A bout of volatility was witnessed as key benchmark hit fresh intraday low in afternoon trade. The barometer index, the S&P BSE Sensex, was down 163.14 points or 0.82%, up close to 55 points from the day's low and off about 220 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Most IT stocks gained, with HCL Technologies scaling record high. Realty stocks extended recent gains. Index heavyweight Reliance Industries (RIL) extended intraday losses. FMCG major Hindustan Unilever (HUL) also extended intraday losses.
Key benchmark indices edged lower in early trade to profit booking after Tuesday's rally. A bout of volatility was witnessed as the key benchmark indices slipped into the red again after reversing initial losses in morning trade. The Sensex alternately moved above and below the psychological 20,000 level in intraday trade. Key benchmark indices extended losses in mid-morning trade. Key benchmark indices cut intraday losses in early afternoon trade. A bout of volatility was witnessed as key benchmark hit fresh intraday low in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a massive Rs 2563.60 crore on Tuesday, 10 September 2013, as per provisional data from the stock exchanges. The Sensex had jumped 3.77% on Tuesday after the latest data showed that India's trade deficit, the key driver of the country's large current-account deficit, narrowed to five-month low in August 2013.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 63.42, stronger than its close of 63.84/85 on Tuesday, 10 September 2013.
At 13:20 IST, the S&P BSE Sensex was down 163.14 points or 0.82% to 19,833.95. The index lost 219.46 points at the day's low of 19,777.63 in afternoon trade. The index rose 55.76 points at the day's high of 20,055.53 in morning trade, its highest level since 25 July 2013.
The CNX Nifty was down 55.25 points or 0.94% to 5,841.50. The index hit a low of 5,832.70 in intraday trade. The index hit a high of 5,913.45 in intraday trade, its highest level since 26 July 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,140 shares gained and 990 shares fell. A total of 142 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks declined and rest of them gained. Tata Motors (down 3.04%), ONGC (down 2.55%) and ITC (down 1.94%), edged lower.
Index heavyweight Reliance Industries (RIL) dropped 1.36%, with the stock extending intraday losses.
FMCG major, Hindustan Unilever (HUL) shed 2.54%, with the stock extending intraday losses.
Most IT stocks gained. TCS rose 0.4% to Rs 1,994. The company after market hours on Tuesday, 10 September 2013, said it has bagged a five-year multi-million euros deal from Scandinavian Airlines (SAS) to help transform and optimise SAS' IT processes, applications and infrastructure. TCS will implement its proprietary cloud-based solutions to simplify and standardize the SAS IT landscape. The initiative is a part of the SAS "4 Excellence Next Generation" strategy, aimed at improving the competitiveness of the SAS Group. Through this partnership, SAS will also tap into TCS' Aviation and Digital Innovation Labs to develop solutions addressing the needs of the new digital consumer.
HCL Technologies rose 1.34% to Rs 1074 after striking a record high of Rs 1081.20 in intraday trade. HCL Technologies and Anglo American, one of the world's largest mining companies, announced after market hours on Tuesday, 10 September 2013, that they have entered into an engagement whereby HCL will deliver IT services for Anglo American businesses across the globe. As a part of this contract, HCL will transform Anglo American's end user computing and data center landscape to improve operational efficiency, business agility and the user experience. The scope of the service covers end to end infrastructure services, including data centre and hosting services, email services, service desk, local area network and security management, end user computing and on-site IT services, utilizing hybrid on-premise and cloud delivery models.
Infosys fell 0.74% to Rs 3127.30. The stock reversed direction after striking a 52-week high of Rs 3,172.70 in intraday trade.
Wipro rose 1.52%.
Shares of Financial Technologies surged 23.02% to Rs 177.70. The stock has witnessed wild gyrations ever since the NSEL had to shut down its operation since 1 August 2013 following the government direction in the wake of violation of certain rules. NSEL is grappling with the problem of payment settlement after the suspension. Financial Technologies (India) is one of the two promoters of the NSEL.
Realty stocks extended recent gains. DLF (up 2.24%), HDIL (up 3.76%), D B Realty (up 0.53%), and Unitech (up 1.74%), gained.
Sadbhav Engineering jumped 7.85% after the company said it has been declared the successful bidder for two water projects aggregating Rs 456.92 crore. The announcement was made during trading hours today, 11 September 2013.
Most European stocks edged lower on Wednesday, 11 September 2013, with investors taking a breather after a solid rally the prior day and digesting the latest developments in the Syria conflict. Key benchmark indices in France and UK shed by 0.04% to 0.31%. Germany's DAX rose 0.09%.
Asian stock markets were mixed on Wednesday, 11 September 2013. Key benchmark indices in China, Japan and South Korea were up 0.01% to 0.49%. Key benchmark indices in Hong Kong, Indonesia and Singapore were off 0.36% to 0.68%.Taiwan's Taiwan Weighted index was unchanged for the day.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 11 September 2013. US stocks rallied on Tuesday, 10 September 2013, with the S&P 500 continuing its longest stretch of gains since mid-July, after upbeat data from China and amid heightened diplomacy on Syria.
US President Barack Obama called for diplomacy in dealing with chemical weapons in Syria but kept open the possibility of military action against the Assad regime. Obama late Tuesday said he was sending US Secretary of State John Kerry to Geneva to meet Russian Foreign Minister Sergey Lavrov to work out details of a plan to have Syria, led by President Bashar al-Assad, give its chemical weapons stockpile to the international community. Obama had called for potential strikes against Syria in retaliation for Syria's use of chemical weapons against civilians in late August. But with a diplomatic solution on the table, Obama asked Congress to delay a vote on whether to authorize military strikes.
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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