A bout of volatility was witnessed as key benchmark indices regained positive terrain after reversing intraday gain in early afternoon trade after the latest data showed annual rate of inflation, based on the monthly wholesale price index (WPI) accelerated in September 2013 from August 2013. The barometer index, the S&P BSE Sensex, was up 26.80 points or 0.13%, off close to 95 points from the day's high and up about 55 points from the day's low. The market breadth, indicating the overall health of the market, was positive. The provisional data showing that foreign funds made substantial purchases of Indian stocks on Friday, 11 October 2013 supported domestic bourses. Metal stocks edged lower on weak trade data in China. HDFC Bank reversed intraday gain.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between gains and losses. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks. The Sensex retained positive terrain in mid-morning trade. It regained positive terrain after reversing intraday gain in early afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 11 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1010.45 crore on Friday, 11 October 2013, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar tracking weakness in regional shares and currencies. The partially convertible rupee was hovering at 61.2350, weaker than its close of 61.07/08 on Friday, 11 October 2013.
At 12:20 IST, the S&P BSE Sensex was up 26.80 points or 0.13% to 20,555.39. The index jumped 117.35 points at the day's high of 20,645.94 in morning trade, its highest level since 20 September 2013. The index fell 30.71 points at the day's low of 20,497.88 in early trade.
The CNX Nifty was up 4.40 points or 0.07% to 6,100.60. The index hit a high of 6,124.10 in intraday trade, its highest level since 20 September 2013. The index hit a low of 6,082.90 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,089 shares gained and 798 shares fell. A total of 140 shares were unchanged.
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Among the 30-share Sensex pack, 18 stocks fell and rest of them rose. Bhel (down 2.21%), GAIL (India) (down 1.34%) and HDFC (down 1.21%), edged lower.
Metal stocks edged lower on weak trade data in China. China is the world's largest consumer of copper and aluminum. Sesa Sterlite (down 0.76%), Tata Steel (down 1.66%), Sail (down 1.9%), JSW Steel (down 0.18%), Hindalco Industries (down 2.28%), Bhushan Steel (down 0.08%) and Jindal Steel & Power (down 1%), edged lower.
HDFC Bank fell 0.76%, with the stock reversing intraday gain. The bank announces its Q2 result tomorrow, 15 October 2013.
Just Dial rose 0.91% to Rs 888 after the company said it has received an order from the state government of Karnataka permitting the company to establish an IT/ITES - BPO and Software Development Centre at IT/ITES Park, Devanahalli Industrial Area in Bangalore by August 2015. Just Dial said it has sought certain clarifications regarding the project from Karnataka Industrial Area Development Board. The company is currently evaluating the project and is in the process of placing the proposal before its board of directors for consideration and approval, Just Dial said.
Pratibha Industries jumped 7.98% after the company secured two contracts aggregating to Rs 516.17 crore from PHED, Rajasthan. The company made the announcement during market hours today, 14 October 2013. Pratibha Industries secured two contracts aggregating to Rs 516.17 crore from PHED (Ajmer and Bharatpur), Rajasthan.
Pratibha Industries said that it bagged a contract from PHED, Ajmer, Rajasthan for Rs 292.49 crore for work of Cluster Scheme of 213 villages of Jahajpur and Kotri Tehsils along with augmentation of UWSS of Jahajpur Town from Khajoori Headworks under Chambal-Bhilwara Water Supply Project Phase-II with operation and maintenance for ten years on single point responsibility turnkey basis. The contract is to be completed in 36 months from the date of commencement, the company said.
The company secured another order of Rs 223.68 crore from PHED, Bharatpur, Rajasthan, for work of Regional Water Supply Scheme of 226 villages and their NRVs and Dhanies, of Roopwas, Bharatpur and Kumher tehsils, under CDBP WS project and augmentation of UWSS of Kumher town, on single responsibility turnkey basis ie. design, build and operation and maintenance during defect liability period up to one year after completion of works and thereafter for ten years on single point responsibility turnkey basis. The contact is scheduled to be completed in 30 months from the date of commencement.
