Key benchmark indices surged on the first trading session of September month as firmness in global stocks boosted sentiment. Global stock markets gained after data showed manufacturing in China to euro-zone expanded at a faster pace than estimated in August, boosting investor confidence in the global economic recovery. Metal stocks rose after data showed a China's manufacturing gauge rose to a 16-month high in August. Bank stocks were mixed. IT major TCS scaled record high. Index heavyweight and cigarette maker ITC rose.
The Sensex was up 250.47 points or 1.35%, up close to 190 points from the day's low and off about 70 points from the day's high. The market breadth, indicating the overall health of the market, was strong. All the thirteen sectoral indices on BSE were in the green.
The Sensex gained for the fourth day in a row today, 2 September 2013.
The market surged in early trade. It held firm in morning trade. It continued to hover in positive terrain in mid-morning trade. It extended gains and hit fresh intraday high in early afternoon trade. It hit fresh intraday high in afternoon trade. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit highest level in over two weeks. It hovered near intraday high in mid-afternoon trade. It held firm in late trade.
As per provisional figures, the S&P BSE Sensex was up 250.47 points or 1.35% to 18,870.19. The index rose 322.34 points at the day's high of 18,942.06 in mid-afternoon trade, its highest level since 16 August 2013. The index gained 59.21 points at the day's low of 18,678.93 in early trade.
The CNX Nifty was up 75.50 points or 1.38% to 5,547.30, as per provisional figures. The index hit a high of 5,564.90 in intraday trade, its highest level since 16 August 2013. The index hit a low of 5,478.85 in intraday trade.
The total turnover on BSE amounted to Rs 1716 crore, lower than Rs 2952.59 crore on Friday, 30 August 2013.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,397 shares rose and 854 shares fell. A total of 149 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose and rest of them fell. Reliance Industries (up 3.96%), HDFC (up 2.65%), and Coal India (up 2.59%), edged higher from the Sensex pack.
Index heavyweight and cigarette maker ITC rose 3.3%.
Bharat Heavy Electricals (Bhel) gained 1.85%. The company said during market hours today, 2 September 2013 that the Board for Industrial and Financial Reconstruction (BIFR) vide order dated 29 August 2013 sanctioned the Modified Draft Rehabilitation Scheme envisaging merger of Bharat Heavy Plate and Vessels (BHPV) with Bhel.
Bank stocks were mixed. ICICI Bank rose 3.13%. HDFC Bank fell 1.12%.
State Bank of India (SBI) declined 0.13%. The bank on 29 August 2013, that the interest rate for bulk deposits for the tenors 7 days to 60 days will be 9% per annum and for the tenor 61 days to less than one year will be 8.25% per annum with effect from 31 August 2013.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained by 1.64% to 5.26%.
Metal stocks rose after data showed a China's manufacturing gauge rose to a 16-month high in August. China is the world's largest consumer of copper and aluminum. Bhushan Steel (up 0.75%), Jindal Steel & Power (up 2.5%), NMDC (up 2.66%), JSW Steel (up 2.5%), and Tata Steel (up 6.07%) edged higher.
Hindalco Industries rose 3.96% to Rs 109.05 after the company after market hours on Friday, 30 August 2013 said that 2.88 crore warrants issued to promoter group company have transferred to other promoter group companies.
Earlier, Hindalco had on 22 March 2012 allotted 15 crore warrants on preferential basis to promoter group companies. The warrant holder is entitled to apply for and be allotted one equity share at Rs 144.35 per share.
Post transfer of 2.88 crore warrants, the final position of 15 crore warrants stood at ICH Holdings with 12.10 crore warrants, Turquoise Investments and Finance with 2.50 crore warrants, TGS Investment and Trade with 39 lakh warrants and Umang Commercial Company has 1 lakh warrants.
Ashok Leyland rose 3.83%. The company said its total sales declined 24% to 7,139 units in August 2013 over August 2012. The company announced the August sales numbers during trading hours today, 2 September 2013. Ashok Leyland's sales of commercial vehicles excluding small commercial vehicle (SCV) Dost fell 25% to 4,939 units in August 2013 over August 2012. Sales of SCV Dost declined 22% to 2,200 units in August 2013 over August 2012.
On the macro front, India's economy grew at the slowest quarterly rate since the global financial crisis in the three months through June, lower than expected and hurt by a contraction in mining and manufacturing, government data showed on Friday, 30 August 2013. The GDP grew 4.4% in Q1 and was the slowest growth since the Jan-March quarter of 2009. Manufacturing fell an annual 1.2% during the quarter while mining fell by 2.8%, the data showed. While, farm output rose 2.7%.
Indian factory activity shrank for the first time in more than four years last month, adding to the country's deepening economic malaise even as the Reserve Bank of India (RBI) struggles to defend the battered rupee currency, a survey showed. The HSBC Manufacturing PMI, compiled by Markit, sank to 48.5 in August from 50.1 in July, the lowest reading since March 2009.
European stocks advanced on Monday Euro-area factory output expanded at a faster pace than initially estimated in August. Key benchmark indices in UK, France and Germany were up by 0.32% to 1.59%.
Euro-area factory output expanded at a faster pace than initially estimated in August, driven by a resurgence in Italy and Spain, as the 17-nation currency bloc's recovery began to build momentum. An index based on a survey of purchasing managers in the manufacturing industry increased to a 26-month high of 51.4 from 50.3 in July, London-based Markit Economics said today. That's above an estimate of 51.3 published on August 22. A reading above 50 indicates growth.
A UK factory index increased to its highest level in 2-1/2 years in August as the recovery gathered pace in the third quarter. The pound rose against the dollar. The gauge climbed to 57.2 from a revised 54.8 in July, Markit Economics and the Chartered Institute of Purchasing and Supply said today in London. That's above the 50 level that divides expansion from contraction.
Spanish manufacturing expanded in August for the first time in more than two years, strengthening Prime Minister Mariano Rajoy's prediction that exports will help the economy emerge from recession this year. The Purchasing Managers' Index rose to 51.1 in August from 49.8 in July, as manufacturing grew for the first time since April 2011, London-based Markit Economics said in a statement today on its website. A reading above 50 indicates expansion.
Most Asian stocks rose on Monday after a gauge of China's manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery. Key benchmark indices in Hong Kong, Japan, Taiwan and Singapore rose by 0.21% to 2.04%. Key benchmark indices in South Korea and Indonesia fell by 0.08% to 2.44%.
China's Shanghai Composite was trading flat. China's economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August as new orders jumped and overseas demand rebounded. The Purchasing Managers' Index was at 51.0, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A separate manufacturing PMI released by HSBC Holdings Plc and Markit Economics rose to 50.1 last month from 47.7 in July, the biggest gain in three years and the first reading above 50 since Apr
South Korea's exports expanded at a faster pace in August than the previous month in a sign of economic recovery, the Ministry of Trade, Industry and Energy said Sunday, beating market expectations.
US stock markets remain closed today, 2 September 2013, for the Labor Day holiday. US stocks fell in a thinly traded session on Friday, 30 August 2013 as the S&P 500 index recorded its steepest decline since May 2012 and investors avoided making large bets before a long weekend with the situation about Syria still uncertain.
President Barack Obama has decided to seek congressional authority to attack Syria for alleged chemical weapons prompting criticism that he's undermined US credibility.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled next month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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