A bout of volatility was witnessed as key benchmark indices extended intraday gains and hit fresh intraday high in 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 rupee recovered against the dollar after trade deficit data. The Sensex was up 131.31 points or 0.66%, up close to 285 points from the day's low and off about 10 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Capital goods pivotals rose on renewed buying. Auto stocks were mixed. Index heavyweight Reliance Industries (RIL) extended intraday gain.
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 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. The market regained strength soon after trimming intraday gains in afternoon trade.
In the foreign exchange market, the rupee recovered 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 61.80, almost unchanged for the day compared with its close of 61.7925/8025 on Tuesday, 8 October 2013. The rupee had declined 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 13:20 IST, the S&P BSE Sensex was up 131.31 points or 0.66% to 20,114.92. The index jumped 143.48 points at the day's high of 20,127.09 in 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 35.95 points or 0.61% to 5,964.35. The index hit a high of 5,971.80 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, 1,214 shares gained and 994 shares declined. A total of 149 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined. Sun Pharmaceutical Industries (up 4.25%), HDFC Bank (up 1.81%) and Jindal Steel & Power (up 1.54%), gained.
Index heavyweight Reliance Industries rose 2% to Rs 860.70, with the stock extending intraday gain. The stock hit high of Rs 860.75 and low of Rs 838 so far during the day.
Capital goods pivotals rose on renewed buying. L&T rose 1.38%, 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.
Bhel gained 0.28%.
Auto stocks were mixed. M&M fell 0.78%. Maruti Suzuki India dropped 0.52%.
Tata Motors rose 0.73%. The company on Tuesday, 8 October 2013, announced the launch of the new Tata Nano CNG emax. The Tata Nano CNG emax is powered by a fuel efficient, state-of-the-art engine, with CNG and Petrol bi-fuel system options. The car has the lowest carbon footprint of 75.6 g/km and is the most fuel efficient car in India with a mileage of 36 km/kg, Tata Motors said in a statement. The Tata Nano CNG emax will now be available across CNG markets like Delhi, Gujarat, parts of Maharashtra and Lucknow.
The Tata Nano CNG emax price range starts at Rs 2.45 lakhs, ex-showroom Ahmedabad for the Nano CX and goes upto Rs. 2.72 lakhs ex-showroom Ahmedabad for the Nano LX.
Shares of two wheeler makers also were mixed. Bajaj Auto fell 0.12%. Hero MotoCorp rose 0.36%.
Cairn India dropped 0.62%. The company said during market hours that in Q2 September 2013, the average gross operated production and working interest production were 2.13 lakh barrels of oil equivalent per day (boepd) and 1.32 lakh boepd, respectively, 3% higher than in Q2 September 2012. The gross production at the Rajasthan block was 2% higher at 1.75 lakh boepd. Production at Cambay was 27% higher in Q2 due to new infill wells and one work over well that had been put into production in Q1. Production at Ravva was 2% higher in Q2.
Exploration drilling continues at the Rajasthan block with the current program targeting half of the 530 million barrels of gross recoverable risked prospective resource base, including considerable deep gas prospects in this fiscal year, Cairn India said in a statement.
Hindustan Zinc declined 0.5%. The company said during market hours that its mined metal production was 2.22 lakh tonnes in Q2 September 2013 and 4.59 lakh tonnes in first half of financial year ending 31 March 2014 (H1 FY 2014), as compared with 190 lakh tonnes and 377 lakh tonnes in the corresponding prior periods. The company expects to deliver approximately 9.5 lakh tonnes of mined metal production during the year. The Kayad and Rampura Agucha underground mine projects are progressing well to deliver commercial production in this fiscal year, Hindustan Zinc said.
Integrated production of refined zinc was the highest ever at 195 lakh tonnes in Q2 and 368 lakh tonnes in H1 FY 2014, up by 28% and 19% respectively from a year ago. The increase was due to higher smelter utilization rate, rate, driven by higher operational efficiencies and improved raw material availability.
Integrated production of refined lead was 31 lakh tonnes in Q2 and 60 lakh tonnes in H1 FY 2014, up 29% and 13% respectively from a year ago. Integrated saleable silver production was 83 tonnes in Q2 and 160 tons in in H1 FY 2014, up by 14% and 12% as compared to corresponding prior periods.
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.
European shares fell on Wednesday, 9 October 2013, as debt talks in Washington remained deadlocked. Key benchmark indices in France, Germany and UK shed by 0.17% to 0.37%.
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 0.34% to 1.03%. Key benchmark indices in Taiwan and Hong Kong fell by 0.37% to 0.62%. South Korea's markets were closed today for a holiday.
Trading in US index futures indicated that the Dow could rise 33 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%.
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