A bout of volatility was witnessed during the last one hour or so of trade as key benchmark indices trimmed gains after striking fresh intraday high. The barometer index, the S&P BSE Sensex, was provisionally up 33.84 points or 0.16%, off 59.33 points from the day's high and up 38.90 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Shares of state-run coal miner Coal India jumped after the company said that a meeting of the board of directors of the company will be held on 14 January 2014, to consider payment of interim dividend for the year ending 31 March 2014. PSU bank stocks were in demand in anticipation of hefty dividend announcement.
Index heavyweight and cigarette major ITC edged lower in volatile trade. Index heavyweight Reliance Industries edged higher in volatile trade. Siemens rose on bargain hunting. Gillette India slumped after the company clarified that it has no plans for an open offer or delisting.
Pharma stocks rose on renewed buying. Cadila Healthcare jumped after a foreign brokerage upgraded the stock to "buy" from "underperform" and raised its target price. But, Ranbaxy Laboratories reversed initial gains triggered by the company's announcement that its wholly owned subsidiary Ranbaxy Pharmaceuticals Canada Inc. (RPCI) has received approval from Health Canada to manufacture and market RAN-Donepezil Hydrochloride 5 mg and 10 mg tablets.
Key benchmark indices edged higher amid initial volatility on firm Asian stocks. The Sensex retained positive zone in morning trade. Key benchmark indices extended intraday gains in mid-morning trade. Key benchmark indices trimmed gains after striking fresh intraday high in early afternoon trade. The Sensex further trimmed gains in afternoon trade. Key benchmark indices recovered from lower level after erasing almost entire intraday gains in afternoon trade. A bout of volatility was witnessed during the last one hour or so of trade as key benchmark indices trimmed gains after striking fresh intraday high.
As per provisional closing, the S&P BSE Sensex was up 33.84 points or 0.16% to 20,727.08. The index jumped 93.17 points at the day's high of 20,786.41 in late trade. The index fell 5.06 points at the day's low of 20,688.18 in early trade.
The CNX Nifty was up 10.50 points or 0.17% to 6,172.75. The index hit a high of 6,192.10 in intraday trade. The index hit a low of 6,160.35 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,512 shares gained and 1,059 shares fell. A total of 160 shares were unchanged.
The total turnover on BSE amounted to Rs 2334 crore, lower than Rs 2354 crore on Tuesday, 7 January 2014.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC shed 0.24% to Rs 316. The stock hit a high of Rs 317.80 and low of Rs 313.90.
Index heavyweight Reliance Industries rose 0.68% to Rs 847.90. The stock hit a high of Rs 856.50 and low of Rs 844.60.
Shares of state-run coal miner Coal India jumped 4.72% to Rs 288.60 after the company said that a meeting of the board of directors of the company will be held on 14 January, 2014, inter alia, to consider payment of interim dividend, if any, for the year ending 31 March 2014. The announcement sent the stock surging as the market has been abuzz with rumours that the government may force cash rich state-run firms to declare hefty interim dividend to enable the government to meet the fiscal deficit target for the current year.
Coal India has fixed 20 January 2014 as the record date for the purpose of payment of interim divided.
PSU bank stocks were in demand. Canara Bank (up 1.84%), Punjab National Bank (up 1.63%), Bank of Baroda (up 2.15%), Bank of India (up 4.93%) gained. State Bank of India (SBI) shed 0.44%.
Syndicate Bank jumped 7.98%. Syndicate Bank's board will meet on 9 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.
Allahabad Bank jumped 7.44%. Allahabad Bank's board will meet on 11 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.
Union Bank of India gained 4.28%. Union Bank of India's board will meet today, 8 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.
IDBI Bank gained 4.05%. IDBI Bank's board will meet on 13 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.
Indian Bank shed 0.27%. Indian Bank's board will meet on 10 January 2014, to consider payment of interim dividend for the year ending 31 March 2014.
Pharma stocks were in demand on renewed buying. Cipla (up 3.43%), Dr Reddy's Laboratories (up 1.62%), Lupin (up 0.62%), Sun Pharmaceutical Industries (up 1.05%) and Wockhardt (up 3.83%) gained.
Cadila Healthcare jumped 5.61% to Rs 851.40 after a foreign brokerage upgraded the stock to "buy" from "underperform" and raised its target price to Rs 1,000 per share from Rs 705 per share, saying the worst is behind and earnings will accelerate from fiscal 2015. The brokerage expects Cadila to get 20 or more drug approvals from the US Food and Drug Administration (USFDA), and expects Cadila's domestic sales to recover in fiscal 2015.
