Market drifts higher in early trade

Key benchmark indices edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex, was up 126.82 points or 0.65%, off about 45 points from the day's high and up close to 60 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Asian shares turned higher on Thursday, 3 October 2013, shaking off a weak start following an encouraging reading on non-manufacturing activity in China.

Capital goods pivotals gained for the second day in a row. Bajaj Auto edged higher after the company reported better than expected September sales. Sun Pharmaceutical Industries rose after the company announced the formation of a joint venture with Intrexon Corporation to develop a new class of therapeutics for the treatment of ocular diseases.

In the foreign exchange market, the rupee strengthened past 62 against the dollar. The partially convertible rupee was hovering at 61.95, compared with its close of 62.46/47 on Tuesday, 1 October 2013. Indian financial markets were closed on Wednesday, 2 October 2013, on account of Mahatma Gandhi Jayanti.

At 9:30 IST, the S&P BSE Sensex was up 126.82 points or 0.65% to 19,643.97. The index jumped 171.68 points at the day's high of 19,688.83 in early trade, its highest level since 27 September 2013. The index gained 66.82 points at the day's low of 19,583.97 in early trade.

The CNX Nifty was up 43.95 points or 0.76% to 5,824. The index hit a high of 5,830.80 in intraday trade, its highest level since 27 September 2013. The index hit a low of 5,802.70 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 666 shares rose and 251 shares fell. A total of 40 shares were unchanged.

Among the 30-share Sensex pack, 25 stocks rose and only five fell. Sesa Sterlite (up 2.51%), TCS (up 1.76%) and Hero MotoCorp (up 1.41%), gained.

Capital goods pivotals gained for the second day in a row. Bhel (up 3.08%) and L&T (up 1.6%), rose.

Coal India rose 2.78%. The company said after market hours on Tuesday, 1 October 2013 that Coal India and its subsidiaries achieved 99% of targeted production at 33.16 million tonnes in September 2013. The company achieved 103% of targeted offtake at 35.79 million tonnes in September 2013.

Sun Pharmaceutical Industries rose 1.29% after the company, through its subsidiary, announced the formation of a joint venture with Intrexon Corporation after market hours on Tuesday, 1 October 2013, to develop controllable gene-based therapies for the treatment of ocular diseases that cause partial or total blindness in millions of people worldwide. Initial targets are dry age-related macular degeneration (AMD), glaucoma and retinitis pigmentosa. The joint venture will leverage Sun Pharma's global capabilities and experience in developing and manufacturing complex dosage forms and specialty pharmaceuticals for niche therapy areas. Intrexon and Sun Pharma will share in both the financing of, and the revenues from, the joint venture.

Through an Exclusive Channel Collaboration (ECC), the joint venture will have access to Intrexon's full suite of proprietary synthetic biology technologies, including the RheoSwitch Therapeutic System (RTS) platform. RTS is a clinically validated method for controlling the location, concentration and timing of protein expression. RTS may address a long-standing limitation of current approaches by enabling patients to receive a targeted biologic therapy without having to endure a lifetime of injections. In addition to the initial targets, the companies intend to further expand the future pipeline of targeted ocular diseases to potentially include wet AMD, macular edema, non-infectious uveitis and diabetic retinopathy.

Bajaj Auto edged higher after the company reported better than expected September sales. The stock was up 1.01%. The company said before market hours today, 3 October 2013, that its total sales rose 2% to 3.67 lakh vehicles in September 2013 over September 2012. Motorcycle sales rose 3% to 3.23 lakh units in September 2013 over September 2012. Commercial vehicles sales fell 2% to 43,936 units in September 2013 over September 2012. Exports rose 10% to 1.46 lakh units in September 2013 over September 2012.

Tata Motors was flat. The company said after market hours on Tuesday, 1 October 2013 that total sales (including exports) of Tata commercial and passenger vehicles in September 2013 were 50,427 vehicles. The company's domestic sales of Tata commercial and passenger vehicles for September 2013 were 45,998 units. The company's sales of commercial vehicles in September 2013 in the domestic market were 33,119 units, LCV sales were 24,304 units, while M&HCV sales stood at 8,815 units. Sales of passenger vehicles for September 2013 were at 12,879 units. Sales of the Nano/ Indica/ Indigo range in September 2013 were 9,766 units. The Sumo/ Safari/ Aria/ Venture range sales were 3,113 vehicles. The company's sales from exports were 4,429 units in September 2013.

Asian shares turned higher on Thursday, 3 October 2013, shaking off a weak start following an encouraging reading on non-manufacturing activity in China. Key benchmark indices in Japan, Hong Kong, Taiwan and Indonesia rose 0.11% to 1.5%. Singapore' Straits Times fell 0.1%. Markets in South Korea were closed for the National Foundation Day holiday. Markets in mainland China are closed till 7 October 2013 for National Day holidays.

China's official non-manufacturing Purchasing Managers' Index rose to a six-month high of 55.4 in September from 53.9 in August, adding to a growing roster of evidence that China's economy has turned a corner in recent months.

US stocks fell on Wednesday as investors watched for progress on ending an impasse over federal spending that shut down the government a second day. The US government has been in partial shutdown for two days after lawmakers failed to agree on a federal budget.

A meeting between President Barack Obama and congressional leaders ended Wednesday night with no deal to re-open the US government. House Speaker John Boehner told reporters that Obama repeated he wouldn't negotiate about passing a funding bill. With the Senate gaveled out for the day, the stalemate continued and meant the government shutdown would continue for a third day on Thursday.

A report showed companies added fewer workers than projected in September, indicating the job market is struggling to gain momentum. The 166,000 increase in employment followed a revised 159,000 rise in August that was smaller than initially estimated, according to the ADP Research Institute in Roseland, New Jersey.

Meanwhile, the US is creeping up against its debt limit. Treasury Secretary Jack Lew on Tuesday night reiterated that the government will lose the ability to borrow on Oct. 17.

The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. 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.

Moody's Investors Service lowered its outlook on Brazil's sovereign rating to stable from positive, citing deteriorating debt and investment ratios and evidence the economy is going through a low-growth period. "Even though there are signs that the Brazilian economy may be starting to recover, Moody's view is that, if and when the upturn materializes, it is unlikely that it will be strong enough to restore a positive trend in Brazil credit metrics," Moody's said in a statement dated 2 October 2013. Moody's affirmed Brazil's Baa2 government bond rating.

Powered by Capital Market - Live News