A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving away a lion's part of intraday gains in afternoon trade. The barometer index, the S&P BSE Sensex, was up 47.11 points or 0.23%, off close to 75 points from the day's high and up about 30 points from the day's low. The market breadth, indicating the overall health of the market, was positive. In the foreign exchange market, the rupee edged lower against the dollar as investors bet improving US economic data may usher in a reduction in monetary stimulus for the US economy from the US Federal Reserve.
Among IT stocks, Infosys hit 52-week high. HCL Technologies reversed direction after hitting record high in intraday trade. Wipro reversed direction after hitting 52-week high in early trade. Realty stocks edged lower as the Reserve Bank of India (RBI) is widely expected to increase in main lending rate viz. the repo rate by 25 basis points to 8% from current 7.75% after a mid-quarter monetary policy review tomorrow, 18 December 2013, to rein in inflation after recent data showed that both consumer prices and wholesale prices accelerated last month.
Zee Entertainment Enterprises edged higher after the company's board approved a scheme of arrangement between the company and Diligent Media Corporation (DMCL) for the demerger of the media business undertaking from DMCL and vesting into the company.
Key benchmark indices edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices trimmed initial gains in morning trade. Key benchmark indices hovered in positive zone in mid-morning trade. Key benchmark indices trimmed gains and hit fresh intraday low in early afternoon trade. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving away a lion's part of intraday gains in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 159.55 crore on Monday, 16 December 2013, as per provisional data from the stock exchanges.
At 13:20 IST, the S&P BSE Sensex was up 47.11 points or 0.23% to 20,706.63. The index jumped 124.51 points at the day's high of 20,784.03 in early trade, its highest level since 13 December 2013. The index rose 19.58 points at the day's low of 20,679.10 in afternoon trade.
The CNX Nifty was up 14.05 points or 0.23% to 6,168.75. The index hit a high of 6,190.55 in intraday trade, its highest level since 13 December 2013. The index hit a low of 6,161.20 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,193 shares gained and 1,031 shares fell. A total of 154 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks gained and rest of them declined. Bharti Airtel (up 4.55%), Cipla (up 2.88%) and Tata Power Company (up 1.8%) gained.
Zee Entertainment Enterprises edged higher after the company's board approved a scheme of arrangement between the company and Diligent Media Corporation (DMCL) for the demerger of the media business undertaking from DMCL and vesting into the company. The stock was up 3.34% at Rs 291.15. The stock hit 52-week high of Rs 291.90 in intraday trade. The media business undertaking of DMCL comprises the media and entertainment business of DMCL which incldues event management activities, TV channel license and TV reality show formats for game based shows.
Zee will issue 2.23 crore redeemable, non-convertible preference shares of Rs 1 each to the shareholders of DMCL, with the exchange ratio being one preference share of Rs 1 each for every 4 equity shares of Rs 10 each held in DMCL. The preference shares will have tenure of three years and carry a coupon of 6% per annum.
IT stocks were mixed. Infosys rose 0.31% to Rs 3460.50 after hitting 52-week high of Rs 3483.20 in intraday trade.
Wipro dropped 0.23% to Rs 523.20, with the stock reversing gains after hitting 52-week high of Rs 530 in early trade.
HCL Technologies fell 0.19% to Rs 1184.90, with the stock reversing direction after hitting record high of Rs 1,197 in intraday trade.
TCS rose 1.72% to Rs 2052, with the stock extending Monday's gains. TCS on Monday, 16 December 2013, said that it has fully integrated the ICT infrastructure of Royal Haskoning and DHV in a record time of six months. Royal Haskoning and DHV merged in 2012 under the new name Royal HaskoningDHV. Due to the swift and successful integration, TCS has been upgraded to 'strategic partner' for Royal HaskoningDHV, TCS said in a statement.
TCS also announced on Monday that day that CUA, Australia's largest customer-owned financial institution, has implemented TCS BaNCS to reengineer its core banking and online banking system. The new solution expands CUA's capability to deliver more flexible and innovative products and services to customers. TCS BaNCS will also enable CUA to improve internal processes and efficiencies as well as facilitate enhanced customer service.
Tech Mahindra declined 0.19%.
Realty stocks edged lower as the Reserve Bank of India (RBI) is widely expected to increase in main lending rate viz. the repo rate by 25 basis points to 8% from current 7.75% after a mid-quarter monetary policy review tomorrow, 18 December 2013, to rein in inflation after recent data showed that both consumer prices and wholesale prices accelerated last month. Purchases of both residential and commercial property are largely driven by finance. DLF (down 0.46%), HDIL (down 0.01%), Unitech (down 0.33%), Sobha Developers (down 1.88%) and Godrej Properties (down 1.15%) declined.
The Central Board of Direct Taxes (CBDT) has extended the time limit for payment of the December installment of Advance Tax by two days from 15 December 2013 to 17 December 2013. This was done in view of the fact that 15 December 2013 was a Sunday.
In the foreign exchange market, the rupee edged lower against the dollar as investors bet improving US economic data may usher in a reduction in monetary stimulus for the US economy from the US Federal Reserve. The partially convertible rupee was hovering at 61.91, compared with its close of 61.73/74 on Monday, 16 December 2013.
The Reserve Bank of India (RBI) is widely expected to increase in main lending rate viz. the repo rate by 25 basis points to 8% from current 7.75% after a mid-quarter monetary policy review tomorrow, 18 December 2013, to rein in inflation after recent data showed that both consumer prices and wholesale prices accelerated last month.
Asian stocks edged higher on Tuesday, 17 December 2013, after reports on Monday, 16 December 2013, showed manufacturing growth accelerated in Europe and the US. Key benchmark indices in Taiwan, Singapore, Japan, Indonesia and South Korea rose by 0.23% to 1.4%. Key benchmark indices in China and Hong Kong shed 0.17% to 0.45%.
The Bank of Japan (BoJ), which buys more than 7 trillion yen ($67.6 billion) of Japanese Government Bonds (JGBs) every month in its bid to stoke inflation, holds a two-day monetary policy meeting on 19 and 20 December 2013.
Trading in US index futures indicated a flat opening of US stocks later in the global day today, 17 December 2013. US stocks surged on Monday as a flurry of economic data indicated solid improvements in business activity across the country. The Empire State Manufacturing Index rebounded in December after a slump in November. Markit's US Purchasing Managers' Manufacturing index rose further into expansion at 54.4. Industrial production jumped 1.1% in November, its biggest one-month gain in a year, and surpassed its pre-recession peak, versus a 0.1% fall the month before.
The Federal Open Market Committee's (FOMC) two-day policy meeting on interest rates in the United States begins today, 17 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
Euro-area manufacturing reached a 31-month high in December, led by Germany, a survey from London-based Markit Economics showed on Monday, 16 December 2013.
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