RIL inches up ahead of Q2 results

A bout of initial volatility was witnessed as key benchmark indices alternately swung between gains and losses. The S&P BSE Sensex was up 11.10 points or 0.05%, off close to 25 points from the day's high and up about 40 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Shares of two-wheeler makers declined. Index heavyweight Reliance Industries and IndusInd Bank, both, rose ahead of their Q2 results today, 14 October 2013. IT major TCS gained ahead of its Q2 result tomorrow, 15 October 2013.

Foreign institutional investors (FIIs) bought shares worth a net Rs 1010.45 crore on Friday, 11 October 2013, as per provisional data from the stock exchanges.

In the foreign exchange market, the rupee edged lower against the dollar tracking weakness in regional shares and currencies. The partially convertible rupee was hovering at 61.265, weaker than its close of 61.07/08 on Friday, 11 October 2013.

At 9:30 IST, the S&P BSE Sensex was up 11.10 points or 0.05% to 20,539.69. The index rose 38.17 points at the day's high of 20,566.76 in early trade. The index fell 30.71 points at the day's low of 20,497.88 in early trade.

The CNX Nifty was up 4.35 points or 0.07% to 6,100.55. The index hit a high of 6,103.65 in intraday trade. The index hit a low of 6,082.90 in intraday trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 658 shares gained and 339 shares fell. A total of 39 shares were unchanged.

Among the 30-share Sensex pack, 16 stocks declined and rest of them rose. Tata Motors (up 1.79%), Wipro (up 1.17%) and M&M (up 1.01%), edged higher.

IT major TCS gained 1.1% ahead of its Q2 result tomorrow, 15 October 2013.

Index heavyweight Reliance Industries rose 0.28% ahead of its Q2 results today, 14 October 2013.

IndusInd Bank gained 1.72% ahead of its Q2 results today, 14 October 2013.

Shares of two-wheeler makers declined. Bajaj Auto (down 0.35%) and Hero MotoCorp (down 0.72%), declined.

Bosch was flat at Rs 8,700. The company after trading hours on Friday, 11 October 2013, said that the management has decided to suspend production for a few days at the company's manufacturing units at Jaipur and Bangalore so as to avoid unnecessary buildup of inventory. Production at the Jaipur plant was suspended on 12 October 2013 and will be suspended again on 19 October 2013 and again from 28th October till 2nd November 2013. Production at Bangalore plant will be suspended on 15th and 31st of October 2013.

On the macro front, industrial production growth slowed to 0.6% in August 2013 from an upwardly revised 2.8% pace in July, hurt by weak investment and consumer demand, government data showed on Friday, 11 October 2013. The entire growth in industrial production in August 2013 was mainly driven by 7.2% surge in electricity generation. The mining output continued to witness decline in output, while the manufacturing sector output also recorded fall in August 2013.

Data on inflation based on the wholesale price index (WPI) and the consumer price index (CPI), both, for September 2013, are due today, 14 October 2013. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India is seen easing a bit 9.4% in September 2013 from 9.52% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The CPI had decelerated to 9.52% in August 2013 from 9.64% in July 2013. Inflation for the category 'food and beverages' stood at 11.06% in August 2013.

The annual rate of inflation, based on the monthly wholesale price index (WPI) is seen easing slightly to 6% in September 2013 from 6.1% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The WPI had accelerated to 6.1% in August 2013 from 5.79% in July 2013.

Asian stocks fell on Monday as American lawmakers struggled over an accord to raise the nation's debt limit and restore government operations. Key benchmark indices in Singapore, South Korea, and Taiwan fell 0.03% to 0.7%. China's Shanghai Composite rose 0.46%. Stock markets in Japan, Indonesia and Hong Kong were shut for holidays.

China's exports unexpectedly fell in September and inflation jumped on food prices, signaling constraints on the nation's recovery as Premier Li Keqiang seeks to sustain growth without adding monetary stimulus. Overseas shipments dropped 0.3% from a year earlier, customs data showed on 12 October, while imports rose a more-than-forecast 7.4%. Consumer prices rose 3.1% as food costs advanced the most since May 2012, statistics bureau figures showed in Beijing.

US stocks rose on Friday, 11 October 2013, amid hopes talks between the White House and Congress will lead to a spending package needed to fund the government and put to rest concerns the country will hit its debt ceiling and risk default.

Media reports on Monday, 14 October 2013, said that Senate leaders remained deadlocked over a deal to raise the nation's debt limit due to a clash over previously passed budget cuts known as the sequester. Reports said that Democratic Senate leaders are demanding that a debt-limit deal not lock in further sequester cuts due to take effect next year. Much of the US government also remained shut down for the 13th day, with a bill to restore funding for operations seen as likely to feature in any deal.

The Treasury Department's Oct. 17 deadline for raising the debt ceiling is rapidly approaching. Failure to raise the debt limit could be catastrophic for the US economy. Without an increase to the debt limit, the US will exhaust its borrowing authority on Thursday, 17 October 2013, and would run out of funds to pay all of its bills sometime between October 22 and October 31, according to the Congressional Budget Office.

The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength as policy makers mull the timing of reductions in bond buying. Government data from payrolls to retail sales will be delayed as long as the shutdown continues. 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.

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