Sensex trims gains

Key benchmark indices trimmed intraday gains in mid-afternoon trade as European stocks edged lower in early trade there. The market breadth, indicating the overall health of the market, was positive. The barometer index, the S&P BSE Sensex, was up 65.13 points or 0.31%, off about 85 points from the day's high and up almost equal points from the day's low and.

Metal stocks edged higher as manufacturing in China continued to grow last month. Realty stocks also edged higher.

The market edged higher in early trade as data released by the government after trading hours on Friday, 29 November 2013, showed a recovery in India's GDP growth in Q2 September 2013, from the lowest expansion in four years in Q1 June 2013. A bout of volatility was witnessed as key benchmark indices recovered after trimming initial gains in morning trade. Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade after the outcome of a business survey showed that India's manufacturing activity returned to growth as a strong rise in orders pushed factories to step up production in the month just gone by. The Sensex, and the 50-unit CNX Nifty, both, hit 3-1/2-week high. Key benchmark indices trimmed gains in mid-afternoon trade as European stocks edged lower in early trade there.

Foreign institutional investors (FIIs) bought shares worth a net Rs 745.16 crore on Friday, 29 November 2013, as per provisional data from the stock exchanges.

At 14:20 IST, the S&P BSE Sensex was up 65.13 points or 0.31% to 20,857.06. The index jumped 149.07 points at the day's high of 20,941 in mid-morning trade, its highest level since 7 November 2013. The index lost 21.42 points at the day's low of 20,770.51 in early trade.

The CNX Nifty was up 32.40 points or 0.52% to 6,208.50. The index hit a high of 6,228.70 in intraday trade, its highest level since 7 November 2013. The index hit a low of 6,171.15 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,384 shares rose and 960 shares dropped. A total of 151 shares were unchanged.

Among the 30-share Sensex pack, 19 stocks rose and rest fell. Sun Pharmaceutical Industries (up 3.29%), L&T (up 1.87%) and Bharti Airtel (up 1.27%), edged higher from the Sensex.

Metal stocks edged higher as manufacturing in China continued to grow last month. China is the world's largest consumer of copper and aluminum. Bhushan Steel (up 0.28%), Sesa Sterlite (up 0.85%), Jindal Steel & Power (up 4.48%), Tata Steel (up 1.06%), Sail (up 0.66%), JSW Steel (up 1.7%), Hindustan Copper (up 1.67%) and National Aluminum Company (up 2.41%) gained.

Realty stocks also edged higher. DLF (up 0.69%), HDIL (up 2.58%), D B Realty (up 1.33%), and Sobha Developers (up 2.02%) gained. Unitech shed 0.6%.

In the foreign exchange market, the rupee edged higher against the dollar as data released by the government after trading hours on Friday, 29 November 2013, showed a recovery in India's GDP growth in Q2 September 2013 from the lowest expansion in four years in Q1 June 2013. The partially convertible rupee was hovering at 62.07, compared with its close of 62.44/45 on Friday, 29 November 2013. The rupee hit a high of 61.965 intraday trade so far, its highest level since 19 November 2013. A broad decline in dollar also aided gains in Indian currency.

Indian manufacturing returned to growth last month as a strong rise in orders pushed factories to step up production, a business survey showed on Monday, suggesting a slow economic recovery is on its way. The HSBC Manufacturing PMI, compiled by Markit, rose to 51.3 in November from October's 49.6. The PMI index is the highest since March and marks its first time above the watershed level of 50 that divides growth from contraction in four months. The new orders sub-index rose to 51.9 last month, its highest since April. In October it shrank to 48.9.

India's Gross Domestic Product (GDP) increased at improved pace of 4.8% in Q2 September 2013, compared with 4.4% growth recorded in Q1 June 2013. The economic activities which registered significant growth in Q2 September 2013 over Q2 September 2012 were 'agriculture, forestry and fishing' at 4.6%, 'electricity, gas and water supply' at 7.7% 'construction' at 4.3%, 'financing, insurance, real estate and business services' at 10% and 'community, social and personal services' at 4.2%.

The fiscal deficit touched Rs 4.58 lakh crore during April-October 2013, or 84.4% of the full-year target, data released by the government after trading hours on Friday, 29 November 2013, showed. In the annual budget presented in February, Finance Minister P. Chidambaram had committed to narrow the fiscal deficit to 4.8% of gross domestic product (GDP) this fiscal year from 4.9% a year ago.

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

European stocks dropped on Monday, 2 December 2013, as investors awaited the final purchasing managers' indexes from the major euro-zone economies and digested data from China. Key benchmark indices in France, Germany and UK were off 0.1% to 0.47%.

Asian stocks edged higher on Monday, 2 December 2013, as manufacturing in China continued to grow last month. Key benchmark indices in Singapore, Indonesia, Hong Kong and Taiwan were up 0.09% to 1.62%. Key benchmark indices in South Korea and Japan were down 0.04% to 0.69%.

China's Shanghai Composite index fell 0.59% in choppy trade. China's securities regulator said 50 companies will be ready for initial public offerings by the end of January 2014 as authorities prepare to lift a more than one-year ban on new listings in the world's second-biggest economy. It will take about a year to review more than 760 companies that are seeking first-time share sales, the China Securities Regulatory Commission said in a statement on its website on Nov. 30. The regulator also issued regulations on reverse mergers and said it may begin a trial program for letting companies sell preferred stock.

New rules that pave the way for a switch to a registration-based system for IPOs and letting investor demand determine pricing underscore the Communist Party's pledge to allow markets to play a decisive role in allocating resources. China, the world's largest IPO market in 2010, hasn't had a new listing since October 2012 as the CSRC cracked down on fraud and misconduct among advisers and companies.

Chinese manufacturing growth beat analyst estimates in November, indicating the nation's economic recovery is sustaining momentum amid government efforts to rein in credit growth. The Purchasing Managers' Index was 51.4, the National Bureau of Statistics and China Federation of Logistics and Purchasing said on Sunday. A separate gauge from HSBC Holdings Plc and Markit Economics today also indicated a reading above the 50 level dividing expansion from contraction. The HSBC China Manufacturing Purchasing Managers' Index had a final reading of 50.8 in November, compared with 50.9 in October.

Trading in US index futures indicated that the Dow could advance 14 points at the opening bell on Monday, 2 December 2013. US stocks ended mostly lower on Friday as the Dow Jones Industrial Average and the S&P 500 index dipped in thin holiday trading, but technology stocks helped lift the Nasdaq Industrial Composite index to a 13-year high.

The US holiday shopping season started with estimated total spending over the Thanksgiving weekend falling to $57.4 billion, down 2.7% from a year ago, according to the National Retail Federation. The federation said it still expects total holiday sales through the year-end to rise 3.9% from a year ago.

Investors are keeping a close watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth. The US government will release the influential US non-farm payrolls data for November 2013 on Friday, 6 December 2013. The Fed has said improvement in the labor market is a key factor in its policy assessment.

The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 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