Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 16 points at the opening bell. The market may remain volatile today, 26 September 2013, as traders roll over positions in the futures & options (F&O) segment from the near month September 2013 series to October 2013 series. The September 2013 F&O contracts expire today, 26 September 2013.
Car maker Maruti Suzuki India will reportedly raise vehicle prices by up to Rs 10000 in the first week of October to offset higher input costs, caused mainly by a sharp fall in the local currency's value. A weak rupee adds to inflation by swelling the cost of imported parts for companies such as Maruti as well as for their auto-parts suppliers. Fuel retailers have also increased the prices of diesel, the fuel used by trucks to transport vehicles.
The Reserve Bank of India (RBI) said on Wednesday, 25 September 2013, that liquidity conditions in the banking system have been tightening as reflected in the hardening of yields in the government securities market due to uncertainties around the Government borrowing programme for the second half of 2013-14 as well as the prospective effects of banks' half-yearly account closure, the seasonal pick-up in credit demand, festival-related demand for currency and sluggish deposit growth. The RBI is closely and continuously monitoring liquidity conditions and will take actions as appropriate, including open market operations, to ensure that adequate liquidity is available to support the flow of credit to productive sectors of the economy, the central bank said in a statement.
The Reserve Bank of India last week began a calibrated unwinding of the exceptional measures undertaken since July so as to restore normalcy to financial flows. Currently, the RBI is injecting about Rs 1.5 lakh crore in into the system on a daily basis through the liquidity adjustment facility (LAF), the export credit refinance facility (ECR) and the marginal standing facility (MSF) taken together.
Key benchmark indices edged lower in choppy trade on Wednesday, 25 September 2013, with the market sentiment hit adversely by the government's failure to raise fuel prices. The S&P BSE Sensex fell 63.97 points or 0.32% to settle at 19,856.24 on that day, its lowest closing level since 17 September 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 382.45 crore on Wednesday, 25 September 2013, as per provisional data from the stock exchanges.
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Asian stocks were mixed on Thursday. Key benchmark indices in China, Hong Kong and Taiwan were off 0.63% to 1.3%. Key benchmark indices in Indonesia, Japan, and South Korea rose by 0.03% to 0.66%.
US stocks dropped on Wednesday, with the S&P 500 index recording its longest decline since December, as a possible government shutdown overrode better-than-forecast economic reports. The Senate voted 100-0 on Wednesday to pass a stopgap spending measure, with Democrats planning to get rid of language from the House version that would remove funding of the 2010 Affordable Care Act. Without an accord to hasten Senate consideration of the bill, a vote on its passage could come as late as Sunday, giving the House one day to move before spending authority lapses. Separately, Treasury Secretary Jacob Lew told legislators that he'll run out of options to avoid hitting or surpassing the debt limit by Oct. 17 or sooner.
A report from the Commerce Department showed that new-home sales rose last month after an unexpected drop in July. Another data showed that orders for US durable goods unexpectedly bounced back last month on the back of demand for autos.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus.
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