Key benchmark indices regained positive terrain and hit fresh intraday high in morning trade, with gains in Asian stocks boosting investor sentiment.The barometer index, the S&P BSE Sensex, was up 110.43 points or 0.6%, up close to 230 points from the day's low and off about 10 points from the day's high. The market breadth, indicating the overall health of the market, was strong. IT stocks rose on positive economic data in the US, with HCL Technologies and TCS hitting record high and Wipro and Tech Mahindra hitting 52-week high. MphasiS rose on good Q3 result.
A bout of volatility was witnessed in early trade as key benchmark indices trimmed losses after slipping into the red after a positive opening. The market regained positive terrain and hit fresh intraday high in morning trade.
At 10:20 IST, the S&P BSE Sensex was up 110.43 points or 0.6% to 18,511.47. The index jumped 119.19 points at the day's high of 18,520.23 in morning trade, its highest level since 26 August 2013. The index fell 117.30 points at the day's low of 18,283.74 in early trade.
The CNX Nifty was up 23.70 points or 0.44% to 5,432.75. The index hit a high of 5,435.60 in intraday trade, its highest level since 26 August 2013. The index hit a low of 5,367.35 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,015 shares rose and 505 shares fell. A total of 81 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks rose and rest of them fell. Tata Steel (up 2.87%), Sun Pharmaceutical Industries (up 3.43%) and HDFC Bank (up 2.14%), edged higher.
IT stocks rose on positive economic data in the US, the biggest outsourcing market for the Indian IT firms.
Wipro rose 1.8% to Rs 482.95 after hitting a 52-week high of Rs 484.10 in intraday trade. Wipro on Thursday, 29 August 2013, announced the launch of a range of information technology (IT) products for the aviation industry.
Wipro enters the CNX Nifty index in place of Reliance Infrastructure with effect from 27 September 2013 as per an announcement by the National Stock Exchange (NSE) on 27 August 2013.
HCL Technologies gained 1.36% to Rs 1,031 after hitting a record high of Rs 1035.40 in intraday trade.
TCS rose 2.05% to Rs 1985.95 after hitting a record high of Rs 1992.60 in intraday trade.
Tech Mahindra rose 3.68% to Rs 1417 after hitting a 52-week high of Rs 1428 in intraday trade.
But, Infosys fell 0.68%.
MphasiS jumped 5.2% after consolidated net profit rose 9.1% to Rs 193 crore on 9.6% growth in revenue to Rs 1540 crore in Q3 July 2013 over Q2 April 2013. The Q3 result was announced after market hours on Thursday, 29 August 2013.
MphasiS reported an impressive bottom line growth during the quarter despite a 160 basis points increase in effective tax rates to 26.7%. Operating margins for the quarter expanded 110 bps to 15.8% despite the impact of wage hikes that were administered during the quarter. Cash and cash equivalents increased by Rs 348 crore during the quarter to reach Rs 2688 crore.
MphasiS said that the share of Direct business grew from 54% to 59%, further mitigating risk of client concentration.
Commenting on the company's Q3 performance, Ganesh Ayyar, Chief Executive Officer, MphasiS said: "Our Direct business growth is a reflection of our strategy in action. Our investment in Data, Analytics and Mobility is experiencing growing demand."
During the quarter, the company added 16 clients with 10 in the Direct channel.
Nitesh Estates rose 4.97% after the company announced the launch of a residential project worth Rs 300 crore called Nitesh British Columbia. It is a premium high rise condominium project off Kanakpura Road in South Bangalore. The announcement was made after market hours on Thursday, 29 August 2013.
Nitesh Estates said that the project is aimed at the first-time home buyers. Spread over 4.7 acres, Nitesh British Columbia, will have 388 apartments with their areas ranging from 1000 sq. ft to 1,600 sq. ft. There are 2 bedroom and 3 bedroom configurations on offer. The apartments are attractively priced at Rs 37 lakh onwards, the company said.
Launching the project, Mr. Ashwini Kumar, Executive Director and Chief Operating Officer, Nitesh Estates said: "British Columbia is about great value through efficient space planning. Each apartment comes with great unobstructed open view, plenty of ambient lighting and ventilation. A clean fade, horizontal bands and clever use of 2 tone colours in an attractively landscaped campus with a well-planned clubhouse, pool and associated amenities make the project a beautiful setting for a community of 388 families."
Gujarat Industries Power Company lost 2.65% as the stock turned ex-dividend today, 30 August 2013, for a dividend of Rs 2.50 per share for the year ended March 2013.
In the foreign currency market, the rupee dropped in choppy trade after Thursday's steep rally. The partially convertible rupee was hovering at 66.93, weaker than its close of 66.55/56 on Thursday, 29 August 2013. The rupee fell as stronger than expected US GDP growth in Q2 June 2013 raised fears that the data may lead the Federal Reserve to reduce the pace of its bond purchases soon.
On the macro front, the Central Statistics Office (CSO) will unveil data on gross domestic product (GDP) for Q1 June 2013 at 17:30 IST today, 30 August 2013. The GDP growth is seen moderating further to 4.7% in Q1 June 2013, from 4.78% in Q4 March 2013, as per the median estimate of a poll of economists carried out by Capital Market. The GDP grew 5% in the year ended 31 March 2013, the weakest in a decade, as falling domestic and overseas demand, crumbling domestic infrastructure facilities, bureaucratic delays in approvals for industrial projects and high borrowing costs choked investments in the economy.
Most Asian stocks rose on Friday, 30 August 2013, following overnight gains in US stocks triggered by data showing that the US economy expanded more rapidly than previously thought in the second quarter. Key benchmark indices in South Korea, Indonesia, Singapore, Taiwan and China rose by 0.1% to 0.99%. Key benchmark indices in Hong Kong, and Japan fell by 0.06% to 0.44%.
Japan's consumer prices increased at the fastest pace since 2008 in July, adding to signs that Prime Minister Shinzo Abe is making progress in pulling the economy out of 15 years of deflation. Consumer prices excluding fresh food climbed 0.7% from a year earlier, the statistics bureau said today in Tokyo.
Trading in US index futures indicated that the Dow could gain 36 points at the opening bell on Friday, 30 August 2013. US stocks rose on Thursday, 29 August 2013, as data showed the economy expanded at a faster pace in the second quarter and concerns over Syria eased. Gross domestic product rose at a 2.5% annualized rate, up from an initial estimate of 1.7%, Commerce Department figures showed Thursday in Washington. Jobless claims in the week ended August 24 dropped 6,000 to 331,000 from a revised 337,000 the week before that was higher than initially reported, the Labor Department said
US markets remain closed on Monday, 2 September 2013, for the Labor Day holiday.
The prospect of imminent military strikes on Syria receded as the UK and France said they favor waiting for the results of a United Nations investigation into alleged use of chemical weapons. The UK Parliament has voted against the use of force in Syria. The US which says it has evidence that Syria's government was responsible, won't act without allies, Defense Secretary Chuck Hagel said. Meanwhile, the White House told US congressional leaders that a potential strike on Syria would focus on removing the regime's chemical-weapons capability.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled next 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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