Key benchmark indices retained positive zone after hitting fresh intraday high in early afternoon trade. The barometer index, the S&P BSE Sensex was up 65.62 points or 0.33%, up close to 95 points from the day's low and off about 25 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Realty stocks edged lower. Metal stocks gained on renewed buying. Shares of shipping companies rose after the Baltic Dry Index (BDI) surged 5.24% on Wednesday, 25 September 2013. Stocks of shipbuilding companies surged.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between gains and losses. Volatility continued as key benchmark indices regained positive terrain after slipping into the red after hitting fresh intraday high in morning trade. The Sensex hovered in green after hitting fresh intraday high in mid-morning trade. Key benchmark indices retained positive zone after hitting fresh intraday high in early afternoon trade.
The market may remain volatile today, 26 September 2013, as traders roll over positions in the futures & options (F&O) segment from the near month September 2013 series to October 2013 series. The September 2013 F&O contracts expire today, 26 September 2013.
At 12:20 IST, the S&P BSE Sensex was up 65.62 points or 0.33% to 19921.86. The index rose 90.31 points at the day's high of 19,946.55 in early afternoon trade. The index declined 29.25 points at the day's low of 19,826.99 in early trade.
The CNX Nifty was up 19.95 points or 0.34% to 5,893.80. The index hit a high of 5,900.30 in intraday trade. The index hit a low of 5,864.10 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,056 shares rose and 876 shares dropped. A total of 133 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and rest of them fell. Bhel (up 2.72%), Coal India (up 2.73%) and Sun Pharmaceutical Industries (up 2.8%), edged higher.
NTPC fell 1.38% to Rs 146.95. A block deal 3.27 lakh shares was executed in the counter on BSE at Rs 146.95 per share at 11:10 IST.
Realty stocks edged lower. DLF (down 0.69%), HDIL (down 1.51%), Sobha Developers (down 1.14%) and Unitech (down 0.3%), declined.
Metal stocks gained on renewed buying. Sesa Sterlite (up 1.62%), Bhushan Steel (up 0.24%), Tata Steel (up 1.99%), Sail (up 0.01%), Hindalco Industries (up 0.81%) and Hindustan Zinc (up 0.04%), gained.
ONGC declined 1.02%. ONGC Videsh has expressed interest for bidding in the 4th Licensing round for seven offshore and one onshore oil/gas blocks in Tanzania, keeping in mind the measures to be taken to strengthen cooperation in the field of Oil and Gas, Ministry of Commerce & Industry said in a statement today, 26 September 2013.
Shares of shipping companies rose after the Baltic Dry Index (BDI) surged 5.24% on Wednesday, 25 September 2013. Shipping Corporation of India (up 5.06%), Great Eastern Shipping Company (up 0.89%) and Mercator (up 6.45%), rose.
BDI jumped 106 points or 5.24% to 2,127 on Wednesday, 25 September 2013. BDI is an index issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides an assessment of the price of moving the major raw materials by sea.
Shipbuilding stocks rallied. Bharati Shipyard (up 18%) and ABG Shipyard (up 13.68%), jumped.
Prism Cement rose 1.23% to Rs 28.90 after the company said it has commenced clinker production with the new Blending Silo at Unit II at Satna in Madhya Pradesh.
Bond prices rose after the Reserve Bank of India on Wednesday, 25 September 2013, said that it is closely and continuously monitoring liquidity conditions in the banking system and will take actions as appropriate, including open market operations, to ensure that adequate liquidity is available to support the flow of credit to productive sectors of the economy. The yield on the benchmark federal paper 7.16% GS 2023 was hovering at 8.7244%, lower than its close of 8.7862% on Wednesday, 25 September 2013. Bond prices and bond yields are inversely related.
The RBI said that liquidity conditions in the banking system have been tightening due to uncertainties around the government borrowing programme for the second half of 2013-14 as well as the prospective effects of banks' half-yearly account closure, the seasonal pick-up in credit demand, festival-related demand for currency and sluggish deposit growth. The RBI last week began a calibrated unwinding of the exceptional measures undertaken since July so as to restore normalcy to financial flows. Currently, the RBI is injecting about Rs 1.5 lakh crore into the system on a daily basis through the liquidity adjustment facility (LAF), the export credit refinance facility (ECR) and the marginal standing facility (MSF) taken together, the RBI said.
In the foreign exchange market, the rupee edged higher against the dollar after the RBI eased norms for providing swaps to banks that are borrowing funds overseas. The partially convertible rupee was hovering at 62.20, compared with its close of 62.44/45 on Wednesday, 25 September 2013.
The Reserve Bank of India on Wednesday relaxed the minimum maturity tenure for banks' foreign currency borrowings' to one year from three years, in order to use the central bank's swap facility which was set up to support the ailing rupee. The RBI, however, said the relaxation is only applicable while the swap window remains open until November 30. After that, banks' overseas borrowings above 50% of their Tier I capital will have to be of minimum maturity of three years, it said. The RBI set up the swap window for banks earlier this month saying they can borrow overseas up to 100% of their Tier 1 capital level, although any loan over 50% of that level must be for at least three years. Under the plan, the central bank will offer to exchange foreign currency for rupees at a rate below market rates for banks who raise these funds through overseas borrowings.
Asian stocks were mixed on Thursday. Key benchmark indices in China, Hong Kong and Taiwan were off 0.11% to 1.77%. Key benchmark indices in Indonesia, Japan, and South Korea rose 0.46% to 1.22%.
China's local markets will be shut from 1 to 7 October 2013 for National Day holidays.
Trading in US index futures indicated that the Dow could gain 41 points at the opening bell on Thursday, 26 September 2013. US stocks dropped on Wednesday, with the S&P 500 index recording its longest decline since December, as a possible government shutdown overrode better-than-forecast economic reports. The Senate voted 100-0 on Wednesday to pass a stopgap spending measure, with Democrats planning to get rid of language from the House version that would remove funding of the 2010 Affordable Care Act. Without an accord to hasten Senate consideration of the bill, a vote on its passage could come as late as Sunday, giving the House one day to move before spending authority lapses. Separately, Treasury Secretary Jacob Lew told legislators that he'll run out of options to avoid hitting or surpassing the debt limit by Oct. 17 or sooner.
A report from the Commerce Department showed that new-home sales rose last month after an unexpected drop in July. Another data showed that orders for US durable goods unexpectedly bounced back last month on the back of demand for autos.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 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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