Volatility continued as key benchmark indices trimmed intraday losses in morning trade. The S&P BSE Sensex was down 38.12 points or 0.18%, up close to 55 points from the day's low and off about 40 points from the day's high. The market breadth, indicating the overall health of the market, turned positive from negative. The key event of the day is the Reserve Bank of India's (RBI) mid-quarter policy review at 11:00 IST. This is the first monetary policy review of the RBI under its new Governor Raghuram Rajan.
Tata Motors reversed initial losses and scaled record high. IT stocks edged higher as the rupee dropped against the dollar. Eveready Industries India rose after the company announced a hike in the prices of batteries.
A bout of initial volatility was witnessed as key benchmark indices weakened once again after recovering from a lower opening. Volatility continued as key benchmark indices trimmed intraday losses in morning trade.
At 10:20 IST, the S&P BSE Sensex was down 38.12 points or 0.18% to 20,608.52. The index declined 94.75 points at the day's low of 20,551.89 in early trade. The index rose 2.74 points at the day's high of 20,649.38 in early trade.
The CNX Nifty was down 5.65 points or 0.09% to 6,109.90. The index hit a high of 6,120.25. The index hit a low of 6,087.95 in intraday trade.
The market breadth, indicating the overall health of the market, turned positive from negative in morning trade. On BSE, 845 shares rose and 814 shares fell. A total of 110 shares were unchanged.
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Among the 30-share Sensex pack, 15 stocks fell and rest of them rose. ONGC (down 2.19%), Sesa Goa (down 2.32%) and Hero MotoCorp (down 2.49%), edged lower.
NTPC rose 0.17%. Giving a boost to the country's energy generation programme, Prime Minister Dr Manmohan Singh on Thursday dedicated NTPC's Rajiv Gandhi Sipat Super Thermal Power Station in Chhattisgarh to the nation. Dr Singh also laid the foundation stone of the Lara Super Thermal Power Project situated in Chhattisgarh's Raigarh district through remote.
Built at an estimated cost of Rs 13000 crore, NTPC has for the first time used the super critical technology in the Sipat plant. The Ministry of Power is now taking steps to encourage indigenous manufacturing of super critical technology. This is being done by inviting bulk tendering for manufacture of supercritical units. The 800 MW units of Lara thermal plant will be set up with the help of this process. Dr Singh said that in the 13th Plan, thermal plants based on only super critical technologies will be set up.
The Prime Minister disclosed that Advanced Ultra Super Critical Technology is now being developed in the country. He lauded the efforts of NTPC, Bhel and Indira Gandhi Centre for Nuclear Research for working together to develop this technology.
In his welcome address, the Minister of State for Power Shri Jyotiraditya Scindia said that power is central to the growth of any country and capacity addition is doing better year after year in the country. He said that new capacity generation in the year 2012-13 was 23,000 MW which is a record. Praising the work done by the National Thermal Power Cooperation (NTPC) Shri Scindia said that it is not only a Maharatna in the country but also in the world. The minister further added that Rajiv Gandhi Gramin Vidyutikaran Yojna (RGGVY) under the leadership of the Prime Minister is a visionary plan which will bring light to every village and every household in the country.
Sri Scindia also stated that in the coming years Chhattisgarh will become the country's electricity hub as the Government is planning to make investment of Rs 62,000 crore in the power sector in the state in various projects of generation, transmission etc.
Tata Motors rose 1.03% to Rs 352.20 after hitting record high of Rs 354.90 in intraday trade.
IT stocks edged higher as the rupee dropped against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. TCS rose 0.96%.
Wipro rose 1.69%. Wipro becomes a part of the 50-unit CNX Nifty with effect from 27 September 2013. The IT major replaces Reliance Infrastructure in Nifty.
Infosys gained 0.25%. HCL Technologies advanced 2.04%.
Eveready Industries India rose 3.24% after the company announced a hike in the prices of its batteries. The company made the announcement after market hours on Thursday, 19 September 2013.
Mr. Deepak Khaitan, Vice Chairman, Eveready Industries India said, "A continuous upward trend in cost of materials and overhead expenses has adversely impacted the cost of batteries. This has left us with very little option but to pass on a part of the impact to the market. Realization will be increased between 3% and 10% from October 2013 by increasing the respective MRPs of economy pencil size batteries by Rs 5 per strip of 10 batteries, for all D size batteries by Rs 10 per box of 20 batteries and also by rationalizing trade margins of certain other batteries."
Foreign funds made heavy purchases of Indian stocks on Thursday, 19 September 2013, when Indian stocks rallied mirroring gains in world stocks after the US Federal Reserve after a monetary policy review on Wednesday, 18 September 2013, decided to maintain stimulus to the US economy through monthly bond purchases of $85 billion. Foreign institutional investors (FIIs) bought shares worth a net Rs 3543.84 crore on Thursday, 19 September 2013, as per provisional data from the stock exchanges.
The Reserve Bank of India (RBI) will announce its monetary policy decision under new Governor Raghuram Rajan at 11:00 IST today, 20 September 2013. This will be followed by RBI Governor addressing the media in the afternoon. The central bank is widely expected to keep its key policy rate viz. the repo rate unchanged at 7.25%. However, hopes have risen that the Reserve Bank of India will scale back some of its cash tightening steps.
Bond prices were a tad lower ahead of the monetary policy decision. The yield on the benchmark federal paper 7.16% GS 2023 was hovering at 8.1972%, higher than its close of 8.1926% on Thursday, 19 September 2013. Bond yield and bond prices are inversely related.
In the foreign exchange market, the rupee trimmed losses after falling below 62 against the dollar in early trade. The partially convertible rupee was hovering at 61.93, lower than its close of 61.77/78 on Thursday, 19 September 2013. The rupee had surged on Thursday boosted by the US Federal Reserve's surprise decision to keep its $85-billion-a-month in bond purchases intact.
Asian stocks edged lower on Friday, 20 September 2013, after their strong gains in the previous session. Key benchmark indices in Japan, Indonesia and Singapore were off 0.29% to 1.34%. Stock markets in Mainland China, Hong Kong, Taiwan and South Korea were closed for a holiday. Asian stocks had surged on Thursday, 19 September 2013, after the Federal Reserve unexpectedly refrained from reducing stimulus measures after a monetary policy review on Wednesday, 18 September 2013, saying it wants more evidence of an economic recovery before paring its $85 billion-a-month in bond purchases.
Trading in US index futures indicated that the Dow could fall 17 points at the opening bell on Friday, 20 September 2013. US stocks on Thursday mostly fell, with benchmark indexes retreating from record highs that came with the Federal Reserve's unexpected decision not to begin cutting stimulus.
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