Key benchmark indices trimmed gains in afternoon trade. The barometer index, the S&P BSE Sensex, was up 30.40 points or 0.15%, off close to 60 points from the day's high and up about 35 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Gains in Asian stocks and overnight rally in US stocks underpinned sentiment on the domestic bourses. In the foreign exchange market, the rupee edged higher against the dollar on global risk on sentiment.
Capital goods stocks edged lower. Index heavyweight and cigarette major ITC edged lower in volatile trade. Auto stocks edged higher.
Asian stocks rose on Wednesday, 8 January 2014, as the International Monetary Fund said it will raise its global economic growth forecast and as the US trade deficit narrowed.
Key benchmark indices edged higher amid initial volatility on firm Asian stocks. The Sensex retained positive zone in morning trade. Key benchmark indices extended intraday gains in mid-morning trade. Key benchmark indices trimmed gains after striking fresh intraday high in early afternoon trade. The Sensex further trimmed gains in afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 567.02 crore on Tuesday, 7 January 2014, as per provisional data from the stock exchanges.
At 13:20 IST, the S&P BSE Sensex was up 30.40 points or 0.15% to 20,723.64. The index gained 90.33 points at the day's high of 20,783.57 in early afternoon trade. The index fell 5.06 points at the day's low of 20,688.18 in early trade.
The CNX Nifty was up 5.75 points or 0.09% to 6,169. The index hit a high of 6,191.20 in intraday trade. The index hit a low of 6,160.35 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,397 shares gained and 941 shares fell. A total of 142 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined. Cipla (up 2.1%), GAIL (India) (up 2.07%) and Tata Power Company (up 1.92%) gained.
Capital goods stocks edged lower. L&T (down 1.07%), Bhel (down 1.03%), BEML (down 3.8%) and Crompton Greaves (down 1.62%) declined.
Auto stocks edged higher. Tata Motors (up 0.92%), M&M (up 0.98%) and Ashok Leyland (up 0.54%) gained.
Maruti Suzuki India fell 0.54% to Rs 1,836.40, with the stock reversing gains after hitting record high of Rs 1,856.50 in intraday trade. The company after market hours on Tuesday, 7 January 2014, said that its production fell 6.8% to 80,698 units in December 2013 over December 2012. The company had said last week its total vehicles sales declined 4.4% to 90,924 units in December 2013 over December 2012.
Shares of two wheeler makers gained. Hero MotoCorp gained 0.45%.
Bajaj Auto rose 0.69% to Rs 1,903.10 after three bulk deals were executed on the counter on BSE today, 8 January 2014. A bulk deal of 55,181 shares was executed at Rs 1,902.15 per share at 9:47 IST. One more bulk deal of 55,182 shares was executed at Rs 1,895.80 per share at 9:47 IST. Another bulk deal of 1 lakh shares was executed at Rs 1,902.50 per share at 10:36 IST.
But, TVS Motor Company fell 3.34%.
Index heavyweight Reliance Industries (RIL) rose 0.61% to Rs 847.25. The stock hit a high of Rs 854 and low of Rs 844.60 so far during the day.
Index heavyweight and cigarette major ITC fell 0.36% to Rs 315.60. The stock hit a high of Rs 317.80 and low of Rs 313.90 so far during the day.
Aban Offshore rose 3.05% to Rs 437 after the company said it received a contract worth approximately Rs 380 crore to deploy jack-up rig offshore Vietnam for a firm period of 1 year. The stock hit 52-week high of Rs 448.10 in intraday trade. The announcement was made during trading hours today, 8 January 2014. Aban Offshore said it received a letter of award for the deployment of the jack-up rig Deep Driller 5 (owned by the company's step down subsidiary) offshore Vietnam, for a firm period of 1 year and an optional period of 1 year.
The estimated revenues from the deployment during the firm period is about $61.3 million (equivalent to approximately Rs 380 crore). The contract is likely to commence during April 2014, the company said in a statement.
In the foreign exchange market, the rupee edged higher against the dollar on global risk on sentiment. The partially convertible rupee was hovering at 62.19, compared with its close of 62.30/31 on Tuesday, 7 January 2014.
The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Q3 earnings season begins later this week when IT major Infosys and private sector bank IndusInd Bank unveil their earnings on Friday, 10 January 2014.
Prime Minister Dr. Manmohan Singh today, 8 January 2014, said India's economic growth in the current fiscal year will likely remain flat at 5%. A number of international as well as domestic factors have contributed to slow down in India's economic growth in the recent past, Dr. Singh said. He said that India's economic fundamentals remain strong. "Our savings and investment rates are still over 30% of our GDP and the entrepreneurial spirit in India is very much alive and kicking," Dr. Singh said at the Pravasi Bharatiya Diwas, 2014, in New Delhi.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian stocks edged higher on Wednesday, 8 January 2014, as the International Monetary Fund said it will raise its global economic growth forecast and as the US trade deficit narrowed. Key benchmark indices in Indonesia, Taiwan, Hong Kong, Singapore and Japan rose by 0.18% to 1.94%. Key benchmark indices in China and South Korea fell by 0.02% to 0.15%.
China is due to publish December trade data today, 8 January 2014. China will release December inflation figures tomorrow, 9 January 2014.
Trading in US index futures indicated that the Dow could advance 23 points at the opening bell on Wednesday, 8 January 2014. US stocks rallied on Tuesday, 7 January 2014, helped by data showing a smaller-than-expected trade gap and gains by health-care stocks following an upgrade for UnitedHealth Group Inc. The US trade deficit fell almost 13% to $34.3 billion in November from a revised $39.4 billion in the prior month, the Commerce Department said Tuesday.
Boston Fed President Eric Rosengren on Tuesday said the central bank should only wind down its bond-buying program gradually. San Francisco Fed President John Williams said the Fed likely will end its bond buys this year, adding that he sees "newfound momentum" in the economy.
The US Federal Reserve will release minutes of its December Federal Open Market Committee policy meeting later in the global day today, 8 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually this year.
The ADP Research Institute reports the change in US company payrolls later in the global day today, 8 January 2014.
The US government will unveil the influential non-farm payroll report for December 2013 on Friday, 10 January 2014.
The European Central Bank holds a monetary policy meeting tomorrow, 9 January 2014. UK's central bank -- Bank of England -- also undertakes monthly monetary policy review tomorrow, 9 January 2014.
The IMF expects to upgrade its outlook for global economic growth, IMF Managing Director Christine Lagarde told reporters in Kenyan capital of Nairobi. The organization plans to announce new forecast "in about three weeks from now," she said.
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