Key benchmark indices hit fresh intraday high in afternoon trade, tracking a firm opening in European stocks. Global stock markets firmed up after a gauge of China's manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery. China is the World's second largest economy after the US. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit highest level in over two weeks.
The Sensex was up 277.78 points or 1.49%, up close to 219 points from the day's low and off about 44 points from the day's high. The market breadth, indicating the overall health of the market, was strong. All the thirteen sectoral indices on BSE were in the green. Coal India rose over 2% after unveiling production and offtake figure for August 2013.
The market surged in early trade. The S&P BSE Sensex hit highest level in over two weeks. The 50-unit CNX Nifty hit one hit high. It held firm in morning trade. It continued to hover in positive terrain in mid-morning trade. It extended gains and hit fresh intraday high in early afternoon trade.
At 13:16 IST, the S&P BSE Sensex was up 277.78 points or 1.49% to 18,897.50. The index rose 321.77 points at the day's high of 18,941.49 in afternoon trade, its highest level since 16 August 2013. The index gained 59.21 points at the day's low of 18,678.93 in early trade.
The CNX Nifty was up 73.35 points or 1.34% to 5,545.15. The index hit a high of 5,564.90 in intraday trade, its highest level since 16 August 2013. The index hit a low of 5,478.85 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,268 shares rose and 764 shares fell. A total of 122 shares were unchanged.
Among the 30-share Sensex pack, 25 stocks rose and rest of them fell. ITC (up 4.47%), Tata Steel (up 4.1%), Jindal Steel & Power (up 3.63%), HDFC (up 3.34%), ICICI Bank (up 3.31%) and Reliance Industries (up 2.91%), edged higher from the Sensex pack.
M&M (down 2.3%), Tata Power (down 2.04%), NTPC (down 0.38%), Dr Reddy's Laboratories (down 0.19%) and Infosys (down 0.01%), edged lower from the Sensex pack.
State-run Coal India rose 2.02% to Rs 255.55. The company announced during market hours today, 2 September 2013, that the company and its subsidiaries achieved 97% of targeted production at 31.68 million tonnes in August 2013. The company achieved 99% of targeted offtake at 35.10 million tonnes in August 2013.
United Breweries (up 8.87%), Emami (up 6.87%), Mahindra & Mahindra Financial Services (up 6.55%), Karnataka Bank (up 6.22%) and Union Bank of India (up 6.05%), were among the major gainers from the BSE's 'A' group.
On the macro front, India's economy grew at the slowest quarterly rate since the global financial crisis in the three months through June, lower than expected and hurt by a contraction in mining and manufacturing, government data showed on Friday, 30 August 2013. The GDP grew 4.4% in Q1 and was the slowest growth since the Jan-March quarter of 2009. Manufacturing fell an annual 1.2% during the quarter while mining fell by 2.8%, the data showed. While, farm output rose 2.7%.
Indian factory activity shrank for the first time in more than four years last month, adding to the country's deepening economic malaise even as the Reserve Bank of India (RBI) struggles to defend the battered rupee currency, a survey showed. The HSBC Manufacturing PMI, compiled by Markit, sank to 48.5 in August from 50.1 in July, the lowest reading since March 2009.
European stocks advanced on Monday as a gauge of Chinese manufacturing activity exceeded economists' estimates. Key benchmark indices in UK, France and Germany were up by 0.14% to 1.58%.
Most Asian stocks rose on Monday after a gauge of China's manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery. Key benchmark indices in Hong Kong, Japan, Taiwan and Singapore rose by 0.21% to 1.98%. Key benchmark indices in South Korea and Indonesia fell by 0.08% to 2.44%.
China's Shanghai Composite was trading flat. China's economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August as new orders jumped and overseas demand rebounded. The Purchasing Managers' Index was at 51.0, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A separate manufacturing PMI released by HSBC Holdings Plc and Markit Economics rose to 50.1 last month from 47.7 in July, the biggest gain in three years and the first reading above 50 since Apr
South Korea's exports expanded at a faster pace in August than the previous month in a sign of economic recovery, the Ministry of Trade, Industry and Energy said Sunday, beating market expectations.
US stock markets remain closed today, 2 September 2013, for the Labor Day holiday. US stocks fell in a thinly traded session on Friday, 30 August 2013 as the S&P 500 index recorded its steepest decline since May 2012 and investors avoided making large bets before a long weekend with the situation about Syria still uncertain.
President Barack Obama has decided to seek congressional authority to attack Syria for alleged chemical weapons prompting criticism that he's undermined US credibility.
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.
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