Key benchmark indices extended initial gains and hit fresh intraday high in morning trade as gains in Asian stocks boosted investors sentiment. The market breadth, indicating the overall health of the market, was strong. The barometer index, the S&P BSE Sensex, was up 172.57 points or 0.85%, up close to 75 points from the day's low and off about 10 points from the day's high. Asian stocks edged higher on Thursday, 28 November 2013, after US employment and consumer confidence reports boosted optimism in the world's largest economy.
Index heavyweight Reliance Industries (RIL) extended initial gains. Capital goods pivotals edged higher. Tyre shares rose across the board, with CEAT hitting 52-week high. Wockhardt extended Wednesday's slide triggered by the pharma company getting receiving a warning letter from USFDA for its manufacturing units located at L1, Chikalthana, Aurangabad and B15, Waluj, Aurangabad.
The market surged in early trade on firm Asian stocks. The market extended initial gains and hit fresh intraday high in morning trade.
The market may remain volatile today, 28 November 2013, as traders roll over positions in the futures & options (F&O) segment from the near month November 2013 series to December 2013 series. The near month November 2013 derivatives contracts expire today, 28 November 2013.
At 10:20 IST, the S&P BSE Sensex was up 172.57 points or 0.85% to 20,592.83. The index jumped 181.36 points at the day's high of 20,601.62 in morning trade, its highest level since 26 November 2013. The index rose 97.71 points at the day's low of 20,517.97 in early trade.
The CNX Nifty was up 50.75 points or 0.84% to 6,107.85. The index hit a high of 6,112.95 in intraday trade, its highest level since 25 November 2013. The index hit a low of 6,090 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,087 shares rose and 495 shares dropped. A total of 91 shares were unchanged.
Among the 30-share Sensex pack, 28 stocks rose and only two fell. ICICI Bank (up 1.89%), ONGC (up 1.76%) and M&M (up 1.67%) rose.
Capital goods pivotals edged higher. L&T (up 1.05%) and Bhel (up 0.41%) gained.
Index heavyweight Reliance Industries (RIL) rose 1.55%, with the stock extending initial gains. Minister for Petroleum & Natural Gas Veerappa Moily said early this week that RIL may be allowed to raise gas prices from April 2014 as the company has offered financial guarantees to the government to settle any claims against it over a shortfall in its gas output. In June, the government approved a move to higher, market-related rates for locally-produced gas from April 2014, but the finance ministry later said prices for RIL should be capped because the company's gas production from the offshore D6 block was far below its supply commitment. RIL, which operates the D6 block off India's eastern coast, has reported a sharp decline in gas output since 2010. RIL and partner BP have cited geological complexities for the fall in output, but the oil regulator believes they failed to drill enough wells. Falling output had already prompted the government to disallow proportionate cost recovery to RIL, leading to arbitration proceedings over the issue.
Tyre shares rose across the board. Apollo Tyres (up 1.87%), JK Tyre & Industries (up 2.16%), Goodyear India (up 1.86%), and MRF (up 0.44%) gained.
CEAT rose 3.17% to Rs 286.10 with the stock hitting 52-week high of Rs 288 in intraday trade.
Wockhardt lost 0.85%, with the stock extending Wednesday's slide triggered by the pharma company receiving a warning letter from USFDA for its manufacturing units located at L1, Chikalthana, Aurangabad and B15, Waluj, Aurangabad. The stock had tumbled 8.86% to settle at Rs 430.15 on Wednesday, 27 November 2013. The company during trading hours on Wednesday, 27 November 2013 said it has received a warning letter from US Food and Drug Administration (USFDA) for its manufacturing units located at L1, Chikalthana, Aurangabad and B15, Waluj, Aurangabad. USFDA has, however, excluded five products from import alert. Metoprolol XR is under the import alert. The company has already initiated several steps to address the observations made by the USFDA and shall put all efforts to resolve the matter at the earliest, Wockhardt said.
In the foreign exchange market, the rupee edged lower against the dollar on broad dollar gains triggered by positive US economic data overnight. The partially convertible rupee was at 62.3575, compared with its close of 62.14/15 on Wednesday, 27 November 2013.
Economic Affairs Secretary Arvind Mayaram today, 28 November 2013, said that the government's Rs 40000-crore divestment programme for the current fiscal year ending in March 2014 (FY 2014) will be fully met.
India's economic growth is seen recovering a bit in Q2 September 2013. The GDP growth for Q2 September 2013 is projected at 4.7%, as per the median estimate of a poll of economists carried out by Capital Market. India's GDP grew at its slowest pace in four years at 4.4% in Q1 June 2013. The government unveils Q2 September 2013 GDP growth data tomorrow, 29 November 2013.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
Asian stocks edged higher on Thursday, 28 November 2013, after US employment and consumer confidence reports boosted optimism in the world's largest economy. Key benchmark indices in China, Hong Kong, Taiwan, South Korea, Singapore, and Japan were up 0.67% to 1.29%. Indonesia's Jakarta Composite fell 0.11%.
Japan's top government spokesman today, 28 November 2013, said that Japanese and US defense ministers agreed on Wednesday in a telephone conference to respond resolutely and calmly to China's moves to alter the region's status quo. Chief Cabinet Secretary Yoshihide Suga said Japanese Defense Minister Itsunori Onodera and US Defense Secretary Chuck Hagel agreed that China's setting up a so-called air-defense zone recently is "an action that could lead to unforeseeable circumstances and hurt the regional stability." Mr. Suga said the Japanese government wants to deliver its view on the matter to China in coordination with US and other nations.
The zone covers airspace above a series of East China Sea island at the heart of a dispute between Japan and China, and its establishment triggered strong warnings from both Tokyo and Washington that the action would destabilize the region.
The US stock market is closed today, 28 November 2013, for the Thanksgiving holiday. The market will close early at 1:00 p.m. on Friday, 29 November 2013. US stocks rose on Wednesday, 27 November 2013, with Dow Jones Industrial Average and the S&P 500 ending at their record high as Hewlett-Packard Co. led a technology rally while data on employment and consumer confidence boosted optimism in the economy.
Data yesterday showed fewer Americans than projected filed applications for unemployment benefits last week, a sign that the labor market is showing resilience. The Thomson Reuters/University of Michigan final index of consumer sentiment in November unexpectedly rose to 75.1 from 73.2 a month earlier. The Conference Board's index of US leading indicators, a gauge of the economic outlook for the next three to six months, rose for a fourth straight month in October, reflecting gains in factory orders and applications to build new homes.
Investors have been keeping watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth. The Fed has said improvement in the labor market is a key factor in its policy assessment. The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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