Key benchmark indices pared gains in mid-morning trade. The S&P BSE Sensex was up 192.46 points or 0.93%, off 79.08 points from the day's high and up 209.36 points from the day's low. The Sensex was currently trading below the psychological 21,000 level, having alternately moved above and below that mark in intraday trade so far. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by data showing that foreign funds remained buyers of Indian stocks on Wednesday, 23 October 2013. In the foreign exchange market, the rupee edged higher against the dollar on speculation the Federal Reserve will maintain stimulus for the US economy in the foreseeable future after disappointing US job data for September 2013 released early this week.
Index heavyweight Reliance Industries pared intraday gain. Bank stocks gained across the board. PSU banks were in demand after the Ministry of Finance after trading hours on Wednesday, 23 October 2013, said that the Government of India (GoI) has approved infusion of a total of Rs 14000 crore in 20 public sector banks (PSBs) during Financial Year 2013-14 through preferential allotment of equity shares.
Key benchmark indices reversed small initial fall. Key benchmark indices extended initial gains in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than 35 months. Key benchmark indices pared gains in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Wednesday, 23 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 644.80 crore on Wednesday, 23 October 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 192.46 points or 0.93% to 20,960.34. The index jumped 271.54 points at the day's high of 21,039.42 in morning trade, its highest level since 8 November 2010. The index fell 16.90 points at the day's low of 20,750.98 at the onset of the trading session.
The CNX Nifty was up 56.40 points or 0.91% to 6,234.75. The index hit a high of 6,252.45 in intraday trade, its highest level since 11 November 2010. The index hit a low of 6,162.60 in intraday trade.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 1,172 shares gained and 844 shares fell. A total of 144 shares were unchanged.
The total turnover on BSE amounted to Rs 682 crore by 11:20 IST compared to Rs 443 crore by 10:20 IST.
Among the 30-share Sensex pack, 25 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC gained 1.41% to Rs 346.30. The stock hit high of Rs 348 and low of Rs 341.40 so far during the day.
Reliance Industries rose 0.87% to Rs 903.60. The stock hit high of Rs 909.95 and low of Rs 893.40 so far during the day.
PSU banks were in demand after the Ministry of Finance after trading hours on Wednesday, 23 October 2013, said that the Government of India (GoI) has approved infusion of a total of Rs 14000 crore in 20 public sector banks (PSBs) during Financial Year 2013-14 through preferential allotment of equity shares. The largest capital infusion will be SBI at Rs 2000 crore, followed by Rs 1800 crore each in Central Bank of India and IDBI Bank, Rs 1200 crore in Indian Overseas Bank and Rs 1000 crore in Bank of India. GoI will infuse Rs 550 crore in Bank of Baroda and Rs 500 crore in Punjab National Bank.
State Bank of India (SBI) (up 1.38%), IDBI Bank (up 1.7%), Indian Overseas Bank (up 1.3%), Central Bank of India (up 2.96%), Canara Bank (up 1.71%), Punjab National Bank (up 2.1%), Bank of Baroda (up 3.15%), Bank of India (up 0.97%) and Union Bank of India (up 2.33%) gained.
Among private bank stocks, HDFC Bank (up 2.04%), Kotak Mahindra Bank (up 2.1%), Axis Bank (up 0.8%), Yes Bank (up 0.11%), and ICICI Bank (up 1.61%), advanced.
SKS Microfinance gained 2.71% after the company reported net profit of Rs 16.34 crore in Q2 September 2013 as against net loss of Rs 262.15 crore in Q2 September 2012. The Q2 result was announced after market hours on Wednesday, 23 October 2013.
In the foreign exchange market, the rupee edged higher against the dollar on speculation the Federal Reserve will maintain stimulus for the US economy in the foreseeable future after disappointing US job data for September 2013 released early this week. The partially convertible rupee was hovering at 61.39, compared with its close of 61.59/60 on Wednesday, 23 October 2013.
Bond prices rose on speculation the Federal Reserve will maintain stimulus for the US economy in the foreseeable future after disappointing US job data for September 2013 released early this week. The yield on the 10-year benchmark government security 7.16% GS 2023 was hovering at 8.614%, lower than its close of 8.6315% on Wednesday, 23 October 2013. Bond yield and bond prices are inversely related.
Asian markets were mostly trading higher on Thursday, 24 October 2013 after a measure of Chinese factory hit a seven-month high. Key benchmark indices in South Korea, Singapore, Indonesia and Taiwan rose by 0.03% to 0.45%. Key benchmark indices in Hong Kong, China and Japan fell by 0.3% to 0.74%.
The initial October reading for China's manufacturing activity came out at 50.9, compared to a final reading of 50.2 in September. The score was a seven-month high, above the 50 mark that separates expansion and contraction in factory activity. The preliminary reading was among the first economic data on the region's largest economy in the third quarter, coming less than a week after figures showed that Chinese growth picked up from a dip in the second quarter.
Trading in US index futures indicated that the Dow could advance 64 points at the opening bell on Thursday, 24 October 2013. US stocks closed lower on Wednesday with the S&P 500 falling from a record, as investors assessed mixed results from US corporations, including a disappointment from equipment-maker Caterpillar Inc.
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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