Key benchmark indices hovered in positive terrain in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently a tad above the psychological 21,000 mark, having alternately moved above and below that mark in intraday trade so far. The Sensex was up 42.55 points or 0.2%, off close to 50 points from the day's high and up about 80 points from the day's low. The market breadth, indicating the overall health of the market, was positive. In the foreign exchange market, the rupee edged higher against the dollar.
Pharma stocks gained. Pharma Major Lupin rose after company said its US subsidiary -- Lupin Pharmaceuticals, Inc. (LPI) -- has launched its generic Fenofibric Acid Delayed-Release Capsules 45 mg and 135 mg in the United States. Auto stocks also gained.
A bout of volatility was witnessed in early trade as key benchmark indices regained positive terrain after opening lower. Volatility continued as key benchmark indices trimmed initial gains in morning trade. It hovered in positive terrain in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1151.51 crore on Thursday, 5 December 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 42.55 points or 0.2% to 21,000.15. The index rose 92.03 points at the day's high of 21,049.84 in early trade. The index fell 35.36 points at the day's low of 20,922.45 in early trade, its lowest level since 4 December 2013.
The CNX Nifty was up 15.95 points or 0.26% to 6,257.05. The index hit a high of 6,268.15 in intraday trade. The index hit a low of 6,230.75 in intraday trade, its lowest level since 4 December 2013.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 999 shares rose and 749 shares dropped. A total of 125 shares were unchanged.
From the 30-share Sensex pack, 19 rose and rest fell. Coal India (up 1.98%), NTPC (up 1.84%) and Tata Power Company (up 1.749%) gained.
Pharma stocks gained. Cipla (up 0.22%), Dr Reddy's Laboratories (up 1.06%), Ranbaxy Laboratories (up 0.57%) and Sun Pharmaceutical Industries (up 0.35%) rose.
Pharma Major Lupin rose 0.72% after the company announced during market hours that its US subsidiary -- Lupin Pharmaceuticals, Inc. (LPI) -- has launched its generic Fenofibric Acid Delayed-Release Capsules 45 mg and 135 mg in the United States. Lupin had earlier received final approval from the US FDA for this drug.
Lupin's Fenofibric Acid Delayed-Release Capsules 45 mg and 135 mg are the generic equivalent of AbbVie Inc.'s Trilipix Delayed-Release Capsules 45 mg and 135 mg strengths are indicated as co-administration therapy with statins for the treatment of mixed dyslipidemia, treatment of severe hypertriglyceridemia and primary hypercholesterolemia or mixed dyslipidemia. Trilipix Delayed-Release Capsules 45 mg and 135 mg strengths had annual US sales of approximately $449.5 million, as per IMS MAT September 2013 data.
Auto stocks also gained. Tata Motors (up 1.05%), Maruti Suzuki India (up 0.5%) and Ashok Leyland (up 0.61%) gained.
M&M rose 0.85%. The company announced after market hours on Thursday, 5 December 2013 that it would carry out preventive replacement of one part in its Scorpio Ex variant. This is in keeping with its customer centric approach as well as in compliance with the recently announced voluntary code on vehicle recall.
Mahindra will carry out preventive replacement of a pressure regulating valve in 800 units of only Scorpio's Ex variant which were manufactured between October/ November 2013. This replacement would be carried out with immediate effect and would be done free of cost for Scorpio Ex customers who would be individually contacted by the company/authorized dealers.
The recall is limited only to the Scorpio Ex variant manufactured during the said period and does not affect other Scorpio variants.
Shares of two-wheeler makers gained. Hero MotoCorp (up 2.73%) and Bajaj Auto (up 1.04%) rose.
A foreign brokerage upgraded Hero MotoCorp to 'outperform' from 'sell'. The brokerage also upgraded Bajaj Auto to 'underperform' from 'sell'
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was currently hovering at 61.655, compared with its close of 61.7525/7625 on Thursday, 5 December 2013.
Indian government bond prices dropped as improving US economic data fueled concern that the Federal Reserve will reduce its monthly bond purchases sooner than forecast. The yield on 10-year benchmark federal paper, 7.16% GS 2023, was hovering at 9.1315%, higher than its close of 9.1087% on Thursday, 5 December 2013. Bond yields and bond prices are inversely related.
The winter session of parliament began on Thursday, 5 December 2013. The session will end on 20 December 2013.
Counting of votes for assembly elections in Delhi, Madhya Pradesh, Chhattisgarh and Rajasthan takes place on Sunday, 8 December 2013. Counting of votes for assembly elections in Mizoram takes place on Monday, 9 December 2013. The elections were marked by record high turnout in most states. The results are being closely watched by markets as a potential indicator of the mood of voters in the world's biggest democracy before the 2014 general election.
Exit polls on 5 December 2013 predicted a strong performance for the main opposition Bharatiya Janata Party in the state elections held over the past few weeks in Delhi, Madhya Pradesh, Chhattisgarh and Rajasthan. Despite the gains predicted for the BJP in exit polls, it was unable to win a majority of seats in the capital Delhi, two polls showed. One poll suggested the race was close in Chhattisgarh. While the exact results varied from exit poll to exit poll, the general trend was clear: The ruling Congress party recorded embarrassing declines in support in Delhi as well as the western state of Rajasthan. Meanwhile voters in Madhya Pradesh and Chhattisgarh voted basically on the same lines they voted five years ago, backing the main opposition party, the BJP.
On macro front, the Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
Most Asian stocks fell on Friday, 6 December 2013, as improving US economic data fueled concern that the Federal Reserve will reduce its monthly bond purchases sooner than forecast. Key benchmark indices in Indonesia, South Korea, Singapore and China shed 0.07% to 0.8%. Key benchmark indices in Japan, Hong Kong, and Taiwan rose 0.07% to 0.39%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
Trading in US index futures indicated that the Dow could advance 33 points at the opening bell on Friday, 6 December 2013. US stocks dropped on Thursday, with the Dow Jones Industrial Average and S&P 500 index dropping for a fifth straight session as improving economic data fueled speculation the Federal Reserve may bring forward stimulus cuts.
US gross domestic product climbed at a 3.6% annualized rate in the third quarter, up from an initial estimate of 2.8% and the strongest growth since the first quarter of 2012, data yesterday showed. Claims for unemployment benefits decreased 23,000 to 298,000 in the week ended Nov. 30.
The US government will release the influential US non-farm payrolls data for November 2013 later in the global day today, 6 December 2013. The Fed has said improvement in the labor market is a key factor in its policy assessment. Investors are keeping a close watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
In Europe, the European Central Bank is ready to take fresh policy action to support the euro zone economy but has not yet worked out a detailed plan of which policy tool to use when, the bank's president said on Thursday. After its final policy meeting, Mario Draghi also said the ECB will only offer banks a fresh batch of long-term loans if it is confident they will lend on the funds, putting a question mark over the tool market expect the ECB to use next. The ECB left its key interest rate at 0.25 percent, choosing not to follow through on November's surprise cut.
The Bank of England has also kept interest rates at a record low of 0.5%, despite signs that the UK economy is improving.
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