Key benchmark indices traded off intraday lows in early afternoon trade as the rupee reversed initial losses against the dollar. The barometer index, the S&P BSE Sensex, was down 85.09 points or 0.43%, up 91.76 points from the day's low and off 143.53 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
State-run banking giant State Bank of India (SBI) reversed initial decline. State-run oil exploration giant ONGC edged lower. India's largest power generation firm by capacity NTPC also edged lower. FMCG stocks were mixed. Construction shares gained on renewed buying.
Key benchmark indices edged lower in early trade to profit booking after Tuesday's rally. A bout of volatility was witnessed as the key benchmark indices slipped into the red again after reversing initial losses in morning trade. The Sensex alternately moved above and below the psychological 20,000 level in intraday trade. Key benchmark indices extended losses in mid-morning trade. Key benchmark indices cut intraday losses in early afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a massive Rs 2563.60 crore on Tuesday, 10 September 2013, as per provisional data from the stock exchanges. The Sensex had jumped 3.77% on Tuesday after the latest data showed that India's trade deficit, the key driver of the country's large current-account deficit, narrowed to five-month low in August 2013.
In the foreign exchange market, the rupee reversed direction after falling below 64 against the dollar in early trade. The partially convertible rupee was hovering at 63.81, a tad higher than its close of 63.84/85 on Tuesday, 10 September 2013.
At 12:16 IST, the S&P BSE Sensex was down 85.09 points or 0.43% to 19,912. The index rose 55.76 points at the day's high of 20,055.53 in morning trade, its highest level since 25 July 2013. The index lost 179.53 points at the day's low of 19,820.24 in early trade.
The CNX Nifty was down 20.55 points or 0.35% to 5,876.20. The index hit a high of 5,913.45 in intraday trade, its highest level since 26 July 2013. The index hit a low of 5,842.10 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,098 shares gained and 842 shares fell. A total of 117 shares were unchanged.
The total turnover on BSE amounted to Rs 1049 crore by 12:20 IST compared to Rs 779 crore by 11:20 IST.
Among the 30-share Sensex pack, 19 stocks declined and rest of them gained.
State-run banking giant SBI gained 2% to Rs 1,664, with the stock reversing initial decline after falling as much as 1.67% at the day's low of Rs 1,604.25.
State-run oil exploration giant ONGC lost 2.43% to Rs 285, with the stock reversing initial gain.
India's largest power generation firm by capacity NTPC fell 1.88% to Rs 136.
Index heavyweight and cigarette major ITC lost 1.85% to Rs 329.20. The stock hit high of Rs 336.50 and low of Rs 327.15 so far during the day.
FMCG stocks were mixed. Dabur India (down 1%), Godrej Consumer Products (down 2.54%), Hindustan Unilever (down 2.18%), and GlaxoSmithKline Consumer Healthcare (down 0.9%) declined. Tata Global Beverages (up 2.32%), Britannia Industries (up 2.13%), Bajaj Corp (up 1.16%), Nestle (India) (up 0.91%) and Colgate-Palmolive India (up 0.64%), edged higher.
Cairn India lost 1.74% as US crude oil futures fell for a third day after US President Obama called for a pause on authorizing a military strike against Syria, easing concerns of disruption in Middle East oil exports. US crude oil futures for October 2013 delivery were down 34 cents a barrel at $107.05 a barrel in the electronic trading today, 11 September 2013. The contract had fallen $2.13 a barrel or 1.94% to settle at $107.39 a barrel on the New York Mercantile Exchange on Tuesday, 10 September 2013, its lowest closing level since 4 September 2013. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.
Construction shares gained on renewed buying. IVRCL (up 6.04%), IL&FS Transportation Network (up 2.18%), Gammon India (up 3.94%), Hindustan Construction Company (up 6.38%), NCC (up 2.65%), Patel Engineering (up 5.71%) and IRB Infrastructure Developers (up 7.74%) edged higher.
Asian stock markets were mixed on Wednesday, 11 September 2013. Key benchmark indices in China, Japan and South Korea were up 0.01% to 0.49%. Key benchmark indices in Hong Kong, Indonesia and Singapore were off 0.33% to 0.51%.Taiwan's Taiwan Weighted index was unchanged for the day.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 11 September 2013. US stocks rallied on Tuesday, 10 September 2013, with the S&P 500 continuing its longest stretch of gains since mid-July, after upbeat data from China and amid heightened diplomacy on Syria.
US President Barack Obama called for diplomacy in dealing with chemical weapons in Syria but kept open the possibility of military action against the Assad regime. Obama late Tuesday said he was sending US Secretary of State John Kerry to Geneva to meet Russian Foreign Minister Sergey Lavrov to work out details of a plan to have Syria, led by President Bashar al-Assad, give its chemical weapons stockpile to the international community. Obama had called for potential strikes against Syria in retaliation for Syria's use of chemical weapons against civilians in late August. But with a diplomatic solution on the table, Obama asked Congress to delay a vote on whether to authorize military strikes.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. 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. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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