Key benchmark indices edged higher after witnessing immense volatility during the last one hour of the trading session as traders rolled over positions in the futures & options (F&O) segment from the near month December 2013 series to January 2014 series. The December 2013 derivatives contracts expired today, 26 December 2013. The market breadth, indicating the overall health of the market, was strong. The barometer index, the S&P BSE Sensex, was provisionally up 39.51 points or 0.19%, up close to 60 points from the day's low and off about 65 points from the day's high.
Auto stocks declined. Shares of two-wheeler makers dropped. Capital goods stocks rose on renewed buying. Shares of power generation and power distribution companies edged higher. Index heavyweight Reliance Industries (RIL) dropped.
The market edged higher in early trade on firm Asian stocks. Key benchmark indices retained positive zone in morning trade. The Sensex extended gains and hit fresh intraday high in mid-morning trade. Key benchmark indices were off the day's high in early afternoon trade. The Sensex moved in a narrow range in positive zone in afternoon trade. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving away a lion's part of intraday gains in mid-afternoon trade. Immense volatility was witnessed during the last one hour of the trading session as the key benchmark indices regained positive terrain, soon after reversing intraday gains.
Foreign institutional investors (FIIs) bought shares worth a net Rs 40.67 crore on Tuesday, 24 December 2013, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was up 39.51 points or 0.19% to 21,072.22. The index jumped 103.14 points at the day's high of 21,135.85 in late trade. The index fell 19.57 points at the day's low of 21,013.14 in late trade.
The CNX Nifty was up 9.65 points or 0.15% to 6,278.05, as per provisional figures. The index hit a high of 6,302.75 in intraday trade, its highest level since 23 December 2013. The index hit a low of 6,259.45 in intraday trade, its lowest level since 20 December 2013.
The BSE Mid-Cap index rose 0.41% and the BSE Small-Cap index gained 1.23%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1926 crore, lower than Rs 2052.20 crore on Tuesday, 24 December 2013.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,629 shares gained and 902 shares fell. A total of 129 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks declined and rest of them rose. HDFC Bank (up 1.74%), Wipro (up 1.35%) and AXIS Bank (up 1.31%) gained.
Auto stocks declined. Tata Motors (down 0.81%), M&M (down 0.77%) and Maruti Suzuki India (down 0.21%) declined.
Shares of two-wheeler makers also dropped. Bajaj Auto (down 2.52%) and Hero MotoCorp (down 2.01%) fell.
Capital goods stocks rose on renewed buying. ABB (up 0.98%), Bhel (up 1.51%), BEML (up 1.67%), and Siemens (up 1.77%) rose.
But, Larsen & Toubro (L&T) fell 0.47%, with the stock reversing intraday gains. L&T Finance Holdings rose 1.08%. L&T early this week said it has completed the sale of 1.71 crore shares aggregating to 1% stake of L&T Finance Holdings on 23 December 2013 to comply with the minimum public shareholding requirement. L&T's total shareholding in L&T Finance Holdings now stands at 81.5%. Stock market regulator Securities & Exchange Board of India (Sebi) has made it mandatory for a minimum public holding of 25% in all listed companies. For state-run companies, a minimum 10% public holding has been made mandatory.
L&T on 20 December 2013 said that L&T Infrastructure Development Projects (L&TIDPL) has submitted an application to the Foreign Investment Promotion Board (FIPB) seeking approval in relation to a proposed foreign direct investment in L&T IDPL. Subject to completion of the due diligence processes and necessary agreement on governance and other terms of the transaction with the investor, there is a contemplation of an initial infusion of Rs 1000 crore into L&T IDPL, followed by a second tranche of Rs 1000 crore (or such higher amount as may be agreed between L&T and investor) after twelve months from the date of initial investment. The proposed transactions are subject to various factors, and may or may not be completed, and parties have not yet entered into any agreement, L&T said in a statement. In the meantime, shareholders and any other investors are reminded to exercise caution when dealing in the company's securities, pending definitive announcement(s) from the company, if any, L&T said.
L&T IDPL is primarily engaged in public-private partnership projects in India, with business interests spread across sectors involving roads and bridges, ports, metro rail, wind energy and power transmission lines. It has experience in identifying and assessing viability of projects, achieving financial closure, project management, operations and maintenance of infrastructure assets across various sectors as well as divestiture.
Thermax fell 0.04% to Rs 696.05, with the stock reversing gains after hitting 52-week high of Rs 715.95 in intraday trade.
