The market breadth, indicating the overall health of the market, turned negative from positive in afternoon trade even as two key benchmark indices viz. the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, held firm. The Sensex was up 350.47 points or 1.67%, off 136.74 points from the day's high and up 64.36 points from the day's low. Indian stocks edged higher today, 9 December 2013, after a strong performance of Bharatiya Janata Party (BJP) in assembly elections. The market sentiment was also boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 6 December 2013. Gains in Asian stocks also boosted sentiment on the domestic bourses. In the foreign exchange market, the rupee edged higher against the dollar.
Asian stocks rose on Monday, 9 December 2013, after better-than-forecast growth in US jobs and Chinese exports boosted investor confidence cuts to Federal Reserve stimulus won't derail the global economic recovery.
Shares of power generation and power distribution companies extended recent gains on strong demand from investors for the follow-on public offer of state-run Power Grid Corporation of India (PGCIL) last week. Jindal Steel & Power dropped in volatile trade on profit booking. Shares of engineering and construction major L&T hit 52-week high.
The market surged in early trade after strong performance of Bharatiya Janata Party (BJP) in assembly elections. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high. A bout of volatility was witnessed as key benchmark indices regained strength after trimming initial strong gains in morning trade. Volatility continued on the bourses as key benchmark indices trimmed gains and hit fresh intraday low in mid-morning trade. The market was range bound in early afternoon trade. Firmness continued on the bourses in afternoon trade.
BJP has secured emphatic victory in assembly elections in Madhya Pradesh and Rajasthan, a narrower one in Chhattisgarh and emerged as the single largest party in a hung Delhi assembly, giving the party and its leader Narendra Modi confidence and momentum going into next year's general elections. Aam Aadmi Party, which confounded skeptics to win 28 seats in the 70-member Delhi assembly, denied BJP, which won 31 seats, an outright victory. Congress's debacle has also fortified the perception of Narendra Modi-led BJP being the frontrunner for 2014 Lok Sabha elections. Counting of votes for assembly elections in Rajasthan, Delhi, Madhya Pradesh and Chattisgarh took place on Sunday, 8 December 2013.
The investor community is betting that BJP's win in Lok Sabha elections next year under the leadership of pro development leader, Narendra Modi would help solve India's intrinsic problems, boost investments and propel economic growth which has seen a consistent slide under the UPA government in last one decade.
Meanwhile, the counting of elections for the 40-member Mizoram Assembly which is underway today, 9 December 2013, showed that the Congress has won 12 seats and is leading in 10 seats. Data from 13 seats is yet to be reported.
The market sentiment was also boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 6 December 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 863.77 crore on Friday, 6 December 2013, as per provisional data from the stock exchanges.
At 13:18 IST, the S&P BSE Sensex was up 350.47 points or 1.67% to 21,347. The index jumped 487.21 points at the day's high of 21,483.74 in early trade, which is a record high. The index rose 286.11 points at the day's low of 21,282.64 in mid-morning trade.
The CNX Nifty was up 107.65 points or 1.72% to 6,367.55. The index hit a high of 6,415.25 in intraday trade, which is a record high. The index hit a low of 6,345 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in afternoon trade. On BSE, 1,169 shares declined and 1,148 shares rose. A total of 163 shares were unchanged.
The total turnover on BSE amounted to Rs 1369 crore by 13:20 IST.
From the 30-share Sensex pack, 25 stocks rose and only five fell. Cipla (down 0.86%), Tata Steel (down 0.3%) and Tata Motors (down 0.26%) edged lower from the Sensex pack.
Jindal Steel & Power dropped 5.25% to Rs 268.65 in volatile trade. The stock hit a high of Rs 289.90 and low of Rs 266.65 so far during the day. The stock fell on profit booking after gaining 15.26% in the preceding 11 trading sessions to Rs 283.55 on 6 December 2013, from a recent low of Rs 246 on 21 November 2013.
