Key benchmark indices eked out small gains after witnessing intraday volatility. Indian stocks rose taking their cues from a rally in European stocks and a surge in US index futures which indicated a firm opening on Wall Street later in the global day. Gains in European stocks and US index futures were driven by signs that US politicians will agree on a compromise to reopen the US government and raise the debt ceiling to avoid a default by the world's biggest economy. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, reached 3-week closing high. The Sensex garnered 23.65 points or 0.12%, up close to 140 points from the day's low and off about 50 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Indian stocks gained for the third straight day today, 10 October 2013. From a recent low of 19,895.10 on 7 October 2013, the Sensex has gained 377.81 points or 1.89% in three trading sessions. The Sensex has gained 893.14 points or 4.6% in this month so far (till 10 October 2013). The Sensex has gained 846.20 points or 4.35% in calendar 2013 so far (till 10 October 2013). From a 52-week high of 20,739.69 on 19 September 2013, the Sensex has declined 466.78 points or 2.25%. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 2,824.20 points or 16.18%.
Coming back to today's trade, index heavyweight Reliance Industries (RIL) recouped almost the entire intraday losses. Tata Motors surged after the company's British luxury car unit Jaguar Land Rover (JLR) reported a decent growth in retail sales in September 2013. Ashok Leyland gained after a large bulk deal was executed in the counter on BSE in early trade. Shares of two wheeler makers declined in late trade. Infosys edged higher in volatile trade on the eve of the announcement of its Q2 results.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 61.34, sharply higher than its close of 61.93/94 on Wednesday, 9 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 334.90 crore from the secondary equity markets on Wednesday, 9 October 2013, as per the data from the Securities & Exchange Board of India (Sebi).
The S&P BSE Sensex garnered 23.65 points or 0.12% to settle at 20,272.91, its highest closing level since 19 September 2013. The index gained 74.51 points at the day's high of 20,323.77 in early trade. The index fell 113.35 points at the day's low of 20,135.91 in mid-morning trade.
The 50-unit CNX Nifty rose 13.50 points or 0.22% to 6,020.95, its highest closing level since 19 September 2013. The index hit a high of 6,033.95 and a low of 5,979.80 in intraday trade.
The BSE Mid-Cap index rose 0.59% and the BSE Small-Cap index gained 0.7%. Both these indices outperformed the Sensex.
The BSE Auto index (up 1.94%), BSE Metal index (up 0.49%), BSE IT index (up 0.44%), BSE HealthCare index (up 0.36%), BSE PSU index (up 0.33%), BSE Power index (up 0.31%), BSE Realty index (up 0.3%), BSE Teck index up 0.29%) and BSE Capital Goods index (up 0.18%), outperformed the Sensex.
The BSE Bankex (down 0.39%), and BSE Oil & Gas index (down 0.09%), BSE FMCG index (down 0.01%), and BSE Consumer Durables index (up 0.05%), underperformed the Sensex.
The total turnover on BSE amounted to Rs 1895 crore, higher than Rs 1815 crore on Wednesday, 9 October 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,420 shares gained and 1,018 shares fell. A total of 152 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
IT stocks rose. Infosys gained 1.24% to Rs 3,146. The stock was volatile. The scrip hit high of Rs 3,155 and low of Rs 3,092.20. Infosys announces its Q2 results tomorrow, 11 October 2013. At the time of announcing Q1 June 2013 results in July this year, Infosys had retained its guidance of 6% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014). At that time, the company had raised the guidance in rupee terms due to a steep depreciation of the rupee against the dollar. The company had forecast 13% to 17% growth in revenue in rupee terms for FY 2014, higher than its earlier guidance of 6% to 10% growth which the company had given at the time of announcement of Q4 March 2013 results. The rupee revenue guidance was based on assumption of dollar rupee conversion rate of Rs 59.39 for the rest of the fiscal year.
