Intraday volatility continued as key benchmark alternately moved between positive and negative zone in morning trade. The Sensex was down 8.02 points or 0.04%, up about 35 points from the day's low and off close to 40 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Shares of realty major DLF reversed initial losses triggered by the company's weak Q2 results after trading hours on Wednesday, 30 October 2013. DLF's poor Q2 result dragged lower shares of other realty firms. Telecom stocks gained.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between positive and negative zone. The Sensex regained the psychological 21,000 mark, after falling below that level in initial trade. Intraday volatility continued as key benchmark alternately moved between positive and negative zone in morning trade.
The market may remain volatile today, 31 October 2013, as traders roll over positions in the futures & options (F&O) segment from the near month October 2013 series to November 2013 series. The near month October 2013 derivatives contract expire today, 31 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1016.77 crore on Wednesday, 30 October 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was down 8.02 points or 0.04% to 21,025.95. The index fell 41.99 points at the day's low of 20,991.98 in early trade. The index rose 32.44 points at the day's high of 21,066.41 in early trade.
The CNX Nifty was down 4.30 points or 0.07% to 6,247.40. The index hit a low of 6,235.90 in intraday trade. The index hit a high of 6,255.20 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 905 shares rose and 670 shares fell. A total of 119 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. Tata Motors (up 1.33%), L&T (up 0.86%) and Tata Steel (up 0.87%), gained.
DLF rose 0.5%, with the stock reversing initial losses triggered by the company's weak Q2 results after trading hours on Wednesday, 30 October 2013. The company's consolidated net profit declined 27.76% to Rs 100.05 crore on 3.14% growth in total income to Rs 2224.61 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Wednesday, 30 October 2013.
DLF's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) almost remained flat at Rs 863 crore in Q2 September 2013 as against Rs 864 crore in Q2 September 2012.
DLF said it has witnessed an enthusiastic response to its luxury development-Camellias in DLF 5, Gurgaon. In Q2 September 2013, the company sold approximately 0.09 million square feet (msf) of the project at an average realization of Rs 28,055 per sq. ft.
DLF has appointed the construction major L&T as the general contractor to build the luxury residential development - The Crest and Leighton Welspun, an Australian construction major as the general contractor to build luxury residential development - The Camellias. The execution of both the projects Crest and Camellias has commenced, DLF said.
With regard to the divestment of the non-core assets, DLF said it has closed the divestiture of the Wind business and Star Alubuild to Lixil. The company has also signed a share purchase agreement with Dewan Housing Finance for sale of shareholding in DLF Pramerica Life Insurance, which is currently awaiting regulatory approvals. Given the pipeline of divestitures, the company remains committed to reduce its net debt to Rs 17500 crore by end of FY 2014, DLF said.
DLF said it expects a slow absorption of product in the market amid current economic and high interest rate environment. Despite these adverse conditions, the company has managed to more than double it sales bookings in first half of FY 2014 compared to corresponding period of last year, DLF said. The company said it remains hopeful in achieving its sales booking target for the year. On the leasing front, the company has achieved leasing of 1 msf in first half of FY 2014 compared to 1.14 msf for the entire FY 2013.
DLF's poor Q2 result dragged lower shares of other realty firms. Unitech (down 0.01%), HDIL (down 0.93%) and Sobha Developers (down 0.14%), declined.
Telecom stocks gained. Bharti Airtel rose 1.46%, with the stock extending Wednesday's post-result rally. The company's consolidated net profit declined 29% to Rs 512 crore on 9.9% increase in total revenue to Rs 21324 crore in Q2 September 2013 over Q2 September 2012. The company announced the result during market hours on Wednesday, 30 October 2013.
Bharti Airtel's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) jumped 15.1% to Rs 6832 crore in Q2 September 2013 over Q2 September 2012. EBITDA margin increased to 32% in Q2 September 2013 from 30.6% in Q2 September 2012.
Among other telecom stocks, MTNL (up 1.06%), Tata Teleservices (Maharashtra) (up 2.23%), Reliance Communications (up 0.31%), and Idea Cellular (up 1.67%), gained.
In the foreign exchange market, the rupee edged lower against the dollar, hurt by broad gains in the dollar. The partially convertible rupee was hovering at 61.355, compared with its close of 61.235/245 on Wednesday, 30 October 2013. The dollar rose against a basket of six major currencies after the Federal Reserve fueled bets it may start paring stimulus sooner than previously forecast.
Asian stocks fell on Thursday, 31 October 2013, after the Federal Reserve fueled bets it may start paring stimulus sooner than previously forecast. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Indonesia, Singapore, and South Korea shed 0.16% to 1.73%.
The Bank of Japan stuck with its campaign of unprecedented monetary easing as Prime Minister Shinzo Abe seeks to jolt the nation out of a 15-year deflationary malaise. Governor Haruhiko Kuroda's board maintained a pledge to expand the monetary base by 60 trillion to 70 trillion yen ($711 billion) a year, in a decision released in Tokyo today.
Trading in US index futures indicated that the Dow could fall 43 points at the opening bell on Thursday, 31 October 2013. US stocks fell on Wednesday, 30 October 2013, as investors assessed a Federal Reserve statement that largely matched forecasts, but also had some Fed watchers saying a policy change could come sooner than expected.
The Federal Reserve decided to press on with $85 billion in monthly bond purchases, saying it needs to see more evidence that the economy will continue to improve. "The recovery in the housing sector slowed somewhat in recent months," the Federal Open Market Committee (FDTR) said Wednesday at the end of a two-day meeting in Washington. "Fiscal policy is restraining economic growth. Taking into account the extent of federal fiscal retrenchment over the past year, the committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program as consistent with growing underlying strength in the broader economy," the committee said. The Fed repeated that it will "await more evidence that progress will be sustained before adjusting the pace of its purchases." The Fed's purchases will remain divided between $40 billion a month of mortgage bonds and $45 billion in Treasury securities.
US private-sector employers hired the fewest workers in six months in October while tepid domestic demand kept inflation benign last month, suggesting the economy was still in need of stimulus from the Federal Reserve. Employers in the private sector added 130,000 new jobs to their payrolls this month, the ADP National Employment Report showed on Wednesday. That was the lowest reading since April.
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