Key benchmark indices edged higher in early trade as the battered rupee recovered after the Reserve Bank of India (RBI) on Wednesday, 28 August 2013, said it has started a facility to meet the daily dollar requirement of the country's three state-run refiners, with the latest RBI measure aimed at reducing currency market volatility. The barometer index, the S&P BSE Sensex, regained the psychological 18,000 mark. Gains in Asian stocks underpinned sentiment. The Sensex was up 135.01 points or 0.75%, off about 75 points from the day's high and up close to 60 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Asian stocks rose on Thursday, 29 August 2013, as a weaker-than-expected report on US durable-goods orders triggered speculation that the Federal Reserve may delay plans to reduce its monetary stimulus to the US economy. Speculation that geopolitical tensions arising from a possible US-led military strike against Syria may also lead the Fed hold off the reduction in stimulus aided gains in Asian stocks
Capital goods pivotals recovered after recent fall. Power Grid Corporation of India rose after the company's board of directors at its meeting held on 27 August 2013, approved expansion proposals.
The battered rupee recovered after the Reserve Bank of India (RBI) on Wednesday, 28 August 2013, said it has started a facility to meet the daily dollar requirement of the country's three state-run refiners, with the latest RBI measure aimed at reducing currency market volatility. The partially convertible rupee was hovering at 67.37 against the dollar, sharply higher than its record close of 68.80/81 on Wednesday, 28 August 2013.
The Reserve Bank of India (RBI) on Wednesday, 28 August 2013, said that on the basis of assessment of current market conditions, RBI has decided to open a forex swap window to meet the entire daily dollar requirements of three public sector oil marketing companies (IOCL, HPCL and BPCL). Under the swap facility, the RBI will undertake sell/buy USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank. The swap facility gets operationalized with immediate effect and will remain in place until further notice, the RBI said late on Wednesday, 28 August 2013, after the rupee fell by 3.7% on that day, its steepest one-day decline in years, as investors pull back from emerging markets in response to a likely US-led military intervention in Syria.
Indian stocks are likely to remain volatile today, 29 August 2013, as traders roll over positions in the futures & options (F&O) segment from the near month August 2013 series to September 2013 series. The near month August 2013 derivatives contract expire today, 29 August 2013.
At 9:30 IST, the S&P BSE Sensex was up 135.01 points or 0.75% to 18,131.16. The index surged 209.34 points at the day's high of 18,205.49 in early trade. The index rose 75.07 points at the day's low of 18,071.22 in opening trade.
The CNX Nifty was up 43.65 points or 0.83% to 5,328.85. The index hit a high of 5,348.85 in intraday trade. The index hit a low of 5,312.85 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 513 shares rose and 186 shares fell. A total of 31 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks rose and rest of them fell. HDFC (up 3.65%), HDFC Bank (up 2.55%) and ICICI Bank (up 1.68%), edged higher from the Sensex pack.
Capital goods pivotals recovered after recent fall. L&T (up 2.86%) and Bhel (up 0.88%), edged higher.
Infosys fell 1.26% to Rs 3081. The stock had hit a 52-week high of Rs 3128.90 in intraday trade on Wednesday, 28 August 2013. The company announced after market hours on Wednesday, 28 August 2013, that Ashok Vemuri, member of the board, has decided to leave the company. Sanjay Jalona, currently the Regional Head for Manufacturing in North America, will take over as the Global Head of Manufacturing, Infosys.
"Ashok has been an integral part of the Infosys journey over the last fifteen years. He has played a significant role in building the company's market leadership in the Financial Services and Manufacturing verticals and in North America. We would like to thank him for his significant contributions to Infosys in different leadership roles during his career and wish him the very best. The transition plan is in place," Infosys said in a statement.
Power Grid Corporation of India rose 0.69% after the company said after market hours on Wednesday, 28 August 2013, that the board of directors of the company at its meeting held on 27 August 2013, has approved expansion involving a total outlay of Rs 209.13 crore.
Aditya Birla Nuvo rose 0.97%. The stock turned ex-dividend for a dividend of Rs 6.50 per share for the financial year ended on 31 March 2013.
IDBI Bank fell 4.5% as the stock turned ex-dividend for a dividend of Rs 3.50 per share for the financial year ended on 31 March 2013.
Asian stocks rose on Thursday, 29 August 2013, as a weaker-than-expected report on US durable-goods orders triggered speculation that the Federal Reserve may delay plans to reduce its monetary stimulus to the US economy. Speculation that geopolitical tensions arising from a possible US-led military strike against Syria may also lead the Fed hold off the reduction in stimulus aided gains in Asian stocks. Key benchmark indices in Singapore, Hong Kong, South Korea, Indonesia, Taiwan and Japan rose by 0.39% to 1.4%. China's Shanghai Composite fell 0.31%.
Investors are watching the Middle East after the US and the UK yesterday said they are prepared to take military action against Syria without authorization from the United Nations Security Council. Fears of a US-led military strike in Syria have heightened in recent days after allegations that forces loyal to the government of Bashar al-Assad used chemical weapons against rebels.
The Philippine economy expanded above 7% for a fourth straight quarter, defying a regional slowdown to cement its role as Southeast Asia's best performer as President Benigno Aquino boosts investment. Gross domestic product rose 7.5% in the three months through June from a year earlier, compared with a 7.7% gain in the previous quarter, the National Statistical Coordination Board said in Manila today.
US stocks on Wednesday advanced for the first session this week, with oil producers leading the gains as the price of crude settled at a more-than-two-year high.
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.
Brazil's central bank on Wednesday raised its key lending rate by a half percentage point, reinforcing a commitment to curb worrisome inflation despite parallel concerns over the pace of economic growth. In a widely expected move, the central bank's monetary policy committee voted unanimously to raise the Selic interest rate to 9% from the previous 8.5%, the fourth increase since April.
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