Key benchmark indices moved in a narrow range in mid-afternoon trade. While the 50-unit S&P CNX Nifty was in red, the barometer index, the S&P BSE Sensex, was just a tad higher. The market breadth, indicating the overall health of the market, was negative. The Sensex was up 3.63 points or 0.02%, off close to 84 points from the day's high and up about 28 points from the day's low.
Shares of gold finance companies surged on market buzz that the Reserve Bank of India (RBI) may allow them to lend 75% of the value of jewellery compared with 60% at present.
The market trimmed initial gains triggered by firm Asian stocks. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving almost entire initial gains in morning trade. Intraday volatility continued as key benchmark indices recovered from lower level after giving away almost entire intraday gains in mid-morning trade. Key benchmark indices were off the day's high in early afternoon trade. Key benchmark indices hit fresh intraday low in afternoon trade.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month October 2013 series to November 2013 series. The near month October 2013 derivatives contract expire on Thursday, 31 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 626.99 crore on Friday, 25 October 2013, as per provisional data from the stock exchanges.
At 13:17 IST, the S&P BSE Sensex was up 3.63 points or 0.02% to 20,687.15. The index fell 24.45 points at the day's low of 20,659.07 in afternoon trade. The index rose 87.84 points at the day's high of 20,771.36 in early trade.
The CNX Nifty was down 7.95 points or 0.13% to 6,136.95. The index hit a low of 6,128.75 in intraday trade. The index hit a high of 6,168.75 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,236 shares dropped and 968 shares advanced. A total of 153 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. ITC (down 2.87%), Sesa Sterlite (down 1.90%), Tata Steel (down 1.69%), Coal India (down 1.24%), Hindalco Industries (down 0.96%), Sun Pharmaceutical Industries (down 0.84%), Hindustan Unilever (down 0.72%), Cipla (down 0.57%) and State Bank of India (down 0.45%), edged lower from the Sensex pack.
Larsen & Toubro (up 2.13%), Reliance Industries (up 1.70%), HDFC (up 1.14%), Bajaj Auto (up 0.97%), ONGC (up 0.97%), Tata Power (up 0.88%), ICICI Bank (up 0.78%) and Maruti Suzuki India (up 0.41%), edged higher from the Sensex pack.
HOV Services surged 17.26% to Rs 38.05 on a media report that SourceHOV, which is jointly owned by Citigroup Venture Capital International and HOV Services has been put on the block with a asking valuation of $1.2 billion. HOV Services' 27.2% stake in SourceHOV could be valued at about $300 million, report added.
Shares of gold finance companies surged on market buzz that the Reserve Bank of India (RBI) may allow them to lend 75% of the value of jewellery compared with 60% at present. Muthoot Finance and Manappuram Finance were both locked at their respective 5% upper circuit of Rs 104.70 and Rs 15.73.
Last month, the Reserve Bank of India had tightened rules for gold non-banking finance companies, and had kept the loan-to-value ratio at 60%.
Adani Enterprises (up 5.21%), Suzlon Energy (up 4.93%), Shriram City Union Finance (up 4.25%), Emami (up 3.48%) and Titan Industries (up 2.83%), were the major gainers from the BSE's 'A' group.
In the foreign exchange market, the rupee edged lower against the dollar on caution ahead of the Reserve Bank of India's (RBI) monetary policy review tomorrow, 29 October 2013. The partially convertible rupee was hovering at 61.51, compared with its close of 61.46/47 on Friday, 25 October 2013.
Bond prices fell ahead of the Reserve Bank of India's (RBI) monetary policy review tomorrow, 29 October 2013. The yield on the federal benchmark paper 7.16% GS 2023 was hovering at 8.6291%, higher than its close of 8.5795% on Friday, 25 October 2013. Bond yield and bond prices are inversely related.
The Reserve Bank of India (RBI) announces Second Quarter Review of Monetary Policy 2013-14 tomorrow, 29 October 2013. Market men expect RBI to hike its main lending rate viz. the repo rate by 25 basis points to rein in inflation. The wholesale price (WPI) and consumer price inflation, both, accelerated in September 2013. WPI inflation accelerated to 6.46% in September 2013, from 6.1% in August 2013. 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 RBI will release its macroeconomic policy review at about 17:00 IST today, 28 October 2013, a day ahead of the Second Quarter Review of Monetary Policy 2013-14.
Asian stocks rose on Monday, 28 October 2013, after weaker than forecast US consumer confidence spurred bets the Federal Reserve will maintain stimulus. Key benchmark indices in China, Taiwan, Hong Kong, Singapore, Japan, Indonesia and South Korea rose 0.01% to 2.19%.
A Bank of Korea survey showed consumer sentiment rose this month to the highest level since May 2012.
Trading in US index futures indicated that the Dow could gain 46 points at the opening bell on Monday, 28 October 2013. US stocks rose on Friday, 25 October 2013, sending the Standard & Poor's 500 Index to a record, as Amazon.com Inc. and Microsoft Corp. sales beat estimates while a drop in consumer confidence added to speculation the Federal Reserve will delay scaling back monetary stimulus.
Data on US industrial production for September 2013 is due for release later in the global day today, 28 October 2013.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting tomorrow, 29 October and Wednesday, 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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