Key benchmark indices were a tad higher in afternoon trade amid alternate bouts of rise and fall near the flat line. The barometer index, the S&P BSE Sensex, was up 15.15 points or 0.07%, off 67.03 points from the day's high and up 91.52 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Index heavyweight and cigarette maker ITC held firm. Most FMCG stocks gained on renewed buying. Nestle India extended Tuesday's gain triggered by a foreign brokerage upgrading the stock to 'outperform' from 'sell' and raised its price target. Apollo Tyres gained after the company on Thursday, 16 October 2013 said that it has filed its answer to the complaint filed by Cooper Tire & Rubber Company with the Delaware Court of Chancery on 4 October 2013 as well as a counterclaim.
The market slipped into the red after a positive start triggered by higher Asian stocks. A bout of volatility was witnessed as key benchmark indices recouped entire initial losses in morning trade. Intraday volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices alternately swung between positive and negative zone near the flat line in early afternoon trade. Key benchmark indices were a tad higher in afternoon trade amid alternate bouts of rise and fall near the flat line.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment after the US lawmakers on Wednesday, 16 October 2013, voted to reopen the US government and raise the nation's debt ceiling, avoiding a default. The partially convertible rupee was hovering at 61.4750, stronger than its close of 61.835/845 on Tuesday, 15 October 2013. Indian financial markets were closed on Wednesday, 16 October 2013, on account of Bakri Id.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1136.23 crore on Tuesday, 15 October 2013, as per provisional data from the stock exchanges.
At 13:16 IST, the S&P BSE Sensex was up 15.15 points or 0.07% to 20,562.77. The index gained 82.18 points at the day's high of 20,629.80 in mid-morning trade. The index declined 76.37 points at the day's low of 20,471.25 in morning trade.
The CNX Nifty was up 1 points or 0.02% to 6,090.05. The index hit a low of 6,064.85 in intraday trade. The index hit a high of 6,110.75 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,178 shares gained and 987 shares fell. A total of 154 shares were unchanged.
The total turnover on BSE amounted to Rs 1196 crore by 13:20 IST.
Among the 30-share Sensex pack, 17 stocks rose and rest fell. Bajaj Auto (up 3.01%), ONGC (up 2.88%) and Bharti Airtel (up 2.48%) gained.
Tata Motors (down 3.86%), L&T (down 2.46%) and ICICI Bank (down 0.76%) dropped.
Index heavyweight and cigarette maker ITC rose 1.55%.
Most FMCG stocks gained on renewed buying. Colgate-Palmolive (India) (up 1.42%), Dabur India (up 0.09%), Hindustan Unilever (up 1.33%), Marico (up 0.34%) and Tata Global Beverages (up 2.28%) gained.
Nestle India rose 3.57% to Rs 5,473.90, with the stock extending Tuesday's 3.72% gain triggered by a foreign brokerage upgrading the stock to 'outperform' from 'sell' and raised its price target to Rs 5,850 from Rs 4,900.
The foreign brokerage upgraded its rating on Nestle India shares as it expects the company to see better days ahead. The brokerage said that Nestle India is starting to see improving sales while it remains less dependant on imports than competitors such as Hindustan Unilever. Nestle India's shares have also underperformed consumer good rivals, the brokerage added.
Apollo Tyres gained 3.07%. The company on Thursday, 16 October 2013 said that it has filed its answer to the complaint filed by Cooper Tire & Rubber Company with the Delaware Court of Chancery on 4 October 2013 as well as a counterclaim.
In its answer, Apollo denied the allegations made by Cooper regarding the course of its negotiations with the United Steelworkers and confirmed that it has worked diligently to reach a settlement with the United Steelworkers to enable Cooper to overcome the United Steelworkers injunction prohibiting Cooper from consummating the merger. Apollo also asserted affirmative defenses, including that conditions precedent to closing had not been satisfied because the marketing period for the financing, central to Cooper's claims in its complaint, had never commenced and that Cooper has failed to meet its contractual obligations under the merger agreement.
Meanwhile, Apollo also filed a counterclaim seeking a declaratory judgment that the conditions precedent to the closing of the merger have not been satisfied. Apollo's response details Cooper's failures to provide information required to be provided under the merger agreement due in part to its lack of control of its Chinese subsidiary, Cooper Chengshan Tire (CCT), as well as Cooper's breach of several representations, warranties and covenants in the merger agreement.
Apollo reaffirms that it believes that a merger with Cooper is strategically compelling and that it continues to work diligently to address the various post-announcement impediments preventing Cooper from consummating the merger.
Jaiprakash Associates (up 6.95%), Future Retail (up 6.06%), MCX (up 5%), Federal Bank (up 4.33%) and NHPC (up 3.04%) were among the top gainers from the BSE's 'A' group.
Reserve Bank of India Governor Raghuram Rajan on Tuesday, 15 October 2013, said that the economy will pick up by the year-end thanks to the start-up of billions of dollars worth of stalled resource projects and a good monsoon season that will bolster agricultural production. He said about half of the $115 billion worth of stalled projects had been cleared. Rajan also said that the question of using interest rates to address inflation is more complicated in India than in the United States. "In the US you know there is a large interest rate-sensitive sector that is going to be affected when you raise interest rates ... But what if you have a large part of the country that is not connected directly to the financial system?" he said, referring to India's massive rural population.
The World Bank on Wednesday, 16 October 2013, sharply lowered its forecast for India's economic growth to 4.7% from 6.1% for the current fiscal year, citing a sharp slowdown in manufacturing and investment as well as negative business confidence. In a report released on Wednesday, the World Bank said that high headline inflation, an elevated current account deficit and rising pressure on fiscal balances from the depreciation of the rupee could impede the country's growth. Economic activity is expected to pick up in the second half of FY 2014, although the speed of economic recovery could be impacted by the country's present vulnerabilities, the World Bank said in its India Development Update report. The latest report forecasts economic growth to pick up to 6.2% in the 2014/15 fiscal year that begins next April.
European stock markets broke a five-day winning streak on Thursday, after U.S. lawmakers agreed to end the government shutdown and raise the debt ceiling, but failed to come up with a longer-term solution for the country's finances. The deal will finance the government only until Jan. 15 and raise the borrowing limit until Feb. 7. Key benchmark indices in UK, France and Germany were down 0.1% to 0.58%.
Most Asian stocks rose on Thursday, 17 October 2013, as investors heaved a sigh of relief after the US lawmakers on Wednesday, 16 October 2013, voted to reopen the US government and raise the nation's debt ceiling, avoiding a default. Key benchmark indices in Indonesia, South Korea, Japan and Taiwan rose 0.29% to 0.83%. Key benchmark indices in China and Hong Kong fell 0.15% to 0.21%.
Trading in US index futures indicated that the Dow could fall 5 points at the opening bell on Thursday, 17 October 2013. US stocks rose on Wednesday after US lawmakers came to an apparent deal to lift the debt ceiling and reopen government operations.
The US House of Representatives and the US Senate on Wednesday, 16 October 2013, voted to restore federal operations, funding the government through Jan. 15, and to raise the debt ceiling until Feb. 7. The House passed the Senate-crafted bill by a 285-to-144 margin. US President Barack Obama said he will sign the legislation immediately, and federal workers are expected to return to work Thursday. Investors worldwide had been concerned that the US could default on its debt obligations, resulting in a disruption of business activity and long-running efforts to encourage global economic growth.
The widely watched monthly US jobs report for September 2013 is among the data that weren't released during the 16-day government shutdown.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. 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.
Powered by Capital Market - Live News
