Market trims initial gains; breadth strong

Key benchmark indices trimmed initial gains and hit fresh intraday low in morning trade. The barometer index, the S&P BSE Sensex, was up 69.16 points or 0.34%, up 29.12 points from the day's low and off 74.12 points from the day's high. The market breadth, indicating the overall health of the market, was strong. In the foreign exchange market, the rupee weakened past 63 against the dollar.

Pharma major Sun Pharmaceutical Industries extended initial fall. Tata Motors reversed early gain. Realty shares gained after a report from the National Housing Bank showed that home prices rose in nearly half of 26 cities in the three months to September, indicating investor confidence in the sector despite weak economic growth.

A bout of initial volatility was witnessed as key benchmark indices edged higher on firm Asian stocks. The 50-unit CNX Nifty regained the psychological 6,000 mark. Key benchmark indices trimmed initial gains and hit fresh intraday low in morning trade

Foreign institutional investors (FIIs) sold shares worth a net Rs 59.80 crore on Thursday, 21 November 2013, as per provisional data from the stock exchanges.

At 10:18 IST, the S&P BSE Sensex was up 69.16 points or 0.34% to 20,298.21. The index jumped 143.28 points at the day's high of 20,372.33 in early trade. The index rose 40.04 points at the day's low of 20,269.09 in morning trade.

The CNX Nifty was up 22.80 points or 0.38% to 6,021.85. The index hit a high of 6,040.90 in intraday trade. The index hit a low of 6,013.35 in intraday trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,127 shares gained and 582 shares fell. A total of 99 shares were unchanged.

The total turnover on BSE amounted to Rs 376 crore by 10:20 IST, compared to Rs 111 crore by 09:25 IST.

Among the 30-share Sensex pack, 23 stocks gained and rest of them declined.

Bharti Airtel (up 1.76%), HDFC (up 1.04%) and L&T (up 0.91%) edged higher from the Sensex pack.

Pharma major Sun Pharmaceutical Industries lost 2.14% to Rs 569.60, with the stock extending initial fall. The stock hit a high of Rs 583 and low of Rs 569.10 so far during the day.

Tata Motors fell 1.61% to Rs 376.50, with the stock reversing initial gain. The stock hit a high of Rs 385.95 and low of Rs 376.30 so far during the day.

Realty shares gained after a report from the National Housing Bank showed that home prices rose in nearly half of 26 cities in the three months to September, indicating investor confidence in the sector despite weak economic growth. The figure compares with price rises in only four cities in the previous quarter from April to June. DLF (up 0.96%), Indiabulls Real Estate (up 0.19%), D B Realty (up 0.33%), HDIL (up 1.4%), Unitech (up 1.47%), Godrej Properties (up 1.22%), and Parsvnath Developers (up 0.59%) gained.

Home prices in 12 cities including Mumbai, Kolkata, Chennai, Hyderabad, Ahmedabad, Chandigarh and Patna rose between 0.5% and 5.3% in the July-September quarter over the previous three months, the report said. Prices declined in 10 cities on a quarterly basis, including by 4.53% in the capital New Delhi, while they remained steady in Pune, Kochi, Coimbatore and Dehradun.

In the foreign exchange market, the rupee weakened past 63 against the dollar. The partially convertible rupee was hovering at 63.035, compared with its close of 62.93/94 on Thursday, 21 November 2013. The rupee dropped after foreign institutional investors (FIIs) sold a net Rs 59.80-crore in shares on Thursday, 21 November 2013, to snap a 32-day buying streak.

Government bond yields rose as traders shed positions ahead of the Rs 15000-crore bond auction later in the session, which includes the sale of a new 10-year benchmark bond. The yield on most traded federal paper, 8.28% GS 2027, was hovering at 9.1002%, higher than its close of 9.0681% on Thursday 21 November 2013. The yield on 10-year benchmark federal paper, 7.16% GS 2023, was hovering at 9.1081%, higher than its close of 9.0773% on Thursday 21 November 2013. Bond yield and bond prices are inversely related.

Asian stocks edged higher on Friday, 22 November 2013, as positive political and economic news from the US supported sentiment. Key benchmark indices in Taiwan, Hong Kong, Japan, Indonesia and South Korea rose by 0.34% to 0.61%. Key benchmark indices in China and Singapore fell 0.2% to 0.22%.

Bank of Japan (BOJ) Governor Haruhiko Kuroda said in parliament today, 22 november 2013, that the yen isn't excessively weak.Inflation will hit the BOJ's 2% target in the latter half of the central bank's two-year time frame and policy makers will adjust its bond-buying program as needed, he said. The central bank yesterday maintained its unprecedented monetary policy.

Trading in US index futures indicated a flat opening of US stocks on Friday, 22 November 2013. The Dow Jones Industrial Average achieved its first-ever close above 16,000 on Thursday, 21 November 2013, as US stocks rallied boosted by better-than-expected data on weekly jobless claims and as investors reconsidered their concerns about the Federal Reserve's potential reduction in its bond-buying program.

The Labor Department said weekly jobless claims fell by 21,000 to 323,000. In addition, wholesale prices dropped 0.2% last month. On the downside, the Philadelphia Fed's index of manufacturing conditions dropped to 6.5 in November.

The US Senate Banking Committee on Thursday, 21 November 2013, voted 14-8 to approve Janet Yellen as the next chairman of the Fed, sending the nomination to the full Senate for approval.

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