Key benchmark indices pared gains after striking multi-months high in morning trade. The barometer index, the S&P BSE Sensex was trading below the psychological 21,000 mark after scaling an almost three year high above that level in morning trade. The 50-unit CNX Nifty also hit its highest level in almost three years. The S&P BSE Sensex was up 218.55 points or 1.05%, off 52.99 points from the day's high and up 235.45 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Index heavyweight and cigarette major ITC extended early gain. Reliance Industries also extended early gain. Jet Airways (India) led fall in aviation stocks after the company reported weak Q2 result. Realty stocks were in demand on renewed buying.
Key benchmark indices reversed small initial fall. Key benchmark indices pared gains after striking multi-months high in morning trade. The barometer index, the S&P BSE Sensex was trading below the psychological 21,000 mark after scaling an almost three year high above that level in morning trade. The 50-unit CNX Nifty also hit its highest level in almost three years.
Foreign institutional investors (FIIs) bought shares worth a net Rs 644.80 crore on Wednesday, 23 October 2013, as per provisional data from the stock exchanges.
At 10:16 IST, the S&P BSE Sensex was up 218.55 points or 1.05% to 20,986.43. The index jumped 271.54 points at the day's high of 21,039.42 in morning trade, its highest level since 8 November 2010. The index fell 16.90 points at the day's low of 20,750.98 at the onset of the trading session.
The CNX Nifty was up 62.10 points or 1.01% to 6,240.45. The index hit a high of 6,252.45 in intraday trade, its highest level since 11 November 2010. The index hit a low of 6,162.60 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,044 shares gained and 494 shares fell. A total of 94 shares were unchanged.
The total turnover on BSE amounted to Rs 443 crore by 10:20 IST compared to Rs 123 crore by 09:25 IST.
Among the 30-share Sensex pack, 27 stocks gained and only three of them declined.
Index heavyweight and cigarette major ITC gained 1.77% to Rs 347.55, with the stock extending early gain.
Reliance Industries rose 1.21% to Rs 906.70, with the stock extending early gain.
Realty stocks were in demand on renewed buying. DLF (up 2.77%), Indiabulls Real Estate (up 2%), Oberoi Realty (up 2.42%), HDIL (up 1.85%), D B Realty (up 2.18%) and Unitech (up 1.64%), edged higher.
Jet Airways (India) fell 3.67% after the company posted a net loss of Rs 891.01 crore in Q2 September 2013, higher than net loss of Rs 99.67 crore in Q2 September 2012. Jet Airways (India)'s total income rose 1.74% to Rs 4267.77 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 23 October 2013.
The company reported 1% increase in operating revenue to Rs 4607.90 crore in Q2 September 2013 over Q2 September 2012.
In terms of operational performance, the company reported 12% growth in number of passengers, 3% growth in available seat kilometres and 6% growth in number of departures in Q2 September 2013 over Q2 September 2012.
The company registered 11% fall in passenger yields to Rs 7376 in Q2 September 2013 from Rs 8335 in Q2 September 2012. Jet said lean season and economic slowdown resulted in drop in yields. Depreciating currency, high fuel prices and increases in airport charges in select Indian airports have driven cost pressures resulting into losses.
There were also instances of aircraft on ground, the impact of which was approximately Rs 123.30 crore. These aircraft will be leased out in the next few months, the company said in a statement.
Fuel rates increased approximately by 8% in Q2 September 2013 over Q2 September 2012. A portion of this was passed on to the passengers in the form of increase in fuel surcharge during September and early October. Full impact of this will be seen from the current quarter, the company said.
Mr. Gary Toomey, Chief Executive Officer, Jet Airways (I) said: "Indian aviation Industry witnessed increasing cost challenges, mainly due to Rupee depreciation against US Dollar, high fuel prices and increase in airport charges in certain stations putting pressure on the bottom line. In the current scenario, Jet Airways has managed to remain competitive through series of planned steps, such as discontinuing loss making routes and stringent cost control measures. The ongoing initiatives will augment well for the airline's performance in the quarters to come. We believe and strive for customer satisfaction by investing into effective marketing strategies and proactive initiatives resulting in enhancing our guest experience. Jet airways roots for customer delight while building industry benchmark for service excellence and supreme quality."
In its outlook, Jet Airways said that Q3 December 2013 quarter will reflect high seasonality, which will help to improve yields. Domestic fare revision which was made at the fag end of Q2 September 2013 will start showing positive effect in the balance part of the year. The forward booking trends for the quarter are quite encouraging. In this ensuing peak season more of business class seats will be on offer.
Rupee depreciation versus dollar and crude oil prices continues to be a cause of concern, the company said, adding that balance sheet deleveraging will play out. High costing debt will be repaid through equity infusion and cheaper debt.
The company said it will either leased out or sell the surplus aircraft in the system in quarters to come. The firm said it will focus on various avenues of ancillary revenues, which should help to boost revenues in the quarters to come.
Other aviation stocks also declined after poor Q2 results from Jet Airways (India). SpiceJet (down 2.38%) and Kingfisher Airlines (down 1.86%) declined.
In the foreign exchange market, the rupee strengthened against the dollar. The partially convertible rupee was hovering at 61.4850, compared with its close of 61.59/60 on Wednesday, 23 October 2013.
Asian markets were mostly trading lower on Thursday, 24 October 2013, as China's money-market rates continued to surge and after US shares retreated from a record amid disappointing company earnings forecasts. Key benchmark indices in South Korea, Hong Kong, China, Singapore and Japan fell by 0.02% to 0.89%. Key benchmark indices in Indonesia and Taiwan rose 0.02% to 0.43%.
China's manufacturing is extending its rebound into October, according to a preliminary reading of the sector released Thursday from HSBC and Markit, with the results helping ease local stocks off their lows. The flash reading of October's China manufacturing Purchasing Managers' Index (PMI) rose to a seven-month high of 50.9, up from September's final reading of 50.2, though it remained just below the Chinese government's own PMI, which hit 51.1 last month. The result also remained above the 50 level, indicating growth rather than contraction.
Trading in US index futures indicated that the Dow could rise 34 points at the opening bell on Thursday, 24 October 2013. US stocks closed lower on Wednesday with the S&P 500 falling from a record, as investors assessed mixed results from US corporations, including a disappointment from equipment-maker Caterpillar Inc.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. 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.
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