Key benchmark indices weakened in mid-morning trade as index heavyweight Reliance Industries (RIL) extended intraday fall and as another index heavyweight ITC dropped in choppy trade. The 50-unit CNX Nifty fell below the psychological 6,000, having alternately moved above and below that level in intraday trade. The barometer index, the S&P BSE Sensex, was down 97.63 points or 0.48%, off 172.14 points from the day's high and up 15.72 points from the day's low. The market breadth, indicating the overall health of the market, was positive. In the foreign exchange market, the rupee edged lower against the dollar as weakness in other Asian currencies and global currency majors versus the greenback weighed.
HDFC Bank and Tata Power Company extended intraday fall. Realty stocks extended recent gains triggered by the Reserve Bank of India's (RBI) decision early this week to improve liquidity conditions in the banking system. Paper stocks were in demand on renewed buying. NHPC rose after the company said two units of Uri-II HE power project will be put on commercial operation with effect from 11 October 2013.
A bout of initial volatility was witnessed as the key benchmark indices reversed initial losses. The Sensex, and the 50-unit CNX Nifty, both, hit their highest level in nearly three weeks. Key benchmark indices alternately moved between positive and negative zone near the flat line in morning trade. Key benchmark indices weakened in mid-morning trade as index heavyweight Reliance Industries (RIL) extended intraday fall and as another index heavyweight ITC dropped in choppy trade.
In the foreign exchange market, the rupee edged lower against the dollar as weakness in other Asian currencies and global currency majors versus the greenback weighed. The partially convertible rupee was hovering at 62.145, weaker than its close of 61.93/94 on Wednesday, 9 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 326.58 crore on Wednesday, 9 October 2013, as per provisional data from the stock exchanges.
At 11:15 IST, the S&P BSE Sensex was down 97.63 points or 0.48% to 20,151.63. The index fell 113.35 points at the day's low of 20,135.91 in mid-morning trade. The index gained 74.51 points at the day's high of 20,323.77 in early trade, its highest level since 20 September 2013.
The 50-unit CNX Nifty was down 22.85 points or 0.38% to 5,984.60. The index hit a low of 5,979.80 in intraday trade. The index hit a high of 6,031.80 in intraday trade, its highest level since 20 September 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,129 shares gained and 761 shares fell. A total of 128 shares were unchanged.
The total turnover on BSE amounted to Rs 681 crore by 11:20 IST compared to Rs 452 crore by 10:20 IST.
Among the 30-share Sensex pack, 16 stocks declined and rest of them gained.
Index heavyweight Reliance Industries fell 1.16% to Rs 851, with the stock extending intraday fall. The stock hit high of Rs 861 and low of Rs 850 so far during the day.
Index heavyweight and cigarette major ITC was off 0.59% at Rs 346.50. The stock hit high of Rs 350.75 and low of Rs 345.40 so far during the day.
HDFC Bank lost 2.06%, with the stock extending intraday fall.
Tata Power Company declined 1.57%, with the stock extending intraday fall.
NHPC rose 1.04%. The company during market hours today, 10 October 2013, said that two units of Uri-II HE Project will be put on commercial operation with effect from 11 October 2013.
Realty stocks extended recent gains triggered by the Reserve Bank of India's (RBI) decision early this week to improve liquidity conditions in the banking system. Purchases of both residential and commercial property are largely driven by finance. HDIL (up 0.09%), Unitech (up 0.56%), Oberoi Realty (up 1.27%) and Indiabulls Real Estate (up 1.56%) gained.
DLF advanced 2.11%. The company early this week 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.
IL&FS Engineering and Construction Company was locked at 10% upper circuit at Rs 37.60 after the company's board approved raising up to Rs 300 crore through rights issue of equity shares. Shares of IL&FS Engineering settled at Rs 34.20 on Wednesday, 9 October 2013. The issue will be priced at 7.5% discount to the closing price of the stock at NSE on Wednesday, 9 October 2013, the company said in a statement. After a 7.5% discount, the rights issue price works out at around Rs 31.65 per share. The announcement was made after market hours on Wednesday, 9 October 2013.
Paper stocks were in demand on renewed buying. Andhra Pradesh Paper Mills (up 1.35%), JK Paper (up 6.98%), Tamil Nadu Newsprint and Papers (up 3.69%), West Coast Paper Mills (up 1.04%) and Ballarpur Industries (up 8.2%) edged higher.
Asian markets were trading mixed on Thursday, 10 October 2013. Key benchmark indices in Singapore, Japan and Indonesia rose by 0.49% to 0.93%. Key benchmark indices in China, Hong Kong and South Korea fell by 0.14% to 0.93%. Taiwan's markets were closed for a holiday.
Chinese trade and inflation data to be released over the weekend and early next week will provide investors a chance to see whether the economic recovery seen in recent months has carried on to September.
Japanese core machinery orders rose 5.4% in August from the previous month, the government said Thursday, on a recovery in capital spending by businesses and increased demand ahead of a planned sales-tax hike. That came after a 0.03% decline in July, and was the first rise in three months.
Trading in US index futures indicated that the Dow could gain 56 points at the opening bell on Thursday, 10 October 2013. US stocks ended mostly higher on Wednesday, 9 October 2013, with signs of progress in ending deadlock in Washington after news that US President Barack Obama would meet House Democrats on Wednesday and House Republicans on Thursday. Investors' focus remains on the ongoing fiscal impasse in the US amid worries that Washington could pass the deadline to raise the debt ceiling -- a move that could lead to a default.
US markets offered little reaction to the Federal Reserve's release of minutes from its September meeting, at which the Fed unexpectedly refrained from tapering its $85 billion in monthly asset purchases. Most Federal Reserve policy makers said they were likely to reduce the pace of bond purchases this year, according to minutes of their last meeting, which took place before the US government partial shutdown started.
Meanwhile, US President Barack Obama on Wednesday, 8 October 2013, nominated Janet Yellen, the current Fed vice chairman and an architect of its stimulus program, to succeed Ben S. Bernanke as central bank chairman.
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.
Brazil's central bank on Wednesday raised the country's baseline lending rate once more by half a point, as expected. But the central bank disappointed some investors by giving no sign that it will slow the pace of rate hikes going forward. In a unanimous vote, the monetary policy committee, or Copom, raised the Selic rate to 9.5%.
The OPEC is slated to release its monthly oil report later today, 10 October 2013.
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