Key benchmark indices trimmed intraday gain and hit fresh intraday low in early afternoon trade after the latest data showed inflation based on wholesale price index (WPI) accelerated in August 2013. The barometer index, the S&P BSE Sensex, was up 99.04 points or 0.5%, off about 250 points from the day's high and up close to 30 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Most metal and mining stocks gained. Some realty stocks extended recent gains. L&T rose after the company's construction division won new orders worth Rs 1793 crore across various business segments in July, August and September 2013. Coal India reversed intraday gain.
The market surged in early trade after the main opposition party, the Bharatiya Janata Party (BJP), late on Friday, 13 September 2013, named business friendly Gujarat chief minister Narendra Modi as the party's prime ministerial candidate for the general elections in 2014. The market trimmed initial gains and hit fresh intraday low in morning trade. The Sensex further pared intraday gain to hit fresh intraday low in mid-morning trade. The market further pared gains and hit fresh intraday low in early afternoon trade after the latest data showed inflation based on wholesale price index (WPI) accelerated in August 2013.
In the foreign exchange market, the rupee surged against the dollar. The partially convertible rupee was hovering at 62.68, sharply higher than its close of 63.49/50 on Friday, 13 September 2013.
At 12:20 IST, the S&P BSE Sensex was up 99.04 points or 0.5% to 19,831.80. The index surged 353.67 points at the day's high of 20,086.43 in early trade, its highest level since 25 July 2013. The index rose 66.11 points at the day's low of 19,798.87 in early afternoon trade.
The CNX Nifty was up 29.85 points or 0.51% to 5,880.45. The index hit a high of 5,957.25 in intraday trade, its highest level since 25 July 2013. The index hit a low of 5,868.90 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,043 shares gained and 1,029 shares fell. A total of 113 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks gained and rest of them declined. ICICI Bank (up 3.54%), Maruti Suzuki India (up 3.59%) and Hero MotoCorp (up 2.27%), gained.
Coal India dropped 2.06%, with the stock reversing intraday gain.
Most metal and mining stocks gained. Jindal Steel & Power (up 1.31%), JSW Steel (up 4.58%), NMDC (up 0.01%), Hindustan Zinc (up 1.67%), and Hindalco Industries (up 2%), gained.
But, Sesa Goa fell 2.07%. Tata Steel declined 0.42%.
Some realty stocks extended recent gains. DLF (up 1.08%), HDIL (up 0.23%), and Unitech (up 0.28%), gained.
L&T rose 2.14% after the company said during market hours today, 16 September 2013, that its construction division has won new orders worth Rs 1793 crore across various business segments in July, August and September 2013.
Yes Bank (up 5.64%), UCO Bank (up 4.74%), NHPC (up 4.51%) and IndusInd Bank (up 4.35%), were among the biggest gainers from the BSE's A group.
HMT (up 6.86%), EID Parry (up 6.12%), Sadbhav Engineering (up 5.28%) and Prestige Estates (up 3.97%), were among the biggest gainers from the BSE Mid-Cap index.
PI Industries rose 1% to Rs 131.15 after the company said the ceiling on investment in the company's shares by foreign institutional investors (FIIs) has been raised to 40% of the company's equity from 24% earlier. The increase in FII investment ceiling was approved by shareholders in its last AGM. Further, RBI has also issued letter dated 13 September 2013 to custodian banks informing that the FII investment ceiling in PI Industries stands enhanced to 40%.
ARSS Infrastructure Projects was locked at 20% upper circuit at Rs 25.05 on BSE after the company said it has received a new work order of World Bank Projects in Odisha for Rs 147.53 crore.
McNally Bharat Engineering Company rose 1.41% to Rs 57.70 after the company said its wholly owned subsidiary viz. MBE Coal & Mineral Technology has received an order worth Rs 51.75 for works relating to Coal Washery & Crashing Plant. In addition, MBE Coal & Minerals Technologies GMBH, a 100% subsidiary of MBE Mineral Technologies Pte, Singapore, a wholly owned subsidiary of McNally Bharat Engineering Company, is also participating in a part of this order for which the value of the order is Rs 6.35 crore.
The annual rate of inflation, based on the monthly wholesale price index (WPI), accelerated to 6.1% in August 2013, from 5.79% in July 2013, data released by the government today, 16 September 2013, showed. A surge in primary food articles inflation to 18.2% in August 2013 from 11.9% in July 13 mainly contributed to increase in inflation in August 2013. Meanwhile, the government revised the rate of WPI inflation for June 2013 to 5.16%, from 4.86% reported earlier.
Build up inflation rate in the financial year so far was 3.91% compared to a build up rate of 4.35% in the corresponding period of the previous year.
The Securities and Exchange Board of India (Sebi) said on Friday, 13 September 2013, that FIIs/QFIs shall hereafter be permitted to invest in government debt without purchasing debt limits till the overall investment reaches 90%. Once this 90% limit is reached, auction mechanism shall be initiated for allocation of the remaining limits, as currently in place for FII investments in corporate debt. Presently FIIs/QFIs have to purchase the debt limits through the auction mechanism.
In a major development on political front, Gujarat chief minister Narendra Modi was crowned as the candidate for prime minister's post by India's main opposition -- Bharatiya Janata Party (BJP) -- late on Friday, 13 September 2013. BJP said that Modi's pro-business stance can revive India's stumbling economy. Parliamentary polls are due by next May. "At this time, when corruption and rising prices have become a big problem for the country, I hope the people will support our call for development and good governance," Mr. Modi said at a news conference in New Delhi on Friday, 13 September 2013.
Asian stocks rose on Monday, 16 September 2013, after Lawrence Summers withdrew from consideration to be the next Federal Reserve chairman, paving the way for Janet Yellen, who some investors say may favor a slower reduction in US stimulus. Key benchmark indices in Taiwan, Hong Kong, Singapore, South Korea and Indonesia rose by 0.96% to 1.78%. China's Shanghai Composite fell 0.22% in choppy trade. Japanese stock markets were closed for a holiday.
Trading in US index futures indicated that the Dow could jump 156 points at the opening bell on Monday, 16 September 2013. US stocks on Friday scored modest gains despite a mediocre retail sales report and a disappointing read on consumer sentiment. US retail sales, a closely watched benchmark of economic health, rose just 0.2% in August. The consumer sentiment reading in September issued by Thomson Reuters and the University of Michigan was 76.8, down from the 82.1 reading in August.
Summers withdrew his nomination to lead the Fed, before a two-day policy meeting starting tomorrow, 17 September 2013. Summers, 58, was one of three names that US President Barack Obama had mentioned as possible replacements for Bernanke, whose term as Fed chairman ends on 31 January 2014. Janet Yellen, 67, the current Fed vice chairman, was also on Obama's candidate list along with Donald Kohn, 70, a former Fed vice chairman, the president said earlier.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this 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.
The US and Russia announced a deal on Saturday, 14 September 2013, for Syria to destroy its chemical-weapons stockpile by the middle of 2014. The agreement halted preparation for a possible US attack on Syrian government targets in retaliation for the apparent use of chemical agents on civilians last month. Meanwhile, the United Nations said Sunday that Secretary-General Ban Ki-moon had received a report from weapons inspectors on their probe into the use of chemical weapons in Syria, with the report to be published on the UN's website later on Monday morning, according to media reports.
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