Key benchmark indices gave away a lion's part of strong initial gains in afternoon trade as index heavyweight Reliance Industries (RIL) reversed intraday gains and as another index heavyweight ITC pared intraday gains. The barometer index, the S&P BSE Sensex, was up 45.42 points or 0.22%, off about 230 points from the day's high and up close to 60 points from the day's low. The Sensex was currently trading well 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. In the foreign exchange market, the rupee gave away almost entire intraday gains against the dollar.
Index heavyweight and cigarette maker ITC pared intraday gain. Another index heavyweight Reliance Industries (RIL) reversed intraday gain. M&M extended intraday gain. Most metal stocks edged higher as preliminary reading indicated China's manufacturing activity strengthened in October. Kotak Mahindra Bank edged higher on good Q2 results.
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. Key benchmark indices further pared gains in early afternoon trade. The Sensex gave away a lion's part of strong initial gains in afternoon trade as index heavyweight Reliance Industries (RIL) reversed intraday gains and as another index heavyweight ITC pared intraday gains.
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 13:20 IST, the S&P BSE Sensex was up 45.42 points or 0.22% to 20,813.30. 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 12.55 points or 0.2% to 6,190.90. 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.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,179 shares gained and 1,171 shares fell. A total of 150 shares were unchanged.
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Bharti Airtel (up 2%), ONGC (up 1.9%) and ICICI Bank (up 1.62%), edged higher from the Sensex pack.
Index heavyweight and cigarette maker ITC was up 0.78% at Rs 344.15. The stock hit high of Rs 348 and low of Rs 341.25 so far during the day.
Another index heavyweight Reliance Industries was off 0.41% at Rs 892.20. The stock hit high of Rs 909.95 and low of Rs 890.45 so far during the day.
M&M rose 2.54%, with the stock extending intraday gain.
Most metal stocks edged higher as preliminary reading indicated China's manufacturing activity strengthened in October. China is the world's largest consumer of copper and aluminum. Jindal Steel & Power (up 0.35%), Sesa Sterlite (up 0.83%), Bhushan Steel (up 0.72%), Tata Steel (up 0.45%), Sail (up 1.55%), and JSW Steel (up 1.3%), gained.
NMDC gained 2.24% ahead of its Q2 results today, 24 October 2013.
Hindalco Industries declined 0.65%, with the stock extending reversing intraday gains.
Kotak Mahindra Bank rose 1.58% after good Q2 result. The bank's net profit jumped 26% to Rs 353 crore in Q2 September 2013 over Q2 September 2012. Net interest income surged 22% to Rs 924 crore in Q2 September 2013 over Q2 September 2012. The bank announced Q2 result during market hours.
Advances as on 30 September 2013 were up 11% year-on-year (YoY) to Rs 50609 crore (Rs 45443 crore as on 30 September 2012). Kotak Mahindra Bank said that it is cautiously slowing down on CECV lending. Without considering CECV, the growth in advances was 18% YoY in Q2 September 2013.
Restructured loans considered standard stood at 0.09% of net advances as on 30 September 2013.
Savings deposits as on 30 September 2013 grew by 42% to Rs 8385 crore from Rs 5926 crore as on 30 September 2012. CASA ratio was 29% as on 30 September 2013.
The Reserve Bank of India vide circular dated 23 August 2013, as a one-time measure permitted banks to transfer SLR securities from AFS/HFT category to HTM category at valuation rates prevailing on 15 July 2013. Kotak Mahindra Bank said it has not transferred any SLR security from AFS/HFT category to HTM category. The bank's total HTM securities as on 30 September 2013 were 11.4% of NDTL. As permitted under the same RBI circular, the Kotak Mahindra Bank has opted to distribute the net depreciation on the AFS and HFT portfolios in equal installments during the financial year 2013-14. Accordingly, of the net depreciation of Rs 264 crore as on 30 September 2013, the bank has recognised depreciation of Rs 88 crore till 30 September 2013.
In the foreign exchange market, the rupee gave away almost entire intraday gains against the dollar. The partially convertible rupee was hovering at 61.56, compared with its close of 61.59/60 on Wednesday, 23 October 2013.
Indian 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 8.5925%, lower than its close of 8.6315% on Wednesday, 23 October 2013. Bond yield and bond prices are inversely related.
European stocks edged higher on Thursday, 24 October 2013, as investors welcomed upbeat manufacturing data from China. Key benchmark indices in France, Germany and UK were up 0.23% to 0.53%.
Asian markets edged higher on Thursday, 24 October 2013, after a measure of Chinese factory hit a seven-month high. Key benchmark indices in South Korea, Indonesia, Japan and Taiwan rose by 0.24% to 0.67%. Key benchmark indices in China and Hong Kong fell by 0.79% to 0.86%. Singapore's Straits Times was flat.
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 38 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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