Key benchmark indices edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex was up 83.37 points or 0.4%, up 31.06 points from the day's low and off 19.81 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Shares of car major Maruti Suzuki India scaled record high. Bank stocks edged higher in early trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 318.91 crore on Monday, 6 January 2014, as per provisional data from the stock exchanges.
Asian stocks edged higher on Tuesday, 7 January 2014, after Janet Yellen won US Senate confirmation on Monday, 6 January 2014, to become the 15th chairman of the Federal Reserve and the first woman to head the central bank in its 100-year history.
At 9:25 IST, the S&P BSE Sensex was up 83.37 points or 0.4% to 20,870.67. The index jumped 103.18 points at the day's high of 20,890.48 in early trade. The index rose 52.31 points at the day's low of 20,839.61 in early trade.
The CNX Nifty was up 27.25 points or 0.44% to 6,218.70. The index hit a high of 6,221.50 in intraday trade. The index hit a low of 6,203.60 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 856 shares gained and 215 shares fell. A total of 35 shares were unchanged.
The total turnover on BSE amounted to Rs 129.51 crore by 09:25 IST.
Among the 30-share Sensex pack, 24 stocks gained and rest of them declined.
Sun Pharmaceutical Industries (up 0.97%), L&T (up 1%) and Bhel (up 0.97%) edged higher from the Sensex pack.
Maruti Suzuki India advanced 1.48% to Rs 1,833.90 after hitting record high of Rs 1,839.50 in intraday trade.
Bank stocks edged higher in early trade. AXIS Bank (up 0.46%), HDFC Bank (up 0.47%) and ICICI Bank (up 1.44%) edged higher.
State Bank of India rose 0.55% to Rs 1,697. The state-run bank on 2 January 2014 said that the Executive Committee of the Central Board of the bank at its meeting held on 2 January 2014 has accorded its approval for the issuance and allotment of 1.12 crore equity shares at an issue price of Rs 1,782.74 per share to the Government of India (GoI) on preferential basis. The committee also approved the allotment of Basel III compliant Tier 2 bonds of Rs 2000 crore, issued for 120 months (10 year bullet), at an annually payable coupon of 9.69%, by way of private placement.
In the foreign exchange market, the rupee edged lower against the dollar in early trade. The partially convertible rupee was hovering at 62.36, compared with close of 62.31/32 on Monday, 6 January 2014.
The Reserve Bank of India on Monday, 6 January 2014, allowed Indian companies to issue non-convertible/redeemable preference shares or debentures to non-resident shareholders, including the depositories that act as trustees for the ADR/GDR holders, by way of distribution as bonus from its general reserves under a Scheme of Arrangement approved by a Court in India under the provisions of the Companies Act, as applicable, subject to no-objection from the Income Tax Authorities. This general permission to Indian companies is only for issue of non-convertible/redeemable preference shares or debentures to non-resident shareholders by way of distribution as bonus from the general reserves, the RBI said in a circular. The issue of preference shares (excluding non-convertible/redeemable preference shares) and convertible debentures (excluding optionally convertible/partially convertible debentures) under the Foreign Direct Investment (FDI) scheme would continue to be subject to A.P. (DIR Series) Circular Nos.73 and 74 dated 8 June 2007 as hitherto, the RBI said.
The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Q3 earnings season begins later this week when IT major Infosys and private sector bank IndusInd Bank unveil their earnings on Friday, 10 January 2014.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian stocks edged higher on Tuesday, 7 January 2014, after Janet Yellen won US Senate confirmation on Monday, 6 January 2014, to become the 15th chairman of the Federal Reserve and the first woman to head the central bank in its 100-year history. Key benchmark indices in Taiwan, Hong Kong, China, Singapore and South Korea were up 0.15% to 0.48%. Key benchmark indices in Japan and Indonesia were off 0.33% to 0.34%.
China is due to publish December trade data tomorrow, 8 January 2014, and December inflation figures on Thursday, 9 January 2014.
US stocks closed lower on Monday, with the S&P 500 index falling for a third consecutive session after weaker-than-expected services-sector data. The Institute for Supply Management said Monday its services index for December decelerated to 53% from 53.9% in November. In a separate report, orders for goods produced in US factories jumped 1.8% in November. The increase, led by orders for durable goods, suggests the manufacturing sector enjoyed stronger growth than the services side of the economy toward the end of last year.
Meanwhile, the Senate on Monday approved Janet Yellen to be the first woman to run the Federal Reserve in the central bank's 100-year history. Yelllen's four-year term will begin on 1 Feburary 2014. Currently Fed vice chairman, Yellen has backed Fed chairman Ben Bernanke's efforts to steer the US economy through its most severe crisis since the 1930s with record-low interest rates and three rounds of bond buying that have swelled Fed assets to $4.02 trillion. She pledged in a Nov. 14 confirmation hearing to press on with accommodation until achieving a "strong recovery."
The US Federal Reserve will release minutes of its December Federal Open Market Committee policy meeting tomorrow, 8 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually this year.
The US government will unveil the influential non-farm payroll report for December 2013 on Friday, 10 January 2014.
The European Central Bank holds a monetary policy meeting on Thursday, 9 January 2014. UK's central bank -- Bank of England -- also undertakes monthly monetary policy review on the same day.
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