Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade as rupee strengthened against the dollar after foreign minister Salman Khurshid said in an interview to business channel that the oil minister will on 16 September 2013 announce plans for lowering fuel consumption. The barometer index, the S&P BSE Sensex, was currently well above the psychological 19,000 mark, having alternately moved above and below that level in intraday trade. The Sensex and the 50-unit CNX Nifty, both, hit 3-week high. The Sensex was up 185.23 points or 0.98%, up about 235 points from the day's low and off close to 45 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Thursday, 5 September 2013.
Pharma stocks gained on renewed buying, with Cipla scaling a record high. Aviation stocks rallied as airlines in India recently announced a steep hike in airfares to mitigate the impact of the sharp fall in the rupee and surge in jet fuel prices. Reliance Communications edged higher after the company said at the time of appointment of CEO of its India Enterprise Business that it expects 30% growth in revenue and profits of the division per annum over the next 5 years.
The market reversed initial gains triggered by higher Asian stocks. Volatility continued as key benchmark indices regained positive terrain after swinging alternately between positive and negative zone in morning trade. The market retained positive zone in mid-morning trade. The market extended gains and hit fresh intraday high in early afternoon trade. The Sensex and the 50-unit CNX Nifty, both, hit 3-week high.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 5 September 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1101.41 crore on Thursday, 5 September 2013, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee strengthened against the dollar after foreign minister Salman Khurshid said in an interview to business channel that the oil minister will on 16 September 2013 announce plans for lowering fuel consumption. The partially convertible rupee was hovering at 65.7125, stronger than its close of 66.01/02 on Thursday, 5 September 2013.
"No matter what happens, we will have to cut down on fuel consumption. You can't keep subsiding costs of fuel and not restrict the use of the fuel," Khurshid said. He said that increasingly people are realising the "inevitability" of moving away from government-controlled prices. "That's beginning to happen, but has political implications," he said.
More From This Section
A sharp slide in rupee this year and higher crude oil prices have triggered concerns about increase in India's fiscal deficit and current account deficit.
At 12:20 IST, the S&P BSE Sensex was up 185.23 points or 0.98% to 19,164.99. The index jumped 232.47 points at the day's high of 19,212.23 in early afternoon trade, its highest level since 16 August 2013. The index fell 50.38 points at the day's low of 18,929.38 in morning trade.
The CNX Nifty was up 54.10 points or 0.97% to 5,647.05. The index hit a high of 5,658.65 in intraday trade, its highest level since 16 August 2013. The index hit a low of 5,566.15 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,144 shares rose and 828 shares fell. A total of 129 shares were unchanged.
Among the 30-share Sensex pack, 21 stocks rose and rest of them fell. Bharti Airtel (up 2.96%), Jindal Steel & Power (up 3.13%) and Wipro (up 2.23%), rose.
ICICI Bank rose 4.6%, with the stock extending intraday gain.
Pharma stocks gained on renewed buying. Dr Reddy's Laboratories (up 1.48%), Ranbaxy Laboratories (up 1.91%) and Sun Pharmaceutical Industries (up 1.3%), gained.
Cipla rose 3.57% to Rs 433.75 after hitting a record high of Rs 436 in intraday trade today, 6 September 2013.
Aviation stocks rallied as airlines in India recently announced a steep hike in airfares to mitigate the impact of the sharp fall in the rupee and surge in jet fuel prices. Jet Airways (up 6.9%), Kingfisher Airlines (up 10%), and SpiceJet (up 3.62%), edged higher.
State-run Air India on Thursday, 5 September 2013, hiked passenger fares by 23% to 25% on all domestic routes on the back of sharp jump in fuel price. Jet Airways had on Wednesday, 4 September 2013, announced increase in fares by up to 25%. Budget carrier SpiceJet recently increased fares by 25%.
The price of jet fuel or aviation turbine fuel (ATF) was hiked by a steep 6.9%, taking the rate to Rs 75,031 per kilolitre (KL) from 1 September 2013. This hike had come on the back of two rounds of ATF price hikes effected in July and August by oil marketing companies. ATF prices were increased by 5.8% on July 1 and by another 6.3% on August 1.
ATF or jet fuel constitutes more than 50% of operating cost for airliners. Prices of jet fuel are directly linked to crude oil prices.
