Key benchmark indices alternately swung between positive and negative zone near the flat line in afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 3.56 points or 0.02%, off 70.11 points from the day's high and up 12.56 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Index heavyweight Reliance Industries (RIL) edged lower in volatile trade. Mahindra & Mahindra rose after the company reported decent growth in tractor sales for the month just gone by. IT stocks edged lower. Wipro reversed direction after hitting 52-week high at the onset of the trading session. HCL Technologies reversed direction after hitting record high at the onset of the trading session. Aviation stocks extended Tuesday's gains.
Among side counters, Alstom T&D India hit 52-week high. Finolex Industries scaled record high.
A bout of volatility was witnessed as key benchmark indices gave away almost entire gains after a positive start. Key benchmark indices were trading slightly higher in morning trade. The Sensex moved in a narrow range in positive zone in mid-morning trade. Key benchmark indices alternately swung between positive and negative zone near the flat line in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 309.70 crore on Tuesday, 31 December 2013, as per provisional data from the stock exchanges.
At 13:16 IST, the S&P BSE Sensex was up 3.56 points or 0.02% to 21,174.24. The index rose 73.67 points at the day's high of 21,244.35 in early trade, its highest level since 30 December 2013. The index fell 9 points at the day's low of 21,161.68 in afternoon trade.
The CNX Nifty was up 3 points or 0.05% to 6,307. The index hit a high of 6,327.20 in intraday trade, its highest level since 30 December 2013. The index hit a low of 6,301.65 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,490 shares gained and 790 shares fell. A total of 141 shares were unchanged.
The total turnover on BSE amounted to Rs 769 crore by 13:15 IST.
Among the 30-share Sensex pack, 21 stocks gained and rest of them declined. Bharti Airtel (up 1.32%), Sun Pharmaceutical Industries (up 1.01%) and Coal India (up 0.86%) gained.
Index heavyweight Reliance Industries fell 0.53% to Rs 890.10. The stock hit a high of Rs 898 and low of Rs 889.95 so far during the day.
Mahindra & Mahindra (M&M) rose 0.4%. M&M during market hours today, 1 January 2014, said that its total auto sales declined 13% to 39,611 units in December 2013 over December 2012.
Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said: "During the first nine months of the current fiscal, the auto industry has seen a negative growth due to sustained deceleration in economic activity and consequent weakness in consumer and business sentiments. While the immediate turnaround in the auto Industry is not expected without certain policy corrections and support, the worst seems to be over. At Mahindra we continue to focus on customer centricity and do hope that the new year will bring in the much needed cheer for the auto sector".
M&M separately said that its total tractor sales rose 15% to 17,037 units in December 2013 over December 2012. Tractor sales in the domestic market rose 19% to 16,257 units in December 2013 over December 2012. Exports fell 26% at 780 units in December 2013 over December 2012.
Speaking on the sector's monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, Mahindra & Mahindra said: "I am happy to share that at the end of the first 9 months of the current fiscal year, we have achieved a domestic growth of 24%. With expectations of a bumper Rabi crop, we believe we will see a double digit growth in the next 3 months. A continued shift towards greater mechanization on farms will provide an impetus to sales".
IT stocks edged lower. TCS fell 0.44% to Rs 2,161.50.
Wipro declined 0.85% to Rs 554.30. The stock reversed direction after hitting 52-week high of Rs 562.10 at the onset of the trading session.
Infosys slipped 0.16% to Rs 3,479.95. The stock had hit record high of Rs 3,575 in intraday trade on 30 December 2013.
HCL Technologies fell 0.42% to Rs 1,257.90. The stock reversed direction after hitting record high of Rs 1,270.10 at the onset of the trading session.
Tech Mahindra fell 0.29% to Rs 1,832.65. The stock had hit 52-week high of Rs 1,875 in intraday trade on 30 December 2013.
Aviation stocks extended Tuesday's gains. SpiceJet (up 5.41%), Jet Airways (India) (up 0.53%) and Kingfisher Airlines (up 9.84%) gained.
Alstom T&D India rose 1.58% to Rs 206.25 after hitting a 52-week high of Rs 209 in intraday trade.
Finolex Industries gained 3.88% to Rs 174.05 after hitting a record high of Rs 176.65 in intraday trade.
CRISIL fell 2.51% to Rs 1,176.75 on profit booking after the stock jumped 6.60% in the preceding three sessions to Rs 1,207.10 on 31 December 2013 from a recent low of Rs 1,132.40 on 26 December 2013.
Elder Pharmaceuticals (up 13.96%), Jindal Saw (up 12.33%), Punj Lloyd (up 10.28%), Sanwaria Agro Oils (up 9.58%) and REI Agro (up 9.09%) were among the major gainers from BSE Small-Cap index.
Godrej Properties (up 9.83%), Gujarat Flurochemicals (up 6.89%), Amtek India (up 5.88%), Indiabulls Real Estate (up 4.65%) and UCO Bank (up 3.64%) were among the major gainers from BSE Mid-Cap index.
In the foreign exchange market, the rupee edged lower against the dollar on the first trading session of the New Year. The partially convertible rupee was hovering at 61.885 compared with its close of 61.80/81 on Tuesday, 31 December 2013.
On the macro front, the eight core industries with a combined weight of 37.90% in the Index of Industrial Production (IIP) has shown an increase of 1.7% in November 2013. During April-November 2013, the eight-core sector has shown growth of 2.5% against 6.7% growth registered in April-November 2012.
The government's fiscal deficit touched Rs 5.1 lakh crore during April-November 2013, or 93.9% of the full-year target, government data showed on Tuesday, 31 December 2013. Net tax receipts touched Rs 3.96 lakh crore in the first eight months of the current fiscal year to March 2014, while total expenditure was Rs 10.21 lakh crore.
In the annual budget presented in February, Finance Minister P. Chidambaram had committed to narrow the fiscal deficit to 4.8% of gross domestic product (GDP) this fiscal year from 4.9% a year ago.
The next major trigger for the market is Q3 December 2013 corporate earnings. The Q3 earnings season will begin around mid-January 2014 and continue till mid-February 2014. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian stock markets were closed today, 1 January 2014, for New Year Holidays.
A Chinese manufacturing index slipped to a four-month low in December, underscoring challenges for President Xi Jinping as he tries to sustain economic momentum while rolling out reforms. The Purchasing Managers' Index was at 51, the statistics bureau and the logistics federation said today, 1 January 2014, in Beijing.
US stocks rose to records on Tuesday, 31 December 2013, with the Standard & Poor's 500 Index posting its biggest annual advance since 1997, as gains in consumer confidence and housing prices bolstered confidence in the world's largest economy. The Conference Board's index of US consumer confidence rose to 78.1 in December from 72 in the prior month while the S&P/Case-Shiller index showed property prices in 20 cities rose in October from a year ago by the most in more than seven years.
The US stock market is closed today, 1 January 2014, for New Year's Day holiday.
The US Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually over the next year.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014.
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