Wipro rose 0.67%. The company last week announced changes in the top deck of the organisation. The company announced the appointment of Senior Vice President Shaji Farooq as the global head of its Banking, Finance Services and Insurance (BFSI) strategic business unit. Shaji, who is currently leading the company's Advanced Technologies Service Line and Go-To-Market transformation initiatives, will take over from Senior Vice President Soumitro Ghosh, who will now head Wipro Infotech, the India and Middle East business.
HCL Technologies gained 0.42% to Rs 1,116.50 after striking a record high of Rs 1,130 in intraday trade.
Tech Mahindra gained 2.62% to Rs 1,515.05 after scaling a 52-week high of Rs 1,522 in intraday trade. The company today, 10 October 2013, announced the launch of its retail digital enterprise solution ShelfMonitor, powered by Google Cloud. "Tech Mahindra has a focused set of Digital Enterprise Solutions to help our customers transform into Digital Enterprises. ShelfMonitor is an innovative solution that will have significant impact on positive customer experience and increasing the topline revenues of General, Food & Grocery retailers. Being hosted on Google Cloud Platform, this solution is easy to deploy," said Pravat Rath, Head, Retail Practice, Tech Mahindra.
TCS shed 0.41% to Rs 2,081.50. The stock had hit a record high of Rs 2,098 in intraday trade on 8 October 2013. The company unveils Q2 results on 15 October 2013.
JSW Steel dropped 0.88%. The company during market hours today, 10 October 2013, said its crude steel production rose 6% to 2.98 million tonnes in Q2 September 2013 over Q2 September 2012. Production of flat rolled products rose 18% to 2.45 million tonnes in Q2 September 2013 over Q2 September 2012. Production of long rolled products rose 3% to 0.46 million tonnes in Q2 September 2013 over Q2 September 2012. The figures are after giving effect to the merger of JSW ISPAT Steel with the company.
JSW Steel said that the company took shutdown of one of its Corex furnaces for relining and capacity enhancement during the quarter. This furnace recommenced production from 12 September 2013.
Shares of state-run iron ore miner NMDC rose on reports that the company has raised prices of iron ore lumps and fines by Rs 90 to Rs 100 a tonne. The stock rose 2.99% at Rs 130.95.
Tata Steel extended Wednesday's gains triggered by the company's announcement of increase in production and sales deliveries of steel in Q2 September 2013. The stock rose 1.68%. The company's hot metal production rose 19% to 2.46 million tonnes in Q2 September 2013 over Q2 September 2012. Crude steel production rose 19% to 2.29 million tonnes in Q2 September 2013 over Q2 September 2012. Saleable steel production rose 18% to 2.2 million tonnes in Q2 September 2013 over Q2 September 2012. Deliveries rose 18% to 2.03 million tonnes in Q2 September 2013 over Q2 September 2012. The company announced the data during trading hours on Wednesday, 9 October 2013.
State Bank of India (SBI) rose 1.28% to Rs 1,633. The stock hit high of Rs 1,639 and low of Rs 1,609.85. SBI said during market hours that it has been decided to designate Mr. Rajendra Kumar Saraf as the Deputy Managing Director and Chief Financial Officer (CFO) of the bank.
Capital goods pivotals were mixed. L&T rose 0.12%, with the stock extending recent gains triggered by the company's announcement of winning new orders worth Rs 1605 crore across various business segments. L&T announced the new orders during trading hours on Tuesday, 8 October 2013.
Bhel shed 0.47%.
Index heavyweight Reliance Industries fell 0.17% to Rs 859.55. The stock hit high of Rs 862.50 and low of Rs 848.25.
Among auto stocks, M&M rose 1.93% and Maruti Suzuki India gained 1.26%.
Tata Motors jumped 5% to Rs 371.75 after hitting a record high of Rs 373.80 in intraday trade. The company's British luxury car unit Jaguar Land Rover (JLR) today, 10 October 2013, said its retail sales jumped 17% to 43,181 vehicles in September 2013 over September 2012. Sustained sales growth continues for JLR, with increase in retail sales in all major regions, JLR said in statement. Retail sales of the Land Rover brand rose 13% to 34,719 vehicles in September 2013 over September 2012. Sales of the Jaguar brand jumped 35% to 8,462 vehicles in September 2013 over September 2012.
