Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade, with gains in Asian stocks boosting investor sentiment. The barometer index, the S&P BSE Sensex, was up 208.08 points or 1.13%, up close to 325 points from the day's low and off about 10 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Except BSE Power index, all the other sectoral indices on BSE were in the green.
L&T rose after the company said it has recently bagged new orders worth Rs 807 crore. Realty stocks gained as the path-breaking Land Acquisition Bill was passed by the Lok Sabha with overwhelming majority on Thursday, 29 August 2013. Sun Pharmaceutical Industries extended intraday gain.
A bout of volatility was witnessed in early trade as key benchmark indices trimmed losses after slipping into the red after a positive opening. The market regained positive terrain and hit fresh intraday high in morning trade. The Sensex extended gains and hit fresh intraday high in mid-morning trade.
At 11:20 IST, the S&P BSE Sensex was up 208.08 points or 1.13% to 18,609.12. The index jumped 220.86 points at the day's high of 18,621.90 in mid-morning trade, its highest level since 26 August 2013. The index fell 117.30 points at the day's low of 18,283.74 in early trade.
The CNX Nifty was up 59 points or 1.07% to 5,467.05. The index hit a high of 5,467.85 in intraday trade, its highest level since 26 August 2013. The index hit a low of 5,367.35 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,114 shares rose and 658 shares fell. A total of 105 shares were unchanged.
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Among the 30-share Sensex pack, 19 stocks rose and rest of them fell. Cipla (up 3.96%), Tata Steel (up 3.7%) and Wipro (up 3.54%), edged higher.
Sun Pharmaceutical Industries rose 2.71%, with the stock extending intraday gain.
L&T rose 1.29% after the company said it has recently bagged new orders worth Rs 807 crore. The company said during market hours today, 30 August 2013, that L&T Hydrocarbon has recently bagged new orders worth Rs 807 crore for the supply of cracking furnace modules and parts, supply of equipment, EPC execution of cryogenic ethylene package, civil, structural, mechanical, electrical and instrumentation for petrochemical complexes of all companies in India, Fabrication and assembly work for all the modules and equipment will be done at L&T's modular fabrication facility at Hazira near Surat.
Realty stocks rose as the path-breaking Land Acquisition Bill, which seeks to provide just and fair compensation to farmers while ensuring that no land can be acquired forcibly, was passed by the Lok Sabha with overwhelming majority on Thursday, 29 August 2013. HDIL (up 2.54%), DLF (up 2.06%), Sobha Developers (up 0.95%), D B Realty (up 2.1%) and Unitech (up 4.35%), rose.
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2012 stipulates mandatory consent of at least 70% for acquiring land for Public Private Partnership (PPP) projects and 80% for acquiring land for private companies. The bill, which will replace over a century-old law, proposes compensation that is up to four times the market value in rural areas and two times the market value in urban areas. The bill was passed with 216 votes in favour and 19 against.
Jayant Agro Organics gained 3.63% after the company entered into a joint venture agreement with two Japanese firms to focus on manufacturing castor oil based polyols. The company made this announcement after market hours on Thursday, 29 August 2013. Jayant Agro Organics and Mitsui Chemicals, Inc. Japan and Itoh Oil Chemicals Co., Japan have together entered into a joint venture agreement for investing in the equity shares of Vithal Castor Polyols in the ratio 50:40:10 respectively. The joint venture will be focused on manufacturing castor oil based polyols through Vithal Castor Polyol.
In the foreign currency market, the rupee dropped in choppy trade after Thursday's steep rally. The partially convertible rupee was hovering at 66.75, weaker than its close of 66.55/56 on Thursday, 29 August 2013. The rupee fell as stronger than expected US GDP growth in Q2 June 2013 raised fears that the data may lead the Federal Reserve to reduce the pace of its bond purchases soon.
The Forward Markets Commission (FMC), which regulates the commodity futures market in India, has raised the initial margin on gold futures to 5% from 4% for domestic traders effective Monday, 2 September 2013. The FMC move comes after gold prices rose 18% to reach a record high earlier this week. The FMC also imposed an additional 5% margin on gold, silver and crude oil futures contracts from Monday, 2 September 2013.
The Central Statistics Office (CSO) will unveil data on gross domestic product (GDP) for Q1 June 2013 at 17:30 IST today, 30 August 2013. The GDP growth is seen moderating further to 4.7% in Q1 June 2013, from 4.78% in Q4 March 2013, as per the median estimate of a poll of economists carried out by Capital Market. The GDP grew 5% in the year ended 31 March 2013, the weakest in a decade, as falling domestic and overseas demand, crumbling domestic infrastructure facilities, bureaucratic delays in approvals for industrial projects and high borrowing costs choked investments in the economy.
Most Asian stocks rose on Friday, 30 August 2013, following overnight gains in US stocks triggered by data showing that the US economy expanded more rapidly than previously thought in the second quarter. Key benchmark indices in Hong Kong, South Korea, Indonesia, Singapore, Taiwan and China rose by 0.09% to 0.93%. Japan's Nikkei Average fell 0.38%.
Japan's consumer prices increased at the fastest pace since 2008 in July, adding to signs that Prime Minister Shinzo Abe is making progress in pulling the economy out of 15 years of deflation. Consumer prices excluding fresh food climbed 0.7% from a year earlier, the statistics bureau said today in Tokyo.
Trading in US index futures indicated that the Dow could gain 49 points at the opening bell on Friday, 30 August 2013. US stocks rose on Thursday, 29 August 2013, as data showed the economy expanded at a faster pace in the second quarter and concerns over Syria eased. Gross domestic product rose at a 2.5% annualized rate, up from an initial estimate of 1.7%, Commerce Department figures showed Thursday in Washington. Jobless claims in the week ended August 24 dropped 6,000 to 331,000 from a revised 337,000 the week before that was higher than initially reported, the Labor Department said
US markets remain closed on Monday, 2 September 2013, for the Labor Day holiday.
The prospect of imminent military strikes on Syria receded as the UK and France said they favor waiting for the results of a United Nations investigation into alleged use of chemical weapons. The UK Parliament has voted against the use of force in Syria. The US which says it has evidence that Syria's government was responsible, won't act without allies, Defense Secretary Chuck Hagel said. Meanwhile, the White House told US congressional leaders that a potential strike on Syria would focus on removing the regime's chemical-weapons capability.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled next 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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