Key benchmark indices edged higher on the first trading session of the week, with market sentiment boosted by provisional data showing that foreign funds made substantial purchases of Indian stocks on Friday, 11 October 2013. The barometer index, the S&P BSE Sensex, was provisionally up 95.17 points or 0.46%, up close to 125 points from the day's low and off about 25 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Index heavyweight Reliance Industries (RIL) rose ahead of its Q2 results today, 14 October 2013.
Indian stocks rose for the fifth trading session in a row today, 14 October 2013.
Infosys extended Friday's gains triggered by the company raising its revenue guidance for the full year at the time of announcement of Q2 September 2013 results before trading hours on Friday, 11 October 2013. Many other IT stocks extended Friday's gains triggered by IT major Infosys' upward revision in its revenue guidance for the full year. TCS scaled record high ahead of its Q2 result tomorrow, 15 October 2013. Wipro scaled 52-week high. IT major TCS jumped ahead of its Q2 result tomorrow, 15 October 2013. Tech Mahindra hit 52-week high after the Reserve Bank of India enhanced the limit for foreign institutional investors to purchase shares in the company to 45% of the paid up capital of the company. Metal stocks edged lower as China's exports unexpectedly fell in September and inflation jumped on food prices, signaling constraints on the nation's economic recovery. IndusInd Bank dropped in volatile trade as the private sector bank's gross non-performing assets rose in Q2 September 2013.
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.
As per provisional figures, the S&P BSE Sensex was up 95.17 points or 0.46% to 20,623.76. 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 17.20 points or 0.28% to 6,113.40, as per provisional figures. 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 total turnover on BSE amounted to Rs 1667 crore, lower than Rs 2133.68 crore on Friday, 11 October 2013.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 1,289 shares gained and 1,138 shares fell. A total of 148 shares were unchanged.
Tata Motors (up 1.86%), Hero MotoCorp (up 1.37%) and HDFC Bank (up 1.11%), edged higher from the Sensex pack.
Metal stocks edged lower as China's exports unexpectedly fell in September and inflation jumped on food prices, signaling constraints on the nation's economic recovery. China is the world's largest consumer of copper and aluminum. Tata Steel (down 1.88%), Sail (down 0.69%), JSW Steel (down 0.32%), Hindalco Industries (down 3.24%), and Jindal Steel & Power (down 0.79%), edged lower. Sesa Sterlite was flat.
Index heavyweight Reliance Industries rose 0.96% ahead of its Q2 results today, 14 October 2013.
Infosys extended Friday's gains triggered by the company raising its revenue guidance for the full year at the time of announcement of Q2 September 2013 results before trading hours on Friday, 11 October 2013. The stock was up 1.07% at Rs 3,309. The scrip had hit 52-week high of Rs 3,360 in intraday trade on Friday.
Many other IT stocks extended Friday's gains triggered by IT major Infosys' upward revision in its revenue guidance for the full year. Wipro rose 2.44% to Rs 500.20, with the stock extending intraday gain. The stock hit 52-week high of Rs 507.70 in intraday trade.
IT major TCS jumped 4.56% to Rs 2,220.90, ahead of its Q2 result tomorrow, 15 October 2013. The stock hit record high of Rs 2,224 in intraday trade.
Tech Mahindra rose 0.57% to Rs 1,557.45 after the central bank enhanced the limit for foreign institutional investors to purchase shares in the company to 45% of the paid up capital of the company. The stock hit 52-week high of Rs 1,585.40 in intraday trade. The Reserve Bank of India (RBI) enhanced the limit for foreign institutional investors (FIIs) to invest to up to 45% of the paid-up capital of Tech Mahindra. This limit has been revised from the earlier limit of 35% of the paid-up capital of the company under the Portfolio Investment Scheme (PIS). FIIs, at the end of September 2013, controlled 32.59% stake in the company, while promoters holding stood at 36.46%.
HCL Technologies gained 0.44%.
