Key benchmark indices retained positive zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 57.87 points or 0.28%, off close to 60 points from the day's high and up about 90 points from the day's low. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by provisional data showing that foreign funds made substantial purchases of Indian stocks on Friday, 11 October 2013.
Index heavyweight and cigarette maker ITC edged lower. Banking stocks extended Friday's gains triggered by the Reserve Bank of India's (RBI) decision on Thursday, 10 October 2013, to allow banks to raise funds from global multilateral institutions until 30 November 2013 as long as the money raised is for general banking purposes and not for capital enhancement. Shares of auto components maker Motherson Sumi Systems scaled record high. Realty stocks edged lower.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between gains and losses. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks. The Sensex retained positive terrain in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 11 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1010.45 crore on Friday, 11 October 2013, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar tracking weakness in regional shares and currencies. The partially convertible rupee was hovering at 61.16, weaker than its close of 61.07/08 on Friday, 11 October 2013.
At 11:20 IST, the S&P BSE Sensex was up 57.87 points or 0.28% to 20,586.46. The index jumped 117.35 points at the day's high of 20,645.94 in morning trade, its highest level since 20 September 2013. The index fell 30.71 points at the day's low of 20,497.88 in early trade.
The CNX Nifty was up 11.60 points or 0.19% to 6,107.80. The index hit a high of 6,124.10 in intraday trade, its highest level since 20 September 2013. The index hit a low of 6,082.90 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,103 shares gained and 756 shares fell. A total of 147 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose and rest of them fell.
Banking stocks extended Friday's gains triggered by the Reserve Bank of India's (RBI) decision on Thursday, 10 October 2013, to allow banks to raise funds from global multilateral institutions until 30 November 2013 as long as the money raised is for general banking purposes and not for capital enhancement. These borrowings from multilateral bodies will also be eligible for the recently opened forex swap facility. The central bank also allowed banks to borrow from entities other than their own branches overseas under existing regulators for borrowing overseas.
Among private bank stocks, HDFC Bank (up 0.07%), Axis Bank (up 2.77%), Yes Bank (up 1.73%), and ICICI Bank (up 0.37%), Karnataka Bank (up 15.84%), South Indian Bank (up 8.59%), Dhanalakshmi Bank (up 9.52%), Karur Vysya Bank (up 6.9%), Development Credit Bank (up 6.32%), City Union Bank (up 6.67%), and Federal Bank (up 3.9%), gained.
IndusInd Bank gained 1.46% ahead of its Q2 results today, 14 October 2013.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained 0.75% to 3.73%.
Index heavyweight and cigarette maker ITC declined 0.3% to Rs 340.80. The scrip high of Rs 342.95 and low of Rs 339.50 so far during the day.
Realty stocks edged lower. HDIL (down 0.82%), Unitech (down 0.26%), D B Realty (down 1.34%) and DLF (down 1.17%), edged lower.
Motherson Sumi Systems jumped 5.15% to Rs 261.25. The stock hit record high of Rs 262.15 in intraday trade.
Wockhardt was locked at a lower circuit limit of 5% at Rs 499.30 on BSE after the UK drug regulator withdrew its quality certification to the company's Chikalthana factory in Maharashtra. The company made the announcement on Saturday, 12 October 2013. Wockhardt informed that UK's health regulator -- the Medicines and Healthcare Products Regulatory Agency (MHRA) -- has withdrawn the good manufacturing certification of the company's Chikalthana facility at Aurangabad in Maharashtra. The company can, however, continue exporting some critical drugs to the UK as the MHRA will issue a restricted good manufacturing practice (GMP) certificate to the plant to avoid a shortage of medically essential products supplied by Wockhardt.
Wockhardt said that the impact on the existing business will be known once the company receives further communication from the MHRA.
The Chikalthana facility contributes approximately 12 million pounds from the UK and the European Union (EU) markets to the consolidated annual revenues of the company, Wockhardt said.
TTK Prestige fell 3.95% after the company reported flat net profit growth in Q2 September 2013 over Q2 September 2012. The result was announced on Saturday, 12 October 2013. TTK Prestige's net profit rose marginally by 0.1% to Rs 30.30 crore on 3% increase in net sales to Rs 345.54 crore in Q2 September 2013 over Q2 September 2012.
On the macro front, industrial production growth slowed to 0.6% in August 2013 from an upwardly revised 2.8% pace in July, hurt by weak investment and consumer demand, government data showed on Friday, 11 October 2013. The entire growth in industrial production in August 2013 was mainly driven by 7.2% surge in electricity generation. The mining output continued to witness decline in output, while the manufacturing sector output also recorded fall in August 2013.
Data on inflation based on the wholesale price index (WPI) and the consumer price index (CPI), both, for September 2013, are due today, 14 October 2013. While WPI data is due around 12:00 IST, CPI data is expected to hit the market at 17:30 IST.
The annual rate of inflation, based on the monthly wholesale price index (WPI) is seen easing slightly to 6% in September 2013 from 6.1% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The WPI had accelerated to 6.1% in August 2013 from 5.79% in July 2013.
The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India is seen easing a bit 9.4% in September 2013 from 9.52% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The CPI had decelerated to 9.52% in August 2013 from 9.64% in July 2013. Inflation for the category 'food and beverages' stood at 11.06% in August 2013.
Asian stocks dropped on Monday, 14 October 2014, weighed by an unexpected drop in exports from China and as American lawmakers struggled over an accord to raise the nation's debt limit and restore government operations. Key benchmark indices in Singapore, South Korea, and Taiwan fell 0.07% to 0.76%. China's Shanghai Composite rose 0.56%. Stock markets in Japan, Indonesia and Hong Kong were shut for holidays.
China's exports unexpectedly fell in September and inflation jumped on food prices, signaling constraints on the nation's recovery as Premier Li Keqiang seeks to sustain growth without adding monetary stimulus. Overseas shipments dropped 0.3% from a year earlier, customs data showed on 12 October, while imports rose a more-than-forecast 7.4%. Consumer prices rose 3.1% as food costs advanced the most since May 2012, statistics bureau figures showed in Beijing.
Trading in US index futures indicated that the Dow could fall 102 points at the opening bell on Monday, 14 October 2013. Senate Republicans and Democrats met Sunday in a bid to broker a budget deal as the Republican-led House and President Barack Obama remained deadlocked. The Republicans want compromises on Obama's health-care law, while Democrats have called for one-year deals for "clean" budget and debt-ceiling resolutions that have no cutbacks in funding the health-care program. Much of the US government also remained shut down for the 13th day, with a bill to restore funding for operations seen as likely to feature in any deal.
The Treasury Department's Oct. 17 deadline for raising the debt ceiling is rapidly approaching. Failure to raise the debt limit could be catastrophic for the US economy. Without an increase to the debt limit, the US will exhaust its borrowing authority on Thursday, 17 October 2013, and would run out of funds to pay all of its bills sometime between October 22 and October 31, according to the Congressional Budget Office.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength as policy makers mull the timing of reductions in bond buying. Government data from payrolls to retail sales will be delayed as long as the shutdown continues. 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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