Key benchmark indices held firm in morning trade tracking strength in most Asian stocks after a gauge of China's manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery. China is the World's second largest economy after the US. The barometer index, the S&P BSE Sensex, was up 179.52 points or 0.96%, off about 25 points from the day's high and up close to 120 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Except the BSE Auto index all the other sectoral indices on BSE were in the green.
Metal stocks rose after data showed a China's manufacturing gauge rose to a 16-month high in August. Shares of public sector oil marketing companies rose after a hike in petrol and diesel prices, effective from midnight of 31 August 2013.
The market surged in early trade. The S&P BSE Sensex hit highest level in over two weeks. The 50-unit CNX Nifty hit one hit high. It held firm in morning trade.
At 10:20 IST, the S&P BSE Sensex was up 179.52 points or 0.96% to 18,799.24. The index rose 206.05 points at the day's high of 18,825.77 in early trade, its highest level since 16 August 2013. The index gained 59.21 points at the day's low of 18,678.93 in early trade.
The CNX Nifty was up 40.15 points or 0.73% to 5,511.95. The index hit a high of 5,526.75 in intraday trade, its highest level since 26 August 2013. The index hit a low of 5,478.85 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 770 shares rose and 309 shares fell. A total of 63 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks rose and rest of them fell. ITC (up 2.42%), Maruti Suzuki India (up 2.29%) and Hindustan Unilever (up 1.98%), edged higher from the Sensex pack.
Metal stocks rose after data showed a China's manufacturing gauge rose to a 16-month high in August. China is the world's largest consumer of copper and aluminum. Hindustan Zinc (up 1.61%), Bhushan Steel (up 1.2%), Jindal Steel & Power (up 1.13%), NMDC (up 2.19%), Sesa Goa (up 3.23%), JSW Steel (up 2.01%), and Tata Steel (up 2.13%) edged higher.
Hindalco Industries rose 1% to Rs 105.95 after the company after market hours on Friday, 30 August 2013 said that 2.88 crore warrants issued to promoter group company have transferred to other promoter group companies.
Earlier, Hindalco had on 22 March 2012 allotted 15 crore warrants on preferential basis to promoter group companies. The warrant holder is entitled to apply for and be allotted one equity share at Rs 144.35 per share.
Post transfer of 2.88 crore warrants, the final position of 15 crore warrants stood at ICH Holdings with 12.10 crore warrants, Turquoise Investments and Finance with 2.50 crore warrants, TGS Investment and Trade with 39 lakh warrants and Umang Commercial Company has 1 lakh warrants.
Shares of public sector oil marketing companies rose after a hike in petrol and diesel prices, effective from midnight of 31 August 2013. BPCL (up 0.24%), HPCL (up 0.66%) and Indian Oil Corporation (up 0.62%), edged higher.
Public sector oil marketing companies (PSU OMCs) hiked petrol price by Rs 2.35 per litre on falling rupee and firming international oil prices. The fuel price hike, which was effective from midnight of 31 August 2013, excludes local sales tax or VAT. Petrol price in Delhi has increased by Rs 2.83 to Rs 74.10 per litre. This is the sixth increase in rates since June.
In a parallel move, diesel price was hiked by 50 paise, excluding VAT, in line with the January decision of the government allowing oil companies freedom to raise prices in small doses every month to wipe out mounting losses. Diesel price in Delhi has been hiked by 57 paise to Rs 51.97 per litre.
PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.
Meanwhile, a falling rupee adversely impacts PSU OMCs as these companies import about 70-75% of their crude oil needs and rely heavily on foreign currency borrowings, which largely remain unhedged.
On macro front, India's economy grew at the slowest quarterly rate since the global financial crisis in the three months through June, lower than expected and hurt by a contraction in mining and manufacturing, government data showed on Friday, 30 August 2013. The GDP grew 4.4% in Q1 and was the slowest growth since the Jan-March quarter of 2009. Manufacturing fell an annual 1.2% during the quarter while mining fell by 2.8%, the data showed. While, farm output rose 2.7%.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for August 2013 today, 2 September 2013.
Most Asian stocks rose on Monday after a gauge of China's manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery. Key benchmark indices in Hong Kong, Japan, Taiwan and Singapore rose by 0.32% to 1.89%. Key benchmark indices in China, South Korea, and Indonesia fell by 0.13% to 1.19%.
China's economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August as new orders jumped and overseas demand rebounded. The Purchasing Managers' Index was at 51.0, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A separate manufacturing PMI released by HSBC Holdings Plc and Markit Economics rose to 50.1 last month from 47.7 in July, the biggest gain in three years and the first reading above 50 since Apr
South Korea's exports expanded at a faster pace in August than the previous month in a sign of economic recovery, the Ministry of Trade, Industry and Energy said Sunday, beating market expectations.
US stocks fell in a thinly traded session on Friday, 30 August 2013 as the S&P 500 index recorded its steepest decline since May 2012 and investors avoided making large bets before a long weekend with the situation about Syria still uncertain. US stock markets remain closed today, 2 September 2013, for the Labor Day holiday.
President Barack Obama has decided to seek congressional authority to attack Syria for alleged chemical weapons prompting criticism that he's undermined US credibility.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 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.
Powered by Capital Market - Live News
