Key benchmark indices retained positive in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 93.62 points or 0.46%, up close to 125 points from the day's low and off about 25 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by provisional data showing that foreign funds made substantial purchases of Indian stocks on Friday, 11 October 2013.
Capital goods pivotals edged lower. Hero MotoCorp extended intraday gain. Telecom stocks edged higher on reports that the government is expected to give a go-ahead to trading and sharing of spectrum between telecom operators. IT major TCS extended intraday gain ahead of its Q2 result tomorrow, 15 October 2013. IndusInd Bank rose in volatile trade after the private sector bank reported strong Q2 results.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between gains and losses. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks. The Sensex retained positive terrain in mid-morning trade. A bout of volatility was witnessed as key benchmark indices regained positive terrain after reversing intraday gain in early afternoon trade. The volatility in early afternoon trade materialised after the latest data showed that inflation based on the wholesale price index (WPI) accelerated to to a seven-month in September 2013. Key benchmark retained positive zone in mid-afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 11 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1010.45 crore on Friday, 11 October 2013, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 93.62 points or 0.46% to 20,622.21. The index jumped 117.35 points at the day's high of 20,645.94 in morning trade, its highest level since 20 September 2013. The index fell 30.71 points at the day's low of 20,497.88 in early trade.
The CNX Nifty was up 19.75 points or 0.32% to 6,115.95. The index hit a high of 6,124.10 in intraday trade, its highest level since 20 September 2013. The index hit a low of 6,082.90 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,257 shares gained and 1,041 shares fell. A total of 141 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks fell and rest of them rose. Wipro (up 3.01%), Infosys (up 1.16%) and Coal India (up 1.1%), edged higher from the Sensex pack.
Hero MotoCorp rose 1.16%, with the stock extending intraday gain.
IndusInd Bank rose in volatile trade after the private sector bank reported strong Q2 results. The stock was up 1.2% at Rs 433.20. The scrip hit high of Rs 439.95 and low of Rs 422 so far during the day. The bank's net profit jumped 31.96% to Rs 330.23 crore on 18.88% growth in total income to Rs 2435.30 crore in Q2 September 2013 over Q2 September 2012. The bank announced Q2 result during market hours.
IT major TCS jumped 4.38% to Rs 2,217, with the stock extending intraday high ahead of its Q2 result tomorrow, 15 October 2013. The stock hit record high of Rs 2,217.95 in intraday trade.
Telecom stocks edged higher on reports that the government is expected to give a go-ahead to trading and sharing of spectrum between telecom operators, while also recommending a uniform Spectrum Usage Charge (SUC) for various telecom services. Tata Teleservices (Maharashtra) (up 3.17%), Reliance Communications (up 0.9%), and Bharti Airtel (up 0.42%), gained.
According to reports, the idea is to create a conducive environment before the start of fresh spectrum auctions and signal an industry-friendly approach adopted by the Department of Telecom (DoT). The moves, it is felt, are crucial to ensure healthy participation by telecom operators in the auction as well as to encourage an aggressive bidding, reports added.
Idea Cellular rose 0.65% after the company sad during market hours that the company has signed Unified License with the Department of Telecommunications in respect of its seven service areas namely Tamil Nadu, Orissa, West Bengal, Kolkata, Assam, North East and Jammu & Kashmir. The company's seven operative telecom licenses in respect of these seven service areas were quashed by the Supreme Court vide its judgment dated 2 February 2012. The company thereafter bid and won the spectrum in respect of these seven service areas in the auction held in November 2012.
Capital goods pivotals edged lower. L&T (down 0.33%) and Bhel (down 1.67%), declined.
Suzlon Energy rose 3.73% after the company said it won a new contract in Uruguay. The company made the announcement during trading hours today, 14 October 2013. Financial details of the deal were not disclosed.
Suzlon Energy announced that the group won a 65 megawatt (MW) project in Uruguay. The project, located in the southern Department of Colonia in Uruguay, is developed by Rouar S.A., a unique joint venture between UTE - Uruguay's state-owned utility, and Brazilian utility Eletrobras - the largest in Latin America, the company said in a statement.
As per the deal, Suzlon will supply 31 units of the S95 - 2.1 MW wind turbines for the project. Suzlon will be responsible for full EPC delivery for the project, scheduled for completion in September 2014, the company said.
