A bout of volatility was witnessed as key benchmark trimmed initial losses triggered by weakness in Asian stocks. The S&P BSE Sensex was down 39.20 points or 0.19%, off close to 10 points from the day's high and up about 140 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Asian stocks fell on Friday, 8 November 2013, after faster US economic growth fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. 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. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
Tech Mahindra rose after strong Q2 results. Power Grid Corporation of India declined after the Cabinet Committee on Economic Affairs on Thursday, 7 November 2013, approved the proposal of follow on public offer (FPO) of the company. Car major Maruti Suzuki India declined after the company reported decline in production in October 2013.
At 9:35 IST, the S&P BSE Sensex was down 39.20 points or 0.19% to 20,783.57. The index shed 177.13 points at the day's low of 20,645.64 in early trade. The index fell 28.89 points at the day's high of 20,793.88 in early trade.
The CNX Nifty was down 14.15 points or 0.23% to 6,173.10. The index hit a low of 6,139.85 in intraday trade. The index hit a high of 6,173.75 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 580 shares rose and 435 shares fell. A total of 32 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks fell and rest of them rose. Sun Pharmaceutical Industries (down 1.92%), ONGC (down 1.69%) and GAIL (India) (down 1.37%), dropped.
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NTPC gained 0.1%. The company today, 8 November 2013, said that the Unit-I of 110 megawatts (MW) of Muzaffarpur Thermal Power Station Stage-I of Kanti Bijlee Utpadan Nigam (a subsidiary of NTPC) was declared on commercial operation from 1 November 2013, subsequent to achieving the full load on 9 August 2013. With this the total installed capacity and total commercial capacity of NTPC Group has become 41,794 MW and 40,294 MW respectively.
Tata Motors shed 1.43% ahead of its Q2 results today, 8 November 2013.
Punjab National Bank dropped 0.93% ahead of its Q2 results today, 8 November 2013.
Car major Maruti Suzuki India fell 1.17% after the company after trading hours on Thursday, 7 November 2013, said its production declined 5.51% to 1.01 lakh units in October 2013 over October 2012. The car major had said on 1 November 2013 that its total sales rose 1.9% to 1.05 lakh vehicles in October 2013 over October 2012.
Tech Mahindra rose 2.68% on strong Q2 results. The company's consolidated net profit rose 4.7% to Rs 718 crore on 16.3% increase in revenue at Rs 4771 crore in Q2 September 2013 over Q1 June 2013. Operating profit (EBITDA) jumped 28.5% at Rs 1111 crore in Q2 September 2013 over Q1 June 2013. The result was announced after market hours on Thursday, 7 November 2013.
Vineet Nayyar, Executive Vice Chairman, Tech Mahindra, said, "The Digital World is the next phase of our growth and we are ready to ride that wave. I am confident of our alignment with the needs of next generation consumers, with industry best practices and core strengths that our solutions bring."
C P Gurnani, Managing Director & CEO, Tech Mahindra said, "The winning trio for us this quarter - growth across verticals, regions and practices reflects the Tech Mahindra's new found energy and alignment to win large deals, as well as participate with customers in their transformation journey. Our judicious investments in building Connected Solutions and relentless focus on enhancing customer experience is showing results."
Power Grid Corporation of India declined 1.1% after the Cabinet Committee on Economic Affairs on Thursday, 7 November 2013, approved the proposal of follow on public offer (FPO) of Power Grid Corporation of India (PGCIL) of 78.70 crore equity shares of Rs 10 each, constituting 17% of existing paid-up capital which comprises fresh issue of 60.18 crore equity shares (13% of existing paid-up capital) and offer for sale (disinvestment) of 18.51 crore equity shares (4% of existing paid-up capital) of government's stake in the company. Additional resources generated through the issue of the FPO will be utilized by PGCIL in its investment programmes. Once the approval is received, action will be taken for implementation of the decision immediately in consonance with terms and conditions, a government statement said.
At the end of Financial Year 2012-13, PGCIL owned and operated Extra High Voltage Transmission line network of about 1,00,100 circuit kilometers (ckms) and 168 substations with transformation capacity of more than 1,64,700 Mega Volt Amperes (MVA). PGCIL wheels about 50% of the total power generated in the country through its transmission network. The inter-regional power transfer capacity of National Grid is about 31,850 Mega Watt (MW) which is envisaged to be enhanced to 65,500 MW by the end of the XII Plan. The Capital Expenditure (CAPEX) in the XII Plan is expected to be approximately Rs 1.25 lakh crore after considering the investment for new initiatives. PGCIL is a highly leveraged company and the FPO will help in raising funds of the order of Rs 5600 crore to meet its investment programme for the next two financial years and in meeting with the CERC allowed norms of 30 percent equity contributions to investment during FY 2013-14 & FY 2014-15.
In the foreign exchange market, the rupee edged lower against the dollar in early deals. The partially convertible rupee was hovering at 62.71, compared with its close of 62.41.42 on Thursday, 7 November 2013.
Asian stocks fell on Friday, 8 November 2013, after faster US economic growth fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. Key benchmark indices in Singapore, China, Japan, Hong Kong, Taiwan, Indonesia and South Korea shed 0.3% to 1.06%.
China's trade surplus expanded more than forecast to $31.1 billion last month from $15.21 billion in September. Exports grew 5.6% after contracting last month. Among the other October data, imports rose 7.6% in October 2013. The resulting trade surplus was $31.1 billion, well above September's $15.2 billion
China is due to issue a heavy slate of other October data, including industrial production, consumer inflation and retail sales tomorrow, 9 November 2013.
China's leaders will meet in Beijing on November 9-12 to map out economic policies as the country heads for its slowest annual growth in more than two decades.
US stocks tumbled on Thursday, 7 November 2013, as speculation the Federal Reserve may scale back stimulus amid faster-than-estimated economic growth overshadowed a move by the European Central Bank to cut a key interest rate.
Data yesterday showed growth in the world's biggest economy accelerated to a 2.8% annualized rate last quarter, faster than the 2% median market estimates. Fewer Americans filed applications for unemployment benefits last week, indicating firings haven't picked up following the partial government shutdown. Jobless claims decreased by 9,000 to 336,000 in the week ended Nov. 2 from 345,000 the prior period, the Labor Department reported in Washington.
The US government will today, 8 November 2013, release nonfarm payrolls figures for October 2013. The job data is a key economic indicator that has been watched closely in recent months to see whether the US Federal Reserve will roll back its bond-buying program.
In Europe, the European Central Bank (ECB) cut its benchmark interest rate to a record low after a drop in inflation to the slowest pace in four years threatened its mission to keep prices stable. Policy makers meeting in Frankfurt on Thursday reduced the main refinancing rate by a quarter point to 0.25%.
The Bank of England kept its benchmark rate at a record-low 0.5% in London on Thursday, while its bond-purchase plan stayed at 375 billion pounds ($603 billion).
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