A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade. The 50-unit CNX Nifty regained the psychological 6,000, having alternately moved above and below that level in intraday trade. The barometer index, the S&P BSE Sensex, was down 36.24 points or 0.18%, up 77.11 points from the day's low and off 110.75 points from the day's high. The market breadth, indicating the overall health of the market, was positive. In the foreign exchange market, the rupee trimmed losses against the dollar.
NTPC extended intraday gain. State Bank of India edged higher in choppy trade. Education stocks rallied across the board on renewed buying.
A bout of initial volatility was witnessed as the key benchmark indices reversed initial losses. The Sensex, and the 50-unit CNX Nifty, both, hit their highest level in nearly three weeks. Key benchmark indices alternately moved between positive and negative zone near the flat line in morning trade. Key benchmark indices weakened in mid-morning trade as index heavyweight Reliance Industries (RIL) extended intraday fall and as another index heavyweight ITC dropped in choppy trade. The market trimmed losses in early afternoon trade.
In the foreign exchange market, the rupee rupee trimmed intraday losses against the dollar. The partially convertible rupee was hovering at 62.04, weaker than its close of 61.93/94 on Wednesday, 9 October 2013. The rupee fell as weakness in other Asian currencies and global currency majors versus the greenback weighed.
Foreign institutional investors (FIIs) bought shares worth a net Rs 326.58 crore on Wednesday, 9 October 2013, as per provisional data from the stock exchanges.
At 12:15 IST, the S&P BSE Sensex was down 36.24 points or 0.18% to 20,213.02. The index fell 113.35 points at the day's low of 20,135.91 in mid-morning trade. The index gained 74.51 points at the day's high of 20,323.77 in early trade, its highest level since 20 September 2013.
The 50-unit CNX Nifty was down 3.70 points or 0.06% to 6,003.75. The index hit a low of 5,979.80 in intraday trade. The index hit a high of 6,031.80 in intraday trade, its highest level since 20 September 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,218 shares gained and 861 shares fell. A total of 145 shares were unchanged.
The total turnover on BSE amounted to Rs 865 crore by 12:20 IST compared to Rs 681 crore by 11:20 IST.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined.
Index heavyweight Reliance Industries fell 1.14% to Rs 851.70. The stock hit high of Rs 861 and low of Rs 849 so far during the day.
Index heavyweight and cigarette major ITC was off 0.76% at Rs 345.90. The stock hit high of Rs 350.75 and low of Rs 345.40 so far during the day.
NTPC gained 1.31% to Rs 147, with the stock extending intraday gain.
State Bank of India rose 0.97% to Rs 1,628. The stock hit high of Rs 1,629.85 and low of Rs 1,609.85 so far during the day.
Education stocks rallied across the board on renewed buying. Career Point (up 20%), Everonn Education (up 4.98%), Educomp Solutions (up 6.57%), CORE Education & Technologies (up 4.84%), NIIT (up 3.05%) and Aptech (up 3.11%) surged.
IL&FS Transportation Networks rose 1.57% after the company said that it set up a new infrastructure company in Sharjah, UAE. The announcement was made after market hours on Wednesday, 9 October 2013. IL&FS Transportation Networks said it set up a new infrastructure company, Sharjah General Services Company ("Khadamat"), in partnership with Sheikh Sultan bin Ahmed Al Qassimi, Chairman of Sharjah Media Centre.
Khadamat aims at comprehensive and integrated development of the region through enhancing infrastructure for both the public and private sectors. Khadamat is incorporated for managing and operating facilities; creating an international infrastructure for surface transportation, logistics, industries and services sectors; and managing such an infrastructure in accordance with international standards, including the establishment of an internal and external road network and the launch of strategic real estate development and redevelopment projects.
Asian markets were trading mixed on Thursday, 10 October 2013. Key benchmark indices in Singapore, Japan and Indonesia rose by 0.45% to 1.12%. Key benchmark indices in China, Hong Kong and South Korea fell by 0.07% to 0.74%. Taiwan's markets were closed for a holiday.
Chinese trade and inflation data to be released over the weekend and early next week will provide investors a chance to see whether the economic recovery seen in recent months has carried on to September.
Japanese core machinery orders rose 5.4% in August from the previous month, the government said Thursday, on a recovery in capital spending by businesses and increased demand ahead of a planned sales-tax hike. That came after a 0.03% decline in July, and was the first rise in three months.
Trading in US index futures indicated that the Dow could gain 46 points at the opening bell on Thursday, 10 October 2013. US stocks ended mostly higher on Wednesday, 9 October 2013, with signs of progress in ending deadlock in Washington after news that US President Barack Obama would meet House Democrats on Wednesday and House Republicans on Thursday. Investors' focus remains on the ongoing fiscal impasse in the US amid worries that Washington could pass the deadline to raise the debt ceiling -- a move that could lead to a default.
US markets offered little reaction to the Federal Reserve's release of minutes from its September meeting, at which the Fed unexpectedly refrained from tapering its $85 billion in monthly asset purchases. Most Federal Reserve policy makers said they were likely to reduce the pace of bond purchases this year, according to minutes of their last meeting, which took place before the US government partial shutdown started.
Meanwhile, US President Barack Obama on Wednesday, 8 October 2013, nominated Janet Yellen, the current Fed vice chairman and an architect of its stimulus program, to succeed Ben S. Bernanke as central bank chairman.
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.
In Europe, Bank of England's (BoE) monetary policy announcement is due later in the global day today, 10 October 2013. The BoE is expected to keep rates steady at 0.5% as the central bank has tied any changes in rates to a drop in the unemployment rate to 7%. Also, the bank is expected to retain the level of its 375 billion quantitative easing program.
Brazil's central bank on Wednesday raised the country's baseline lending rate once more by half a point, as expected. But the central bank disappointed some investors by giving no sign that it will slow the pace of rate hikes going forward. In a unanimous vote, the monetary policy committee, or Copom, raised the Selic rate to 9.5%.
The OPEC is slated to release its monthly oil report later today, 10 October 2013.
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