) and Bajaj Auto (up 0.6%), gained.
Capital goods pivotals edged higher. Shares of engineering and construction giant L&T rose 2.01%, with the stock extending recent rally triggered by the company reporting strong growth in order inflow in Q2 September 2013 at the time of announcement of its Q2 September 2013 results on 18 October 2013. The stock was 2.14%. L&T's order inflow rose 27% to Rs 26533 crore in Q2 September 2013 over Q2 September 2012.
Bhel gained 0.11%.
Index heavyweight and cigarette major ITC extended Friday's losses as the company's top line growth in Q2 September 2013 disappointed investors. The stock was off 2.94%. The company's net profit jumped 21.46% to Rs 2230.53 crore on 9.42% growth in total income to Rs 8108.72 crore in Q2 September 2013 over Q2 September 2012. The company declared Q2 result at fag end of the day's trading session on Friday, 25 October 2013.
Colgate-Palmolive (India) lost 3.81% on weak Q2 result. The company's net profit declined 24.51% to Rs 109.52 crore on 16% growth in net sales to Rs 895.70 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Friday, 25 October 2013.
During the quarter, the company achieved a volume growth of 10% over the corresponding previous year quarter, led by a strong growth of 9% in toothpaste category wherein the company further enhanced its leadership position by registering a 56% volume market share for January 2013-September 2013 period compared to 54.6% in January 2012-September 2012 period. The flagship brands "Colgate Dental Cream", "Active Salt", "Max Fresh" and "Colgate Total" along with the recently launched "Visible White" have contributed to this consistent growth, Colgate-Palmolive (India) said in a statement.
The company further strengthened its leadership position in the Toothbrush category by registering a volume market share of 41.4% for January 2013-September 2013 period as against 39.3% in January 2012-September 2012 period.
Despite the inflationary environment and pressure on the rupee, the company's focus on driving efficiencies and reducing costs coupled with prudent price increases has resulted in higher gross margin and help to fund investments in building and strengthening brand equity and business, Colgate-Palmolive (India) said.
Colgate-Palmolive (India)'s board of directors at a meeting held on Friday, 25 October 2013, declared a first interim dividend of Rs 9 per share for the year ending 31 March 2014.
Excel Crop Care was locked at 5% upper circuit at Rs 289.40 after company said its board of directors will consider a Scheme of Arrangement between the company and TML Industries, Vadodara, Gujarat for the transfer of the chemical business of TML Industries to Excel Crop Care. The board will consider this proposal along with Q2 September 2013 results on Wednesday, 30 October 2013.
The Reserve Bank of India (RBI) announces Second Quarter Review of Monetary Policy 2013-14 tomorrow, 29 October 2013. Market men expect RBI to hike its main lending rate viz. the repo rate by 25 basis points to rein in inflation. The wholesale price and consumer price inflation, both, accelerated in September 2013. WPI inflation accelerated to 6.46% in September 2013, from 6.1% in August 2013. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India rose 9.84% in September 2013, from 9.52% in August 2013.
The RBI will release its macroeconomic policy review at about 17:00 IST today, 28 October 2013, a day ahead of the Second Quarter Review of Monetary Policy 2013-14.
Asian stocks rose on Monday, 28 October 2013, after weaker than forecast US consumer confidence spurred bets the Federal Reserve will maintain stimulus. Key benchmark indices in Taiwan, Hong Kong, Singapore, Japan, Indonesia and South Korea rose 0.22% to 1.65%. China's Shanghai Composite fell 0.22%.
A Bank of Korea survey showed consumer sentiment rose this month to the highest level since May 2012.
Trading in US index futures indicated that the Dow could gain 58 points at the opening bell on Monday, 28 October 2013. US stocks rose on Friday, 25 October 2013, sending the Standard & Poor's 500 Index to a record, as Amazon.com Inc. and Microsoft Corp. sales beat estimates while a drop in consumer confidence added to speculation the Federal Reserve will delay scaling back monetary stimulus.
Data on US industrial production for September 2013 is due for release later in the global day today, 28 October 2013.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting tomorrow, 29 October and Wednesday, 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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