Key benchmark indices surged after 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 market sentiment was also boosted by data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Tuesday, 8 October 2013. Gains in Asian and European shares also aided the rally on the domestic bourses. Asian and European shares rose and trading in US index futures pointed to a recovery on the Wall Street later during the global day on news that known-dove Janet Yellen is expected to be named chairman of the Federal Reserve today, 9 October 2013. The 50-unit CNX Nifty moved past the psychological 6,000 mark. The barometer index, the S&P BSE Sensex, regained the psychological 20,000 level. The Nifty and the Sensex, both, attained their highest closing level in more than 2-1/2 weeks. The Sensex jumped 265.65 points or 1.33%, up close to 420 points from the day's low and off about 30 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Indian stocks gained for the second straight day today, 9 October 2013. From a recent low of 19,895.10 on 7 October 2013, the Sensex has gained 354.16 points or 1.78% in two trading sessions. The Sensex has gained 869.49 points or 4.48% in this month so far (till 9 October 2013). The Sensex has gained 822.55 points or 4.23% in calendar 2013 so far (till 9 October 2013). From a 52-week high of 20,739.69 on 19 September 2013, the Sensex has declined 490.43 points or 2.36%. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 2,800.55 points or 16.05%.
Coming back to today's trade, shares of pharma major Sun Pharmaceutical Industries surged. Index heavyweight Reliance Industries (RIL) edged higher. IT major Infosys extended gains in late trade. Tata Steel rose after announcing increase in production and sales deliveries of steel in Q2 September 2013. Realty stocks extended Tuesday's gain triggered by the Reserve Bank of India's (RBI) surprise announcement on Monday evening to improve liquidity conditions in the banking system. Shares of realty major DLF surged after the company on Tuesday said its subsidiaries have divested 60% stake in Star Alubuild Private (Star Alubuild) at an enterprise value of Rs 79.80 crore.
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 61.88, weaker than its close of 61.7925/8025 on Tuesday, 8 October 2013. The rupee had declined below 62 against the dollar earlier during the day. It had hit a low of 62.305 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 237.40 crore from the secondary equity markets on Tuesday, 8 October 2013, as per the data from the Securities & Exchange Board of India (Sebi).
The S&P BSE Sensex surged 265.65 points or 1.33% to settle at 20,249.26, its highest closing level since 20 September 2013. The index jumped 294.13 points at the day's high of 20,277.74 in late 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 79.05 points or 1.33% to 6,007.45, its highest closing level since 20 September 2013. The index hit a high of 6,015.50 in intraday trade. The index hit a low of 5,877.10 in intraday trade, its lowest level since 7 October 2013.
The BSE Mid-Cap index rose 0.84% and the BSE Small-Cap index gained 0.54%. Both these indices outperformed the Sensex.
The BSE Realty index (up 4.27%), BSE HealthCare index (up 1.88%), BSE Bankex (up 1.88%), BSE Capital Goods index (up 1.86%), BSE Power index (up 1.57%), BSE IT index (up 1.51%), and BSE Oil & Gas index (up 1.4%), outperformed the Sensex. The BSE Teck index rose 1.33% and matched with Sensex's performance.
The BSE Consumer Durables index (down 0.36%), BSE FMCG index (up 0.41%), BSE Auto index (up 0.55%), BSE Metal index (down 0.78%), and BSE PSU index (up 0.82%), underperformed the Sensex.
The total turnover on BSE amounted to Rs 1803 crore, a tad higher than Rs 1802 crore on Tuesday, 8 October 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,408 shares gained and 1,025 shares declined. A total of 175 shares were unchanged.
Among the 30-share Sensex pack, 24 stocks gained and rest of them declined.
Capital goods pivotals rose on renewed buying. L&T rose 2.03%, 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 2.25%.
Auto stocks were mixed. M&M fell 0.99%. Maruti Suzuki India dropped 0.64%.
Tata Motors rose 0.97%. 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 gained. Bajaj Auto rose 2.79%. Hero MotoCorp advanced 2.01%.
Cairn India dropped 0.55%. 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.
IT stocks were mostly higher. TCS rose 1.29% to Rs 2,090.05. The stock had hit a record high of Rs 2,098 in intraday trade on Tuesday, 8 October 2013.
Infosys gained 2.48%, with the stock extending gains in late trade. 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 1.19%. 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.
HCL Technologies gained 0.48%.
Bank pivotals reversed intraday losses. HDFC Bank (up 2.57%) and ICICI Bank (up 1.34%), gained.
The Reserve Bank of India said on Tuesday that banks will not be allowed to bid for term repos at or below the prevailing repo rate and it will conduct 7-day and 14-day repos on alternate Fridays starting 11 October 2013. RBI Governor Raghuram Rajan told a business news channel on Tuesday that term repos of 7-day and 14-day tenors announced by the bank late on Monday were meant as an effort to develop term money markets.
The Reserve Bank of India (RBI) in a surprise announcement on Monday evening announced measures to improve liquidity conditions in the banking system. The RBI announced a reduction in the marginal standing facility (MSF) rate by 50 basis points to 9% with immediate effect. The central bank has also decided to provide additional liquidity through term repos of 7-day and 14-day tenor for a notified amount equivalent to 0.25% of net demand and time liabilities (NDTL) of the banking system through variable rate auctions on every Friday beginning from 11 October 2013.
State Bank of India added 0.04%. The state-run bank after market hours on Tuesday, 8 October 2013, announced revision in the interest rate on bulk deposits of Rs 1 crore and above. The interest rate for bulk deposits for the tenors 7 days to 60 days will be 8.5% per annum with effect from 10 October 2013.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained 1.39% to 4.31%.
