Firmness continued on the bourses in early afternoon trade. The barometer index, the S&P BSE Sensex was up 248.94 points or 1.21%, off about 35 points from the day's high and up close to 225 points from the day's low. All the thirteen sectoral indices on BSE were in the green. The market breadth, indicating the overall health of the market, was strong.
Capital goods stocks edged higher. Shares of power generation and power distribution companies rose. Reliance Power rose after the company said that pre-commissioning activities have commenced for its concentrated solar power project in Rajasthan's Jaisalmer district.
The market surged in early trade. The market extended initial gains and hit fresh intraday high in morning trade. The Sensex, and the 50-unit CNX Nifty, both, hit their highest level in more than a week. The Sensex trimmed gains after hitting fresh intraday high in mid-morning trade. Firmness continued on the bourses in early afternoon trade
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 28 November 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 102.91 crore on Thursday, 28 November 2013, as per provisional data from the stock exchanges.
Domestic institutional investors (DIIs) bought shares worth a net Rs 330.51 crore on Thursday, 28 November 2013, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was up 248.94 points or 1.21% to 20,783.85. The index jumped 284.86 points at the day's high of 20,819.77 in mid-morning trade, its highest level since 20 November 2013. The index gained 24.02 points at the day's low of 20,558.93 in early trade.
The CNX Nifty was up 78.15 points or 1.28% to 6,170. The index hit a high of 6,182.40 in intraday trade, its highest level since 20 November 2013. The index hit a low of 6,103.80 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,310 shares rose and 825 shares dropped. A total of 157 shares were unchanged.
From the 30-share Sensex pack, 29 rose and only one fell. Sesa Sterlite (up 3.82%), SBI (up 2.74%) and ICICI Bank (up 2.61%) gained.
Capital goods stocks edged higher. L&T (up 0.45%), Crompton Greaves (up 0.36%), ABB (up 0.44%) and Bhel (up 1.89%) gained.
Shares of power generation and power distribution companies gained. GVK Power & Infrastructure, Tata Power Company, NTPC, NHPC, Adani Power, Torrent Power, Power Grid Corporation of India and Reliance Infrastructure rose 0.01% to 3.59%.
The Cabinet Committee on Economic Affairs has approved amendments to the scheme for Financial Restructuring of State distribution companies which had been approved by the CCEA on 24th September 2012 to enable the financial turnaround of the State distribution companies for their long term viability. The Central Government had notified the Financial Restructuring Plan (FRP) for State owned distribution companies vide OM dated 5 October 2012. The scheme is under implementation in Tamil Nadu, Rajasthan, Uttar Pradesh, Haryana and Himachal Pradesh. Utilities of Jharkhand, Bihar and Andhra Pradesh which were facing financial difficulties and were keen to participate in the scheme could not do so due to practical difficulties in meeting certain requirements of the FRP scheme. Therefore, to enable these three States for participation under the scheme, the cutoff date for reckoning the eligible amount of short term liabilities for issuance of bonds/reschedulement by lenders is now shifted to 31 March 2013 from 31 March 2012 (for these three States only). The scheme will be available to these States upto 31 December 2013 unless extended by Government of India.
The expected outcomes from implementation of the scheme in these three States would be providing comfort to lenders by securing State takeover of and guarantee for debt, bringing about financial discipline in the distribution sector in the States, providing a commercial orientation to the functioning of distribution companies, casting responsibility on the State Government to ensure a steady flow of revenue to the distribution companies by improving efficiency of their operation, accelerate the AT&C loss reduction effort of DISCOMs, through additional incentive from the Central Government, ensure regular rationalization of tariff to cover cost of service, ensure timely audit of DISCOM accounts, gradual elimination of the gap between ACS and ARR and to improve the financial health of distribution utilities to enable them to procure more electricity for meeting growing demand.
Reliance Power rose 2.35% after the company said that pre-commissioning activities have commenced for its concentrated solar power project in Rajasthan's Jaisalmer district. The announcement was made during trading hours today, 29 November 2013. Reliance Power's (RPower) concentrated solar power (CSP) project in Rajasthan's Jaisalmer district is the world's largest CSP project based on CLFR technology. The 100 megawatts (MW) CSP plant is being built at a cost of Rs 2100 crore adjacent to the 40 MW solar photovoltaic project commissioned by the company last year. The project is all set to be commissioned during Q1 2014, the company said.
In the foreign exchange market, the rupee edged higher against the dollar in volatile trade. The partially convertible rupee was hovering at 62.39, compared with its close of 62.41/42 on Thursday, 28 November 2013.
Indian government bond prices rose. The yield on 10-year benchmark federal paper, 7.16% GS 2023, was hovering at 9.0057%, lower than its close of 9.0138% on Thursday, 28 November 2013. Bond yields and bond prices are inversely related.
On macro data front, the government unveils Q2 September 2013 GDP growth data after trading hours today, 29 November 2013. The GDP growth for Q2 September 2013 is projected at 4.7%, as per the median estimate of a poll of economists carried out by Capital Market. India's GDP grew at its slowest pace in four years at 4.4% in Q1 June 2013.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
Asian stocks edged lower in choppy trade on Friday, 29 November 2013. Key benchmark indices in Indonesia, South Korea, Singapore, and Japan were down 0.04% to 0.41%. Key benchmark indices in China, Hong Kong and Taiwan were up 0.04% to 0.53%.
Consumer prices excluding fresh food, the Bank of Japan's gauge for its 2 percent inflation target, rose 0.9% in October from a year earlier, a fifth straight gain, according a government report today.
Trading in US index futures indicated that the Dow could advance 41 points at the opening bell on Friday, 29 November 2013. The US stock market will close early at 1:00 p.m. today, 29 November 2013. The market was closed on Thursday, 28 November 2013, for the Thanksgiving holiday.
Investors are keeping a close watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth. The US government will release the influential US non-farm payrolls data for November 2013 on 6 December 2013. The Fed has said improvement in the labor market is a key factor in its policy assessment.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
In Europe, globe credit rating agency Standard & Poor's today, 29 November 2013, revised up its outlook on Spain to stable from negative, and affirmed its BBB sovereign-debt rating. "The stable outlook incorporates our view that Spain's credit metrics are stabilizing and that we currently see less than a one-in-three probability of the rating moving up or down over the next two years," said S&P in a press release. S&P said it sees improvement in Spain's external position as growth resumes, and expects GDP will contract by 1.2% in 2013, but then slowly recover, with 0.8% growth in 2014 and 1.2% in 2015, helped largely by robust exports. S&P said Spain's government will broadly meet its budgetary deficit target of 5.8% of GDP in 2014.
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