Key benchmark indices edged higher in choppy trade on the first trading session of November month as market sentiment was boosted by data showing that foreign funds made massive purchases of Indian stocks on Thursday, 31 October 2013. Data showing strong growth in infrastructure sector output in September 2013 also boosted investor sentiment. The market breadth, indicating the overall health of the market, was positive. The barometer index, the S&P BSE Sensex pared gains after scaling record intraday high. The Sensex was provisionally up 13.79 points or 0.07%, off close to 115 points from the day's high and up about 35 points from the day's low.
Indian stocks gained for the fourth trading session in a row today, 1 November 2013.
Most bank stocks extended Thursday's gains. Mahindra & Mahindra (M&M) rose after reporting strong growth in tractor sales for the month just gone by.
A bout of initial volatility was witnessed as key benchmark indices pared gains after moving into the positive terrain after opening lower. The Sensex hit record high at the onset of the trading session and on the first day of Diwali today, 1 November 2013. Intraday volatility continued as key benchmark indices pared gains after extending initial gains to hit fresh intraday high. The Sensex retained positive zone in mid-morning trade. Key benchmark indices were range bound in positive zone in afternoon trade. A bout of volatility was witnessed as key benchmark indices regained positive zone after reversing intraday gains in afternoon trade. Key benchmark indices were range bound in positive terrain in mid-afternoon trade.
The market sentiment was boosted by data showing that foreign funds made massive purchases of Indian stocks on Thursday, 31 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1875.87 crore on Thursday, 31 October 2013, as per provisional data from the stock exchanges.
The stock exchanges will hold a special live trading session on Sunday, 3 November, 2013, on account of Muhurat trading on Diwali. The trading will start at 18:15 IST and will end at 19:30 IST on that day. The stock market remains closed on Monday, 4 November 2013, on account of Diwali-Balipratipada.
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As per provisional figures, the S&P BSE Sensex was up 13.79 points or 0.07% to 21,178.31. The index jumped 129.36 points at the day's high of 21,293.88 in morning trade, which is a record high. The index fell 23.20 points at the day's low of 21,141.32 in afternoon trade.
The CNX Nifty was up 2.40 points or 0.04% to 6,301.55, as per provisional figures. The index hit a high of 6,332.60 in intraday trade, its highest level since 8 November 2010. The index hit a low of 6,286.95 in intraday trade.
The total turnover on BSE amounted to Rs 2734 crore, higher than Rs 2534.07 crore on Thursday, 31 October 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,398 shares rose and 1,053 shares fell. A total of 169 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose and rest of them fell.
Most bank stocks extended Thursday's gains. ICICI Bank (up 0.71%) and HDFC Bank (up 0.52%), gained.
Bank of Baroda rose 4.37%, with the stock extending Thursday's post-result rally. The bank's net profit declined 10.24% to Rs 1168.10 crore on 9.38% increase in total income to Rs 10447.31 crore in Q2 September 2013 over Q2 September 2012. The bank announced the result during market hours on Thursday, 31 October 2013.
Bank of Baroda (BoB)'s ratio of gross non-performing assets (NPAs) to gross advances increased to 3.15% as on 30 September 2013, from 2.99% as on 30 June 2013 and 1.98% as on 30 September 2012. The ratio of net NPAs to net advances increased to 1.86% as on 30 September 2013 from 1.69% as on 30 June 2013 and 0.82% as on 30 September 2012.
Bank of India rose 5.16%. Bank of India said after market hours on Thursday, 31 October 2013, that the board of directors of the bank at its meeting held on 31 October 2013 has approved the raising of Tier-1 capital by issue of fresh equity shares to the Government of India (Promoters) aggregating Rs 1000 crore (inclusive Premium amount), on preferential basis, subject to necessary approvals.
The stock had vaulted 21.26% in a single trading session on Thursday, 31 October 2013, after the state-run bank reported strong Q2 result. The bank's net profit surged 105.98% to Rs 621.77 crore on 16.18% increase in total income to Rs 10339.55 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours on Thursday, 31 October 2013.
Bank of India (BoI)'s operating profit rose 13.43% to Rs 2103 crore in Q2 September 2013 over Q2 September 2012. Net interest income (NII) rose 15.07% to Rs 2527 crore in Q2 September 2013 over Q2 September 2012. Non-interest income grew 23.04% to Rs 1100 crore.
Canara Bank gained 1.94% after jumping 10.82% on Thursday.
Union Bank of India jumped 8.3%. Punjab National Bank rose 4.65%.
State Bank of India (SBI) rose 4.28%. The bank announced during trading hours on Thursday, 31 October 2013, that it has decided to revise its interest rates on bulk (Rs 1 crore and above) and retail term deposits (below Rs 1 crore) with effect from Friday, 1 November 2013. The bank has revised interest rate downwards on bulk deposits of all tenors. Interest rate on bulk term deposits for the period 1 year to less than 2 years has been reduced to 8.25% from 8.75%.
The bank has decided to increase interest rate on retail term deposits of maturity period of 180 days to 210 days to 7% from 6.8%.
SBI announced after market hours on Wednesday, 30 October 2013, that its central board has approved raising upto Rs 2000 crore through preferential allotment of equity shares in favour of the Government of India.
