Key benchmark indices pared gains in afternoon trade as European markets opened lower. A bout of volatility was witnessed as key benchmark indices gyrated in narrow range. The barometer index, the S&P BSE Sensex, was up 49.67 points or 0.24%, up 80.38 points from the day's low and off 67.68 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The provisional data showing that foreign funds made substantial purchases of Indian stocks on Friday, 11 October 2013 supported domestic bourses.
TCS scaled record high ahead of its Q2 result tomorrow, 15 October 2013. Index heavyweight and cigarette maker ITC extended intraday fall. Index heavyweight Reliance Industries rose ahead of its Q2 results today, 14 October 2013. ONGC was down marginally after the company during market hours today, 14 October 2013 said that its wholly owned subsidiary ONGC Videsh, through its affiliates signed definitive agreements to acquire 12% participating interest (PI) in Block BC-10, Campos Basin, Deep Offshore Brazil as part of the sale of 35% share made by Petrobras.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between gains and losses. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks. The Sensex retained positive terrain in mid-morning trade. It regained positive terrain after reversing intraday gain in early afternoon trade. Key benchmark indices pared gains in afternoon trade as European markets opened lower.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 11 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1010.45 crore on Friday, 11 October 2013, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar tracking weakness in regional shares and currencies. The partially convertible rupee was hovering at 61.20, weaker than its close of 61.07/08 on Friday, 11 October 2013.
At 13:15 IST, the S&P BSE Sensex was up 49.67 points or 0.24% to 20,578.26. The index jumped 117.35 points at the day's high of 20,645.94 in morning trade, its highest level since 20 September 2013. The index fell 30.71 points at the day's low of 20,497.88 in early trade.
The CNX Nifty was up 8.40 points or 0.14% to 6,104.60. The index hit a high of 6,124.10 in intraday trade, its highest level since 20 September 2013. The index hit a low of 6,082.90 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,244 shares gained and 988 shares fell. A total of 146 shares were unchanged.
The total turnover on BSE amounted to Rs 994 crore by 13:20 IST.
Among the 30-share Sensex pack, 18 stocks fell and rest of them rose. Wipro (up 2.96%), Sesa Goa (up 1.69%) and Coal India (up 1.06%), edged higher from the Sensex pack.
Index heavyweight and cigarette maker ITC declined 0.7% to Rs 339.60, with the stock extending intraday fall. The scrip high of Rs 342.95 and low of Rs 339.05 so far during the day.
Index heavyweight Reliance Industries rose 0.77%, ahead of its Q2 results today, 14 October 2013.
ONGC shed 0.13%. The company during market hours today, 14 October 2013 said that its wholly owned subsidiary ONGC Videsh, through its affiliates signed definitive agreements to acquire 12% participating interest (PI) in Block BC-10, Campos Basin, Deep Offshore Brazil as part of the sale of 35% share made by Petrobras.
ONGC Videsh had earlier acquired 15 % PI in the block in 2006. The other partners in the block were Shell, Operator with 50% PI and Petrobras with 35% PI. In August 2013, Petrobras entered into a sales transaction with Sinochem for disposal of their 35% PI in BC-10 for $1543 million. This agreement was subject to pre-emption rights of the partners Shell and ONGC Videsh. A pre-emption notice was served on 17 September 2013 by Shell and ONGC Videsh to jointly acquire 35%, in which 12% PI corresponds to ONGC Videsh. As a follow up of the pre-emption notice, ONGC Videsh through its affiliates has signed sale and purchase agreements with Petrobras on 11 October 2013 for acquisition of 12 % PI in the block, for a consideration $529.03 million. On closing, PI of OVL would increase to 27%. The acquisition of additional PI in the block is subject to approval of the Brazilian antitrust and regulatory authorities.
ONGC said that the Block BC-10 also known as Parque das Conchas is in Campos Basin of Brazil and includes 4 offshore deep-water fields - Ostra, Abalone, Argonauta and Nautilus and a few identified exploration prospects. The block is in the deep-waters of Brazil in the water depths ranging from 1500 to 1950 meters and 120 km from Vitoria town on the shore. The license for the fields expires in December 2032.
In a separate development, ONGC said that ONGC Videsh has been awarded two onshore blocks namely B2 (Zebyutaung-Nandaw) and EP-3 (Thegon-Shwegu) in the Myanmar Onshore Bidding Round 2013. This was announced by the Ministry of Energy, republic of the Union of Myanmar. Block B-2, having an area of 16995 sq. kms. is located in Northern Myanmar, bordering state of Manipur in India and Block EP-3 having an area of 1650 sq. kms. is located in Central Myanmar.
