Key benchmark indices extended initial gains and hit fresh intraday high as bargain hunting emerged after a carnage on the bourses on Tuesday, 3 September 2013. The barometer index, the S&P BSE Sensex was up 218.96 points or 1.2%, up close to 255 points from the day's low and off about 25 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Realty stocks declined after the Reserve Bank of India (RBI) on Tuesday, 3 September 2013, tightened norms on banks' housing loans to individuals.
A bout of initial volatility was witnessed as key benchmark indices regained positive terrain after slipping into the red after opening higher. The market extended initial gains and hit fresh intraday high in morning trade.
At 10:20 IST, the S&P BSE Sensex was up 218.96 points or 1.2% to 18,453.62. The index jumped 242.10 points at the day's high of 18,476.76 in morning trade. The index fell 46.23 points at the day's low of 18,188.43 in early trade.
The CNX Nifty was up 49.25 points or 0.92% to 5,390.70. The index hit a high of 5,413.60 in intraday trade. The index hit a low of 5,318.90 in intraday trade, its lowest level since 29 August 2013.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,080 shares rose and 467 shares fell. A total of 88 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks rose and rest of them fell. TCS (up 3.1%), Infosys (up 2.84%) and Hero MotoCorp (up 2.79%), gained.
Realty stocks declined after the Reserve Bank of India (RBI) on Tuesday, 3 September 2013, tightened norms on banks' housing loans to individuals. DLF (down 3.61%), Sobha Developers (down 3.25%), and D B Realty (down 0.99%) declined. But, Unitech rose 0.62%.
RBI said for housing loans from banks to individuals should be closely linked to the stages of construction. The central bank said such loan products, popularly called 80:20 or 75:25 schemes, are likely to expose the banks as well as their home loan borrowers to additional risks. Upfront disbursals of lump sum loans should not be made in case of incomplete or under-construction housing projects, the central bank added.
Pharma stocks rose on a weak rupee. Cipla (up 2.12%), Dr Reddy's Laboratories (up 2.06%), Ranbaxy Laboratories (up 3.3%), Lupin (up 1.55%) and Sun Pharmaceutical Industries (up 1.67%), gained. A majority of revenues for the pharma companies comes from exports. A falling rupee means that when the dollar earnings are converted into rupees, the revenue gets a boost.
Maharashtra Seamless lost 4.33% as the stock turned ex-dividend today, 4 September 2013, for a dividend of Rs 6 per share for the year ended 31 March 2013.
Gujarat Gas Company (GGCL) surged 6.26% after the company said it has entered into a memorandum of understanding with Gujarat State Petroleum Corporation for long-term gas procurement deal. The announcement was made after market hours on Tuesday, 3 September 2013. GGCL said as per the Memorandum of Understanding (MoU) signed with Gujarat State Petroleum Corporation (GSPC) on Tuesday, 3 September 2013, GSPC has agreed to supply 0.85 mmscm of gas per day to GGCL from 1 January 2014 to 30 June 2025. The price of gas will be determined in the relevant Gas Sales Contracts (GSC) and it is expected to be formula based. The MoU is effective till 31 December 2013 or the signing of the relevant GSCs, whichever is earlier.
In the foreign exchange market, the rupee recouped its entire initial losses as equities rose. The partially convertible rupee was hovering at 67.63, compared with its close of 67.63/64 on Tuesday, 3 September 2013. The rupee had tumbled earlier in the day on renewed concerns of US military intervention in Syria.
Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for August 2013 today, 4 September 2013.
Asian stocks fell on Wednesday, 4 September 2013, as profit-taking emerged after strong gains earlier in the week, while renewed concerns over US military intervention in Syria weighed on sentiment. Key benchmark indices in China, Hong Kong, Japan, Indonesia, Singapore and Taiwan shed by 0.03% to 1.91%. South Korea's Kospi rose 0.04%.
Growth in China's services sector hit a five-month high in August underpinned by new orders and business optimism, a private survey showed on Wednesday, adding to views that the world's second-largest economy had avoided a sharp slowdown. The Markit/HSBC Services Purchasing Managers' Index (PMI) climbed to 52.8 in August after seasonal adjustments, up from July's 51.3 and the highest since March. The reading was well above the 50 level that demarcates an acceleration in activity from a slowdown, although a sub-index for employment shrank.
Australia's economy expanded more than economists forecast last quarter as non-dwelling construction surged, providing a stronger growth momentum for the winner of this week's election. Second-quarter gross domestic product advanced 0.6% from the previous three months, when it rose a revised 0.5%, a Bureau of Statistics report released in Sydney today showed.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 4 September 2013. US stocks rose on Tuesday as better-than-forecast economic data overshadowed concern over possible military action against Syria. The Institute for Supply Management's manufacturing index increased to 55.7 in August, the strongest since June 2011, from 55.4 a month earlier. Readings above 50 indicate growth. Another report showed construction spending in the US increased in July to the highest level in four years, propelled by gains in residential real estate.
US House of Representatives Speaker John Boehner backed President Barack Obama's call for action against Syria, while Republican and Democratic leaders of the Senate's foreign relations panel agreed on a proposal backing a military strike. Obama urged Congress to take a prompt vote authorizing military action against Syria. He announced on August 31 that he'd seek support from Congress, after previously saying he had authority to order a military mission.
In addition, the Senate reached an agreement on a resolution authorizing military strikes against Syria. The resolution gives Obama 60 days to strike Syria, and is expected to be put to a vote on Wednesday, 4 September 2013.
The influential US nonfarm payroll report for August 2013 is due for release on Friday, 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.
Meanwhile, a summit of leaders from the Group of 20 major economies begins in St. Petersburg on Thursday, 5 September 2013.
Powered by Capital Market - Live News
