Key benchmark indices weakened once again after they pared initial losses and hit fresh intraday high in morning trade as better than expected October jobs report in US fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. The S&P BSE Sensex was down 80.91 points or 0.39%, off close to 40 points from the day's high and up about 105 points from the day's low. The market breadth, indicating the overall health of the market, was even. IT stocks gained on positive US economic data and weak rupee. Index heavyweight and cigarette maker ITC dropped.
The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
The market edged lower in early trade. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their lowest level in 3-1/2 weeks. It weakened once again after it pared initial losses and hit fresh intraday high in morning trade.
At 10:17 IST, the S&P BSE Sensex was down 80.91 points or 0.39% to 20,585.24. The index shed 183.74 points at the day's low of 20,482.41 in early trade, its lowest level since 17 October 2013. The index fell 42.32 points at the day's high of 20,623.83 in morning trade.
The CNX Nifty was down 31.10 points or 0.51% to 6,109.65. The index hit a low of 6,070.85 in intraday trade, its lowest level since 17 October 2013. The index hit a high of 6,121.35 in intraday trade.
The market breadth, indicating the overall health of the market, was even. On BSE, 597 shares rose and 596 shares fell. A total of 59 shares were unchanged.
Among the 30-share Sensex pack, 21 stocks fell and rest of them rose. L&T (down 2.07%), Tata Motors (down 1.69%) and GAIL (India) (down 1.72%), declined.
IT stocks gained on positive economic data in US and weak rupee. US is the biggest outsourcing market for the Indian IT firms. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Infosys rose 0.48%. The company said after market hours on Friday, 8 November 2013 that Infosys BPO, the business process outsourcing subsidiary of the company on Friday announced the opening of a new delivery center in Eindhoven, the Netherlands. The 120-seat center strengthens Infosys BPO's footprint and reinforces its position in Europe.
Among other IT stocks, TCS (up 1.42%), Wipro (up 0.83%) and HCL Technologies (up 2.06%), gained.
Index heavyweight and cigarette maker ITC shed 0.45%.
In the foreign exchange market, the rupee fell below 63 mark against the dollar as better than expected October US jobs report fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. The partially convertible rupee was hovering at 63.2250, compared with its close of 62.475/485 on Friday, 8 November 2013.
On the macro front, the government will unveil industrial production data for September 2013 on tomorrow, 12 November 2013. Index of industrial production (IIP) rose 0.6% in August 2013, showing moderation in growth from 2.8% growth recorded in July 2013.
Data on inflation based on the consumer price index (CPI) for October 2013 will be unveiled on tomorrow, 12 November 2013. The headline CPI inflation (combined) for September 2013 was placed at 9.84% (y-o-y), which came in higher than 9.52% (y-o-y) seen in August 2013.
Most Asian stocks declined on Monday as better than expected October jobs report in US fueled concern the Federal Reserve may reduce monetary stimulus for the US economy sooner than expected. Key benchmark indices in China, Taiwan, South Korea and Indonesia shed 0.16% to 0.68%. Key benchmark indices in Singapore, Japan, and Hong Kong rose 0.11% to 0.99%.
China's industrial output rose a more-than-estimated 10.3% from a year earlier in October, according to data released Nov 9 by the National Bureau of Statistics. October inflation was a less-than-forecast 3.2%, producer prices fell 1.5% from a year earlier and retail sales rose 13.3%.
The meeting of China's leaders in Beijing will end tomorrow, 12 November 2013 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 fall 21 points at the opening bell on Monday, 11 November 2013. US stocks applauded a better-than-expected October jobs report and rose on Friday amid hopes a more buoyant economy will improve business for American companies over the long run.
American employers added 204,000 workers last month after a revised 163,000 gain in September that was larger than previously estimated, Labor Department figures showed Nov. 8. The increase in payrolls topped the most optimistic forecast in a survey of economists.
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