A bout of volatility was witnessed as key benchmark indices trimmed gains in afternoon trade after global credit rating agency Standard and Poor's (S&P) affirmed its 'BBB-/A-3' sovereign credit rating on India while retaining negative rating outlook on Asia's third-largest economy. The barometer index, the S&P BSE Sensex, was up 189.59 points or 0.91%, off close to 58 points from the day's high and up about 218 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
L&T rose after the company said its construction division won new orders worth Rs 2309 crore across various business segments in October and November 2013. Titan Industries dropped after the central bank put restriction on fresh foreign portfolio investment in the company's shares. Sobha Developers rose on good Q2 result. Wockhardt surged after the UK health regulator allowed its Kadaiya, Nani Daman facility to manufacture and supply most of the products approved to be produced at the unit.
A bout of initial volatility was witnessed as key benchmark alternately swung between positive and negative terrain. Volatility continued in morning trade. Key benchmark indices moved in a narrow range in mid-morning trade. A sudden surge took the key benchmark indices to fresh intraday high in early afternoon trade. The Sensex regained the psychological 21,000 mark. Key benchmark indices pared gains in afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Wednesday, 6 November 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 271.70 crore on Wednesday, 6 November 2013, as per provisional data from the stock exchanges.
S&P said in its statement that India's institutional strengths and high international reserves supported its investment-grade rating on India. However, the agency noted a marked slowdown in India's real growth, which complicates the government's debt dynamics and ability to implement reforms. S&P added that the outlook remained negative, indicating that it may lower the rating to speculative grade next year if the government that takes office after the general election does not appear capable of reversing India's low economic growth.
At 13:15 IST, the S&P BSE Sensex was up 189.59 points or 0.91% to 21,084.53. The index jumped 247.91 points at the day's high of 21,142.85 in early afternoon trade, its highest level since 5 November 2013. The index fell 28.06 points at the day's low of 20,866.88 in early trade.
The CNX Nifty was up 51.65 points or 0.83% to 6,266.80. The index hit a high of 6,288.95 in intraday trade, its highest level since 5 November 2013. The index hit a low of 6,207.35 in intraday trade, its lowest level since 29 October 2013.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 1,253 shares rose and 1,014 shares fell. A total of 152 shares were unchanged.
Among the 30-share Sensex pack, 24 stocks rose and rest of them fell. Tata Steel (up 4.47%), Infosys (up 2.54%), TCS (up 2.26%), Hindalco Industries (up 2.21%), Sesa Sterlite (up 2.08%), ONGC (up 1.68%), M&M (up 1.24%), Wipro (up 1.15%) and Bajaj Auto (up 1.02%), edged higher from the Sensex pack.
Bhel (down 3.81%), Coal India (down 0.82%), Bharti Airtel (down 0.65%), Tata Motors (down 0.31%), GAIL (India) (down 0.19%) and Dr Reddy's Laboratories (down 0.04%), edged lower from the Sensex pack.
L&T rose 1.3% L&T rose after the company said its construction division won new orders worth Rs 2309 crore across various business segments in October and November 2013. The announcement was made during trading hours.
Titan Industries fell 2.57% after the Reserve Bank of India (RBI) put restriction on fresh foreign portfolio investment in the company's shares. The RBI on Wednesday, 6 November 2013, notified that the aggregate net purchases of equity shares in Titan Industries by FIIs in the primary/secondary markets under Portfolio Investment Scheme (PIS) had reached the trigger limit. Hence, further purchases of equity shares of the company would be allowed only after obtaining prior approval of the RBI.
FIIs, at the end of September 2013, controlled 22.43% stake in Titan Industries, while promoters holding stood at 53.05%.
Wockhardt surged 8.43% after the UK health regulator allowed its Kadaiya, Nani Daman facility to manufacture and supply most of the products approved to be produced at the unit. The announcement was made after market hours on Wednesday, 6 November 2013.
Wockhardt said that UK's Medicine and Healthcare Products Regulatory Agency (UKMHRA) has allowed the company to manufacture and supply most of the products manufactured at the company's facility at Kadaiya in Nani Daman and assessed to be critical to public health. As a result the net impact on the annualised consolidated revenue is expected to be less than 1 million pounds, out of the total annual consolidated revenue of approximately 18 million pounds from the said facility, Wockhardt added.
Last month, UKMHRA had imposed restrictions on import of medicines made at Wockhardt's Kadaiya unit for violation of norms.
Sobha Developers rose 3.95% on good Q2 result. The company's consolidated net profit rose 13% to Rs 56.60 crore on 31% increase in revenue to Rs 545 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 6 November 2013.
Muthoot Finance (up 10.1%), Karnataka Bank (up 4.73%), HDIL (up 4.04%), Sail (up 3.84%), Bajaj Finance (up 3.66%), South Indian Bank (up 3.46%) and Adani Enterprises (up 3.15%), were among the major gainers among the BSE's 'A' group of shares.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 62.50, compared with its close of 62.39/40 on Wednesday, 6 November 2013. The rupee had declined sharply on Wednesday.
Asian stocks fell on Thursday, 7 November 2013, before US economic reports and the European Central Bank's policy meeting. Key benchmark indices in Singapore, China, Japan, Hong Kong and South Korea shed 0.03% to 0.77%. Key benchmark indices in Taiwan and Indonesia and rose 0.02% to 0.74%.
China's leaders will meet in Beijing on November 9-12 to map out economic policies as the country heads for its slowest annual growth in more than two decades.
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell on Thursday, 7 November 2013. Most US stocks rose on Wednesday, 6 November 2013, with the Dow Jones Industrial Average notching another record close, as investors bought into optimism that the Federal Reserve would continue its stimulus longer than thought, ahead of economic reports this week on the economy and the labor market.
Data on US GDP growth for Q3 September 2013 is due for release today, 7 November 2013. The GDP grew 2.5% in Q2 June 2013.
The US government will tomorrow, 8 November 2013, release nonfarm payrolls figures for October 2013. The job data is a key economic indicator that has been watched closely in recent months to see whether the US Federal Reserve will roll back its bond-buying program.
In Europe, the European Central Bank (ECB) holds a monetary policy meeting today, 7 November 2013. The ECB is seen retaining its key policy rate at a record-low 0.5%. The Bank of England is expected to keep monetary policy unchanged after a monetary policy review today, 7 November 2013.
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