Key benchmark indices hovered in negative zone in mid-morning trade. The S&P BSE Sensex was down 119.70 points or 0.57%, up 28.77 points from the day's low and off 177.05 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Dr Reddy's Laboratories extended edged lower. HDFC Bank also hovered in red. Shares of state-run gas transmission and distribution major GAIL (India) extended intraday gains. Auto stocks edged lower. Hero MotoCorp rose ahead of its quarterly earnings today, 23 October 2013. Cadila Healthcare rose after the company secured USFDA approval for initiating Phase I clinical trials of ZYDPLA1 -- a novel next generation orally active, small molecule DPP-4 inhibitor to treat Type 2 diabetes. Yes Bank extended Tuesday's gains triggered by the private sector bank reporting good Q2 result.
Key benchmark indices trimmed initial gains triggered by expectations that lackluster US September jobs report will lead to the Federal Reserve maintaining stimulus for the US economy in the foreseeable future. A bout of volatility was witnessed as the key benchmark indices trimmed losses after reversing initial gains in morning trade. Key benchmark indices hovered in negative zone in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 794.90 crore on Tuesday, 22 October 2013, as per provisional data from the stock exchanges.
At 11:18 IST, the S&P BSE Sensex was down 119.70 points or 0.57% to 20,745.27. The index lost 148.47 points at the day's low of 20,716.50 in morning trade, its lowest level since 18 October 2013. The index gained 57.35 points at the day's high of 20,922.32 in early trade.
The CNX Nifty was down 34.30 points or 0.55% to 6,168.50. The index hit a low of 6,154.40 in intraday trade, its lowest level since 18 October 2013. The index hit a high of 6,217.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,024 shares gained and 938 shares fell. A total of 128 shares were unchanged.
The total turnover on BSE amounted to Rs 798 crore by 11:25 IST compared to Rs 565 crore by 10:25 IST.
Dr Reddy's Laboratories lost 1.54%, with the stock extending intraday fall.
Cadila Healthcare rose 1.26% after the company secured USFDA approval for initiating Phase I clinical trials of ZYDPLA1 -- a novel next generation orally active, small molecule DPP-4 inhibitor to treat Type 2 diabetes. The announcement was made during trading hours today, 23 October 2013.
ZYDPLA1 is an orally active, small molecule NCE, discovered and developed by the Zydus Research Centre, the NCE research wing of Cadila Healthcare. Currently, all available DPP-4 inhibitors are dosed once-daily. ZYDPLA1 with a once-a-week dosing regimen, would provide diabetic patients with a more convenient treatment alternative, Cadila Healthcare said in a statement.
Speaking on the latest development, Mr. Pankaj R. Patel, CMD, Cadila Healthcare said: "After a promising start with Lipaglyn, we take another big leap forward in the area of diabetic research and long term management of Type 2 diabetes. The IND approval by USFDA is another major regulatory milestone for us. We believe that ZYDPLA1 holds promise and would take us closer to our mission of reducing the burden of chronic diseases and addressing unmet medical needs in the treatment of diabetes".
HDFC Bank slipped 1.56%, with the stock extending intraday fall.
GAIL (India) surged 4.41%, with the stock extending intraday gain.
Auto stocks edged lower. M&M fell 1.12%. Maruti Suzuki India declined 1.3%.
Tata Motors lost 1.99% to Rs 372.40. The stock had hit record high hit of Rs 393 in intraday trade on 15 October 2013.
Hero MotoCorp fell 1.02% ahead of its quarterly earnings today, 23 October 2013.
Bajaj Auto declined 1.46%. The company, last week, reported better-than-expected Q2 results. Bajaj Auto's net profit rose 13% to Rs 837 crore on 3% growth in turnover to Rs 5299 crore in Q2 September 2013 over Q2 September 2012.
Yes Bank extended Tuesday's gains triggered by the private sector bank reporting good Q2 result. The stock was up 1.49%. Yes Bank's net profit jumped 21.3% to Rs 371.13 crore on 30.2% increase in total income to Rs 2947.39 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours on Tuesday, 22 October 2013.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade after soft US jobs data led to hopes that the Federal Reserve would not start tapering monetary stimulus until 2014. The partially convertible rupee was hovering at 61.535, compared with its close of 61.655/665 on Tuesday, 22 October 2013.
Asian markets on Wednesday, 23 October 2013, reversed their initial gains triggered by expectations that lackluster US September jobs report will lead to the Federal Reserve maintaining stimulus for the US economy in the foreseeable future. Key benchmark indices in Japan, Hong Kong, China, South Korea and Taiwan fell by 0.32% to 1.46%. Key benchmark indices in Indonesia and Singapore rose by 0.1% to 1.03%.
Trading in US index futures indicated that the Dow could fall 57 points at the opening bell on Wednesday, 23 October 2013. US stocks gained on Tuesday, 22 October 2013, further propelling the S&P 500's record rise, as the September nonfarm-payrolls report supported the notion that the Federal Reserve's monthly bond purchases would continue into next year.
The US created a modest 148,000 jobs in September but the number of people hired in August was higher than previously reported, indicating an economy on a zigzag course heading into the government shutdown. The nation's unemployment rate, meanwhile, fell a tick to a five-year low of 7.2%, as more people found work, according to figures released Tuesday by the Labor Department.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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