Intraday recovery on the bourses gathered steam in mid-afternoon trade. The S&P BSE Sensex was down 27.07 points or 0.13%, up 68.26 points from the day's low and off 115.10 points from the day's high. The market breadth, indicating the overall health of the market, was positive. In the foreign exchange market, the rupee edged lower against the dollar.
Shares of engineering and construction major L&T extended intraday surge after the company reported a strong growth in order inflow in Q2 September 2013 at the time of announcing its Q2 results after market hours on Friday, 18 October 2013. HDFC edged lower in volatile trade after its Q2 results hit the market in mid-afternoon trade. Metal and mining stocks edged higher as data last week showed acceleration in China's GDP growth in Q3 September 2013.
Key benchmark indices edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices reversed initial gains in morning trade. The barometer index, the S&P BSE Sensex, reversed direction after hitting its highest level in more than 35 months. The 50-unit CNX Nifty reversed direction after hitting 22-week high. Key benchmark indices extended intraday losses in early afternoon trade. Key benchmark indices trimmed losses after hitting fresh intraday low in early afternoon trade. Intraday recovery on the bourses gathered steam in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1752.98 crore on Friday, 18 October 2013, as per provisional data from the stock exchanges.
At 14:15 IST, the S&P BSE Sensex was down 27.07 points or 0.13% to 20,855.82. The index gained 88.03 points at the day's high of 20,970.92 in morning trade, its highest level since 9 November 2010. The index fell 95.33 points at the day's low of 20,787.56 in early afternoon trade.
The CNX Nifty was up 1.65 points or 0.03% to 6,191. The index hit a high of 6,218.95 in intraday trade, its highest level since 20 May 2013. The index hit a low of 6,166.85 in intraday trade.
More From This Section
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,296 shares gained and 1,000 shares fell. A total of 163 shares were unchanged.
The total turnover on BSE amounted to Rs 1394 crore by 14:20 IST.
HDFC edged lower in volatile trade after its Q2 results hit the market in mid-afternoon trade. The stock was off 0.4% at Rs 815.50. The stock hit a high of Rs 825 and low of Rs 804.50 so far during the day. The company's net profit rose 10% to Rs 1266.33 crore on 12.82% growth in total income to Rs 5953.98 crore in Q2 September 2013 over Q2 September 2012.
On a consolidated basis, HDFC's net profit rose 20.08% to Rs 1891.17 crore on 14.97% growth in total income to Rs 9982.71 crore in Q2 September 2013 over Q2 September 2012.
The National Housing Bank (NHB) vide its notification dated 6 September 2013 has reduced the provisioning requirement to 0.75% from the earlier 1% in respect of standard loans for Commercial Real Estate-Residential Housing. Accordingly, Rs 45.81 crore has been released from standard assets provisioning as on 30 September 2013, HDFC said. This amount is being adjusted through lower provisioning over a period of three quarters starting with Q2 September 2013, HDFC said.
As on 30 September 2013, the loan book of the company stood at Rs 1.84 lakh crore as against Rs 1.55 lakh crore as on 30 September 2012. This is after considering the loans sold during the preceding 12 months amounting to Rs 3792 crore, HDFC said.
Engineering and construction giant L&T surged 5.91%. The company after market hours on Friday, 18 October 2013, said its recurring profit after tax rose 7% to Rs 978 crore on 10% growth in gross revenue at Rs 14648 crore in Q2 September 2013 over Q2 September 2012. The company attributed top line growth to pick-up in execution of various jobs.
L&T said that the upward trend in order inflow was sustained in the second consecutive quarter of the year. Order inflow rose 27% to Rs 26533 crore in Q2 September 2013 over Q2 September 2012. L&T said that its order book at Rs 1.76 lakh crore as on 30 September 2013, increased 11% on year-on-year basis. International order book constituted 15% of the total order book.
L&T said that the macro-economic environment continues to remain weak and uncertain on account of the twin deficits, tight liquidity, persistent inflation and heightened volatility in the financial markets. Investment climate in the economy is yet to show sign of recovery. Deferral of new projects and delayed decision making/execution features the weak performance of the core sector this far, L&T said. The recent government measures such as improved allocation of resources to kick-start the stalled projects are, however, a welcome move to improve the investment sentiment, L&T said.
