Key benchmark indices were a tad higher in early afternoon trade. The S&P BSE Sensex was up 60.07 points or 0.33%, off about 60 points from the day's low and up close to 160 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Shares of two wheeler makers declined. IT stocks were mixed. Reliance Industries (RIL) rose after the company announced a new gas condensate discovery off the east coast of India in the Cauvery basin. Shares of power equipment major Bharat Heavy Electricals (Bhel) extended intraday gains.
A bout of volatility was witnessed as key benchmark indices slipped into the red after a higher opening triggered by firm Asian stocks. High volatility was witnessed as key benchmark indices regained positive terrain in morning trade. Intraday volatility continued as the Sensex cut entire intraday gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices were a tad higher in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was up 60.07 points or 0.33% to 18,373.01. The index jumped 121.24 points at the day's high of 18,434.18 in mid-morning trade, its highest level since 21 August 2013. The index fell 102.19 points at the day's low of 18,210.75 in morning trade.
The CNX Nifty was up 19.15 points or 0.35% to 5,427.60. The index hit a high of 5,449.25 in intraday trade, its highest level since 21 August 2013. The index hit a low of 5,377.80 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,155 shares rose and 829 shares fell. A total of 129 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose and rest of them fell. Jindal Steel & Power (up 2.72%), ONGC (up 1.88%) and Tata Power company (up 1.6%), edged higher.
Shares of power equipment major Bharat Heavy Electricals (Bhel) extended intraday gains. The stock was up 5.8% at Rs 113.60.
Reliance Industries (RIL) rose 1.38% after the company and British Petroleum announced a new gas condensate discovery off the east coast of India in the Cauvery basin. The discovery, in the deepwater block CY-DWN-2001/2 (CYD5), is situated 62 kilometers from the coast in the Cauvery Basin and is the second gas discovery in the block. RIL is the operator with 70% equity and BP has a 30% share.
Preliminary evaluation of well data and fluid samples indicated presence of gas condensate in the reservoir interval with a gross column of 143 meters. The well reached its total depth in early August and RIL, as operator, has conducted drill stem test (DST) to evaluate the potential of the discovery. The well which had the initial reservoir pressure of 8000 psi flowed gas at the rate of 35.2 million standard cubic feet per day with condensate at the rate of 413 barrels per day through 52/64" choke during DST. Well flow rates during such tests are limited by the rig and well test equipment configuration, RIL and BP said in a joint statement. The Government of India (GoI) and Directorate General of Hydrocarbons have been notified of the discovery, named D-56.
ICICI Bank rose 1.96%. The bank after market hours on Thursday, 22 August 2013, said it has increased base rate by 0.25% to 10% per annum with effect from 23 August 2013. With effect from 1 July 2010, interest rates on new loans and advances, including consumer loans, are determined with reference to base rate. ICICI Bank has also announced an increase of 0.25% in its benchmark prime-lending rate and in its Floating Reference Rate (FRR) for consumer loans (including home loans) with effect from 23 August 2013. These benchmark rates are used for determining interest rates on loans and advances sanctioned upto 30 June 2010. The fixed rate customers will not be impacted by the above revision and their contracted rates will remain unchanged, ICICI Bank said.
Mahindra & Mahindra (M&M) rose 2.04%. The company on 14 August 2013 said it plans to invest Rs 200 crore to strengthen its current product line-up of trucks and buses. The company plans to invest Rs 300 crore to explore new product lines in the LCV, ICV and MCV range, it said.
Tata Motors gained 2.6%. The company's global wholesale vehicle sales fell 14% to 87,566 vehicles in July 2013 over July 2012. Global sales of passenger cars fell 13% to 46,684 vehicles in July 2013 over July 2012. Sales of its Jaguar Land Rover brand rose 30.61% to 35,162 units. Sales of its Jaguar cars rose 76.53% to 7,174 vehicles and Land Rover sales were higher by 22.45% at 27,988 vehicles during the month. The company announced the global vehicle sales figures on 14 August 2013.
