Volatility continued as key benchmark indices trimmed intraday losses in early afternoon trade. The market breadth, indicating the overall health of the market, was weak. The rupee edged lower against the dollar. The barometer index, the S&P BSE Sensex, was down 38.95 points or 0.19%, up about 120 points from the day's low and off close to 190 points from the day's high.
Bharti Airtel extended intraday gain. Most pharma stocks declined. Realty stocks edged lower as inflation rates continued to accelerate in September 2013, adding to concerns that the central bank is likely to increase its main lending rate again.
The market edged higher in early trade on firm Asian stocks. The Sensex hit its highest level in more than 35 months. The 50-unit CNX Nifty hit 21-week high. A bout of volatility was witnessed as key benchmark indices gave away a lion's part of strong initial gains and hit fresh intraday low in morning trade. The Sensex slipped into the red and hit fresh intraday low in mid-morning trade. It trimmed intraday losses in early afternoon trade.
In the foreign exchange market, the rupee edged lower in choppy trade against the dollar. The partially convertible rupee was hovering at 61.67, weaker than its close of 61.55/56 on Monday, 14 October 2013.
At 12:20 IST, the S&P BSE Sensex was down 38.95 points or 0.19% to 20,568.59. The index fell 160.81 points at the day's low of 20,446.73 in mid-morning trade, its lowest level since 11 October 2013. The index jumped 152.04 points at the day's high of 20,759.58 in morning trade, its highest level since 11 November 2010.
The CNX Nifty was down 20.55 points or 0.34% to 6,092.15. The index hit a low of 6,056.55 in intraday trade, its lowest level since 11 October 2013. The index hit a high of 6,156.30 in intraday trade, its highest level since 21 May 2013.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,215 shares dropped and 730 shares rose. A total of 115 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and the rest rose. GAIL (India) (down 1.92%), Hero MotoCorp (down 1.4%) and ITC (down 1.33%), declined.
Realty stocks edged lower on worries the Reserve Bank of India (RBI) may hike interest rates to arrest rising inflation after data showed both consumer and wholesale inflation quickened last month. Purchases of both residential and commercial property are largely driven by finance. Lower interest rates may revive property demand. HDIL (down 2.46%), Unitech (down 3.66%), and D B Realty (down 1.7%), edged lower. But, DLF rose 0.29%.
Bharti Airtel rose 3.29%, with the stock extending intraday gain.
Most pharma stocks declined. Dr Reddy's Laboratories (down 0.2%), Ranbaxy Laboratories (down 1.29%) and Sun Pharmaceutical Industries (down 1.21%), dropped. But, Cipla rose 0.98%.
Fortis Healthcare rose 2.78% to Rs 107.25 after the company after trading hours on Monday, 14 October 2013, said that Fortis Healthcare International Pte, a Singapore based subsidiary of Fortis Healthcare, has decided to divest its entire shareholding in Altai Investments, the holding company for Quality Healthcare (QF), Hong Kong, to Bupa, for $355 million. The stock hit high of Rs 111.25 and low of Rs 107.10 so far during the day. The offer price is reflective of the value and efficiencies added through improved operations and the introduction of new and specialised medical centres while QH has been a part of the Fortis group, Fortis Healthcare said in a statement. The deal is expected to be completed in October 2013, Fortis Healthcare said.
Andhra Pradesh Paper Mills lost 4.05% after the company reported net loss of Rs 45.05 crore in Q2 September 2013, as against net profit of Rs 7.55 crore in Q2 September 2012. The result was announced after market hours on Monday, 14 October 2013. Andhra Pradesh Paper Mills' net sales rose 3.1% to Rs 246.49 crore in Q2 September 2013 over Q2 September 2012.
The stock market remain closed tomorrow, 16 October 2013, on account of Bakri Id.
Bond prices declined after data released by the government after trading hours on Monday, 14 October 2013, showed that consumer price inflation accelerated in September 2013, adding to concerns that the central bank is likely to increase its main lending rate viz. the repo rate again. The yield on the benchmark federal paper 7.16% GS 2023 was hovering at 8.6382%, higher than its close of 8.5747% on Monday, 14 October 2013. Bond yield and bond prices are inversely related.
The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India rose 9.84% in September 2013, from 9.52% in August 2013. The CPI inflation for rural and urban areas rose 9.71% and 9.93% in September 2013, respectively. Inflation rates (final) for rural and urban areas for August 2013 were 8.93% and 10.32% respectively. The headline CPI (combined) has seen a rise of 1.19% (m-o-m) in September 2013.
Data released by the government during trading hours on Monday, 14 October 2013, showed that inflation based on the wholesale price inflation (WPI) accelerated to a seven-month high in September 2013. Increase in WPI inflation in September 2013 was mainly driven by surge in inflation for crude oil and non-food primary articles viz. fibres and oilseeds. Core inflation accelerated to 2.06% in September 2013 from 1.97% in August 2013. Inflation for July 13 was revised upwards to 5.85% from 5.79% reported earlier.
Asian stocks rose on Tuesday, 15 October 2013, as Senate leaders on Monday, 14 October 2013, said they're optimistic they will forge a deal to reopen the US government and avoid a breach of the debt limit this week. Key benchmark indices in South Korea, Japan, Hong Kong and Taiwan rose 0.26% to 1.14%. China's Shanghai Composite fell 0.45%. Stock markets in Singapore, Indonesia, Malaysia and the Philippines were shut for holidays.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Tuesday, 15 October 2013. US stocks staged a strong intraday rebound on Monday, 14 October 2013, amid signs lawmakers could reach a deal before the government loses its ability to borrow money later this week.
Senate Majority Leader Harry Reid said on the Senate floor on Monday, 14 October 2013, that he is very optimistic about concluding a deal this week to raise the debt limit as well as end the government shutdown. Sen. Mitch McConnell, the Republican minority leader, said he shared Reid's feeling that "we'll get a result that's acceptable to both sides."
Markets worldwide have been watching Washington as it nears an estimated Oct. 17 deadline for Congress to allow the Treasury to borrow in order to pay the government's bills. Without legislative action, the US could default on its debt obligations at a time when the global economy is still recovering from the financial crisis.
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 as policy makers mull the timing of reductions in bond buying. Government data from payrolls to retail sales will be delayed as long as the shutdown continues. 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.
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