Key benchmark indices surged on the final trading session of November 2013, with market sentiment boosted by data showing that domestic institutional investors (DIIs) turned buyers of equities for the first time this month on Thursday, 28 November 2013. Also boosting the sentiment, provisional data showed that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Thursday, 28 November 2013. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in more than a week. The Sensex was provisionally up 244.11 points or 1.19%, off about 40 points from the day's high and up close to 220 points from the day's low. All the thirteen sectoral indices on BSE were in the green. The market breadth, indicating the overall health of the market, was positive.
Bank stocks rose across the board. Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. Capital goods stocks also gained. Shares of organised retailers rose.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 28 November 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 102.91 crore on Thursday, 28 November 2013, as per provisional data from the stock exchanges.
Data released by the stock exchanges after trading hours on Thursday, 28 November 2013, showed that domestic institutional investors (DIIs) turned buyers of equities for the first time this month on Thursday, 28 November 2013. DIIs bought shares worth a net Rs 330.51 crore on Thursday, 28 November 2013.
As per provisional figures, the S&P BSE Sensex was up 244.11 points or 1.19% to 20,779.02. The index jumped 284.86 points at the day's high of 20,819.77 in mid-morning trade, its highest level since 20 November 2013. The index gained 24.02 points at the day's low of 20,558.93 in early trade.
The CNX Nifty was up 87.50 points or 1.44% to 6,179.35, as per provisional figures. The index hit a high of 6,182.50 in intraday trade, its highest level since 20 November 2013. The index hit a low of 6,103.80 in intraday trade.
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The total turnover on BSE amounted to Rs 2049 crore, lower than Rs 2243.60 crore on Thursday, 28 November 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,461 shares rose and 1,032 shares dropped. A total of 179 shares were unchanged.
From the 30-share Sensex pack, 25 rose and only five fell. Sesa Sterlite (up 4.25%), Cipla (up 2.61%), and ONGC (up 2.17%), edged higher from the Sensex pack.
Bank stocks rose across the board. HDFC Bank (up 1.16%) and ICICI Bank (up 3.01%) rose.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank rose 3.03% to 5.12%.
Syndicate Bank gained 5.89% after the state-run bank after market hours on Thursday, 28 November 2013, said that a meeting of the board of directors of the bank will be held on 3 December 2013 for considering issuance of equity shares aggregating to Rs 200 crore by way of preferential allotment in favour of Government of India. The Government of India holds 66.17% stake in Syndicate Bank (as per the shareholding pattern as on 30 September 2013).
Index heavyweight Reliance Industries (RIL) was up 0.34% at Rs 851.10. The scrip hit high of Rs 856.95 and low of Rs 849.55. Minister for Petroleum & Natural Gas Veerappa Moily said early this week that RIL may be allowed to raise gas prices from April 2014 as the company has offered financial guarantees to the government to settle any claims against it over a shortfall in its gas output. In June, the government approved a move to higher, market-related rates for locally-produced gas from April 2014, but the finance ministry later said prices for RIL should be capped because the company's gas production from the offshore D6 block was far below its supply commitment. RIL, which operates the D6 block off India's eastern coast, has reported a sharp decline in gas output since 2010. RIL and partner BP have cited geological complexities for the fall in output, but the oil regulator believes they failed to drill enough wells. Falling output had already prompted the government to disallow proportionate cost recovery to RIL, leading to arbitration proceedings over the issue.
Capital goods stocks rose on renewed buying. L&T (up 2.07%), ABB (up 3.05%), BEML (up 0.47%) and Bhel (up 3.65%) gained.
Shares of organised retailers gained. Shoppers Stop rose 2.33% to Rs 329 after IDFC Mutual Fund's IDFC Premier Equity Fund bought 9.99 lakh shares of Shoppers Stop at Rs 321.25 through a bulk deal on the NSE on Thursday, 28 November 2013. Eastspring Investments India Equity Open sold 7.58 lakh equity shares of Shoppers Stop on NSE at Rs 321.25 per share.