Ranbaxy Laboratories fell 1.64% to Rs 473.05 in volatile trade. The stock hit a high of Rs 485.50 and low of Rs 473. Ranbaxy Pharmaceuticals Canada Inc. (RPCI), a wholly owned subsidiary of Ranbaxy Laboratories (RLL), today, 8 January 2014, announced that RPCI received approval from Health Canada on 24 December 2013 to manufacture and market RAN-Donepezil Hydrochloride 5 mg and 10 mg tablets. The total market size of Aricept (Donepezil Hydrochloride) in Canada is $153.9 million ($ CAD) [IMS-CDH: November 2013] and growing at 38% (extended units). Donepezil Hydrochloride is indicated in the treatment of dementia in Alzheimer's patients.
Ranbaxy Pharmaceuticals Canada Inc. (RPCI) based in Mississauga, Ontario, Canada, is a wholly owned subsidiary of Ranbaxy Laboratories (RLL). RPCI is engaged in the sale and distribution of generic prescription products in the Canadian healthcare system.
Gillette India slumped 5.42% to Rs 2,086 after the company clarified that it has no plans for an open offer or delisting. The company issued the clarification during trading hours today, 8 January 2014.
A media report suggested that investors have been speculating about a possible open offer and delisting of Gillette India. The firm's shares have risen sharply in the past few days on high volumes on buzz that such an offer is imminent.
Shares of Gillette India rose 9.04% in the preceding three trading sessions to Rs 2,205.45 on Tuesday, 7 January 2014, from a recent low of Rs 2,022.65 on 2 January 2014.
However, Gillette India clarified to the bourses that it has no plans for an open offer or delisting. "In fact, the company has recently successfully completed a sell-down of shares to deliver compliance with SEBI's minimum public shareholding requirement," Gillette India said in a statement.
As on 30 December 2013, promoters held 75% in Gillette India.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.135, compared with its close of 62.30/31 on Tuesday, 7 January 2014.
The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Q3 earnings season begins later this week when IT major Infosys and private sector bank IndusInd Bank unveil their earnings on Friday, 10 January 2014.
Prime Minister Dr. Manmohan Singh today, 8 January 2014, said India's economic growth in the current fiscal year will likely remain flat at 5%. A number of international as well as domestic factors have contributed to slow down in India's economic growth in the recent past, Dr. Singh said. He said that India's economic fundamentals remain strong. "Our savings and investment rates are still over 30% of our GDP and the entrepreneurial spirit in India is very much alive and kicking," Dr. Singh said at the Pravasi Bharatiya Diwas, 2014, in New Delhi.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
European stocks edged lower in choppy trade Wednesday, 8 January 2014, before a report on hiring by US companies that may help investors assess the pace of Federal Reserve stimulus. Key benchmark indices in UK, France and Germany were off 0.11% to 0.33%.
The European Central Bank holds a monetary policy meeting tomorrow, 9 January 2014. UK's central bank -- Bank of England -- also undertakes monthly monetary policy review tomorrow, 9 January 2014.
Asian stocks edged higher on Wednesday, 8 January 2014, as the International Monetary Fund said it will raise its global economic growth forecast and as the US trade deficit narrowed. Key benchmark indices in Indonesia, Taiwan, Hong Kong, Singapore and Japan rose by 0.51% to 1.94%. Key benchmark indices in China and South Korea fell by 0.02% to 0.15%.
China is due to publish December trade data today, 8 January 2014. China will release December inflation figures tomorrow, 9 January 2014.
Trading in US index futures indicated that the Dow could drop 3 points at the opening bell on Wednesday, 8 January 2014. US stocks rallied on Tuesday, 7 January 2014, helped by data showing a smaller-than-expected trade gap and gains by health-care stocks following an upgrade for UnitedHealth Group Inc. The US trade deficit fell almost 13% to $34.3 billion in November from a revised $39.4 billion in the prior month, the Commerce Department said Tuesday.
Boston Fed President Eric Rosengren on Tuesday said the central bank should only wind down its bond-buying program gradually. San Francisco Fed President John Williams said the Fed likely will end its bond buys this year, adding that he sees "newfound momentum" in the economy.
The US Federal Reserve will release minutes of its December Federal Open Market Committee policy meeting later in the global day today, 8 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually this year.
The ADP Research Institute reports the change in US company payrolls later in the global day today, 8 January 2014.
The US government will unveil the influential non-farm payroll report for December 2013 on Friday, 10 January 2014.
The IMF expects to upgrade its outlook for global economic growth, IMF Managing Director Christine Lagarde told reporters in Kenyan capital of Nairobi on Tuesday, 7 January 2014. The organization plans to announce its new forecast in about three weeks, she said. The IMF currently estimates the global economy will expand by 3.6% this year.
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