Commenting on the September performance, Andy Goss, Jaguar Land Rover Group Sales Operations Director, said: "This has been another record month for Jaguar and Land Rover with significant sales growth across all major regions. Jaguar is delivering impressive year on year growth having already surpassed its 2012 sales performance. The XF has delivered a September sales record thanks to an enhanced engine line-up and the introduction of the Sportbrake and the XJ continues to do well, particularly in China and North America. Land Rover continues to build on the momentum of its new and refreshed model introductions, with the Range Rover Evoque delivering a record September sales performance and the all-new Range Rover Sport performing strongly in its first month of sales, ahead of its full market roll-out."
Ashok Leyland gained 4.43% to Rs 16.50 on huge volume of 2.85 crore shares after a large bulk deal of 2.6 crore shares was executed on the counter at Rs 15.90 per share at 09:26 IST on BSE today, 10 October 2013.
Shares of two wheeler makers declined. Bajaj Auto shed 1.46%. Hero MotoCorp declined 0.92%.
Lupin rose 2.51% to Rs 937.65 after hitting record high of Rs 940.95 in intraday trade.
Glenmark Pharmaceuticals gained 2.88%. Glenmark Generics Inc., USA, a subsidiary of Glenmark Generics, today, 10 October 2013, announced that it has filed a lawsuit in the Court of Chancery of the State of Delaware against Astellas Pharma Europe B.V., Astellas International, Triax Pharmaceuticals, LLC, Precision Dermatology, Inc., Onset Dermatologics, LLC, and Metacon Labs. The lawsuit seeks to enforce Glenmark's exclusive royalty-bearing license agreement with Triax Pharmaceuticals, Astellas Pharma Europe BV and Astellas Pharma International BV. Under that agreement, Glenmark is entitled to 180 days of exclusivity with respect to its Hydrocortisone Butyrate Cream, as it is the first generic company to file an abbreviated new drug application (ANDA) for the product.
Earlier this week Glenmark filed this lawsuit after learning that Metacon Labs has launched a generic equivalent of Locoid Lipocream. Glenmark is seeking, among other things, a temporary restraining order enjoining the sale, manufacturing or marketing of generic equivalents of Locoid Lipocream by any of the defendants in violation of Glenmark's exclusivity period.
Glenmark recently announced that the United States Food and Drug Administration (USFDA) approved its ANDA for Hydrocortisone Butyrate Cream USP, 0.1%, a generic version of Locoid Lipocream. Hydrocortisone Butyrate Cream is indicated for the relief of the inflammatory and pruritic manifestations of corticosteroid-responsive dermatoses in adults and the treatment of mild to moderate atopic dermatitis in patients 3 months to 18 years of age. Hydrocortisone Butyrate Cream garnered annual sales of approximately $34 million in the United States for the 12 month period ended June 2013,.according to IMS Health sales data.
GlaxoSmithkline Consumer Healthcare surged 6.34% to Rs 4,536.80.
NHPC dropped 0.52%. The company today, 10 October 2013, said its board of directors at its meeting held today, 10 October 2013, approved the prospectus relating to the public issue of tax free bonds of Rs 1000 crore, to be filed with Registrar of Companies. The issue will open for subscription on 18 October 2013. The tax free bonds have been rated "[ICRA] AAA, IND "AAA" and CARE "AAA" by ICRA, India Rating Research and Credit Analysis & Research, respectively.
NHPC earlier during the day said that two units of Uri-II HE power project will be put on commercial operation with effect from 11 October 2013.
Reliance Infrastructure rose 0.05%. The board of directors of Reliance Infrastructure at its meeting held Wednesday, 9 October 2013, approved raising of long term resources including through external commercial borrowings (ECBs), foreign currency convertible bonds, and rupee term loans/NCDs, up to Rs 2500 crore, for refinancing and extending maturities of higher cost rupee debt and/or other approved end uses.