Capital goods pivotals rose. L&T advanced 4.87% to Rs 1,149.90 after hitting 52-week high of Rs 1,152 in intraday trade.
Shares of state-run power equipment major Bharat Heavy Electricals (Bhel) rose 0.38% at Rs 172. The stock was volatile. The scrip hit high of Rs 177.30 and low of Rs 170.50 so far during the day.
Shares of power generation and power distribution companies extended recent gains on strong demand from investors for the follow-on public offer of state-run Power Grid Corporation of India (PGCIL) last week. GVK Power & Infrastructure (up 2.56%), NTPC (up 3.49%), Reliance Infrastructure (up 1.14%), Adani Power (up 1.86%), and Reliance Power (up 0.63%) gained.
Power Grid Corporation of India (PGCIL) rose 1.11% to Rs 100, on strong response from investors to the company's follow-on public offer (FPO). The FPO which closed on Friday, 6 December 2013, was subscribed 6.74 times. The FPO received bids for a total 530.12 crore shares, compared with 78.70 crore shares on offer, as per NSE data.
After the successful divestment, the Government of India's holding in PGCIL will come down to 57.89% from the present level of 69.42%.
Tata Power Company gained 2.04%. The company after market hours on Friday, 6 December 2013, said that the coal handling plant at Coastal Gujarat Power (CGPL), Mundra had an occurrence of fire in the coal conveyor gallery on 14 November 2013. Coal feeding to the plant was impacted due to fire and the repair works that followed. Restoration of the impact of fire on conveyor was achieved on 20 November 2013, Tata Power said. The company has processed the insurance claim as per coverage, Tata Power said.
In the foreign exchange market, the rupee edged higher against the dollar after strong performance of Bharatiya Janata Party (BJP) in assembly elections. The partially convertible rupee was hovering at 61.115, compared with its close of 61.41/42 on Friday, 6 December 2013.
On macro front, the Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
Asian stocks rose on Monday, 9 December 2013, after better-than-forecast growth in US jobs and Chinese exports boosted investor confidence cuts to Federal Reserve stimulus won't derail the global economic recovery. Key benchmark indices in China, Taiwan, Indonesia, South Korea, Singapore, Japan and Hong Kong rose 0.05% to 2.29%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
China today reported inflation slowed more than estimated last month, after data yesterday showed export growth helped swell the nation's trade surplus to $33.8 billion, the widest since January 2009. The consumer-price index rose 3 percent from a year earlier, the National Bureau of Statistics said today in Beijing.
China's trade surplus widened last month to the largest in more than four years as exports exceeded estimates. The surplus of $33.8 billion was the biggest since January 2009, data from the General Administration of Customs showed yesterday in Beijing. Outbound shipments rose 12.7% from a year earlier, while import gained 5.3%.
Japan's growth slowed more than an initial estimate in the third quarter while the country posted an unexpected deficit in its broadest trade gauge in October, underscoring headwinds to Prime Minister Shinzo Abe's efforts to cement a recovery. Gross domestic product expanded an annualized 1.1% from the previous quarter when it rose 3.6%, the Cabinet Office said today in Tokyo, lower than a preliminary reading of 1.9%. Japan's current account registered a 128 billion yen ($1.2 billion) shortfall, the first deficit since January, according to the finance ministry.
Trading in US index futures indicated that the Dow could advance 31 points at the opening bell on Monday, 9 December 2013. US stocks surged on Friday, 6 December 2013, after the latest data showed American employers added more jobs than forecast and the jobless rate dropped to the lowest since 2008. The 203,000 increase in payrolls in November followed a revised 200,000 advance in October, Labor Department figures showed. The US jobless rate fell to 7%, showing progress in the labor market that will help provide a spark for the US economy. Another report showed consumer confidence rose more than forecast in December to the highest level in five months, easing concern about household spending heading into the holiday-shopping season. The Thomson Reuters/University of Michigan preliminary December consumer sentiment index rose to 82.5, the strongest since July, from 75.1 in November.
Investors are keeping a close watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth. The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. 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. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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