IndusInd Bank rose 2.79%. The bank today, 9 October 2013, said it has opened a new branch in Alambagh area of Lucknow. With the inauguration of the new branch in Lucknow, Induslnd Bank now has three branches in Lucknow and overall thirty nine branches in the state of Uttar Pradesh. The bank also announced its plans to further strengthen its presence and customer reach in Uttar Pradesh.
Sun Pharmaceutical Industries surged 5.7% to Rs 648.30, with the stock extending gains in late trade. The stock hit a record high of Rs 650 in intraday trade.
Index heavyweight Reliance Industries rose 1.8% to Rs 859. The stock hit high of Rs 866.90 and low of Rs 838.
Tata Steel gained 2.46%. The company's hot metal production rose 19% to 2.46 million tonnes in Q2 September 2013 over Q2 September 2012. Crude steel production rose 19% to 2.29 million tonnes in Q2 September 2013 over Q2 September 2012. Saleable steel production rose 18% to 2.2 million tones in Q2 September 2013 over Q2 September 2012. Deliveries rose 18% to 2.03 million tonnes in Q2 September 2013 over Q2 September 2012. The company announced the data during trading hours.
Hindustan Zinc declined 0.11%. 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.
Realty stocks extended Tuesday's gain triggered by the Reserve Bank of India's (RBI) surprise announcement on Monday evening to improve liquidity conditions in the banking system. Purchases of both residential and commercial property are largely driven by finance. HDIL (up 4.58%), Unitech (up 7.46%), Oberoi Realty (up 0.23%) and Indiabulls Real Estate (up 8.16%) gained.
DLF surged 5.76%. The company after market hours on Tuesday, 8 October 2013 said its two subsidiaries viz. DLF Home Developers and DLF Projects have divested 60% stake in Star Alubuild (Star Alubuild), a subsidiary, at an enterprise value of Rs 79.80 crore. Star Alubuild specializes in designing, engineering, fabrication and installation of curtain walls for commercial buildings, retail malls and doors & windows for projects throughout India. Accordingly, Star Alubuild has ceased to be subsidiary of the company, DLF said. The transaction is a part of DLF's objective of divesting its non core assets.
Prestige Estates Projects rose 2.03% after the company said its real estate sales rose 31% to Rs 1068.50 crore in Q2 September 2013 over Q2 September 2012. The announcement was made during trading hours today, 9 October 2013.
Prestige Estates Projects said it demonstrated strong operating performance in Q2 September 2013 despite all the negative factors affecting the economy, such as rising inflation, falling rupee, lowest GDP growth, surprise increase in the interest rates and volatility in the markets.
The company said it is committed to accelerate its sales and launches over the coming quarters and coupled with the numbers achieved so far this fiscal, we are well on track to achieve targets set for the year ending March 2014.
Reliance Infrastructure rose 2.33%. A meeting of the board of directors of the company will be held today, 9 October 2013, to consider raising long term resources through borrowings in the domestic/international market for the purpose of refinancing of rupee debt, capital expenditure etc.
Tata Communications dropped 0.75%. The company during market hours today, 9 October 2013, announced the extension of its low latency network in Asia with direct connections to the National Stock Exchange of India (NSE), the Singapore Exchange (SGX) and the Hong Kong Stock Exchange (HKEx). The low latency network further extends the company's global financial trading connectivity network. As a result, it will support mission critical, real-time trading applications by seamlessly connecting the exchanges with major financial capitals in Asia, the United Kingdom and the United States, Tata Communications said.
Genius Wong, Senior Vice President, Global Network Services, Tata Communications, said: "Given the challenging economic conditions, fast, secure and reliable connectivity is crucial for businesses. The extension of our network via direct connections to SGX, HKEx and NSE exchanges will enable financial trading firms around the world to execute faster transactions and receive immediate market updates, mitigating financial risks and becoming more participative in the global economy."
Motherson Sumi Systems was flat at Rs 247.25. The stock gave away gains after hitting a record high of Rs 257.05 in intraday trade.
Sugar shares were in demand on renewed buying. Bajaj Hindusthan (up 1.53%), Shree Renuka Sugars (up 3.63%) and Dwarikesh Sugar Industries (up 7.04%) gained. Balrampur Chini Mills fell 0.23%.
PTC India jumped 4.95% after the company said it has received Rs 778 crore from UP Power Corporation towards past outstanding dues against purchase of power from the company. The announcement was made before trading hours today, 9 October 2013.
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.
Imports of gold in September fell 82% from a year earlier to $800 million while crude-oil imports dropped 5.94% to $13.20 billion. "Steps taken by the government to curb imports of nonessential items, especially precious metals, have resulted in the significant fall in imports," Trade Secretary S.R. Rao, said. In recent months, the government has increased the import tax on gold to check demand for the metal. The central bank has also tightened rules to reduce speculative purchases by bullion dealers and taken other steps to curb demand.
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 reversed initial losses on Wednesday, 9 October 2013, on news that known-dove Janet Yellen is expected to be named chairman of the Federal Reserve today, 9 October 2013. Key benchmark indices in France, UK and Germany rose by 0.03% to 0.61%.
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 0.27% to 1.03%. Key benchmark indices in Taiwan and Hong Kong fell by 0.37% to 0.63%. South Korea's markets were closed today for a holiday.
Trading in US index futures indicated that the Dow could rise 39 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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