Volatility continued on the bourses as key benchmark indices trimmed gains and hit fresh intraday low in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 322.75 points or 1.54%, off close to 165 points from the day's high and up close to 35 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Indian stocks edged higher today, 9 December 2013, after a strong performance of Bharatiya Janata Party (BJP) in assembly elections. The market sentiment was also boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 6 December 2013. Gains in Asian stocks also boosted sentiment on the domestic bourses. In the foreign exchange market, the rupee edged higher against the dollar.
Asian stocks rose on Monday, 9 December 2013, after better-than-forecast growth in US jobs and Chinese exports boosted investor confidence cuts to Federal Reserve stimulus won't derail the global economic recovery.
Bank stocks rose across the board. Capital goods stocks also edged higher, with L&T hitting 52-week high. Glenmark Pharmaceuticals edged higher after the company said its step down US-based subsidiary has launched Hydrocortisone Butyrate cream in the United States. Jindal Steel & Power reversed initial gains.
The market surged in early trade after strong performance of Bharatiya Janata Party (BJP) in assembly elections. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high. A bout of volatility was witnessed as key benchmark indices regained strength after trimming initial strong gains in morning trade. Volatility continued on the bourses as key benchmark indices trimmed gains and hit fresh intraday low in mid-morning trade.
BJP has secured emphatic victory in assembly elections in Madhya Pradesh and Rajasthan, a narrower one in Chhattisgarh and emerged as the single largest party in a hung Delhi assembly, giving the party and its leader Narendra Modi confidence and momentum going into next year's general elections. Aam Aadmi Party, which confounded skeptics to win 28 seats in the 70-member Delhi assembly, denied BJP, which won 31 seats, an outright victory. Congress's debacle has also fortified the perception of Narendra Modi-led BJP being the frontrunner for 2014 Lok Sabha elections. Counting of votes for assembly elections in Rajasthan, Delhi, Madhya Pradesh and Chattisgarh took place on Sunday, 8 December 2013. Counting of votes for assembly elections in Mizoram takes place today, 9 December 2013.
Investor community is betting that BJP's win in Lok Sabha elections next year under the leadership of pro development leader, Narendra Modi would help solve India's intrinsic problems, boost investments and propel economic growth which has seen a consistent slide under the UPA government in last one decade.
The market sentiment was also boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 6 December 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 863.77 crore on Friday, 6 December 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 322.75 points or 1.54% to 21,319.28. The index jumped 487.21 points at the day's high of 21,483.74 in early trade, which is a record high. The index rose 286.11 points at the day's low of 21,282.64 in mid-morning trade.
The CNX Nifty was up 96.80 points or 1.55% to 6,356.70. The index hit a high of 6,415.25 in intraday trade, which is a record high. The index hit a low of 6,345 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,092 shares rose and 930 shares dropped. A total of 140 shares were unchanged.
From the 30-share Sensex pack, 27 stocks rose and only three fell.
Bank stocks rose across the board. AXIS Bank (up 3.17%), ICICI Bank (up 5.11%) and HDFC Bank (up 3.33%) gained.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank rose 2.21% to 4.75%.
Capital goods stocks edged higher. Bhel (up 0.44%), Punj Lloyd (up 0.69%) and Crompton Greaves (up 3.28%) gained.
L&T rose 3.51% to Rs 1,135 after hitting 52-week high of Rs 1,152 in intraday trade.
Glenmark Pharmaceuticals edged higher after the company said its step down US-based subsidiary has launched Hydrocortisone Butyrate cream in the United States. The stock was up 0.55%. The announcement was made during trading hours today, 9 December 2013.
Glenmark Generics Inc. (GGI), USA, a subsidiary of Glenmark Generics, announced the exclusive launch of Hydrocortisone Butyrate cream USP, 0.1% in the United States. The company received approval from the United States Food and Drug Administration (US FDA) for Abbreviated New Drug Application (ANDA) for its generic version of Locoid Lipocream on 27 September 2013, Glenmark Pharmaceuticals said in a statement.