IndusInd Bank dropped in volatile trade as the private sector bank's gross non-performing assets rose in Q2 September 2013. The stock was down 0.75% at Rs 424.75. The scrip was volatile. The stock hit high of Rs 439.95 and low of Rs 422. The bank's net profit jumped 31.96% to Rs 330.23 crore on 18.88% growth in total income to Rs 2435.30 crore in Q2 September 2013 over Q2 September 2012. The bank announced Q2 result during market hours.
IndusInd Bank's provisions and contingencies jumped 81.08% to Rs 88.86 crore in Q2 September 2013 over Q2 September 2012. Provisions and contingencies declined sharply on sequential basis. Provisions and contingencies dropped 32.71% in Q2 September 2013 over Q1 June 2012.
IndusInd Bank's ratio of net non-performing assets to net advances stood at 0.22% as on 30 September 2013, compared with 0.21% as on 30 June 2013 and 0.29% as on 30 September 2012.
The bank's gross non-performing assets stood at Rs 546.39 crore as on 30 September 2013, higher than Rs 505.23 crore on 30 June 2013 and Rs 409.52 crore on 30 September 2012. The ratio of gross non-performing assets (NPA) to gross advances stood at 1.11% as on 30 September 2013, compared with 1.06% as on 30 June 2013 and 1.03% as on 30 September 2012.
IndusInd Bank said that in terms of the Reserve Bank of India (RBI) circular dated 23 August 2013 on classification, valuation and provisioning of investment portfolio of banks, IndusInd Bank has opted to amortize the depreciation on the Available for Sale (AFS) and Held for Trading (HFT) portfolios on each of the valuation dates in the current financial year in equal installments during the financial year 2013-14. As a result, of the total depreciation of Rs 114.58 crore as on 30 September 2013, the bank has recognized Rs 16.37 crore in the profit and loss account in Q2 September 2013. IndusInd Bank said that in accordance with its accounting policy consistently adopted which is more conservative compared with RBI guidelines, the bank continues to ignore appreciation on its AFS and HFT portfolio. The gross appreciation in the AFS and HFT portfolio amounted to Rs 43.37 crore as on 30 September 2013.
Bond prices dropped after the latest data showed that inflation based on the wholesale price inflation (WPI) accelerated to a seven-month high in September 2013, increasing the chance that the central bank may raise its main lending rate viz. the repo rate at a monetary policy review later this month. The yield on the benchmark federal paper 7.16% GS 2023 was hovering at 8.5566%, higher than its close of 8.489% on Friday, 11 October 2013. Bond yield and bond prices are inversely related.
WPI inflation accelerated to 6.46% in September 2013, from 6.1% in August 2013. Increase in inflation in September 2013 was mainly driven by surge in inflation for crude oil and non-food primary articles viz. fibres and oilseeds. Core inflation accelerated to 2.06% in September 2013 from 1.97% in August 2013. Inflation for July 13 was revised upwards to 5.85% from 5.79% reported earlier.
Build up of inflation rate in the financial year so far was 5.64% compared to 4.84% in the corresponding period of the previous year.
Data on inflation based on the consumer price index (CPI) for September 2013, is due after trading hours today, 14 October 2013. 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.
In the foreign exchange market, the rupee edged lower against the dollar as increase in WPI inflation to a 7-month high in September 2013 raised the possibility of the central bank raising its main lending rate viz. the repo rate at a monetary policy review later this month. The partially convertible rupee was hovering at 61.45, weaker than its close of 61.07/08 on Friday, 11 October 2013.
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.
European stock markets edged lower on Monday, 14 October 2013, with investors worried about the debt impasse in the United States. Key benchmark indices in Germany and France were off 0.14% to 0.18%. In UK, the FTSE 100 index was up 0.06%
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 0.43%. 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 104 points at the opening bell on Monday, 14 October 2013. Senate leaders over the weekend tried to broker a deal to re-open government now on shutdown Day 14 and to avoid bumping up against the debt ceiling on Oct. 17, but appeared to struggle to break the deadlock.
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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