Trent gained 4.2%. Future Retail rose 0.35%.
Nestle India extended Thursday's losses triggered by the company's overseas parent Nestle S.A.'s clarification that there is no plan at present to increase stake in Nestle India. The stock was off 1.6%. Swiss food giant Nestle S.A. currently holds 62.76% stake in Nestle India (as per the shareholding pattern as on 30 September 2013).
Alphageo (India) rose 2.51% after the company secured two separate contracts worth an aggregate of Rs 47.87 crore for acquiring 2D and 3D seismic data. The announcement was made during trading hours today, 29 November 2013. Alphageo (India) said it secured two separate contracts from GAIL (India) and Bharat Petro Resources for acquisition of 2D and 3D seismic data.
The contract from Bharat Petro Resources is for an estimated value of Rs 17.50 crore. The contract from GAIL (India) is for an estimated value of Rs 30.37 crore, the company said in a statement.
In the foreign exchange market, the rupee edged lower against the dollar in volatile trade. The partially convertible rupee was hovering at 62.57, lower than its close of 62.41/42 on Thursday, 28 November 2013.
The yield on 10-year benchmark federal paper, 7.16% GS 2023, was once again above the 9% level after falling below that mark earlier during the day. The yield on 7.16% GS 2023 was hovering at 9.0597%, higher than its close of 9.0138% on Thursday, 28 November 2013. Bond yields and bond prices are inversely related.
On macro data front, the government unveils Q2 September 2013 GDP growth data after trading hours today, 29 November 2013. The GDP growth for Q2 September 2013 is projected at 4.7%, as per the median estimate of a poll of economists carried out by Capital Market. India's GDP grew at its slowest pace in four years at 4.4% in Q1 June 2013.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
European stocks rose on Friday, 29 November 2013, after global credit rating agency Standard & Poor's lifted its debt outlook on Spain. Key benchmark indices in France, Germany and UK rose 0.03% to 0.21%.
Standard & Poor's today, 29 November 2013, revised up its outlook on Spain to stable from negative, and affirmed its BBB sovereign-debt rating. "The stable outlook incorporates our view that Spain's credit metrics are stabilizing and that we currently see less than a one-in-three probability of the rating moving up or down over the next two years," said S&P in a press release. S&P said it sees improvement in Spain's external position as growth resumes, and expects GDP will contract by 1.2% in 2013, but then slowly recover, with 0.8% growth in 2014 and 1.2% in 2015, helped largely by robust exports. S&P said Spain's government will broadly meet its budgetary deficit target of 5.8% of GDP in 2014.
S&P raised its score for Cyprus to B- from CCC+. It lowered the Netherlands to AA+ from AAA, citing weaker growth prospects than previously forecast.
German retail sales unexpectedly dropped in October, indicating that business on the high streets has remained slack ahead of the Christmas season. Retail sales declined 0.8% from September and sales volumes hit the lowest level since December 2012, data from the federal statistics office showed on Friday, 29 November 2013. However, the overall trend remains slightly positive, with German retail sales in the first 10 months of the year up 0.2% on the year. Germany is Europe's biggest economy.
Asian stocks edged higher in choppy trade on Friday, 29 November 2013. Key benchmark indices in Indonesia, China, Hong Kong and Taiwan were up 0.05% to 0.53%. Key benchmark indices in South Korea, Singapore, and Japan were down 0.04% to 0.41%.
Consumer prices excluding fresh food, the Bank of Japan's gauge for its 2 percent inflation target, rose 0.9% in October from a year earlier, a fifth straight gain, according a government report today.
Trading in US index futures indicated that the Dow could advance 44 points at the opening bell on Friday, 29 November 2013. The US stock market will close early at 1:00 p.m. today, 29 November 2013. The market was closed on Thursday, 28 November 2013, for the Thanksgiving holiday.
Investors are keeping a close watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth. The US government will release the influential US non-farm payrolls data for November 2013 on 6 December 2013. The Fed has said improvement in the labor market is a key factor in its policy assessment.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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