Key benchmark indices reversed initial losses, as did most Asian stocks, on reports that US President Barack Obama will today, 9 October 2013, nominate Federal Reserve Vice Chair Janet Yellen to be the next head of the US central bank. Seen as a monetary policy dove, Yellen is considered more likely to maintain the Fed's current stance. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year. 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. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 20,000 mark, after surpassing that level in mid-morning trade. The Sensex was up 11.14 points or 0.06%, up 167.79 points from the day's low and off 10.35 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Index heavyweight Reliance Industries (RIL) extended intraday gain. Tata Steel reversed initial losses. Shares of pharma major Sun Pharmaceutical Industries extended intraday gain. Tata Communications rose after the company announced the extension of its low latency network in Asia with direct connections to the National Stock Exchange of India (NSE), the Singapore Exchange (SGX) and the Hong Kong Stock Exchange (HKEx). Shares of auto components maker Motherson Sumi Systems hit record high. Edelweiss Financial Services jumped on high volume after a large block deal on BSE. Sugar shares rose on renewed buying.
Key benchmark indices edged lower amid initial volatility after Reserve Bank of India (RBI) Governor Raghuram Rajan in an interview to a newspaper retained hawkish monetary policy stance by saying that monetary policy should aim at bringing down inflation expectations. Key benchmark indices trimmed initial losses as two index heavyweights -- ITC and Reliance Industries (RIL) -- edged higher in choppy trade. Key benchmark indices reversed initial losses, as did most Asian stocks, on reports that US President Barack Obama will today, 9 October 2013, nominate Federal Reserve Vice Chair Janet Yellen to be the next head of the US central bank.
In the foreign exchange market, the rupee fell below 62 against the dollar. The partially convertible rupee was hovering at 62.09, weaker than its close of 61.7925/8025 on Tuesday, 8 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 226.32 crore on Tuesday, 8 October 2013, as per provisional data from the stock exchanges.
At 11:15 IST, the S&P BSE Sensex was up 11.14 points or 0.06% to 19,994.75. The index rose 21.49 points at the day's high of 20,005.10 in mid-morning trade. The index lost 156.65 points at the day's low of 19,826.96 in early trade, its lowest level since 7 October 2013.
The CNX Nifty was up 0.6 points or 0.01% to 5,929. The index hit a high of 5,935.55 in intraday trade. The index hit a low of 5,877.10 in intraday trade, its lowest level since 7 October 2013.
More From This Section
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,098 shares declined and 797 shares gained. A total of 135 shares were unchanged.
The total turnover on BSE amounted to Rs 554 crore by 11:20 IST compared to Rs 349 crore by 10:20 IST.
Among the 30-share Sensex pack, 17 stocks declined and rest of them gained. Tata Power Company (up 1.07%), L&T (up 0.57%) and Jindal Steel & Power (up 1.07%) edged higher from the Sensex pack.
Index heavyweight Reliance Industries rose 0.91% to Rs 851.51, with the stock extending intraday gain. The stock hit high of Rs 852.70 and low of Rs 838 so far during the day.
Sun Pharmaceutical Industries gained 2.47% to Rs 628.50, with the stock extending intraday gain. The stock hit a record high of Rs 630.75 in intraday trade.
Tata Steel gained 1.18% to Rs 300.20, with the stock reversing initial fall. The stock had lost as much as 1.92% at the day's low of Rs 291.
Tata Communications rose 0.32%. The company during market hours today, 9 October 2013, announced the extension of its low latency network in Asia with direct connections to the National Stock Exchange of India (NSE), the Singapore Exchange (SGX) and the Hong Kong Stock Exchange (HKEx). The low latency network further extends the company's global financial trading connectivity network. As a result, it will support mission critical, real-time trading applications by seamlessly connecting the exchanges with major financial capitals in Asia, the United Kingdom and the United States, Tata Communications said.
Genius Wong, Senior Vice President, Global Network Services, Tata Communications, said: "Given the challenging economic conditions, fast, secure and reliable connectivity is crucial for businesses. The extension of our network via direct connections to SGX, HKEx and NSE exchanges will enable financial trading firms around the world to execute faster transactions and receive immediate market updates, mitigating financial risks and becoming more participative in the global economy."
Motherson Sumi Systems gained 2.95% to Rs 254.55. The stock hit a record high of Rs 257.05 in intraday trade.
Edelweiss Financial Services jumped 5% to Rs 31.50 on high volume of 34.43 lakh shares after a block deal of 32.18 lakh shares was executed on the counter at Rs 31 per share at 10:23 IST on BSE today, 9 October 2013.
Sugar shares were in demand on renewed buying. Bajaj Hindusthan (up 2.01%), Dhampur Sugar Mills (up 0.32%), Sakthi Sugars (up 0.57%), Shree Renuka Sugars (up 2.33%) and Dwarikesh Sugar Industries (up 3.52%) gained. Balrampur Chini Mills fell 0.23%.
The International Monetary Fund (IMF) forecast economic growth for India to dip to 4.25% in the year to 31 March 2014 in its World Economic Outlook released on Tuesday, saying the economy would continue to underperform because of regulatory, infrastructural, and financing issues. The multilateral agency expects the country's growth to improve somewhat to 5% in the next fiscal year if exports strengthen and supply bottlenecks ease.
Asian markets edged higher in choppy trade on Wednesday, 9 October 2013, on reports that US President Barack Obama will today, 9 October 2013, nominate Federal Reserve Vice Chair Janet Yellen to be the next head of the US central bank. Key benchmark indices in China, Indonesia, Singapore and Japan rose by 0.09% to 0.75%. Key benchmark indices in Taiwan and Hong Kong and fell by 0.46% to 0.57%. South Korea's markets were closed today for a holiday.
Trading in US index futures indicated that the Dow could rise 36 points at the opening bell on Wednesday, 9 October 2013. US stocks fell on Tuesday hit by growing jitters over the budget impasse in Washington, with the partial government shutdown extending into a second week with few signs of a deal to end it or raise the nation's debt ceiling.
US President Barack Obama on Tuesday warned of economic chaos if the US fails to pay its bills.
As per media reports, Obama will nominate Federal Reserve Vice Chair Janet Yellen to be the next head of the US central bank on Wednesday, 9 October 2013, putting her on course to be the first woman to lead the institution in its 100-year history. Seen as a monetary policy dove, Yellen is considered more likely to maintain the Fed's current stance. 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.
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. Government data from payrolls to retail sales will be delayed as long as the shutdown continues.
The International Monetary Fund on Tuesday cut its global growth forecast to 2.9% for 2013 from its July estimate of 3.1%. IMF sees a modest pickup next year to 3.6%.
Powered by Capital Market - Live News