Key benchmark indices retained positive zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently above the psychological 19,000 mark, having alternately moved above and below that level in intraday trade. The Sensex was up 63.77 points or 0.34%, up about 115 points from the day's low and off close to 60 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Thursday, 5 September 2013.
ICICI Bank extended intraday gain. IT stocks rose on positive economic data in the US. Capital goods pivotals were mixed. Tata Power Company extended intraday losses. Sesa Goa declined as shares allotted by the company to the shareholders of Sterlite Industries (India), The Madras Aluminium Company and Ekaterina pursuant to the Schemes of Amalgamation and Arrangement were admitted to trading on the bourses.
The market reversed initial gains triggered by higher Asian stocks. Volatility continued as key benchmark indices regained positive terrain after swinging alternately between positive and negative zone in morning trade. The market retained positive zone in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 5 September 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1101.41 crore on Thursday, 5 September 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 63.77 points or 0.34% to 19,043.53. The index jumped 126.10 points at the day's high of 19,105.96 in early trade. The index fell 50.38 points at the day's low of 18,929.38 in morning trade.
The CNX Nifty was up 14.90 points or 0.27% to 5,607.65. The index hit a high of 5,624.20 in intraday trade. The index hit a low of 5,566.15 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,077 shares rose and 729 shares fell. A total of 114 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. Bharti Airtel (up 1.95%), Cipla (up 3.55%) and ONGC (up 1.56%), rose.
ICICI Bank rose 4.43%, with the stock extending intraday gain.
Sesa Goa lost 1.73% to Rs 175.75 as shares allotted by the company to the shareholders of Sterlite Industries (India), The Madras Aluminium Company and Ekaterina pursuant to the Schemes of Amalgamation and Arrangement were admitted to trading on the bourses. The stock was volatile. The scrip hit high of Rs 182.25 and low of Rs 168.30 so far during the day. A total of 209.55 crore shares of Sesa Goa were admitted to trading on the bourses today, 6 September 2013.
Tata Power Company fell 3.91%, with the stock extending intraday losses.
IT stocks rose on positive economic data in the US, the biggest outsourcing market for the Indian IT firms. Infosys (up 2.04%), HCL Technologies (up 0.2%), TCS (up 0.34%) and Wipro (up 2.38%), edged higher.
Capital goods pivotals were mixed. Shares of L&T gained 1.59%.
Bharat Heavy Electricals (Bhel) dropped 1.24% as the stock turned ex-dividend today, 6 September 2013, for final dividend of Rs 3.29 per share for the year ended 31 March 2013.
In the foreign exchange market, the rupee was unchanged for the day at 66.01, compared with Thursday's close of 66.01/02.
The stock market remains closed on Monday, 9 September 2013, on account of Ganesh Chaturthi.
The Reserve Bank of India said on Thursday that it will release the next Mid-Quarter Review of Monetary Policy 2013-14 at 11 IST on 20 September 2013 instead of 18 September 2013 as indicated in the First Quarter Review of Monetary Policy 2013-14. This will be followed by Governor Dr. Raghuram Rajan addressing the media in the afternoon.
Most Asian stocks gained on Friday, 6 September 2013, extending a six-day advance as investors await the monthly American jobs report later in the global day. Key benchmark indices in China, Taiwan, Hong Kong, South Korea, and Singapore rose by 0.07% to 0.65%. Key benchmark indices in Indonesia and Japan shed by 0.41% to 1.46%.
Leaders of the world's biggest economies at a Group of 20 summit in Russia grappled with threats to the global economy as the effects of the Syrian conflict added to the fallout from a potential stimulus exit. The BRICS countries pledged yesterday in St. Petersburg to create a $100 billion pool of currency reserves to guard against shocks even as Russia said US President Barack Obama sought to ease concern about an abrupt pullback. Chinese and Italian officials warned that military intervention in Syria would risk harming the global economy. China will contribute $41 billion to a pool of BRICS reserves, with Russia, India and Brazil each adding $18 billion and South Africa providing $5 billion, according to a statement issued yesterday. The BRICS countries, which also agreed to seed a new development bank with $50 billion of capital, are seeking a shield against unintended negative spillovers from unconventional monetary policies in developed economies, according to the statement.
Trading in US index futures indicated that the Dow could fall 16 points at the opening bell on Friday, 6 September 2013. US stocks on Thursday climbed for a third consecutive session, with the Dow Jones Industrial Average posting its longest winning run since the middle of July, as investors looked to the government's monthly jobs report. Claims for US unemployment benefits declined by 9,000 to 323,000 in the week ended August 31, less than the estimates. Another report showed companies boosted employment by 176,000 workers in August, according to the ADP Research Institute.
The influential US nonfarm payroll report for August 2013 is due for release today, 6 September 2013. The employment numbers will be keenly watched given the implications for the timing of the Federal Reserve's plan to begin slowing the pace of its monetary stimulus.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this 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.
In Europe, European Central Bank indicated recent improvements in the euro zone's economy haven't been strong enough for a pullback from the bank's easy monetary policies. While the ECB's Governing Council left its benchmark lending rate unchanged at 0.5% at its meeting Thursday, ECB President Mario Draghi said policy makers had discussed lowering the rate. He also said inflation expectations are contained, which will give the central bank room to hold off on raising rates for some time.
The Bank of England also on Thursday offered no surprises, leaving the size of its bond-buying program unchanged and holding its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee left its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($585 billion). The minutes from the September 4 meeting will be published on September 18. The central bank has said it aims to keep rates low at least until the UK unemployment rate drops below 7%, which it doesn't expect will happen until 2016.
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