Key benchmark indices surged in early trade after strong performance of Bharatiya Janata Party (BJP) in assembly elections in Rajasthan, Delhi, Madhya Pradesh and Chattisgarh. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high. The Sensex was up 375.50 points or 1.79%, off close to 115 points from the day's high and up close to 5 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The market sentiment was also boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 6 December 2013. Gains in Asian stocks also boosted sentiment on the domestic bourses. Bank stocks led gains. In the foreign exchange market, the rupee edged higher against the dollar in early deals.
BJP has secured emphatic victory in assembly elections in Madhya Pradesh and Rajasthan, a narrower one in Chhattisgarh and emerged as the single largest party in a hung Delhi assembly, giving the party and its leader Narendra Modi confidence and momentum going into next year's general elections. Aam Aadmi Party, which confounded skeptics to win 28 seats in the 70-member Delhi assembly, denied BJP, which won 31 seats, an outright victory. Congress's debacle has also fortified the perception of Narendra Modi-led BJP being the frontrunner for 2014 Lok Sabha elections. Counting of votes for assembly elections in Rajasthan, Delhi, Madhya Pradesh and Chattisgarh took place on Sunday, 8 December 2013. Counting of votes for assembly elections in Mizoram takes place today, 9 December 2013.
Investor community is betting that BJP's win in Lok Sabha elections next year under the leadership of pro development leader, Narendra Modi would help solve India's intrinsic problems, boost investments and propel economic growth which has seen a consistent slide under the UPA government in last one decade.
The market sentiment was also boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 6 December 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 863.77 crore on Friday, 6 December 2013, as per provisional data from the stock exchanges.
At 9:31 IST, the S&P BSE Sensex was up 375.50 points or 1.79% to 21,371.89. The index jumped 487.21 points at the day's high of 21,483.74 in early trade, which is a record high for the index. The index rose 368.91 points at the day's low of 21,365.44 in early trade.
The CNX Nifty was up 113.40 points or 1.81% to 6,373.30. The index hit a high of 6,415.25 in intraday trade, which is a record high for the index. The index hit a low of 6,374.80 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 872 shares rose and 289 shares dropped. A total of 49 shares were unchanged.
All the shares from the 30-share Sensex pack rose. ICICI Bank (up 5%), L&T (up 4.59%), State Bank of India (up 2.35%), and HDFC Bank (up 4.35%) gained.
Tata Power Company gained 4.09%. The company after market hours on Friday, 6 December 2013, said that the coal handling plant at Coastal Gujarat Power (CGPL), Mundra had an occurrence of fire in the coal conveyor gallery on 14 November 2013. Coal feeding to the plant was impacted due to fire and the repair works that followed. Restoration of the impact of fire on conveyor was achieved on 20 November 2013, Tata Power said. The company has processed the insurance claim as per coverage, Tata Power said.
Oil & Natural Gas Corporation (ONGC) rose 1.73%. The board of directors of ONGC at its meeting held on Friday, 6 December 2013, declared interim dividend of Rs 5 per share for the year ending 31 March 2014 (FY 2014).
Colgate-Palmolive (India) fell 0.55% as the stock turned ex-dividend today, 9 December 2013, for second interim dividend of Rs 9 per share for the year ending 31 March 2014 (FY 2014).
In the foreign exchange market, the rupee edged higher against the dollar after strong performance of Bharatiya Janata Party (BJP) in assembly elections in Rajasthan, Delhi, Madhya Pradesh and Chattisgarh. The partially convertible rupee was hovering at 61.03, compared with its close of 61.41/42 on Friday, 6 December 2013.
On macro front, 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.
The winter session of parliament began on 5 December 2013. The session will end on 20 December 2013.
Asian stocks climbed on Monday, 9 December 2013, after better-than-estimated data on US jobs and Chinese exports. Key benchmark indices in Taiwan, Indonesia, South Korea, Singapore, Japan and Hong Kong rose 0.02% to 1.84%. China's Shanghai Composite fell 0.09%.
China today reported inflation slowed more than estimated last month, after data yesterday showed export growth helped swell the nation's trade surplus to $33.8 billion, the widest since January 2009. The consumer-price index rose 3 percent from a year earlier, the National Bureau of Statistics said today in Beijing.
China's trade surplus widened last month to the largest in more than four years as exports exceeded estimates. The surplus of $33.8 billion was the biggest since January 2009, data from the General Administration of Customs showed yesterday in Beijing. Outbound shipments rose 12.7% from a year earlier, while import gained 5.3%.
Japan's growth slowed more than an initial estimate in the third quarter while the country posted an unexpected deficit in its broadest trade gauge in October, underscoring headwinds to Prime Minister Shinzo Abe's efforts to cement a recovery. Gross domestic product expanded an annualized 1.1% from the previous quarter when it rose 3.6%, the Cabinet Office said today in Tokyo, lower than a preliminary reading of 1.9%. Japan's current account registered a 128 billion yen ($1.2 billion) shortfall, the first deficit since January, according to the finance ministry.
US stocks surged on Friday, 6 December 2013, after the latest data showed American employers added more jobs than forecast and the jobless rate dropped to the lowest since 2008. The 203,000 increase in payrolls in November followed a revised 200,000 advance in October, Labor Department figures showed. The US jobless rate fell to 7%, showing progress in the labor market that will help provide a spark for the US economy. Another report showed consumer confidence rose more than forecast in December to the highest level in five months, easing concern about household spending heading into the holiday-shopping season. The Thomson Reuters/University of Michigan preliminary December consumer sentiment index rose to 82.5, the strongest since July, from 75.1 in November.
Investors are keeping a close 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 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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