Intraday volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade. The barometer index, the S&P BSE Sensex, was down 8.50 points or 0.04%, up about 20 points from the day's low and off close to 65 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Metal and mining stocks edged lower. Most IT stocks rose after data showed the US economic recovery gaining momentum. Shares of state-run oil marketing companies (PSU OMCs) extended Monday's gains triggered by hike in petrol and diesel prices.
The Sensex edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices alternately swung between positive and negative zone in morning trade. Intraday volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade.
The market may remain volatile this week, which is a truncated trading week, as traders roll over positions in the futures & options (F&O) segment from the near month December 2013 series to January 2014 series. The near month December 2013 derivatives contract expire on Thursday, 26 December 2013. The stock market remains closed tomorrow, 25 December 2013, on account of Christmas.
Foreign institutional investors (FIIs) bought shares worth a net Rs 135.42 crore on Monday, 23 December 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was down 8.50 points or 0.04% to 21,092.53. The index rose 55.89 points at the day's high of 21,156.92 in early trade. The index fell 27.94 points at the day's low of 21,073.09 in mid-morning trade.
The CNX Nifty was flat at 6285.10. The index hit a high of 6,301.50 in intraday trade. The index hit a low of 6,278.15 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 1,197 shares gained and 749 shares fell. A total of 128 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks gained and rest of them declined. Tata Power Company (down 2.36%), Maruti Suzuki India (down 1.33%) and HDFC (down 1.09%) declined.
Metal and mining stocks edged lower. Hindalco Industries (down 0.69%), JSW Steel (down 0.39%), SAIL (down 0.28%), NMDC (down 0.9%), Jindal Steel & Power (down 1.49%), Tata Steel (down 0.32%), Hindustan Zinc (down 3.26%), and Sesa Sterlite (down 3.02%) declined. National Aluminum Company (up 0.12%), Hindustan Copper (up 0.43%), and Bhushan Steel (up 0.15%) gained.
Most IT stocks rose after data showed the US economic recovery gaining momentum. US is the biggest outsourcing market for the Indian IT firms. Tata Consultancy Services (TCS) (up 0.6%), HCL Technologies (up 0.1%), Infosys (up 0.83%) and Tech Mahindra (up 0.14%) gained.
Wipro fell 0.8% to Rs 547.50 on profit booking. The stock had hit a 52-week high of Rs 557 in intraday trade on Monday, 23 December 2013.
Shares of state-run oil marketing companies (PSU OMCs) extended Monday's gains triggered by hike in petrol and diesel prices. BPCL (up 1.79%), HPCL (up 1.37%) and Indian Oil Corporation (up 1.71%) gained.
PSU OMCs hiked the petrol price on Friday, 20 December 2013, by 41 paise a litre following the government's decision to raise commission paid to petrol pump dealers and firming global oil rates. Simultaneously, diesel rates were increased by 10 paise per litre due to a hike in dealers' commission. The two increases, which are excluding local sales tax or VAT, became effective from midnight Friday.
Brent for February settlement was down 1 cent at $111.55 a barrel on the London-based ICE Futures Europe exchange.
PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.
Lanco Infratech rose 1.17% after the company said that its board has accepted the letter of approval issued by Corporate Debt Restructuring Empowered Group approving the CDR proposal submitted by the company. The announcement was made after market hours on Monday, 23 December 2013.
Lanco Infratech's board of directors at a meeting held on Monday, 23 December 2013, accepted the Letter of Approval (LOA) dated 20 December 2013, issued by Corporate Debt Restructuring Empowered Group (CDR EG) approving the Corporate Debt Restructuring proposal submitted by the company. The CDR EG approved the CDR proposal at its meeting held on 11 December 2013. Lanco Infratech's board of directors has passed necessary resolutions for the implementation of the approved CDR scheme.
In foreign exchange market, rupee edged higher against the dollar on global risk on sentiment. The partially convertible rupee was hovering at 61.865, compared with its close of 61.9525/9625 on Monday, 23 December 2013.
Asian stocks edged higher on Tuesday, 24 December 2013, after data showed the US economic recovery gaining momentum. US economy is the world's biggest economy. Key benchmark indices in China, Hong Kong, Japan, Taiwan, Singapore and South Korea rose 0.08% to 1.13%. In Indonesia, Jakarta Composite was off 0.11%.
China's central bank conducted the first reverse-repurchase agreements in three weeks, helping to ease the tightest financing conditions since a record cash crunch in June.
In Japan, the Cabinet Office released its December economic report today, 24 December 2013. The report dropped a reference to the word deflation for the first time since October 2009, saying "prices are holding firm."
Trading in US index futures indicated that the Dow could advance 4 points at the opening bell on Tuesday, 24 December 2013. US stocks on Monday jumped to new records after strong economic data gave new momentum to last week's rally. US household purchases, which account for almost 70 percent of the economy, rose 0.5% after a 0.4% gain in October that was larger than previously estimated, the Commerce Department reported in Washington. A separate report showed consumer confidence increased in December. The Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 82.5 from 75.1 a month earlier.
The US Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually over the next year.
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