Glenmark is entitled to 180 days of exclusivity with respect to its Hydrocortisone Butyrate cream, as it is the first generic company to file an ANDA for the product, the company said. Hydrocortisone Butyrate cream is indicated for the relief of the inflammatory and pruritic manifestations of corticosteroid-responsive dermatoses in adults and the treatment of mild to moderate atopic dermatitis in patients 3 months to 18 years of age. According to IMS Health sales data for the 12 month period ended September 2013, Hydrocortisone Butyrate cream garnered annual sales of approximately $36.8 million in the United States.
Glenmark's current portfolio consists of 90 products authorized for distribution in the US marketplace and 56 ANDAs pending approval with the US FDA. In addition to these internal filings, GGI continues to identify and explore external development partnerships to supplement and accelerate the growth of the existing pipeline and portfolio, Glenmark Pharmaceuticals said.
JSW Steel rose 0.74%. The company said during market hours that its crude steel production rose 28% to 10.72 lakh tonnes in November 2013 over November 2012. Production of flat rolled products rose 13% to 8.31 lakh tonnes in November 2013 over November 2012. Production of long rolled products fell 14% to 1.44 lakh tonnes in November 2013 over November 2012. The figures for the corresponding period in the previous year are on a pro forma basis after giving effect to the merger of JSW ISPAT Steel with JSW Steel.
Jindal Steel & Power slumped 4.07% to Rs 272, with the stock reversing initial gains.
In the foreign exchange market, the rupee edged higher against the dollar after strong performance of Bharatiya Janata Party (BJP) in assembly elections. The partially convertible rupee was hovering at 61.15, compared with its close of 61.41/42 on Friday, 6 December 2013.
On macro front, the Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
Asian stocks climbed on Monday, 9 December 2013, after better-than-estimated data on US jobs and Chinese exports. Key benchmark indices in Taiwan, Indonesia, South Korea, Singapore, Japan and Hong Kong rose 0.08% to 1.95%. China's Shanghai Composite fell 0.07%.
China today reported inflation slowed more than estimated last month, after data yesterday showed export growth helped swell the nation's trade surplus to $33.8 billion, the widest since January 2009. The consumer-price index rose 3 percent from a year earlier, the National Bureau of Statistics said today in Beijing.
China's trade surplus widened last month to the largest in more than four years as exports exceeded estimates. The surplus of $33.8 billion was the biggest since January 2009, data from the General Administration of Customs showed yesterday in Beijing. Outbound shipments rose 12.7% from a year earlier, while import gained 5.3%.
Japan's growth slowed more than an initial estimate in the third quarter while the country posted an unexpected deficit in its broadest trade gauge in October, underscoring headwinds to Prime Minister Shinzo Abe's efforts to cement a recovery. Gross domestic product expanded an annualized 1.1% from the previous quarter when it rose 3.6%, the Cabinet Office said today in Tokyo, lower than a preliminary reading of 1.9%. Japan's current account registered a 128 billion yen ($1.2 billion) shortfall, the first deficit since January, according to the finance ministry.
Trading in US index futures indicated that the Dow could gain 30 points at the opening bell on Monday, 9 December 2013. US stocks surged on Friday, 6 December 2013, after the latest data showed American employers added more jobs than forecast and the jobless rate dropped to the lowest since 2008. The 203,000 increase in payrolls in November followed a revised 200,000 advance in October, Labor Department figures showed. The US jobless rate fell to 7%, showing progress in the labor market that will help provide a spark for the US economy. Another report showed consumer confidence rose more than forecast in December to the highest level in five months, easing concern about household spending heading into the holiday-shopping season. The Thomson Reuters/University of Michigan preliminary December consumer sentiment index rose to 82.5, the strongest since July, from 75.1 in November.
Investors are keeping a close watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth. The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. 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. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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