Key benchmark indices further cut intraday gains and hit fresh intraday low in afternoon trade. The rupee reversed intraday gains against the dollar. The barometer index, the S&P BSE Sensex, fell below the psychological 20,000 mark, having alternately moved above and below that level in intraday trade. The Sensex was up 69.87 points or 0.35%, off close to 185 points from the day's high and up about 30 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Indian stocks edged higher today, 8 October 2013, after the Reserve Bank of India's (RBI) surprise announcement on Monday evening to improve liquidity conditions in the banking system boosted sentiment.
Auto stocks gained after the Reserve Bank of India's (RBI) surprise announcement on Monday evening to improve liquidity conditions in the banking system. But, two wheeler makers declined. IT stocks were mixed. TCS reversed direction after hitting record high.
The Reserve Bank of India's (RBI) surprise decision on Monday evening to improve liquidity conditions in the banking system triggered a firm opening on the bourses. The barometer index, the S&P BSE Sensex, moved past the psychological 20,000 level. A bout of volatility was witnessed as key benchmark indices regained strength after paring initial gains in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than two weeks. Key benchmark indices pared gains in mid-morning trade. The Sensex came further off the day's high in early afternoon trade. The market further cut intraday gains and hit fresh intraday low in afternoon trade. The Sensex fell below the psychological 20,000 level.
Foreign institutional investors (FIIs) bought shares worth a net Rs 494.13 crore on Monday, 7 October 2013, as per provisional data from the stock exchanges.
Bond prices rose after the Reserve Bank of India (RBI) on Monday evening announced measures to improve liquidity conditions in the banking system. The yield on the benchmark federal paper 7.16% GS 2023 was hovering at 8.5006%, lower than its close of 8.6833% on Monday, 7 October 2013. Bond yield and bond prices are inversely related. The RBI announced a reduction in the marginal standing facility (MSF) rate by 50 basis points to 9% with immediate effect. The central bank has also decided to provide additional liquidity through term repos of 7-day and 14-day tenor for a notified amount equivalent to 0.25% of net demand and time liabilities (NDTL) of the banking system through variable rate auctions on every Friday beginning from 11 October 2013. The notified amount and tenor of the term repo auctions will be announced prior to the dates of the auctions, the RBI said in a statement. Starting with the Mid-Quarter Review of September 2013, the RBI began a calibrated withdrawal of exceptional measures undertaken since July 2013. This was done with a view to normalising liquidity conditions, the RBI said. RBI said that open market purchase operations of Rs 9974 crore were conducted on Monday, 7 October 2013, to inject liquidity into the banking system.
In the foreign exchange market, the rupee reversed intraday gains against the dollar. The partially convertible rupee was hovering at 61.83, a tad weaker than its close of 61.79/80 on Monday, 7 October 2013.
At 13:20 IST, the S&P BSE Sensex was up 69.87 points or 0.35% to 19.964.97. The index jumped 255.17 points at the day's high of 20,150.27 in morning trade, its highest level since 23 September 2013. The index rose 41.62 points at the day's low of 19,936.72 in afternoon trade.
The CNX Nifty was up 15.25 points or 0.26% to 5,921.40. The index hit a high of 5,981.70 in intraday trade, its highest level since 23 September 2013. The index hit a low of 5,919.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,163 shares gained and 1,068 shares fell. A total of 125 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks gained and rest of them declined. L&T (up 2.86%), ICICI Bank (up 2.46%) and Bharti Airtel (up 1.97%), edged higher.
Auto stocks gained after the Reserve Bank of India's (RBI) surprise announcement on Monday evening to improve liquidity conditions in the banking system. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing. M&M (up 0.39%) and Maruti Suzuki India (up 0.34%), rose.