Speaking on the order, Mr Tulsi Tanti, Chairman - Suzlon Group, said:"This is a major order for the company and a big step forward in our push into South America. We are very pleased to deliver our first project in Uruguay, and to partner with both UTE and Eletrobras through Rouar S.A., and look forward to a long and constructive relationship."
Bond prices dropped after the latest data showed that inflation based on the wholesale price inflation (WPI) accelerated to a seven-month high in September 2013, increasing the chance that the central bank may raise its main lending rate viz. the repo rate at a monetary policy review later this month. The yield on the benchmark federal paper 7.16% GS 2023 was hovering at 8.5616%, higher than its close of 8.489% on Friday, 11 October 2013. Bond yield and bond prices are inversely related.
WPI inflation accelerated to 6.46% in September 2013, from 6.1% in August 2013. Increase in inflation in September 2013 was mainly driven by surge in inflation for crude oil and non-food primary articles viz. fibres and oilseeds. Core inflation accelerated to 2.06% in September 2013 from 1.97% in August 2013. Inflation for July 13 was revised upwards to 5.85% from 5.79% reported earlier.
Build up of inflation rate in the financial year so far was 5.64% compared to 4.84% in the corresponding period of the previous year.
Data on inflation based on the consumer price index (CPI) for September 2013, is due after trading hours today, 14 October 2013. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India is seen easing a bit 9.4% in September 2013 from 9.52% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The CPI had decelerated to 9.52% in August 2013 from 9.64% in July 2013. Inflation for the category 'food and beverages' stood at 11.06% in August 2013.
In the foreign exchange market, the rupee edged lower against the dollar as increase in WPI inflation to a 7-month high in September 2013 raised the possibility of the central bank raising its main lending rate viz. the repo rate at a monetary policy review later this month. The partially convertible rupee was hovering at 61.235, weaker than its close of 61.07/08 on Friday, 11 October 2013.
Industrial production growth slowed to 0.6% in August 2013 from an upwardly revised 2.8% pace in July, hurt by weak investment and consumer demand, government data showed on Friday, 11 October 2013. The entire growth in industrial production in August 2013 was mainly driven by 7.2% surge in electricity generation. The mining output continued to witness decline in output, while the manufacturing sector output also recorded fall in August 2013.
European stock markets edged lower on Monday, 14 October 2013, after weak economic data from China and as US Senate leaders remained deadlocked over a deal to raise the nation's debt limit. Key benchmark indices in Germany and France were off 0.23% to 0.24%. In UK, the FTSE 100 index was up 0.03%
Asian stocks dropped on Monday, 14 October 2014, weighed by an unexpected drop in exports from China and as American lawmakers struggled over an accord to raise the nation's debt limit and restore government operations. Key benchmark indices in Singapore, South Korea and Taiwan fell 0.23% to 0.9%. China's Shanghai Composite rose 0.43%. Stock markets in Japan, Indonesia and Hong Kong were shut for holidays.
China's exports unexpectedly fell in September and inflation jumped on food prices, signaling constraints on the nation's recovery as Premier Li Keqiang seeks to sustain growth without adding monetary stimulus. Overseas shipments dropped 0.3% from a year earlier, customs data showed on 12 October, while imports rose a more-than-forecast 7.4%. Consumer prices rose 3.1% as food costs advanced the most since May 2012, statistics bureau figures showed in Beijing.
Trading in US index futures indicated that the Dow could fall 102 points at the opening bell on Monday, 14 October 2013. Senate Republicans and Democrats met Sunday in a bid to broker a budget deal as the Republican-led House and President Barack Obama remained deadlocked. The Republicans want compromises on Obama's health-care law, while Democrats have called for one-year deals for "clean" budget and debt-ceiling resolutions that have no cutbacks in funding the health-care program. Much of the US government also remained shut down for the 13th day, with a bill to restore funding for operations seen as likely to feature in any deal.
The Treasury Department's Oct. 17 deadline for raising the debt ceiling is rapidly approaching. Failure to raise the debt limit could be catastrophic for the US economy. Without an increase to the debt limit, the US will exhaust its borrowing authority on Thursday, 17 October 2013, and would run out of funds to pay all of its bills sometime between October 22 and October 31, according to the Congressional Budget Office.
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.
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