Shares of power generation and power distribution companies edged higher. GVK Power & Infrastructure (up 5.6%), Tata Power Company (up 4.41%), Power Grid Corporation of India (up 0.36%), Torrent Power (up 3.18%), and Reliance Power (up 1.82%) gained. NTPC fell 0.04%. Reliance Infrastructure dropped 1.65%.
Adani Power rose 3.66%. The company said during market hours that a meeting of the board of directors of the company will be held on 28 December 2013, inter alia, to consider and approve demerger of transmission line business of the company and other incidental matters.
Index heavyweight Reliance Industries (RIL) fell 1.08% to Rs 886.50. The stock hit high of Rs 897.40 and low of Rs 882.
ONGC rose 2.31%. The company said during market hours that ONGC Videsh has temporarily suspended its oilfield operations in South Sudan. ONGC Videsh (OVL) is operating in two producing assets in South Sudan through its Joint Operating Companies viz. Greater Pioneer Operating Company (GPOC) and SUDD Petroleum Operating Company (SPOC) with Participating Interest (PI) of 25% and 24.125% respectively. GPOC is producing close to 37,000 bopd (OVL share 9,250 bopd) from Block 1,2,4 and SPOC is producing close to 4,600 bopd (OVL share 1,100 bopd) from Block 5A. While the partners of OVL in GPOC are CNPC, Petronas and Nilepet, in SPOC OVL has partnership with Petronas and Nilepet.
Following the deteriorating security situation in the country from 15 December 2013, the Joint Operating Companies decided to temporarily shut down the operations in its oilfields. The shutdown was executed methodically as per its standard shutdown procedure, ensuring safety of personnel/equipments and smooth resumption of operation immediately after normalization of the security situation. Following the shutdown, the production from the oilfields was completely stopped from 22 December 2013, ONGC said.
Due to the adverse security situation, OVL in coordination with the Indian Embassy in South Sudan has evacuated all its 11 personnel posted in South Sudan. Other partners of OVL in the assets have also evacuated most of its personnel from the country, ONGC said.
OVL is closely monitoring the security situation in the country and is in constant interaction with its partners in the assets and the Indian Embassy at Juba. Operations will be resumed once the situation is normalized, ONGC said in a statement.
In the foreign exchange market, the rupee edged lower against the dollar on broad-based gains in dollar. The partially convertible rupee was hovering at 62.005, compared with its close of 61.79/80 on Tuesday, 24 December 2013. Indian financial markets were closed on Wednesday, 25 December 2013, on account of Christmas.
European stock markets were closed on Thursday, 26 December 2013, for Christmas holidays.
Asian stocks edged higher on Thursday, 26 December 2013, led by Japanese stocks after the yen fell to a five-year low against the dollar. Key benchmark indices in Taiwan, Japan, and Singapore were up 0.21% to 1.03%. South Korea's Kospi dropped 0.11%. Stock markets in Hong Kong and Indonesia were shut for holidays.
In mainland China, the Shanghai Composite fell 1.58%, ending a three-day recovery as investors reacted negatively to a lack of additional cash injections from the central bank, used last week to calm a spike in interbank lending rates that has eroded investor confidence.
China's ruling Communist Party reportedly unveiled on Wednesday a five-year plan to fight pervasive graft, with particular attention on corruption that triggers protests or happens in the course of economic reforms.
China's economy this year is likely to expanded 7.6%, compared with the government's 7.5% target, a News Agency in China reportedly said, citing a report by the State Council.
The minutes of the Bank of Japan's Nov. 20-21 board meeting released on Wednesday, 25 December 2013, showed that not all members were convinced that the country's growth was on a long-term upward trend. One member said that the recent deceleration in real gross domestic product growth could signal a downward shift in the economy's trend.
The consumer confidence index in South Korea stayed at 107 in December, unchanged from November, the nation's central bank said in a statement today, 26 December 2013.
The US stock market was closed on Wednesday, 25 December 2013, for Christmas. US stocks ended higher on Tuesday, 24 December 2013, with the Dow Jones Industrial Average and the S&P 500 rising to record closes after an upbeat report on durable-goods orders. Investors welcomed Tuesday's durable-goods report showing that orders for big-ticket US items, such as aircraft and transportation equipment, rose 3.5% last month.
In a separate report, US home prices rose 8.2% in October from the same month last year, according to the Federal Housing Finance Agency. Prices rose 0.5% from September.
Rising mortgage rates did not affect the sales of new single-family homes much, according to US Commerce Department data released on Tuesday. Sales declined 2.1% in November to a seasonally adjusted annual rate of 464,000, down from a rate of 474,000 in October, which was the fastest pace since July 2008.
The US 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 over the next year.
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