The company said its strategy of business development in select international markets has started yielding results as is evident from the increased share of international business. The company continues to focus on emerging prospects in the Middle East and other select international markets as part of its twin strategy to hedge against domestic slowdown and attain global competitiveness, L&T said in a statement. With its growing order book, increased international presence, and improved competiveness, the company is hopeful of meeting its growth aspirations in the near and medium term, L&T said.
India's largest power equipment maker by capacity Bhel lost 1.45%.
Sadbhav Engineering rose 5.06% after the company said it has been declared the successful bidder for a contract worth Rs 263.64 crore in respect of the bid invited by Bharat Coking Coal, Dhanbad. The announcement was made during trading hours today, 21 October 2013.
Pratibha Industries surged 5.58% after the company said it has secured an order worth Rs 321.88 crore from PHED (Ajmer), Rajasthan. Pratibha Industries said that the contract is scheduled to be completed in 36 months from the date of commencement. The new order was announced during trading hours today, 21 October 2013.
Metal and mining stocks edged higher as data last week showed acceleration in China's GDP growth in Q3 September 2013. China is the world's largest consumer of copper and aluminum. JSW Steel (up 2.63%), Tata Steel (up 2.53%), Sail (up 3.29%), NMDC (up 2.1%), Hindustan Copper (up 1.16%), Hindustan Zinc (up 0.41%) edged higher.
Sesa Sterlite gained 2.64% to Rs 200.45, with the stock extending Friday's 6.05% rally.
Hindalco Industries rose 2.7% after the Prime Minister's Office (PMO) on Saturday, 19 October 2013, said that the Prime Minister is satisfied that the final decision of allocation of Talabira-II and III coal blocks in Odisha to Mahanadi Coalfields, Neyveli Lignite Corporation and Hindalco Industries was entirely appropriate and is based on the merits of the case placed before him. The PMO said that the final decision on the Talabira coal block allocation differed from the earlier recommendation of the Screening Committee, and this was done following a representation received in the Prime Minister's Office from one of the parties, which was referred to the Ministry of Coal.
Hindalco, last week, claimed that the company had followed every process required for allocation of coal completely as stipulated by the government policy. The company issued the statement after the Central Bureau of Investigation (CBI) on 15 October 2013 named Aditya Birla Group Chairman Kumar Mangalam Birla in its 14th FIR in the coal block allocation case. CBI also filed FIRs against Nalco, Hindalco and former coal secretary PC Parakh.
Jindal Steel & Power shed 2.88%.
Redington India (up 9.95%), Indiabulls Power (up 4.54%), Lanco Infratech (up 4.48%), Supreme Industries (up 4.05%) and JSW Energy (up 3.59%), were among the major gainers in the BSE's Mid-Cap index.
In the foreign exchange market, the rupee edged lower against the dollar, tracking mild weakness of Asian currencies against the dollar. The partially convertible rupee was hovering at 61.4725, weaker than its close of 61.27/28 on Friday, 18 October 2013. The rupee had hit two-month high of 60.94 in intraday trade on Friday, 18 October 2013. The Reserve Bank of India on Friday, 18 October 2013, said that its dollar window for oil marketing companies remains open, adding that any tapering would be done in a calibrated manner.
European indices were mostly trading lower on Monday, 21 October 2013, as investors awaited a report on existing home sales in the United States to gauge if the country's housing market remains in recovery mode. Key benchmark indices in Germany and France were off 0.1% to 0.26%. UK's FTSE 100 was up 0.18%.
Asian markets rose on Monday, 21 October 2013, as traders continued buying spree that began last week on bets the US Federal Reserve will continue its monetary stimulus for the US economy. Key benchmark indices in South Korea, Singapore, Hong Kong, China, Indonesia and Japan rose by 0.03% to 1.47%. Taiwan's Taiwan Weighted fell 0.26%.
Trading in US index futures indicated that the Dow could advance 10 points at the opening bell on Monday, 21 October 2013. US stocks rose on Friday, 18 October 2013, with the S&P 500 index continuing its record run, as investors applauded quarterly results from Internet-search titan Google Inc. and investment bank Morgan Stanley.
Federal Reserve officials largely avoided the topic of tapering in a series of speeches on Friday, 18 October 2013. Charles Evans, the president of the Chicago Fed, disputed the notion that interest rates have to normalize to bring stability to the financial system.
The US government will release the influential nonfarm-payroll data for September 2013 tomorrow, 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.
Powered by Capital Market - Live News