Mahindra & Mahindra (M&M) rose after reporting strong growth in tractor sales for the month just gone by. The stock was up 4.14%. M&M's total tractor sales jumped 29% to 38,263 units in October 2013 over October 2012. Tractor sales in the domestic market jumped 30% to 37,532 units while exports rose 5% to 731 units in October 2013 over October 2012.
Speaking on the monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, Mahindra & Mahindra said: "The tractor industry continues to do well overall and has seen a healthy growth this fiscal. At Mahindra, we are happy to maintain a robust growth momentum with a 30% domestic growth during October 2013. This is on the back of a good monsoon, improved cash flows as well as greater mechanization".
M&M separately also reported monthly sales data of its automobiles division. The company's total auto sales fell 5% to 50,558 units in October 2013 over October 2012. Total domestic sales fell 7% to 47,787 units in October 2013 over October 2012.
Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said: "During such tough and challenging times, we are heartened with our performance in October 2013 which has grown by 17% over the last month. In spite of new launches, the auto sector has witnessed a de-growth of nearly 5% during the first half of FY 2013-14 and the recent repo rate hike may prove to be a dampener for potential customers. The auto industry continues to look forward to an immediate support in terms of a stimulus package to perk it up as well as bring back the growth momentum for the economy in general & automotive sector in particular".
Power Finance Corporation (up 6.69%) and Rural Electrification Corporation (up 4.71%), gained
Sesa Sterlite rose 2.25%. The company's consolidated net profit jumped 358.65% to Rs 2394.37 crore on 8410.59% jump in total income to Rs 26266.22 crore in Q2 September 2013 over Q2 September 2012. The company announced result after market hours on Thursday, 31 October 2013. Consequent to the restructuring exercise, the results for the quarter ended 30 September 2013 are not comparable with the corresponding period of the previous year.
Sesa Sterlite's Chairman, Anil Agarwal, said: "The merger of Sterlite Industries and Sesa Goa has created one of the world's largest global diversified natural resources companies. Sesa Sterlite is the Indian flagship of our group and with its world class assets, efficient operations and our strong track record, we are well placed to deliver superior returns for shareholders. Despite volatile commodity prices and temporarily suspended iron ore operations at Goa and Karnataka, the company has delivered a strong operational and financial performance during the quarter, with production growth at our Oil & Gas, Zinc and Aluminium businesses. We expect to recommence mining in Karnataka soon and are hopeful that the Goa mining suspension will be resolved by the Supreme Court soon, which will be helpful for the government exchequer and the local economy."
In the foreign exchange market, the rupee edged lower against the dollar, tracking global dollar gains. The partially convertible rupee was hovering at 61.90, compared with its close of 61.50/51 on Thursday, 31 October 2013.
Indian factories cut production in October with overall manufacturing activity contracting for the third straight month as order books shrank at a quicker pace, a survey showed on Friday, 1 November 2013. The HSBC Manufacturing PMI compiled by Markit was unchanged at 49.6 in October, remaining below the watershed 50 mark that separates growth from contraction. The new orders sub-index fell to 48.9 last month from 49.6 in September, its fifth month below 50. The PMI survey showed input costs grew last month at their quickest pace since June 2012. Output costs also rose at the fastest rate since February. "Input price inflation accelerated further despite the weak growth backdrop, as the effects of the depreciated exchange rate continue to pass through. This suggests that the RBI has to continue its staring contest with inflation," said Leif Eskesen, chief economist for India at survey sponsor HSBC.
The Eight Core Industries having a combined weight of 37.90% in the Index of Industrial Production (IIP) rose 8% in September 2013, posting highest growth in last 12-months, data released by the government after trading hours on Thursday, 31 October 2013, showed.
Fiscal deficit was Rs 4.12 lakh crore during April-September 2013, or 76% of the full-year target, government data showed on Thursday, 31 October 2013. In the annual budget presented in February, Finance Minister P. Chidambaram had committed to narrow the fiscal deficit to 4.8% of gross domestic product (GDP) this fiscal year from 4.9% a year ago.
European stocks edged lower on Friday, 1 November 2013, ahead of manufacturing data from both the UK and the US. Key benchmark indices in UK, France and Germany shed 0.07% to 0.31%.
Most Asian stocks declined on Friday, 1 November 2013, as speculation the Federal Reserve will reduce stimulus in coming months overshadowed improving China manufacturing data. Key benchmark indices in Japan, Taiwan, Indonesia, and Singapore shed 0.29% to 1.73%. Key benchmark indices in China, Hong Kong and South Korea rose 0.19% to 0.46%.
A Chinese manufacturing gauge rose more than estimated to an 18-month high in October as output strengthened, adding to evidence the nation's economic recovery is sustaining momentum. The Purchasing Managers' Index was at 51.4, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing.
Trading in US index futures indicated that the Dow could advance 35 points at the opening bell on Friday, 1 November 2013. US stocks fell on Thursday, 31 October 2013, as investors assessed corporate earnings and speculated on when the Federal Reserve will cut stimulus.
US data yesterday showed the biggest jump in a gauge of business activity in more than three decades and a drop in jobless claims. Fewer Americans filed applications for unemployment benefits last week as a backlog in California's reporting cleared. Jobless claims decreased by 10,000 to 340,000 in the week ended Oct. 26 from 350,000 the prior period, the Labor Department reported Thursday in Washington.
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