Market turns volatile after headline inflation data

A bout of volatility was witnessed as key benchmark indices trimmed intraday losses after the latest data showed acceleration in headline inflation November 2013. The barometer index, the S&P BSE Sensex, was down 18.49 points or 0.09%, up 30.07 points from the day's low and off 67.43 points from the day's high. The market breadth, indicating the overall health of the market, was negative. In the foreign exchange market, the rupee edged higher against the dollar.

Index heavyweight and cigarette major ITC edged lower. Index heavyweight Reliance Industries extended intraday fall. Bank stocks declined after the latest data showed acceleration in headline inflation November 2013.

The barometer index, the BSE Sensex, hit its lowest level in more than two weeks and the 50-unit CNX Nifty hit 1-1/2-week low at the onset of the trading session. Key benchmark indices alternately swung between positive and negative zone near the flat line in mid-morning trade as investors awaited data on inflation based on the wholesale price index for November 2013. A bout of volatility was witnessed as key benchmark indices trimmed intraday losses after the latest data showed acceleration in headline inflation November 2013.

Foreign institutional investors (FIIs) sold shares worth a net Rs 432.02 crore on Friday, 13 December 2013, as per provisional data from the stock exchanges.

At 12:18 IST, the S&P BSE Sensex was down 18.49 points or 0.09% to 20,697.09. The index rose 48.94 points at the day's high of 20,764.52 in morning trade. The index fell 48.56 points at the day's low of 20,667.02 in early trade, its lowest level since 29 November 2013.

The CNX Nifty was down 10.50 points or 0.17% to 6,157.90. The index hit a high of 6,183.25 in intraday trade. The index hit a low of 6,151 in intraday trade, its lowest level since 4 December 2013.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,202 shares dropped and 895 shares rose. A total of 157 shares were unchanged.

The total turnover on BSE amounted to Rs 663 crore by 12:20 IST compared to Rs 494 crore by 11:20 IST.

Among the 30-share Sensex pack, 21 stocks declined and rest of them gained.

Index heavyweight and cigarette major ITC was off 1.03% at Rs 311.80. The scrip hit high of Rs 315.40 and low of Rs 311.40 so far during the day.

Index heavyweight Reliance Industries was off 1.12% to Rs 853.65, with the stock extending intraday fall. The scrip hit high of Rs 861.50 and low of Rs 852.05 so far during the day.

Bank stocks declined after the latest data showed acceleration in headline inflation November 2013. HDFC Bank (down 0.35%), Yes Bank (down 1.68%), Kotak Mahindra Bank (down 1.18%), State Bank of India (SBI) (down 0.34%), Canara Bank (down 0.95%), Union Bank of India (down 1.05%), Bank of India (down 0.1%), Bank of Baroda (down 0.55%) and Punjab National Bank (down 0.55%) declined

ICICI Bank was up 1.09% at Rs 1,097.30. The stock was volatile. The scrip hit high of Rs 1,102.95 and low of Rs 1,086 so far during the day.

SpiceJet surged 7.96% after the company said it has signed a three-year interline agreement with Tigerair, Singapore's largest budget airline. The announcement was made during trading hours today, 16 December 2013.

SpiceJet and Tigerair have signed a three-year interline agreement to pave the way for greater connectivity between flights operated by both carriers, the budget carriers said in a joint statement. SpiceJet is the first Indian low fare airline to establish such an arrangement with a foreign airline. This partnership will result in a major boost for tourism and business travel between the two countries, SpiceJet and Tigerair said.

Starting from 6 January 2014, customers travelling on SpiceJet's domestic network from 14 Indian cities can enjoy seamless connection through Hyderabad's Rajiv Gandhi International Airport onto Tigerair's Singapore-bound flights. The 14 Indian cities are Ahmedabad, Bhopal, Chennai, Kolkata, Coimbatore, Delhi, Goa, Indore, Mangalore, Madurai, Pune, Bengaluru, Tirupati, and Visakhapatnam (Vizag).

Starting from 12 January 2014, Tigerair customers from Singapore will also enjoy easy access to SpiceJet's wide domestic network, making their holiday and business travel more seamless.

