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Market slightly lower in early trade

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Capital Market
Last Updated : Oct 22 2013 | 11:56 PM IST

A bout of volatility was seen in early trade as the key benchmark indices once again sink in red after turning positive from a lower start triggered by negative Asian stocks. The S&P BSE Sensex was down 20.86 points or 0.1%, up 23.25 points from the day's low and off 21.06 points from the day's high. The market breadth, indicating the overall health of the market, was positive.

TCS rose after the company won a multi-million, multi-year technology contract to manage Bombardier Transportation's newly commissioned German data centres. Wipro and Cairn India advanced ahead of their Q2 September 2013 results today, 22 October 2013.

Foreign institutional investors (FIIs) bought shares worth a net Rs 1031.79 crore on Monday, 21 October 2013, as per provisional data from the stock exchanges.

At 9:25 IST, the S&P BSE Sensex was down 20.86 points or 0.1% to 20,873.03. The index rose 0.20 points at the day's high of 20,894.09 in early trade. The index fell 44.11 points at the day's low of 20,849.78 in early trade.

The CNX Nifty was down 4.30 points or 0.07% to 6,200.65. The index hit a high of 6,201.85 in intraday trade. The index hit a low of 6,187.90 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 499 shares gained and 304 shares fell. A total of 26 shares were unchanged.

The total turnover on BSE amounted to Rs 115 crore by 09:25 IST.

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Among the 30-share Sensex pack, 16 stocks gained and rest of them declined. RIL (down 0.81%), HDFC (down 0.88%) and ICICI Bank (down 0.83%) edged lower from the Sensex pack.

Wipro rose 1.14% ahead of its Q2 September 2013 results today, 22 October 2013.

Cairn India gained 1.42% ahead of its Q2 September 2013 results today, 22 October 2013.

TCS rose 1.28%. The company after market hours on Monday, 21 October 2013, announced that it has been selected by Bombardier Transportation, a global leader in rail transportation technology, to manage its IT infrastructure for newly commissioned data centers. The multi-year, multi-million deal is the first that TCS has signed with a rail-transportation technology provider, TCS said.

As part of the contract, TCS will provide remote infrastructure management (RIM) to Bombardier Transportation's recently established data centers in Germany. The new data centers will establish a leading-edge technology platform for Bombardier, through introduction of private cloud services paired with a high level of virtualization, TCS said.

Tata Steel rose 0.21%. Tata Steel, Europe's second largest steelmaker, has won a contract to supply rail track and steel sleeper plate to Britain's Network Rail for at least five years.

Network Rail, the company set up to operate and maintain Britain's rail infrastructure, has chosen to source more than 95% of its rail from Tata Steel until 2019, with the option to extend this until 2024, Tata Steel said in a statement.

The contract could see Tata Steel, which employs 18,500 people in the UK, supplying more than a million tonnes of rail for Britain's passenger and freight lines, the company said.

NHPC rose 1.85%. The company after market hours on Monday, 21 October 2013, said that the company's board of directors will consider a proposal for buy-back of equity shares on Thursday, 24 October 2013.

Asian markets were trading on a cautious note as investors awaited US jobs data which will determine when the Federal Reserve would start tapering. Key benchmark indices in South Korea, Taiwan, Hong Kong, China and Indonesia fell by 0.06% to 1.02%. Key benchmark indices in Singapore and Japan rose by 0.15% to 0.38%.

US stocks finished little changed on Monday, with the S&P 500 adding a fraction to its record close and the Nasdaq Composite extending gains into a fourth session, bolstered by Netflix Inc., which released earnings just after the close.

The US government will release the influential nonfarm-payroll data for September 2013 today, 22 October 2013. The data has been delayed due to the 16-day partial shutdown of the US government this month.

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 amid concerns about the strength of the economic recovery.

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First Published: Oct 22 2013 | 9:29 AM IST

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