Key benchmark indices edged lower in early trade as investors resorted to profit booking after a four-day rally. Asian stock markets were mostly lower on Wednesday with investors treading a bit cautiously after the recent strong upmove. The barometer index, the BSE Sensex hit day's high a tad below the psychological 20,000 mark. The S&P BSE Sensex was down 150.06 points or 0.75%, off 152.74 points from the day's high and up 14.30 points from the day's low. Index heavyweight and cigarette major ITC dropped in early trade. The market breadth, indicating the overall health of the market, was positive.
Foreign institutional investors (FIIs) bought shares worth a net Rs 2563.60 crore on Tuesday, 10 September 2013, as per provisional data from the stock exchanges.
At 9:25 IST, the S&P BSE Sensex was down 150.06 points or 0.75% to 19,847.03. The index lost 164.36 points at the day's low of 19,832.73 in early trade. The index rose 2.68 points at the day's high of 19,999.77 in opening trade.
The CNX Nifty was down 44.30 points or 0.75% to 5,852.45. The index hit a high of 5,887.40 in intraday trade. The index hit a low of 5,842.10 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 459 shares gained and 423 shares fell. A total of 37 shares were unchanged.
The total turnover on BSE amounted to Rs 186 crore by 09:30 IST.
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Among the 30-share Sensex pack, 18 stocks declined and rest of them gained.
Index heavyweight and cigarette major ITC lost 1.98% to Rs 328.75.
TCS rose 1.21% to Rs 2,010. The company after market hours on Tuesday, 10 September 2013 said it has bagged a five-year multi-million euros deal from Scandinavian Airlines (SAS) to help transform and optimise SAS' IT processes, applications and infrastructure. TCS will implement its proprietary cloud-based solutions to simplify and standardize the SAS IT landscape. The initiative is a part of the SAS "4 Excellence Next Generation" strategy, aimed at improving the competitiveness of the SAS Group. Through this partnership, SAS will also tap into TCS' Aviation and Digital Innovation Labs to develop solutions addressing the needs of the new digital consumer.
HCL Technologies rose 0.2%. HCL Technologies and Anglo American, one of the world's largest mining companies announced after market hours on Tuesday, 10 September 2013, that they have entered into an engagement where HCL will deliver IT services for Anglo American businesses across the globe. As a part of this contract, HCL will transform Anglo American's end user computing and data center landscape to improve operational efficiency, business agility and the user experience. The scope of service covers end to end infrastructure services, including data centre and hosting services, email services, service desk, local area network and security management, end user computing and on-site IT services, utilizing hybrid on-premise and cloud delivery models.
Mahindra & Mahindra (M&M) rose 0.54%. The company after market hours on Tuesday, 10 September 2013 said that it has crossed yet another milestone with over 4 lakh sales of its special utility vehicle (SUV), Scorpio.
Speaking on the milestone, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra, said, "This is a very proud moment for us, as the iconic and trend-setting Scorpio has achieved yet another milestone. This achievement reaffirms the Scorpio's immense popularity and the confidence that consumers have reposed in it over the years. Being one of the most admired and most awarded brands within the Indian automobile industry, the Scorpio has rightfully claimed its spot as the king of Indian roads".
NMDC fell 0.13% on reports that the Income Tax Department has slapped a Rs 1631 crore demand notice on the state-owned company for assessment years 2006-07, 2007-08, 2008-09 and 2009-10, alleging that the company had under invoiced some export accounts.
The Reserve Bank of India (RBI) on Tuesday said that banks can raise funds overseas above 50% of their Tier I capital with a minimum maturity of three years and swap these borrowings with the central bank at a concessional rate for one to three years.
"The swaps shall be available at a concessional rate of a 100 basis points below the market rate for all fresh borrowing with a minimum tenor of one year and a maximum tenor of three years, irrespective of whether such borrowings are in excess of 50% of their unimpaired Tier I capital or not," the RBI said.
RBI said despite the swaps being for the entire tenor of the borrowing, the rate shall be reset after every one year from the date of the swap at 100 basis points lower than the prevailing market rate, at the time of reset.
The RBI added that banks are free to borrow in any foreign currency but the swaps will be available only for conversion of the US dollar equivalent into rupees and will be computed at relevant cross rates on that day.
Asian stock markets were mostly lower on Wednesday with investors treading a bit cautiously after the recent strong upmove. Key benchmark indices in Taiwan, Hong Kong, Indonesia, South Korea and Singapore fell by 0.11% to 0.74%. Key benchmark indices in China and Japan rose by 0.63% to 0.94%.
US stocks rallied on Tuesday, with the S&P 500 continuing its longest stretch of gains since mid-July, after upbeat data from China and amid heightened diplomacy on Syria.
Meanwhile, US President Barack Obama took his case for military action against Syria directly to the American people Tuesday, adding that recent diplomatic developments could help solve a standoff over the nation's alleged use of chemical weapons.
The president, in a prime-time address from the White House, continued to build his case for military action. He said not punishing the regime of Syrian President Bashar al-Assad for allegedly using chemical weapons would embolden other tyrants to use such weapons and could potentially put US troops in danger in the future.
But Mr. Obama also said the recent diplomatic efforts were reason to pause with military plans, and he said he had asked Congress to put off voting on military strikes against Syria.
The president said those diplomatic developments have "the potential to remove the threat of chemical weapons without the use of force, particularly because Russia is one of Assad's strongest allies."
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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