Maruti Suzuki India fell 1.21%. The company announced on 21 August 2013 announced the launch of the stylish, aggressive, sporty Stingray car model. With this the company has expanded its portfolio and enriched to meet inspirations of young India, Maruti said on Wednesday, 21 August 2013. Stingray, which is powered by a 998 cc petrol engine, is available in three variants, with price ranging between Rs 4,09,999 to Rs 4,66,999 ex showroom Delhi.
Shares of two wheeler makers declined. Bajaj Auto fell 0.95%. Hero MotoCorp shed 0.98%.
IT stocks were mixed. Wipro (down 0.72%) and Infosys (down 1.26%), edged lower. TCS (up 1.32%) and HCL Technologies (up 2.28%), edged higher.
Bank of Maharashtra rose 0.26%. The state-run bank said during market hours today, 23 August 2013 that the base rate of the bank is revised upwards by 25 basis points from 10% per annum (p.a.) to 10.25% p.a. on monthly compounding basis, with effect from 26 August 2013.
Finance Minister P. Chidambaram said on Thursday that revival and encouragement of growth will continue to be the focus of the government. Chidambaram said that stronger growth will, in course of time, alleviate many of the challenges that India faces today. He said that there is no cause for the panic that seems to have gripped the currency markets and that is feeding into other markets.
Chidambaram believes that the rupee is undervalued and has overshot what is generally believed to be a reasonable and appropriate level. Capital inflows will, in due course, correct the position. India's debt indicators are within prudent limits. India does not have excessive public debt (Central and State Governments taken together). The overall public debt to GDP ratio has declined from 73.2% in 2006-07 to 66% in 2012-13. The economy's external debt is only 21.2% of GDP. India's reserves are $277 billion.
India's inflation could accelerate in the current fiscal year due to the rupee's sharp depreciation, the Reserve Bank of India (RBI) said in a report on Thursday. The pass-through of the depreciation of the rupee exchange rate by about 11% in the four months of 2013-14 is incomplete and will put upward pressure as it continues to feed through to domestic prices, the RBI said in its annual report for 2012-13. Risks on the inflation front are still significant, the RBI said. The rupee's weakness could also increase subsidy payouts for fuel and fertiliser in 2013/14, the central bank said. However, the report said normal monsoon rains in India have taken a major risk off the horizon" but said a close vigil was necessary after food prices showed an upsurge during April to July. If high food inflation persists into the second half of 2013-14, the risks of generalised inflation could become large, it said. India's current account gap, which widened to a record high of 4.8% of GDP in the fiscal year to March 2013, is likely to ease in the current fiscal year but may continue to be much above the sustainable level, the report said. Global risks coupled with domestic structural impediments have dampened prospects of a recovery in 2013-14, and posed immediate challenges for compressing the current account deficit, it said. The central bank's report added that utmost attention is needed to contain risks to financial stability arising from deteriorating asset quality of banks.
Most Asian stocks rose on Friday, 23 August 2013, after reports from Europe to the US boosted confidence in global economic recovery. Key benchmark indices in Hong Kong, Singapore, Japan, Taiwan, Indonesia and South Korea were up by 0.1% to 2.21%. China's Shanghai Composite fell 0.71%.
Trading in US index futures indicated a flat opening of US stocks on Friday, 23 August 2013. US stocks edged higher on Thursday after a monthly average of jobless claims fell to a more than five-year low in the US, and as manufacturing Purchasing Managers' Index readings from China and Germany indicated expansion.
Factory output in the euro area is improving more than economists estimated and the fewest US workers in more than five years applied for jobless benefits, reports yesterday showed.
Investors are keeping a close watch on the Federal Reserve's three-day annual monetary conference in Jackson Hole, Wyo which begins today, 23 August 2013, on whether Fed officials give any indication of the timing of the potential tapering of the Fed's bond purchases. Fed Chairman Ben Bernanke is not attending this year's Fed's annual monetary conference. The Fed currently buys $85 billion worth of securities a month to help support the US economy, but it has signaled its intent to soon slow the pace of those purchases as the economy recovery gains pace.
Bernanke's term expires in January, and US President Barack Obama is considering candidates to succeed him, including Fed Vice Chairman Janet Yellen and former Treasury Secretary Lawrence Summers.
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