DLF advanced 1.74%. The company early this week said its two subsidiaries viz. DLF Home Developers and DLF Projects have divested 60% stake in Star Alubuild (Star Alubuild), a subsidiary, at an enterprise value of Rs 79.80 crore. Star Alubuild specializes in designing, engineering, fabrication and installation of curtain walls for commercial buildings, retail malls and doors & windows for projects throughout India. Accordingly, Star Alubuild has ceased to be subsidiary of the company, DLF said. The transaction is a part of DLF's objective of divesting its non core assets.
IL&FS Engineering and Construction Company hit maximum permissible 10% upper circuit at Rs 37.60 after the company's board approved raising up to Rs 300 crore through rights issue of equity shares. Shares of IL&FS Engineering settled at Rs 34.20 on Wednesday, 9 October 2013. The issue will be priced at 7.5% discount to the closing price of the stock at NSE on Wednesday, 9 October 2013, the company said in a statement. After a 7.5% discount, the rights issue price works out at around Rs 31.65 per share. The announcement was made after market hours on Wednesday, 9 October 2013.
Education stocks rallied across the board on renewed buying. Career Point (up 20%), Everonn Education (up 4.98%), Educomp Solutions (up 9.85%), CORE Education & Technologies (up 4.84%), MT Educare (up 4.14%), NIIT (up 3.31%) and Aptech (up 2.81%), surged.
European stocks edged higher on Thursday, 10 October 2013, amid signs US lawmakers will agree on a compromise deal to avoid an unprecedented default. Key benchmark indices in France, Germany and UK were up 1.12% to 1.67%.
The Bank of England's (BoE) monetary policy announcement is due later in the global day today, 10 October 2013. The BoE is expected to keep rates steady at 0.5% as the central bank has tied any changes in rates to a drop in the unemployment rate to 7%. Also, the bank is expected to retain the level of its 375 billion quantitative easing program.
Asian markets were mixed on Thursday, 10 October 2013. Key benchmark indices in Singapore, Japan and Indonesia rose by 0.48% to 1.12%. Key benchmark indices in China, Hong Kong and South Korea fell by 0.07% to 0.94%. Taiwan's markets were closed for a holiday.
Chinese trade and inflation data to be released over the weekend and early next week will provide investors a chance to see whether the economic recovery seen in recent months has carried on to September.
Japanese core machinery orders rose 5.4% in August from the previous month, the government said Thursday, on a recovery in capital spending by businesses and increased demand ahead of a planned sales-tax hike. That came after a 0.03% decline in July, and was the first rise in three months.
Trading in US index futures indicated that the Dow could jump 130 points at the opening bell on Thursday, 10 October 2013. US stocks ended mostly higher on Wednesday, 9 October 2013, with signs of progress in ending deadlock in Washington. Top House Republicans will meet US President Barack Obama at the White House later on Thursday to discuss the issues surrounding the shutdown amid concerns the country could breach of the nation's debt limit in a few days time. The US government has just about week before the government's borrowing authority lapses on 17 October 2013.
US markets on Wednesday, 9 October 2013, offered little reaction to the Federal Reserve's release of minutes from its September meeting, at which the Fed unexpectedly refrained from tapering its $85 billion in monthly asset purchases. Most Federal Reserve policy makers said they were likely to reduce the pace of bond purchases this year, according to minutes of their last meeting, which took place before the US government partial shutdown started.
Meanwhile, US President Barack Obama on Wednesday, 9 October 2013, nominated Janet Yellen, the current Fed vice chairman and an architect of its stimulus program, to succeed Ben S. Bernanke as central bank chairman.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength as policy makers mull the timing of reductions in bond buying. Government data from payrolls to retail sales will be delayed as long as the US government shutdown continues. 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.
Brazil's central bank on Wednesday raised the country's baseline lending rate once more by half a point, as expected. But the central bank disappointed some investors by giving no sign that it will slow the pace of rate hikes going forward. In a unanimous vote, the monetary policy committee, or Copom, raised the Selic rate to 9.5%.
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