Reliance Communications edged higher after the company said at the time of appointment of CEO of its India Enterprise Business that it expects 30% growth in revenue and profits of the division per annum over the next 5 years. The stock was up 1.26%.
Reliance Communications (RCom) today, 6 September 2013 ,announced the appointment of Mr. Deepak Khanna as CEO of its India Enterprise Business. Mr. Khanna, a MBA from the Symbiosis Institute of Management Studies, Pune, has rich and varied experience of 25 years, of which the last 15 years have been in the telecom sector, a statement from Reliance Communications (RCom) said. Prior to joining RCom, Deepak has worked in leadership roles with Bharti Airtel and Tulip Telecom in this space.
Assuming his new responsibilities at the RCom campus in Navi Mumbai, Deepak said: "Reliance is ideally positioned in the enterprises domain, already serving over 45,000 large, medium and small enterprises, including nearly 850 of the top 1,000 corporates in India. We are committed to enhancing our market leadership, working as strategic partners with our valued enterprise customers, delivering a suite of world class products accompanied by flawless execution. We see exciting growth potential in the enterprise business in the years ahead, and expect to register 30% per annum compounded growth in this space in both, revenues and profitability over the next 5 years."
The stock market remains closed on Monday, 9 September 2013, on account of Ganesh Chaturthi.
The Reserve Bank of India said on Thursday that it will release the next Mid-Quarter Review of Monetary Policy 2013-14 at 11 IST on 20 September 2013 instead of 18 September 2013 as indicated in the First Quarter Review of Monetary Policy 2013-14. This will be followed by Governor Dr. Raghuram Rajan addressing the media in the afternoon.
Most Asian stocks gained on Friday, 6 September 2013, extending a six-day advance as investors await the monthly American jobs report later in the global day. Key benchmark indices in China, Hong Kong, South Korea, and Singapore rose by 0.19% to 0.76%. Key benchmark indices in Indonesia, Taiwan, and Japan shed by 0.06% to 1.45%.
Leaders of the world's biggest economies at a Group of 20 summit in Russia grappled with threats to the global economy as the effects of the Syrian conflict added to the fallout from a potential stimulus exit. The BRICS countries pledged yesterday in St. Petersburg to create a $100 billion pool of currency reserves to guard against shocks even as Russia said US President Barack Obama sought to ease concern about an abrupt pullback. Chinese and Italian officials warned that military intervention in Syria would risk harming the global economy. China will contribute $41 billion to a pool of BRICS reserves, with Russia, India and Brazil each adding $18 billion and South Africa providing $5 billion, according to a statement issued yesterday. The BRICS countries, which also agreed to seed a new development bank with $50 billion of capital, are seeking a shield against unintended negative spillovers from unconventional monetary policies in developed economies, according to the statement.
Trading in US index futures indicated a flat opening of US stocks on Friday, 6 September 2013. US stocks on Thursday climbed for a third consecutive session, with the Dow Jones Industrial Average posting its longest winning run since the middle of July, as investors looked to the government's monthly jobs report. Claims for US unemployment benefits declined by 9,000 to 323,000 in the week ended August 31, less than the estimates. Another report showed companies boosted employment by 176,000 workers in August, according to the ADP Research Institute.
The influential US nonfarm payroll report for August 2013 is due for release today, 6 September 2013. The employment numbers will be keenly watched given the implications for the timing of the Federal Reserve's plan to begin slowing the pace of its monetary stimulus.
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.
In Europe, European Central Bank indicated recent improvements in the euro zone's economy haven't been strong enough for a pullback from the bank's easy monetary policies. While the ECB's Governing Council left its benchmark lending rate unchanged at 0.5% at its meeting Thursday, ECB President Mario Draghi said policy makers had discussed lowering the rate. He also said inflation expectations are contained, which will give the central bank room to hold off on raising rates for some time.
The Bank of England also on Thursday offered no surprises, leaving the size of its bond-buying program unchanged and holding its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee left its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($585 billion). The minutes from the September 4 meeting will be published on September 18. The central bank has said it aims to keep rates low at least until the UK unemployment rate drops below 7%, which it doesn't expect will happen until 2016.
German exports unexpectedly fell in July, even as a recovery gathered pace in the 17-nation euro area, its biggest trading partner. Exports, adjusted for working days and seasonal changes, fell 1.1% from June, when they gained 0.6%, the Federal Statistics Office in Wiesbaden said today.
Powered by Capital Market - Live News