Dishman Pharmaceuticals and Chemicals fell 2.19% after the company said the income tax department surveyed the company's premises for taxation issues. The announcement was made on Saturday, 12 October 2013 Dishman Pharmaceuticals and Chemicals (Dishman Pharma) announced that a survey was carried out by the income tax department (IT dept) in the factory and office premises of the company, which was concluded on 11 October 2013. The department sought various information and explanations and the company provided the same.
The company clarified that it does not expect any material additional tax liability to emanate out of the survey findings.
Dishman Pharma's chief J R Vyas was quoted by media as saying earlier today, 14 October 2013, that the IT dept surveyed Dishman Pharma's premises for taxation issues in a Rs 42 crore land deal involving Dishman SEZ and Dishman Pharma.
Vyas said in a television interview that Dishman SEZ had sold a land to Dishman Pharma for Rs 42 crore and claimed it under the (section) 80 Income Tax exemption, which was there during the transaction. IT dept, however, states that this exemption was not there. It was there when the company bought the land and have claimed it, he added.
Vyas further said that that the IT dept was not satisfied with the company's explanation and the probe is still going on.
On the macro front, the annual rate of inflation, based on the monthly wholesale price index (WPI) rose 6.46% in September 2013 higher than 6.1% in August 2013. Build up inflation rate in the financial year so far was 5.64% compared to a build up rate of 4.84% in the corresponding period of the previous year. Inflation for July 2013 was revised upwards to 5.85%.
Industrial production growth slowed to 0.6% in August 2013 from an upwardly revised 2.8% pace in July, hurt by weak investment and consumer demand, government data showed on Friday, 11 October 2013. The entire growth in industrial production in August 2013 was mainly driven by 7.2% surge in electricity generation. The mining output continued to witness decline in output, while the manufacturing sector output also recorded fall in August 2013.
Data on inflation based on consumer price index (CPI) for September 2013, is due later in the day today, 14 October 2013. CPI data is expected to hit the market at 17:30 IST.
The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India is seen easing a bit 9.4% in September 2013 from 9.52% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The CPI had decelerated to 9.52% in August 2013 from 9.64% in July 2013. Inflation for the category 'food and beverages' stood at 11.06% in August 2013.
Asian stocks dropped on Monday, 14 October 2014, weighed by an unexpected drop in exports from China and as American lawmakers struggled over an accord to raise the nation's debt limit and restore government operations. Key benchmark indices in Singapore, South Korea, and Taiwan fell 0.23% to 0.9%. China's Shanghai Composite rose 0.33%. Stock markets in Japan, Indonesia and Hong Kong were shut for holidays.
China's exports unexpectedly fell in September and inflation jumped on food prices, signaling constraints on the nation's recovery as Premier Li Keqiang seeks to sustain growth without adding monetary stimulus. Overseas shipments dropped 0.3% from a year earlier, customs data showed on 12 October, while imports rose a more-than-forecast 7.4%. Consumer prices rose 3.1% as food costs advanced the most since May 2012, statistics bureau figures showed in Beijing.
Trading in US index futures indicated that the Dow could fall 113 points at the opening bell on Monday, 14 October 2013. Senate Republicans and Democrats met Sunday in a bid to broker a budget deal as the Republican-led House and President Barack Obama remained deadlocked. The Republicans want compromises on Obama's health-care law, while Democrats have called for one-year deals for "clean" budget and debt-ceiling resolutions that have no cutbacks in funding the health-care program. Much of the US government also remained shut down for the 13th day, with a bill to restore funding for operations seen as likely to feature in any deal.
The Treasury Department's Oct. 17 deadline for raising the debt ceiling is rapidly approaching. Failure to raise the debt limit could be catastrophic for the US economy. Without an increase to the debt limit, the US will exhaust its borrowing authority on Thursday, 17 October 2013, and would run out of funds to pay all of its bills sometime between October 22 and October 31, according to the Congressional Budget Office.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength as policy makers mull the timing of reductions in bond buying. Government data from payrolls to retail sales will be delayed as long as the shutdown continues. 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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