Sanjiv Kapoor, Chief Operating Officer of SpiceJet said: "We are glad to announce the interline partnership that brings two leading low fare Asian carriers together. This is a historic moment for SpiceJet and Tigerair. This partnership will hugely benefit travelers from India and Singapore, and represents one of the building blocks of the emerging new SpiceJet".

Group Chief Commercial Officer of Tigerair Mr Alexander Knigge said: "India is one of our key markets and we are excited to expand our footprint there through this interline partnership with SpiceJet. We look forward to build a win-win partnership and delivering even more travel options to our customers".

Tigerair, established in 2004, is a leading Singapore-based no-frills airline that offers affordable travel options and a seamless customer experience. Tigerair comprises four airlines, namely Tigerair Singapore, Tigerair Mandala, Tigerair Philippines and Tigerair Australia. Collectively, the Group's network extends to over 50 destinations across 13 countries in the Asia Pacific. Tigerair operates a fleet of 50 Airbus A320-family aircraft, averaging less than three years of age.

Aurobindo Pharma jumped 6.39% to Rs 329.65, after hitting a record high of Rs 331.40 in intraday trade. The stock extended Friday's 3.99% gains triggered by the company receiving the final approval from USFDA to manufacture and market a generic medicine in the United States.

Aurobindo Pharma during trading hours on Friday, 13 December 2013 said it has received the final approval from the US Food & Drug Administration (USFDA) to manufacture and market Duloxetine Hydrochloride Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base) which was earlier tentatively approved.

Duloxetine Hydrochloride Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base) are the generic equivalent of Eli Lilly & Company's Cymbalta Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base). Duloxetine Hydrochloride Delayed-Release Capsules are indicated for the treatment of for the treatment of major depressive disorder (MDD) and falls under the Neurological (CNS) therapeutic category. According to IMS data, the market size of the product is estimated to be $5.4 billion for the twelve months ended September 2013.

Aurobindo now has a total of 188 abbreviated new drug application (ANDA) approvals (163 final approvals including 7 from Aurolife Pharma LLC and 25 tentative approvals) from USFDA.

Adani Enterprises rose 2.54% to Rs 254.55 on bargain hunting after the stock fell 10.88% in the preceding four trading sessions to Rs 248.25 on 13 December 2013, from a recent high of Rs 278.55 on 9 December 2013.

Inflation based on the wholesale price index (WPI) accelerated to 7.52% in November 2013, from 7% in October 2013, data released by the government today, 16 Deceber 2013, showed. WPI for September 2013 was revised upwards to 7.05% from 6.46% reported earlier. Build up inflation rate in the financial year so far was 6.7% compared to a build up rate of 4.84% in the corresponding period of the previous year.

Data released by the government last week showed that inflation based on the consumer price index (CPI) stood at a record 11.24% last month.

The Reserve Bank of India (RBI) announces Mid-Quarter Review of Monetary Policy for 2013-14 on Wednesday, 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.

In the foreign exchange market, the rupee reversed initial losses against the dollar. The partially convertible rupee was hovering at 62.05, compared with its close of 62.125/135 on Friday, 13 December 2013.

The Central Board of Direct Taxes (CBDT) on Friday, 13 December 2013, 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.

Asian stocks edged lower on Monday, 16 December 2013, after a gauge of Chinese manufacturing fell and as investors awaited a Federal Reserve meeting this week to gauge the timing of stimulus cuts. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, South Korea, Japan and Indonesia fell by 0.09% to 1.62%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.

The HSBC Holdings Plc/Markit Economics preliminary manufacturing purchasing managers' index for China fell to 50.5 in December from 50.8 in November. Readings above 50 signal expansion.

Japan's quarterly Tankan index for large manufacturers rose to the highest since 2007, climbing to 16 from 12 in September, according to the Bank of Japan. Positive figures indicate optimists outnumber pessimists.

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 that the Dow could fall 50 points at the opening bell on Monday, 16 December 2013. US stocks made a mild rebound Friday but ended the week lower, as investors looked toward a Federal Reserve meeting next week that could start the curtailment of the Fed's equities-boosting stimulus program.

The Federal Open Market Committee's (FOMC) two-day policy meeting on interest rates in the United States begins tomorrow, 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.

Powered by Capital Market - Live News