Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade as the latest data showed that trade deficit narrowed sharply in September 2013 from August 2013, reducing concerns about the country's current account deficit. The barometer index, the S&P BSE Sensex, regained the psychological 20,000 mark. The rupee trimmed losses against the dollar after trade deficit data. The Sensex was up 85.35 points or 0.43%, up 242 points from the day's low and off 32.20 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Index heavyweight Reliance Industries (RIL) extended intraday gain. Shares of pharma major Sun Pharmaceutical Industries extended intraday gain to hit fresh record high. ICICI Bank trimmed intraday losses. Shares of housing finance major HDFC reversed intraday losses. L&T extended Tuesday's gain triggered by the company's announcement of winning new orders worth Rs 1605 crore across various business segments. IT stocks were in red.
Key benchmark indices edged lower amid initial volatility after Reserve Bank of India (RBI) Governor Raghuram Rajan in an interview to a newspaper retained hawkish monetary policy stance by saying that monetary policy should aim at bringing down inflation expectations. Key benchmark indices trimmed initial losses as two index heavyweights -- ITC and Reliance Industries (RIL) -- edged higher in choppy trade. Key benchmark indices reversed initial losses, as did most Asian stocks, on reports that US President Barack Obama will today, 9 October 2013, nominate Federal Reserve Vice Chair Janet Yellen to be the next head of the US central bank. Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade as latest data showed that trade deficit narrowed sharply in September 2013 from August 2013.
In the foreign exchange market, the rupee trimmed losses against the dollar after data showed the September trade deficit narrowed sharply from August, reducing concerns about the country's current account deficit. The partially convertible rupee was hovering at 61.85, weaker than its close of 61.7925/8025 on Tuesday, 8 October 2013. The rupee trimmed losses after falling below 62 against the dollar earlier during the day.
The market sentiment got a boost from data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 8 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 226.32 crore on Tuesday, 8 October 2013, as per provisional data from the stock exchanges.
At 12:18 IST, the S&P BSE Sensex was up 85.35 points or 0.43% to 20,068.96. The index jumped 117.55 points at the day's high of 20,101.16 in early afternoon trade. The index lost 156.65 points at the day's low of 19,826.96 in early trade, its lowest level since 7 October 2013.
The CNX Nifty was up 27.20 points or 0.46% to 5,955.60. The index hit a high of 5,967.40 in intraday trade. The index hit a low of 5,877.10 in intraday trade, its lowest level since 7 October 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,166 shares gained and 893 shares declined. A total of 146 shares were unchanged.
The total turnover on BSE amounted to Rs 816 crore by 12:20 IST compared to Rs 554 crore by 11:20 IST.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
Index heavyweight Reliance Industries rose 1.4% to Rs 855.70, with the stock extending intraday gain. The stock hit high of Rs 856 and low of Rs 838 so far during the day.
Sun Pharmaceutical Industries gained 3.93% to Rs 637.45, with the stock extending intraday gain. The stock hit a record high of Rs 640.60 in intraday trade.
ICICI Bank shed 0.82% to Rs 929.50, with the stock trimming intraday losses. The stock had lost as much as 3.1% at the day's low of Rs 908.10.
HDFC rose 1.18% to Rs 799.35, with the stock reversing intraday fall. The stock had lost as much as 1% at the day's low of Rs 782.20.
L&T rose 1.42%, with the stock extending Tuesday's 2.38% gain triggered by the company's announcement of winning new orders worth Rs 1605 crore across various business segments. L&T announced the new orders during trading hours on Tuesday, 8 October 2013.
IT stocks were in red. TCS fell 0.45% to Rs 2,054.10. The stock had hit a record high of Rs 2,098 in intraday trade on Tuesday, 8 October 2013.
Infosys fell marginally by 0.05%. Infosys announces its Q2 results on Friday, 11 October 2013. At the time of announcing Q1 June 2013 results in July this year, Infosys had retained its guidance of 6% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014). At that time, the company had raised the guidance in rupee terms due to a steep depreciation of the rupee against the dollar. The company had forecast 13% to 17% growth in revenue in rupee terms for FY 2014, higher than its earlier guidance of 6% to 10% growth which the company had given at the time of announcement of Q4 March 2013 results. The rupee revenue guidance was based on assumption of dollar rupee conversion rate of Rs 59.39 for the rest of the fiscal year.
Wipro shed 0.75%. The company last week announced changes in the top deck of the organisation. The company announced the appointment of Senior Vice President Shaji Farooq as the global head of its Banking, Finance Services and Insurance (BFSI) strategic business unit. Shaji, who is currently leading the company's Advanced Technologies Service Line and Go-To-Market transformation initiatives, will take over from Senior Vice President Soumitro Ghosh, who will now head Wipro Infotech, the India and Middle East business.
Kaveri Seed Company surged 9.38%. According to the report, Bayer CropScience, the crop protection and agri-products arm of German company Bayer AG, is in preliminary talks to purchase a minority stake in Hyderabad-based Kaveri Seeds as double-digit growth in hybrid seeds sales make India an attractive and automatic investment choice for global giants. Bayer CropScience, which is increasing its investments in India, may reportedly buy a stake that is less than 26% in Kaveri Seed Company.
The provisional data released by the government today, 9 September 2013, showed that India's trade deficit narrowed sharply to $6.7 billion in September 2013 from $10.9 billion in August 2013. The September trade deficit is the lowest since March 2011. Merchandise exports rose by 11.15% year-on-year in September to $27.68 billion. Imports fell 18.1% year-on-year to $34.44 billion.
The International Monetary Fund (IMF) forecast economic growth for India to dip to 4.25% in the year to 31 March 2014 in its World Economic Outlook released on Tuesday, saying the economy would continue to underperform because of regulatory, infrastructural, and financing issues. The multilateral agency expects the country's growth to improve somewhat to 5% in the next fiscal year if exports strengthen and supply bottlenecks ease.
Asian markets edged higher in choppy trade on Wednesday, 9 October 2013, on reports that US President Barack Obama will today, 9 October 2013, nominate Federal Reserve Vice Chair Janet Yellen to be the next head of the US central bank. Key benchmark indices in China, Indonesia, Singapore and Japan rose by 0.16% to 1.03%. Key benchmark indices in Taiwan and Hong Kong fell by 0.37% to 0.59%. South Korea's markets were closed today for a holiday.
Trading in US index futures indicated that the Dow could rise 27 points at the opening bell on Wednesday, 9 October 2013. US stocks fell on Tuesday hit by growing jitters over the budget impasse in Washington, with the partial government shutdown extending into a second week with few signs of a deal to end it or raise the nation's debt ceiling.
US President Barack Obama on Tuesday warned of economic chaos if the US fails to pay its bills.
As per media reports, Obama will nominate Federal Reserve Vice Chair Janet Yellen to be the next head of the US central bank on Wednesday, 9 October 2013, putting her on course to be the first woman to lead the institution in its 100-year history. Seen as a monetary policy dove, Yellen is considered more likely to maintain the Fed's current stance. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength. Government data from payrolls to retail sales will be delayed as long as the shutdown continues.
The International Monetary Fund on Tuesday cut its global growth forecast to 2.9% for 2013 from its July estimate of 3.1%. IMF sees a modest pickup next year to 3.6%.
Powered by Capital Market - Live News
