Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 163.56 points or 0.79%, up 251.76 points from the day's low and off 25.28 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by IT major Infosys raising its revenue guidance for the year ending 31 March 2014 (FY 2014) at the time of announcement of its Q3 December 2013 results before trading hours today, 10 January 2014. Gains in Asian stocks also underpinned sentiment on the domestic bourses. In the foreign exchange market, the rupee edged higher against the dollar tracking broad losses in the dollar versus other major currencies.
Index heavyweight and cigarette major ITC stock extended intraday gain after seeing initial volatility. Reliance Industries (RIL) extended intraday gain. Infosys gained in volatile trade after the company raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014 at the time of announcement of its Q3 December 2013 results before trading hours today, 10 January 2014. Capital goods stocks edged higher. Jubilant FoodWorks dropped after index provider MSCI said it would exclude the stock from its small cap indexes.
Volatility struck bourses in early trade as the key benchmark indices reversed initial gains. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in more than thee weeks. Key benchmark regained positive zone later. Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 3.74 crore on Thursday, 9 January 2014, as per provisional data from the stock exchanges.
At 11:16 IST, the S&P BSE Sensex was up 163.56 points or 0.79% to 20,876.93. The index jumped 188.84 points at the day's high of 20,902.21 in mid-morning trade, its highest level since 6 January 2014. The index fell 88.20 points at the day's low of 20,625.17 in early trade, its lowest level since 18 December 2013.
The CNX Nifty was up 47.60 points or 0.77% to 6,215.95. The index hit a high of 6,222.75 in intraday trade, its highest level since 6 January 2014. The index hit a low of 6,139.60 in intraday trade, its lowest level since 18 December 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,163 shares gained and 833 shares declined. A total of 111 shares were unchanged.
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The total turnover on BSE amounted to Rs 776 crore by 11:20 IST, compared with Rs 488 crore by 10:20 IST.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC rose 0.9% to Rs 318.30. The stock hit a high of Rs 318.80 and low of Rs 314.10 so far during the day.
Reliance Industries (RIL) rose 1.28% to Rs 860.50. The stock hit a high of Rs 863 and low of Rs 848.45 so far during the day. RIL, which operates the Krishna-Godavari basin's D6 block off the east coast, has reportedly started producing gas from the MA-8 well from 1 January 2014. The well has potential to produce 1 million to 2 million standard cubic metres per day (mscmd) of gas from the well.
Infosys gained 3.04% to Rs 3,557. The stock hit a high of Rs 3,575.20 and low of Rs 3,449 so far during the day. Infosys' consolidated net profit as per International Financial Reporting Standards (IFRS) jumped 19.4% to Rs 2875 crore on 0.5% increase in revenues to Rs 13026 crore in Q3 December 2013 over Q2 September 2013. The results are as per International Financial Reporting Standards (IFRS).
Infosys raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. The company expects consolidated revenues in rupee terms to grow 24.4% to 24.9% for the fiscal year ending 31 March 2014 (FY 2014). This guidance is based on rupee dollar conversion rate of 61.81 for the rest of the fiscal year. The company expects consolidated revenues in dollar terms to grow 11.5% to 12% for FY 2014.
Infosys and its subsidiaries added 54 clients during Q3 December 2013. The company and its subsidiaries reported a gross addition of 6,682 employees for the quarter.
"The year ahead looks exciting for the IT services industry. We believe the global economic environment has improved and our clients are gaining confidence to invest in their strategic initiatives. We continue to differentiate ourselves to seize growth opportunities. The recent changes in organizational structure will enable us to strengthen client relationships and increase market share," said S. D. Shibulal, CEO and Managing Director, Infosys.
"During the quarter, we saw early but promising results of our initiatives to increase efficiency in our operations. We continue to remain focused on making investments necessary to secure and grow our future," said Rajiv Bansal, Chief Financial Officer, Infosys.
Capital goods stocks edged higher. Bhel (up 0.98%), Crompton Greaves (up 1.29%), L&T (up 1.21%), ABB (up 0.62%), Bharat Electronics (up 0.34%), Siemens (up 0.86%) and Thermax (up 0.23%) gained.
VA Tech Wabag rose 1.59% after the company said it has bagged its first ever order worth $40 million from Dar Es Salaam Water & Sewerage Authority in Tanzania. The company made the announcement before market hours today, 10 January 2014.
Jubilant FoodWorks shed 1.74% after index provider MSCI said it would exclude the stock from its small cap indexes. The stock will be excluded from the MSCI global small cap indexes effective on Tuesday, 14 January 2014, MSCI said in a statement late on Thursday, 9 January 2014.
Shares of Jubilant FoodWorks had lost 3.01% on Thursday, 9 January 2014, after the central bank put restrictions on purchases of additional shares of the company by foreign institutional investors (FIIs). The Reserve Bank of India (RBI) on Wednesday, 8 January 2014, notified that the aggregate net purchases of equity shares in Jubilant FoodWorks by foreign institutional investors (FIIs) in primary/secondary markets under portfolio investment scheme (PIS) have reached the trigger limit. Hence, further purchases of equity shares of the company by FIIs would be allowed only after obtaining prior approval of the RBI, the central bank said in a statement.
FII investment cap in Jubilant FoodWorks is 49%. As at 30 September 2013, FIIs held 45.35% stake in Jubilant FoodWorks.
In the foreign exchange market, the rupee edged higher against the dollar tracking broad losses in the dollar versus other major currencies. The partially convertible rupee was hovering at 61.95, compared with its close of 62.07/08 on Thursday, 9 January 2014.
On the macro front, industrial production is seen registering a muted growth of 0.9% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had declined 1.8% in October 2013, against 2% growth in September 2013. The decline in the output of manufacturing sector at 2% and mining sector at 3.5% mainly led to decline in industrial production in October 2013. The government will unveil industrial production data for November 2013 after trading hours today, 10 January 2014.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian stocks rose on Friday, 10 January 2014, ahead of US jobs data which is due later in the global day. Key benchmark indices in Indonesia, Hong Kong, Singapore and Taiwan rose by 0.07% to 0.68%. Key benchmark indices in China, Japan and South Korea fell by 0.16% to 0.35%.
China's exports rose 4.3% in December from a year earlier, according to reported data, after surging 12.7% in November. Imports were 8.3% higher than the year-ago month, accelerating from 5.3% growth in November. The resulting trade surplus was $25.6 billion, narrowing from the previous month's $33.8 billion.
Trading in US index futures indicated that the Dow could advance 20 points at the opening bell on Friday, 10 January 2014. The S&P 500 index eked out a marginal gain on Thursday, 9 January 2014, while the Dow Jones Industrial Average and the Nasdaq Composite index dropped, weighed down by losses for Verizon Communications Inc. and AT&T Inc.
The number of Americans who applied to receive unemployment benefits in the first week of the new year fell to the lowest level since the end of November. In the week ended Jan. 4, initial jobless claims fell by 15,000 to a seasonally adjusted 330,000, the US Department of Labor said Thursday.
The US government will unveil the influential non-farm payroll report for December 2013 today, 10 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014. The US central bank is poised to continue winding down its stimulus measures gradually this year.
Janet Yellen, incoming Federal Reserve chairwoman, said in an interview with Time magazine on Thursday, 9 January 2014, that the US economy would see stronger growth this year.
The Bank of England on Thursday, 9 January 2014, left the size of its bond-buying program unchanged and held its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee left its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($617 billion). The minutes from the January meeting will be published on 22 January 2014.
The European Central Bank on Thursday, 9 January 2014, kept its main interest rate unchanged at 0.25% after a monetary policy review.
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