Earlier, Government of Myanmar had announced Onshore 2nd Bid Round -2013 for 18 blocks on 17 January, 2013. ONGC Videsh was one of the 7 Indian companies which were shortlisted as Pre-qualified bidders.
Mr. Sudhir Vasudeva, Chairman noted that the above acquisitions should be seen in the context of the medium to long terms goals set for ONGC Group of Companies and in both these cases the Company has reinforced its presence in the fields/ countries where it already holds the assets. He stated that the acquisitions of producing and exploratory assets reflect the success of the strategy adopted by the company to quickly add reserves/ production through a balanced portfolio approach
IT major TCS gained 3.15% to Rs 2,190.90 ahead of its Q2 result tomorrow, 15 October 2013. The stock hit record high of Rs 2,194 in intraday trade.
MRPL (up 6.97%), MCX (up 5%), Adani Power (up 3.41%), Coromandel International (up 2.93%) and Reliance Infrastructure (up 2.82%) were among the top gainers from the BSE's 'A' group.
Jain Irrigation Systems (down 3.43%), Asian Paints (down 2.54%), Colgate-Palmolive (India) (down 2.4%), Jaypee Infratech (down 1.94%) and Jubilant FoodWorks (down 1.87%) were among the top losers from the BSE's 'A' group.
On the macro front, the annual rate of inflation, based on the monthly wholesale price index (WPI) rose 6.46% in September 2013 higher than 6.1% in August 2013. Build up inflation rate in the financial year so far was 5.64% compared to a build up rate of 4.84% in the corresponding period of the previous year. Inflation for July 2013 was revised upwards to 5.85%.
Industrial production growth slowed to 0.6% in August 2013 from an upwardly revised 2.8% pace in July, hurt by weak investment and consumer demand, government data showed on Friday, 11 October 2013. The entire growth in industrial production in August 2013 was mainly driven by 7.2% surge in electricity generation. The mining output continued to witness decline in output, while the manufacturing sector output also recorded fall in August 2013.
Data on inflation based on consumer price index (CPI) for September 2013, is due later in the day today, 14 October 2013. CPI data is expected to hit the market at 17:30 IST.
The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India is seen easing a bit 9.4% in September 2013 from 9.52% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The CPI had decelerated to 9.52% in August 2013 from 9.64% in July 2013. Inflation for the category 'food and beverages' stood at 11.06% in August 2013.
European stock markets opened lower on Monday, after weak economic data from China and as reports said U.S. Senate leaders remained deadlocked over a deal to raise the nation's debt limit. Key benchmark indices in UK, France and Germany were down by 0.31% to 0.51%.
Asian stocks dropped on Monday, 14 October 2014, weighed by an unexpected drop in exports from China and as American lawmakers struggled over an accord to raise the nation's debt limit and restore government operations. Key benchmark indices in Singapore, South Korea and Taiwan fell 0.23% to 0.9%. China's Shanghai Composite rose 0.43%. Stock markets in Japan, Indonesia and Hong Kong were shut for holidays.
China's exports unexpectedly fell in September and inflation jumped on food prices, signaling constraints on the nation's recovery as Premier Li Keqiang seeks to sustain growth without adding monetary stimulus. Overseas shipments dropped 0.3% from a year earlier, customs data showed on 12 October, while imports rose a more-than-forecast 7.4%. Consumer prices rose 3.1% as food costs advanced the most since May 2012, statistics bureau figures showed in Beijing.
Trading in US index futures indicated that the Dow could fall 118 points at the opening bell on Monday, 14 October 2013. Senate Republicans and Democrats met Sunday in a bid to broker a budget deal as the Republican-led House and President Barack Obama remained deadlocked. The Republicans want compromises on Obama's health-care law, while Democrats have called for one-year deals for "clean" budget and debt-ceiling resolutions that have no cutbacks in funding the health-care program. Much of the US government also remained shut down for the 13th day, with a bill to restore funding for operations seen as likely to feature in any deal.
The Treasury Department's Oct. 17 deadline for raising the debt ceiling is rapidly approaching. Failure to raise the debt limit could be catastrophic for the US economy. Without an increase to the debt limit, the US will exhaust its borrowing authority on Thursday, 17 October 2013, and would run out of funds to pay all of its bills sometime between October 22 and October 31, according to the Congressional Budget Office.
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 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.
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