Key benchmark indices moved in a narrow range in positive zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 27.93 points or 0.13%, off close to 45 points from the day's high and up about 25 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Pharma stocks rose on renewed buying. Realty stocks also gained. Maruti Suzuki India rose after announcing sales volumes data for December 2013.
A bout of volatility was witnessed as key benchmark indices gave away almost entire gains after a positive start. Key benchmark indices were trading slightly higher in morning trade. The Sensex moved in a narrow range in positive zone in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 309.70 crore on Tuesday, 31 December 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 27.93 points or 0.13% to 21,198.61. The index rose 73.67 points at the day's high of 21,244.35 in early trade, its highest level since 30 December 2013. The index fell 4.13 points at the day's low of 21,166.55 in early trade.
The CNX Nifty was up 9.15 points or 0.15% to 6,313.15. The index hit a high of 6,327.20 in intraday trade, its highest level since 30 December 2013. The index hit a low of 6,301.65 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,325 shares gained and 641 shares fell. A total of 114 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks gained and rest of them declined. Hero MotoCorp (up 0.95%), Coal India (up 0.76%) and M&M (up 0.69%) gained.
Maruti Suzuki India rose 0.57%.The company said during market hours that its total sales fell 4.4% to 90,924 units in December 2013 over December 2012. Domestic sales rose 5.5% to 86,613 units in December 2013 over December 2012. Exports fell 67% to 4,311 units in December 2013 over December 2012.
Pharma stocks rose on renewed buying. Cipla (up 0.66%), Dr Reddy's Laboratories (up 0.01%), Lupin (up 1.39%), Ranbaxy Laboratories (up 1.85%) and Sun Pharmaceutical Industries (up 0.57%) gained.
Realty stocks also gained. DLF (up 1.86%), D B Realty (up 2.86%), HDIL (up 2.43%) and Unitech (up 0.98%) rose. Top lenders announced reduction in home loan rates for new borrowers last month. Lower interest rates may help perk up demand for properties. Purchases of both residential and commercial property are largely driven by finance.
Transport Corporation of India jumped 8.6% to Rs 92.85 after an investment firm run by independent investor Radhakishan Damani bought over 3% stake in the company on Tuesday, 31 December 2013, through a bulk deal on NSE. Derive Investments bought 25.48 lakh shares, or 3.49% of the total equity, in Transport Corporation of India (TCI) at Rs 78 per share on Tuesday, 31 December 2013. Shares of TCI spurted had 13.77% to Rs 85.50 on Tuesday.
Derive Investments bought the shares from FIL Investments (Mauritius), which sold 28.51 lakh shares of TCI at Rs 78.01 each on NSE.
Derive Investments is run by independent investor Radhakishan Damani who is known in India for his stock picks.
In the foreign exchange market, the rupee edged lower against the dollar on the first trading session of the New Year. The partially convertible rupee was hovering at 61.96, compared with its close of 61.80/81 on Tuesday, 31 December 2013.
On the macro front, the eight core industries with a combined weight of 37.90% in the Index of Industrial Production (IIP) has shown an increase of 1.7% in November 2013. During April-November 2013, the eight-core sector has shown growth of 2.5% against 6.7% growth registered in April-November 2012.
The government's fiscal deficit touched Rs 5.1 lakh crore during April-November 2013, or 93.9% of the full-year target, government data showed on Tuesday, 31 December 2013. Net tax receipts touched Rs 3.96 lakh crore in the first eight months of the current fiscal year to March 2014, while total expenditure was Rs 10.21 lakh crore.
In the annual budget presented in February, Finance Minister P. Chidambaram had committed to narrow the fiscal deficit to 4.8% of gross domestic product (GDP) this fiscal year from 4.9% a year ago.
The next major trigger for the market is Q3 December 2013 corporate earnings. The Q3 earnings season will begin around mid-January 2014 and continue till mid-February 2014. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian stock markets were closed today, 1 January 2014, for New Year Holidays.
A Chinese manufacturing index slipped to a four-month low in December, underscoring challenges for President Xi Jinping as he tries to sustain economic momentum while rolling out reforms. The Purchasing Managers' Index was at 51, the statistics bureau and the logistics federation said today, 1 January 2014, in Beijing.
US stocks rose to records on Tuesday, 31 December 2013, with the Standard & Poor's 500 Index posting its biggest annual advance since 1997, as gains in consumer confidence and housing prices bolstered confidence in the world's largest economy. The Conference Board's index of US consumer confidence rose to 78.1 in December from 72 in the prior month while the S&P/Case-Shiller index showed property prices in 20 cities rose in October from a year ago by the most in more than seven years.
The US stock market is closed today, 1 January 2014, for New Year's Day holiday.
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.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014.
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