Key benchmark indices hovered in positive terrain after striking fresh intraday high in morning trade. Gains in Asian stocks supported domestic bourses. The S&P BSE Sensex was currently above the psychological 21,000 mark, having alternately swung above and below that mark earlier during the session. The Sensex was up 43.96 points or 0.21%, off close to 25 points from the day's high and up about 75 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Index heavyweight and cigarette maker ITC rose in volatile trade. IT stocks gained after New Jersey-based IT services firm Cognizant Technology Solutions Corp on Tuesday, 5 November 2013, raised its full-year forecast for both profit and revenue at the time of announcing its Q3 result September 2013 results. Tata Consultancy Services (TCS) gained after the company announced that Zions Bancorporation, one of America's premier financial services companies, has chosen TCS BaNCS for its core banking transformation program. State Bank of Travancore declined on weak Q2 result. Pharma stocks edged higher.
A bout of volatility was witnessed in early trade as key benchmark regained positive terrain after slipping into the red after opening higher. The Sensex retained positive zone after striking fresh intraday high in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 162.53 crore on Tuesday, 5 November 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 43.96 points or 0.21% to 21,018.75. The index rose 70.59 points at the day's high of 21,045.38 in morning trade. The index fell 30.29 points at the day's low of 20,944.50 in early trade, its lowest level since 30 October 2013.
The CNX Nifty was up 9.15 points or 0.15% to 6,262.30. The index hit a high of 6,269.70 in intraday trade. The index hit a low of 6,239.65 in intraday trade, its lowest level since 31 October 2013.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 1,085 shares rose and 523 shares fell. A total of 91 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and rest of them fell. Coal India (up 1.23%), NTPC (up 0.85%) and Tata Motors (up 0.77%), gained.
IT stocks gained as IT services firm Cognizant Technology Solutions Corp, a Teaneck, New Jersey-based company, which has most of its employees in India raised its full-year forecast for both profit and revenue at the time of announcing its Q3 September 2013 results on Tuesday, 5 November 2013. Cognizant reported a better-than-expected 22% rise in revenue in third quarter, helped by contracts from insurers setting up online exchanges as part of President Barack Obama's healthcare reforms. The company, which also raised its full-year forecast for both profit and revenue, said it would focus on winning more business from governments. The company's net income rose to $319.6 million, or $1.05 per share in the third quarter, from $276.9 million, or 91 cents per share, a year earlier. The company said it expects earnings of at least $4.01 per share on revenue growth of at least 20.3% to $8.84 billion for the year ending 31 December 2013. It had previously forecast earnings of at least $3.96 per share on revenue growth of at least 19% to $8.74 billion for 2013.
Infosys (up 0.89%), Wipro (up 1.53%) and HCL Technologies (up 0.62%), gained.
Tata Consultancy Services (TCS) gained 1.98% after the company announced after market hours on Tuesday, 5 November 2013, that Zions Bancorporation, one of America's premier financial services companies, has chosen TCS BaNCS for its core banking transformation program to achieve standardization, centralization and straight through processing across the enterprise. In addition to the cost saving benefits, the ability to have a single, 360 degree view of its end-user customers is a key focus of the core replacement program.
The depth of TCS BaNCS' capabilities, its implementation track record and overall quality of banking and technology experts were among the major factors that influenced this selection by Zions Bancorporation, which consists of a collection of great banks in select Western US markets with combined total assets exceeding $50 billion. The transformation will be completed in phases, with Zions' management expecting significant improvements in operational efficiency and customer experience, and reduced operational and financial risk stemming from older legacy systems.
Positive economic data in the US also supported IT stocks. The US is the biggest outsourcing market for the Indian IT firms.
Index heavyweight and cigarette maker ITC rose 0.86% to Rs 321.70 on bargain hunting after declining 3.52% on Tuesday, 5 November 2013. The scrip was volatile. The stock hit high of Rs 322.75 and low of Rs 317.40 so far during the day.
Pharma stocks edged higher. Cipla (up 1.38%), Dr Reddy's Laboratories (up 0.3%), Lupin (up 0.65%), Ranbaxy Laboratories (up 0.76%) and Sun Pharmaceutical Industries (up 1.35%), gained.
State Bank of Travancore lost 1.73% on weak Q2 result. The bank's net profit declined 59.19% to Rs 55.34 crore on 16.43% growth in total income to Rs 2566.09 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Tuesday, 5 November 2013.
State Bank of Travancore (SBT)'s ratio of gross non-performing assets (NPAs) to gross advances increased to 3.5% as on 30 September 2013 from 3.09% as on 30 June 2013 and 2.98% as on 30 September 2012. The ratio of net NPAs to net advances increased to 2.07% as on 30 September 2013 from 1.74% as on 30 June 2013 and 1.74% as on 30 September 2012.
The bank's Capital Adequacy Ratio (CAR) as per Basel II norms stood at 10.85% as on 30 September 2013 as against 10.48% as on 30 June 2013 and 12.41% as on 30 September 2012. CAR as per Basel III norms stood at 10.13% as on 30 September 2013.
SBT's provisions and contingencies surged 114.22% to Rs 251.93 crore in Q2 September 2013 over Q2 September 2012.
The bank's deposits grew 21.43% to Rs 91504.52 crore as on 30 September 2013 from Rs 75351.65 crore as on 30 September 2012. Advances rose 16.46% to Rs 67327.22 crore as on 30 September 2013 from Rs 57809.77 crore as on 30 September 2012.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar. The partially convertible rupee was hovering at 61.89, compared with its close of 61.625/635 on Tuesday, 5 November 2013. The dollar rose after a gauge of service industries climbed more than forecast in October, adding to the case for the Federal Reserve to taper monthly bond purchases.
Asian stocks edged higher on Wednesday, 6 November 2013, as Japanese shares were boosted by the yen weakening against the dollar and Commonwealth Bank of Australia posted a surge in profit. Key benchmark indices in Hong Kong, South Korea, Taiwan, Indonesia and Japan rose 0.08% to 0.91%. Singapore's Straits Times fell 0.13%. China's Shanghai Composite was flat.
China's leaders will meet in Beijing on November 9-12 to map out economic policies as the country heads for its slowest annual growth in more than two decades.
Trading in US index futures indicated that the Dow could jump 71 points at the opening bell on Wednesday, 6 November 2013. US stocks closed mostly lower on Tuesday, 5 November 2013, after a gauge of service industries climbed more than forecast in October, adding to the case for the Federal Reserve to taper monthly bond purchases.
The US Institute for Supply Management's gauge of service industries climbed more than strategists predicted, data showed yesterday, stoking concern that the world's biggest economy is faring well enough for the Fed to consider reducing asset purchases. Fed policy makers last week signaled diminishing concern over higher borrowing costs as they maintained their $85 billion in monthly bond-buying and sought more evidence of sustained growth before paring stimulus.
The US government will on Friday, 8 November 2013, release nonfarm payrolls figures for October 2013. The job data is a key economic indicator that has been watched closely in recent months to see whether the US Federal Reserve will roll back its bond-buying program.
In Europe, the European Union yesterday cut its forecast for euro-area growth next year and raised its unemployment estimate as the economy struggles to regain momentum after a record-long recession.
The European Central Bank (ECB) holds a monetary policy meeting tomorrow, 7 November 2013. The ECB is seen retaining its key policy rate at a record-low 0.5%.
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