A bout of initial volatility was witnessed as the key benchmark indices reversed initial losses. Better-than-expected July 2013 factory output data and another data showing deceleration of the rate of retail inflation for August 2013 boosted sentiment. Both these data were released after market hours on Thursday, 12 September 2013. The S&P BSE Sensex was up 31.07 points or 0.16%, up 110.74 points from the day's low and off 0.23 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Foreign institutional investors (FIIs) bought shares worth a net Rs 930.54 crore on Thursday, 12 September 2013, as per provisional data from the stock exchanges.
At 9:30 IST, the S&P BSE Sensex was up 31.07 points or 0.16% to 19,812.95. The index gained 31.30 points at the day's high of 19,813.18 in early trade. The index fell 79.67 points at the day's low of 19,702.21 in early trade.
The CNX Nifty was up 12.45 points or 0.21% to 5863.15. The index hit a high of 5,868.40 in intraday trade. The index hit a low of 5,822.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 600 shares gained and 274 shares fell. A total of 34 shares were unchanged.
The total turnover on BSE amounted to Rs 223 crore by 09:30 IST.
Tata Power Company (up 2.22%), Bhel (up 2.15%) and L&T (up 1.65%) edged higher from the Sensex pack. ICICI Bank (down 1.35%), HDFC (down 1.11%) and Wipro (down 0.79%) edged lower from the Sensex pack.
Tata Consultancy Services (TCS) rose 0.38%. The company announced after market hours on Thursday, 12 September 2013, that it has partnered with the Foreign & Commonwealth Office (FCO) of the UK Government to create the Chevening-TCS Scholarship on Cyber Policy for professionals in diverse fields from India. This will be the world's first cyber security and public policy education program.
Hindustan Unilever rose 0.51% on reports the company has increased the prices of soaps, toothpastes and skincare products by upto 13% over the last two months to counter higher costs on account of weakening rupee.
Jindal Steel & Power fell 0.63%. The stock turned ex-dividend today, 13 September 2013, for dividend of Rs 1.60 per share for the financial year ended 31 March 2013.
NTPC fell 0.25%. The company before trading hours today, 13 September 2013, said it has entered into a commercial interest reference rate based fixed interest rate facility for euro 52 million with KfW, the German government developmental financial institution on 12 September 2013. The facility has a door to door maturity of 15 years and shall be utilized to part finance the capital expenditure on Mouda Stage-II Project, NTPC said.
Hindustan Copper rose 0.15%. The stock turned ex-dividend today, 13 September 2013, for dividend of Rs 1 per share for the financial year ended 31 March 2013.
Industrial production rose 2.6% in July 2013 as against a contraction of 1.8% in June 2013, data released by the government after trading hours on Thursday, 12 September 2013, showed. The manufacturing sector registered a growth of 3% and electricity generation rose 5.2%. Mining sector output registered a contraction of 2.3%. As per use-based classification, production of basic goods rose 1.7% in July 2013. Capital goods production jumped 15.6% and production of intermediate goods rose 2.4%. Production of consumer goods declined 0.9%. Within the consumer goods sector, production of consumer non-durables rose 6.8% whereas production of consumer durables witnessed a contraction of 9.3%.
Industrial production for June 2013 was revised upwards to de-growth of 1.8% from de-growth of 2.2% reported earlier. Industrial production growth for April 2013 was revised downward to 1.5% from 1.9% reported earlier. On cumulative basis, industrial production registered a contraction of 0.2% for the period April-July 2013 over the corresponding period of the previous year.
The rate of inflation based on the consumer price index decelerated in August 2013, data released by the government after trading hours on Thursday, 12 September 2013, showed. The rate of inflation based on the combined consumer price index (CPI) for urban and rural India decelerated to 9.52% in August 2013 from 9.64% in July 2013. Inflation for the category 'food and beverages' stood at 11.06% in August 2013, the data showed.
The Reserve Bank of India on Thursday, 12 September 2013, announced the details of its committee constituted to examine the current monetary policy framework and recommend ways to revise and strengthen it to make it more transparent and predictable. RBI Governor Raghuram Rajan, who took over on Sept. 4, had announced the committee would be headed by Deputy Governor Urjit Patel. The panel will review the objectives, structure, operating framework and instruments of monetary policy, particularly the multiple indicator approach and the liquidity management framework, the RBI said. It will also identify regulatory, fiscal and other impediments to monetary policy transmission, and recommend measures to improve transmission. The committee is expected to submit its report within three months, the RBI said.
Asian shares dropped on Friday, 13 September 2013, as investors fretted stronger-than-expected US jobless-claims data on Thursday has increased the odds the Federal Reserve would begin trimming its monetary stimulus at next week's meeting. Key benchmark indices in Taiwan, Hong Kong, China, Japan, South Korea and Singapore fell 0.15% to 1.02%. Indonesia's Jakarta Composite index rose 0.12%.
US stocks declined on Thursday, 12 September 2013, with the S&P 500 snapping its seven-session winning streak, as investors worried about developments related to Syria and Federal Reserve policy moves.
First-time claims for unemployment benefits declined by 31,000 to 292,000 in the week ending Sept. 7, but processing glitches involving two states clouded the reading, the US Labor Department reported on Thursday, 12 September 2013.
The US and Russia began talks on Thursday on Moscow's plan for Syria to surrender its chemical weapons as Damascus formally applied to join a global poison gas ban, but US Secretary of State John Kerry held fast to the position that the US may still use military force if diplomacy fails. Separately, Syria's President Bashar al-Assad reportedly said that the US needs to give up "its policy of threats" and stop shipping arms to Syrian rebels before his government surrenders its chemical weapons.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled next week, considered by many to provide an indication on the timing and size of the Fed's cutbacks in its bond-purchase program. The FOMC holds a two-day policy meeting on Tuesday 17 September and Wednesday 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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