Key benchmark indices extended intraday gains and hit fresh intraday high in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 147.79 points or 0.73%, up 130.25 points from the day's low and off 7.88 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by the Senate Banking Committee's approval on Thursday, 21 November 2013, of Janet Yellen's nomination as the next US Federal Reserve chairman next year, a move considered market-positive as she is expected to leave the US central bank's easy monetary policy little changed. At a Nov. 14 congressional hearing on her nomination to run the Fed, Yellen had indicated she'll press on with the central bank's monetary stimulus until she sees a robust recovery. 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. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
Index heavyweight Reliance Industries extended intraday gain. Index heavyweight and cigarette major ITC edged higher in choppy trade. Sesa Sterlite reversed initial gain. Tata Motors also reversed initial gain. HDFC extended intraday gain. IT stocks were mostly higher as the rupee edged lower against the dollar. Amara Raja Batteries fell on profit booking after the stock jumped 7.71% in the preceding five trading sessions.
A bout of initial volatility was witnessed as key benchmark indices edged higher on firm Asian stocks. The 50-unit CNX Nifty regained the psychological 6,000 mark. Key benchmark indices trimmed initial gains and hit fresh intraday low in morning trade. Volatility continued as key benchmark indices regained strength after trimming intraday gains in mid-morning trade. Key benchmark indices extended intraday gains and hit fresh intraday high in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was up 147.79 points or 0.73% to 20,376.84. The index jumped 155.67 points at the day's high of 20,384.72 in early afternoon trade. The index rose 17.54 points at the day's low of 20,246.59 in mid-morning trade.
The CNX Nifty was up 44.90 points or 0.75% to 6,043.95. The index hit a high of 6,048 in intraday trade. The index hit a low of 6,003.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,252 shares gained and 870 shares fell. A total of 145 shares were unchanged.
The total turnover on BSE amounted to Rs 735 crore by 12:20 IST, compared to Rs 561 crore by 11:20 IST.
Among the 30-share Sensex pack, 22 stocks gained and rest of them declined.
Sesa Sterlite fell 1.59% to Rs 176.50, with the stock reversing initial gain. The stock hit a high of Rs 182.70 and low of Rs 176 so far during the day.
Tata Motors slipped 1.41% to Rs 377.15, with the stock reversing initial gain. The stock hit a high of Rs 385.95 and low of Rs 375.50 so far during the day.
HDFC gained 2.53% to Rs 799.15, with the stock extending intraday gain.
Index heavyweight Reliance Industries rose 0.81% to Rs 854.95, with the stock extending intraday gain. The stock hit a high of Rs 856.15 and low of Rs 846.50 so far during the day.
Index heavyweight and cigarette major ITC rose 0.32% to Rs 313.65. The stock hit a high of Rs 316.90 and low of Rs 311 so far during the day.
IT stocks were mostly higher as the rupee edged lower against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Tech Mahindra (up 0.13%), TCS (up 0.59%), Infosys (up 0.54%) and Hexaware Technologies (up 0.88%) edged higher. Wipro (down 0.11%) and HCL Technologies (down 0.83%) declined.
Amara Raja Batteries fell 1.41% to Rs 331.15 on profit booking after the stock jumped 7.71% in the preceding five trading sessions to Rs 335.90 on 21 November 2013, from a recent low of Rs 311.85 on 13 November 2013.
In the foreign exchange market, the rupee weakened past 63 against the dollar. The partially convertible rupee was hovering at 63.02, compared with its close of 62.93/94 on Thursday, 21 November 2013. The rupee dropped after foreign institutional investors (FIIs) sold a net Rs 59.80-crore in shares on Thursday, 21 November 2013, to snap a 32-day buying streak.
Government bond yields rose as traders shed positions ahead of the Rs 15000-crore bond auction later in the session, which includes the sale of a new 10-year benchmark bond. The yield on 10-year benchmark federal paper, 7.16% GS 2023, was hovering at 9.0903%, higher than its close of 9.0773% on Thursday 21 November 2013. Bond yield and bond prices are inversely related.
Asian stocks edged higher on Friday, 22 November 2013, as positive political and economic news from the US supported sentiment. Key benchmark indices in Taiwan, Hong Kong, Japan, and South Korea rose by 0.1% to 0.62%. Key benchmark indices in Indonesia, China and Singapore fell 0.05% to 0.37%.
Bank of Japan (BOJ) Governor Haruhiko Kuroda said in parliament today, 22 November 2013, that the yen isn't excessively weak. Inflation will hit the BOJ's 2% target in the latter half of the central bank's two-year time frame and policy makers will adjust its bond-buying program as needed, he said. The central bank yesterday maintained its unprecedented monetary policy.
Trading in US index futures indicated that the Dow could advance 4 points at the opening bell on Friday, 22 November 2013. The Dow Jones Industrial Average achieved its first-ever close above 16,000 on Thursday, 21 November 2013, as US stocks rallied boosted by better-than-expected data on weekly jobless claims and as investors reconsidered their concerns about the Federal Reserve's potential reduction in its bond-buying program.
The Labor Department said weekly jobless claims fell by 21,000 to 323,000. In addition, wholesale prices dropped 0.2% last month. On the downside, the Philadelphia Fed's index of manufacturing conditions dropped to 6.5 in November.
The US Senate Banking Committee on Thursday, 21 November 2013, voted 14-8 to approve Janet Yellen as the next chairman of the Fed, sending the nomination to the full Senate for approval.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. Minutes from the Federal Reserve's October meeting released this week signaled US stimulus may be reduced in coming months. Fed Bank of St. Louis President James Bullard on Thursday, 21 November 2013, said a cutback in the US central bank's bond-purchase program is "on the table" for policy makers' December meeting.
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