Key benchmark indices held firm in mid-morning trade as Asian stocks rose on speculation Federal Reserve policy makers won't announce any major changes to monetary stimulus when they conclude a meeting today, 30 October 2013. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 21,000 mark, having regained that level in early trade. The Sensex was up 72.76 points or 0.35%, up about 65 points from the day's low and off close to 35 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Banking stocks extended Tuesday's gain triggered by the Reserve Bank of India (RBI) after a monetary policy review raised its main lending rate viz. the repo rate by 25 basis points as expected and decided to infuse liquidity into the banking system. Symphony jumped on strong Q1 result. ALSTOM India dropped on weak Q2 result.
The market edged higher in early trade as Asian stocks rose on speculation Federal Reserve policy makers won't announce any major changes to monetary stimulus for the US economy when they conclude a meeting today, 30 October 2013. The 50-unit CNX Nifty hit its highest level in more than 35 months. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving away almost entire initial gains in morning trade. It held firm in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Tuesday, 29 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1103.04 crore on Tuesday, 29 October 2013, as per provisional data from the stock exchanges.
The market may remain volatile in the immediate future as traders roll over positions in the futures & options (F&O) segment from the near month October 2013 series to November 2013 series. The near month October 2013 derivatives contract expire tomorrow, 31 October 2013.
At 11:20 IST, the S&P BSE Sensex was up 72.76 points or 0.35% to 20,996.92. The index jumped 108.58 points at the day's high of 21,037.59 in early trade, its highest level since 24 October 2013. The index rose 8.11 points at the day's low of 20,937.12 in morning trade.
The CNX Nifty was up 26.25 points or 0.42% to 6,247.15. The index hit a high of 6,253.65 in intraday trade, its highest level since 11 November 2010. The index hit a low of 6,222.60 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 989 shares rose and 703 shares fell. A total of 102 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest of them fell. Bhel (up 2.42%), Bharti Airtel (up 4.09%) and Dr Reddy's Laboratories (up 1.99%), gained.
Gail (India) rose 0.29%. The company said during market hours that GAIL has sold 6 crore shares out of 21 crore shares held in China Gas Holdings at HK$ 8.20 per share. Further, Ministry of Petroleum & Natural Gas vide letter dated 25 October 2013 has informed that under-recovery burden on GAIL for the financial year 2013-14 is provisionally fixed at Rs 1400 crore.
Gail (India) also said that Ministry of Petroleum & Natural Gas, vide letter dated 10 October 2013 has extended the tenure of Shri B. C. Tripathi as Chairman & Managing Director for a period of five years beyond 31 July 2014.
Banking stocks extended Tuesday's gain triggered by the Reserve Bank of India (RBI) after a monetary policy review raised its main lending rate viz. the repo rate by 25 basis points as expected and decided to infuse liquidity into the banking system. State Bank of India (SBI) (up 0.39%), HDFC Bank (up 0.1%) and ICICI Bank (up 1.37%), gained.
The Reserve Bank of India on Tuesday, 29 October 2013, said it has decided to give banks the option to pay interest on savings deposits and term deposits at intervals shorter than quarterly intervals.
Pidilite Industries rose 2.99% on good Q2 result. The company's consolidated net profit rose 23.9% to Rs 118.48 crore on 21.6% increase in net sales to Rs 1094.07 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Tuesday, 29 October 2013.
Jai Corp surged 8.16% after Q2 result. The company's net profit rose 9.1% to Rs 23.39 crore on 2.2% growth in net sales to Rs 171.24 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Tuesday, 29 October 2013. Jai Corp's board of directors at a meeting held on Tuesday, 29 October 2013, decided to redeem 3.75 lakh fully paid-up 1% non-cumulative, non-participating redeemable preference shares.
ALSTOM India lost 1.96% on weak Q2 result. The company's net profit fell 49% to Rs 27.84 crore on 20.2% decline in net sales to Rs 590.04 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Tuesday, 29 October 2013.
Symphony jumped 9.96% on strong Q1 result. The company's net profit galloped 598.5% to Rs 14.32 crore on 196.5% growth in net sales to Rs 72.08 crore in Q1 September 2013 over Q1 September 2012. The Q1 result was announced after market hours on Tuesday, 29 October 2013.
In the foreign exchange market, the rupee edged as dollar rose against a basket of major currencies as investors further trimmed bearish dollar positions ahead of the outcome of the Federal Reserve policy meeting later in the global day. The partially convertible rupee was hovering at 61.4750, compared with its close of 61.31/32 on Tuesday, 29 October 2013.
Asian stocks rose on Wednesday, 30 October 2013, amid rising company earnings and with the Federal Reserve projected to maintain the pace of its monetary stimulus today. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore, and South Korea rose 0.06% to 0.89%. Indonesia's Jakarta Composite fell 0.09%.
Factory output in South Korea contracted 3.6% last month from a year earlier, after rising 3.3% in August, the government statistician said today.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 30 October 2013. US stocks surged on Tuesday, 29 October 2013, as soft economic data supported expectations the US Federal Reserve will keep its stimulus measures intact for several months. Economic data showed consumer confidence in the US fell and an October 22 report revealed growth in American jobs slowed in September.
The Federal Open Market Committee's (FOMC) two-day policy meeting concludes today, 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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