Tata Motors rose 1.94%, with the stock extending intraday gain. Jaguar Land Rover (JLR) UK announced on 4 October 2013 record sales in September with retail figures rising 13% year-to-date over the same period last year. Land Rover had its best ever September month of sales, registering an 11% rise in sales to 10,769 vehicles. The bookends of the brand drove the impressive figures with a record September for the Land Rover Defender, with its sales rising 30% compared to the same period last year and continued strong sales of Land Rover's flagship vehicle -- the all new Range Rover, with its sales rising 24% compared to the same period last year.
Shares of two wheeler makers declined. Bajaj Auto (down 0.98%) and Hero MotoCorp (down 0.35%), dropped.
NTPC rose 0.39% after the company said during market hours that the Unit-VI of 500 megawatts (MW) of Rihand Super Thermal Power Project has been commissioned on 7 October 2013. With this the total installed capacity of Rihand Super Thermal Power Project has become 3,000 MW and the total installed capacity of NTPC group has become 41,684 MW.
IT stocks were mixed. Infosys rose 0.38%. Infosys announces its Q2 results on Friday, 11 October 2013.
Wipro gained 1.02%. The company last week announced changes in the top deck of the organisation. The company announced the appointment of Senior Vice President Shaji Farooq as the global head of its Banking, Finance Services and Insurance (BFSI) strategic business unit. Shaji, who is currently leading the company's Advanced Technologies Service Line and Go-To-Market transformation initiatives, will take over from Senior Vice President Soumitro Ghosh, who will now head Wipro Infotech, the India and Middle East business.
TCS fell 0.43% to Rs 2,075. The stock reversed direction after hitting record high of Rs 2,098 in intraday trade.
HCL Technologies dropped 0.53% to Rs 1,111. The stock had hit record high of Rs 1,129 in intraday trade on Monday, 7 October 2013.
European stocks were little changed near a four-week low on Tuesday, 8 October 2013, as investors watched the start of the US earnings-reporting season and negotiations to end a government shutdown in the world's largest economy. Key benchmark indices in France and UK shed by 0.02% to 0.13%. Germany's DAX rose 0.04%.
German exports rose in August amid signs the economic recovery is continuing in the euro area, the country's biggest trading partner. Exports, adjusted for working days and seasonal changes, increased 1% from July, when they decreased a revised 0.8%, the Federal Statistics Office in Wiesbaden said today.
UK factories saw domestic and export demand strengthen in the third quarter and expect to accelerate hiring in the next three months, according to the British Chamber of Commerce (BCC). Measures of manufacturers' export sales and orders rose to the highest since the fourth quarter of 2010, the BCC said in a report published in London today. An index of domestic sales in the quarter increased, while companies' employment expectations advanced to a record.
Asian markets were mostly higher on Tuesday, 8 October 2013, after the latest data showed China's services industry continued to expand. Key benchmark indices in China, South Korea, Taiwan, Hong Kong, Japan, Singapore and Indonesia rose by 0.3% to 1.08%.
The HSBC China Services Purchasing Managers' Index fell to 52.4 in September from 52.8 in August, HSBC Holdings PLC said on Tuesday. A reading above 50 denotes expansion.
Trading in US index futures indicated that the Dow could gain 9 points at the opening bell on Tuesday, 8 October 2013. US stocks declined on Monday, with the S&P 500 index closing at a four-week low, as a stalemate on Capitol Hill over preventing a government default persisted.
US President Barack Obama reiterated on Monday that he won't negotiate with Republicans over the debt limit. "We're not going to negotiate under the threat of economic catastrophe," Obama said during a visit to the Federal Emergency Management Agency in Washington. Republicans are insisting on changing the 2010 Affordable Care Act, while Obama refuses to engage in discussions about policy conditions tied to opening the government or raising the debt ceiling. Treasury Secretary Jacob J. Lew has warned the US may be unable to pay its bills after Oct. 17.
Federal Reserve Bank of Dallas President Richard Fisher said in a speech that the US cannot afford to default and that debt ceiling talks "will come down to the wire". Fisher, who doesn't hold a policy vote this year, has said he favors a reduction in the central bank's $85 billion monthly bond purchases.
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.
Powered by Capital Market - Live News
