A bout of volatility was witnessed as key benchmark indices gave away a lion's part of strong initial gains and hit fresh intraday low in morning trade. The market breadth, indicating the overall health of the market, turned negative from positive. The rupee reversed initial gains against the dollar. Index heavyweight and cigarette maker ITC reversed initial gains. The barometer index, the S&P BSE Sensex, was up 44.92 points or 0.22%, off close to 110 points from the day's high and up about 20 points from the day's low.
Infosys extended recent gains triggered by the company raising its revenue guidance for the full year at the time of announcement of Q2 September 2013 results on Friday, 11 October 2013. Many other IT stocks extended recent gains triggered by IT major Infosys' upward revision in its revenue guidance for the full year. IT major TCS scaled record high ahead of its Q2 result today, 15 October 2013. Wipro and Tech Mahindra hit 52-week high. HCL Technologies scaled record high. Shares of companies belonging to Aditya Birla Group edged lower on reports the Central Bureau of Investigation has named Aditya Birla Group Chairman Kumar Mangalam Birla in its 14th FIR in another high profile chargesheet in the coal scam.
The market edged higher in early trade on firm Asian stocks. The Sensex hit its highest level in more than 35 months. The 50-unit CNX Nifty hit 21-week high. A bout of volatility was witnessed as key benchmark indices gave away a lion's part of strong initial gains and hit fresh intraday low in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 730.29 crore on Monday, 14 October 2013, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee reversed initial gains against the dollar. The partially convertible rupee was hovering at 61.645, weaker than its close of 61.55/56 on Monday, 14 October 2013.
At 10:20 IST, the S&P BSE Sensex was up 44.92 points or 0.22% to 20,652.33. The index jumped 152.04 points at the day's high of 20,759.58 in morning trade, its highest level since 11 November 2010. The index gained 26.53 points at the day's low of 20,634.07 in morning trade.
The CNX Nifty was up 5.30 points or 0.09% to 6,118. The index hit a high of 6,156.30 in intraday trade, its highest level since 21 May 2013. The index hit a low of 6,117.55 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in morning trade. On BSE, 874 shares dropped and 755 shares rose. A total of 110 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks rose and the rest fell.
Index heavyweight and cigarette maker ITC fell 0.47% to Rs 337.90. The stock hith high of Rs 342.20 and low of Rs 335.15 so far during the day.
Shares of companies belonging to Aditya Birla Group edged lower on reports the Central Bureau of Investigation has named Aditya Birla Group Chairman Kumar Mangalam Birla in its 14th FIR in another high profile chargesheet in the coal scam. Hindalco Industries (down 1.63%), UltraTech Cement (down 0.46%), Aditya Birla Nuvo (off 3.5%) and Idea Cellular (down 0.68%) declined.
FIRs have been filed against Kumar Mangalam Birla, Nalco, Hindalco Industries and former secretary coal PC Parakh. Cases of cheating, forgery and financial misrepresentation have been filed. CBI searches are also on in Delhi, Kolkata, Bhubaneswar and Mumbai in connection with the coal scam, reports suggest. Shares of Nalco were off 1.07%.
Earlier Congress MP and industrialist Naveen Jindal was summoned by the CBI in September and was subjected to some intense scrutiny. Naveen has been named as an accused in the twelfth FIR of the CBI in coal scam. The CBI in its FIR has said that Naveen's company, Jindal Group, was not recommended by the Jharkhand government. The FIR also accused him of misrepresentation of facts.
Infosys extended recent gains triggered by the company raising its revenue guidance for the full year at the time of announcement of Q2 September 2013 results on Friday, 11 October 2013. The stock was up 0.37% at Rs 3,335.90. The scrip had hit 52-week high of Rs 3,360 in intraday trade on Friday, 11 October 2013.
Many other IT stocks extended recent gains triggered by IT major Infosys' upward revision in its revenue guidance for the full year.
Tech Mahindra rose 1.64% to Rs 1,583. The stock hit 52-week high of Rs 1,588.40 in intraday trade. The central bank recently enhanced the limit for foreign institutional investors to purchase shares in the company to 45% of the paid up capital of the company. The Reserve Bank of India (RBI) enhanced the limit for foreign institutional investors (FIIs) to invest to up to 45% of the paid-up capital of Tech Mahindra. This limit has been revised from the earlier limit of 35% of the paid-up capital of the company under the Portfolio Investment Scheme (PIS). FIIs, at the end of September 2013, controlled 32.59% stake in the company, while promoters holding stood at 36.46%.
Wipro rose 2.05% to Rs 511.15. The stock hit 52-week high of Rs 511.55 in intraday trade.
HCL Technologies gained 0.84% to Rs 1,169.70. The stock hit record high of Rs 1,177 in intraday trade.
IT major TCS rose 1.22% to Rs 2,241.60, ahead of its Q2 result today, 15 October 2013. The stock hit record high of Rs 2,258.05 in intraday trade.
CMC jumped 4.91% after the company reported strong Q2 results after trading hours on Monday, 14 October 2013. CMC's consolidated net profit jumped 27% to Rs 67.31 crore on 15% growth in operating revenue to Rs 560.75 crore in Q2 September 2013 over Q1 June 2013. CMC is a subsidiary of IT major TCS.
The stock market remain closed tomorrow, 16 October 2013, on account of Bakri Id.
Bond prices declined after data released by the government after trading hours on Monday, 14 October 2013, showed that consumer price inflation accelerated in September 2013. The yield on the benchmark federal paper 7.16% GS 2023 was hovering at 8.6598%, higher than its close of 8.5747% on Monday, 14 October 2013. Bond yield and bond prices are inversely related.
The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India rose 9.84% in September 2013, from 9.52% in August 2013. The CPI inflation for rural and urban areas rose 9.71% and 9.93% in September 2013, respectively. Inflation rates (final) for rural and urban areas for August 2013 were 8.93% and 10.32% respectively. The headline CPI (combined) has seen a rise of 1.19% (m-o-m) in September 2013.
Asian stocks rose on Tuesday, 15 October 2013, as Senate leaders on Monday, 14 October 2013, said they're optimistic they will forge a deal to reopen the US government and avoid a breach of the debt limit this week. Key benchmark indices in South Korea, Japan, Hong Kong and Taiwan rose 0.21% to 0.8%. China's Shanghai Composite fell 0.14%. Stock markets in Singapore, Indonesia, Malaysia and the Philippines were shut for holidays.
Trading in US index futures indicated that the Dow could gain 13 points at the opening bell on Tuesday, 15 October 2013. US stocks staged a strong intraday rebound on Monday, 14 October 2013, amid signs lawmakers could reach a deal before the government loses its ability to borrow money later this week.
Investors considered remarks by Senate Majority Leader Harry Reid, who said on the Senate floor on Monday, 14 October 2013, that he is very optimistic about concluding a deal this week to raise the debt limit as well as end the government shutdown. Sen. Mitch McConnell, the Republican minority leader, said he shared Reid's feeling that "we'll get a result that's acceptable to both sides."
Markets worldwide have been watching Washington as it nears an estimated Oct. 17 deadline for Congress to allow the Treasury to borrow in order to pay the government's bills. Without legislative action, the US could default on its debt obligations at a time when the global economy is still recovering from the financial crisis.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength as policy makers mull the timing of reductions in bond buying. Government data from payrolls to retail sales will be delayed as long as the shutdown continues. 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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