Key benchmark indices hovered in positive zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 61.15 points or 0.4%, up 55.95 points from the day's low and off 23.83 points from the day's high. The market breadth, indicating the overall health of the market, was strong. The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Thursday, 19 December 2013. In the foreign exchange market, the rupee edged lower against the dollar, tracking weakness in Asian currencies against the dollar.
GAIL (India) rose after the company during market hours said that the media reports on Thursday, 19 December 2013, indicating that the company had doubled margin on gas sourced from ONGC are factually incorrect and does not reflect the issue in the right perspective. Auto stocks edged higher on renewed buying. Shares of car maker Maruti Suzuki India hit record high as the Japanese yen touched its lowest level in more than five years against the dollar. Hero MotoCorp reversed initial decline in volatile trade. Among IT stocks, Mastek surged on high volumes.
Key benchmark indices pared gains after a firm opening. Key benchmark indices retained positive zone in morning trade. The Sensex hovered in positive zone in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Thursday, 19 December 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 2264.11 crore on Thursday, 19 December 2013, as per provisional data from the stock exchanges.
At 11:16 IST, the S&P BSE Sensex was up 61.15 points or 0.4% to 20,769.77. The index jumped 117.10 points at the day's high of 20,825.72 in early trade. The index rose 37.32 points at the day's low of 20,745.94 in morning trade.
The CNX Nifty was up 12.45 points or 0.2% to 6,179.10. The index hit a high of 6,196.35 in intraday trade. The index hit a low of 6,170.35 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,237 shares gained and 755 shares fell. A total of 135 shares were unchanged.
The total turnover on BSE amounted to Rs 689 crore by 11:15 IST, compared with Rs 461 crore by 10:20 IST.
Among the 30-share Sensex pack, 22 stocks gained and rest of them declined.
Sun Pharmaceutical Industries (down 1.52%), L&T (down 1.47%) and Sesa Sterlite (down 1.07%) edged lower from the Sensex pack.
GAIL (India) rose 0.65%. ONGC rose 1.52%. GAIL (India) during market hours said that the media reports on Thursday, 19 December 2013, indicating that the company had doubled margin on gas sourced from ONGC are factually incorrect and does not reflect the issue in the right perspective. GAIL (India) clarified that it is charging marketing margin on APM and non-APM gas at different rates. The company said that it charges a uniform marketing margin on non-APM gas consumers on a Pan-India basis since the commencement of non-APM supplies and that there is no discrimination amongst the customers.
The customers in Mumbai region, alleging higher marketing margin being charged by GAIL, are new to supply of non-APM gas since November 2013, GAIL said. In fact, RCF, Thal in Mumbai region is taking non-APM gas supplies since February 2012 and is being charged marketing margin at the same rate as all other non-APM customers, GAIL (India) said in a statement. Further, producers may not be charging marketing margin as their risks and returns associated with exploration and production are included in the Gas Producer Price, the company said.
Asian Paints shed 0.06%. The company today, 20 December 2013, said that the operations at the company's paints plant situated at Sriperumbudur, Tamil Nadu will be affected due to the strike called by the Asian Paints Employees' Union Sriperumbudur and workmen with effect from today, 20 December 2013.
Auto stocks edged higher on renewed buying. Tata Motors (up 1.33%), Mahindra & Mahindra (M&M) (up 1.08%) and Ashok Leyland (up 0.32%) gained.
Shares of car maker Maruti Suzuki India hit record high as the Japanese yen touched its lowest level in more than five years against the dollar. The stock was up 1.31% at Rs 1,804 after hitting a record high of Rs 1,805 in intraday trade. The yen's weakness could reduce import costs for Maruti as the car major sources a large portion of its parts from Japan.
Shares of two wheeler makers rose. Bajaj Auto (up 0.76%) and TVS Motor Company (up 3.12%) gained.
Hero MotoCorp gained 1.14% to Rs 2,107.90, with the stock reversing initial decline in volatile trade. The stock hit a high of Rs 2,118.95 and low of Rs 2,063 so far during the day.
Mastek jumped 12.37% on high volume of 9.36 lakh shares so far during the day. The company during market hours said that it has observed that the company's share price has sharply increased with very high volumes in the first hour at trade today, 20 December 2013. "We are very much concerned about the above activity. We would like to clarify to your goodselves that there is no development in Mastek to warrant such volatility in the share price", Mastek said in a statement to the Bombay Stock Exchange.
Shree Ganesh Jewellery House (I) was locked at 5% upper circuit at Rs 24.40 after the company said it has approached the State Bank of India for corporate debt restructuring of its debts. The announcement was made after market hours on Thursday, 19 December 2013.
Shree Ganesh Jewellery House (I) said that the company has approached State Bank of India (SBI), the lead bank of the consortium for referring the matter to Corporate Debt Restructuring Cell for Corporate Debt Restructuring (CDR) of its debts. The Flash Report for the same is being submitted to the lead bank and SBI has convened the consortium meeting of all the bankers today, 20 December 2013.
CDR is a mechanism adopted in India which permits viable companies additional time to meet debt obligations, subject to certain terms and conditions.
In the foreign exchange market, the rupee edged lower against the dollar, tracking weakness in Asian currencies against the dollar. The partially convertible rupee was hovering at 62.27, compared with its close of 62.14/15 on Thursday, 19 December 2013.
Asian stocks edged lower on Friday, 20 December 2013, led by Chinese shares amid concern funding costs for the nation's lenders will remain high even after the central bank injected cash into the financial system. Key benchmark indices in Hong Kong, China, Japan and Indonesia fell by 0.24% to 1.17%. Key benchmark indices in Taiwan, Singapore and South Korea rose 0.14% to 0.38%.
The Chinese central bank said at the close of market trading yesterday, 19 December 2013, that it added funding to selected lenders using short-term liquidity operations.
The Bank of Japan kept its asset-purchase levels and overall monetary policy unchanged after a monetary policy review. The central bank's statement also retained previous language on the economic outlook, saying the nation's economy "has been recovering moderately," while "inflation expectations appear to be rising on the whole."
Trading in US index futures indicated that the Dow could rise 17 points at the opening bell on Friday, 20 December 2013. US stocks on Thursday recovered most earlier losses as investors shrugged off disappointing housing, manufacturing and employment reports, sending the Dow Jones Industrial Average to a record closing.
The Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The Fed has said it will keep buying bonds until the outlook for the labor market has "improved substantially". Federal Reserve Chairman Ben S. Bernanke said after the Fed's monetary policy review on 18 December 2013 that the program was on its way to meeting that test, as the jobless rate fell to a five-year low of 7 percent in November.
The US central bank is poised to continue winding down its stimulus measures gradually over the next year.
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