Intraday volatility continued as key benchmark indices recovered after trimming almost entire intraday gains in mid-morning trade as mostly higher Asian stocks supported domestic bourses. The barometer index, the BSE Sensex, was up 71 points or 0.37%, up close to 185 points from the day's low and off about 15 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Capital goods pivotals gained on renewed buying. State-run oil marketing companies (PSU OMCs) fell after announcing revision in fuel prices on Monday.
A bout of volatility was witnessed in early trade as key benchmark indices slipped into the red after a firm opening triggered by higher Asian stocks. Key benchmark indices regained positive terrain in morning trade. The barometer index, the BSE Sensex, and the 50-unit CNX Nifty, both, reversed direction after hitting their 3-1/2-week low. Intraday volatility continued as key benchmark indices recovered after trimming almost entire intraday gains in mid-morning trade.
At 11:20 IST, the S&P BSE Sensex was up 71 points or 0.37% to 19,450.77. The index rose 86.41 points at the day's high of 19,466.18 in early trade. The index declined 115.05 points at the day's low of 19,264.72 in morning trade, its lowest level since 6 September 2013.
The CNX Nifty was up 21.80 points or 0.38% to 5,757.10. The index hit a high of 5,762.40 in intraday trade. The index hit a low of 5,700.95 in intraday trade, its lowest level since 6 September 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,025 shares rose and 754 shares fell. A total of 104 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest of them fell. Tata Motors (up 1.56%), Maruti Suzuki India (up 3.1%) and HDFC Bank (up 1.3%), gained.
Capital goods pivotals gained on renewed buying. Bhel (up 4.26%) and L&T (up 0.43%), rose.
Shares of state-run oil marketing companies (PSU OMCs) fell after announcing revision in fuel prices on Monday, 30 September 2013. HPCL (down 0.89%), Indian Oil Corporation (IOCL) (down 2.19%) and BPCL (down 1.61%), edged lower. PSU OMCs reduced petrol price by a sharp Rs 3.05 per litre, the first reduction in rates in over five months and raised diesel prices by 50 paise a litre. The price change by oil companies are excluding local sales tax or VAT and are effective from Tuesday, 1 October 2013. Alongside, oil firms also raised rates of non-subsidised domestic cooking gas (LPG) that households buy after exhausting their quota of 9 subsidised or cheaper cylinder. Price in Delhi was hiked by Rs 71.50 per 14.2-kg cylinder to Rs 1,004.
State-run oil marketing companies (PSU OMCs) incur under-recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol. In January, 2013, the government also allowed oil marketing companies to raise diesel prices in small measures periodically.
Atul Auto surged 5.03% after the company said its total sales rose 23.43% to 3,366 units in September 2013 over September 2012. The company announced the sales numbers during trading hours today, 1 October 2013.
The stock market remains closed tomorrow, 2 October 2013, on account of Mahatma Gandhi Jayanti.
Factory activity in India shrank for a second month in September, albeit not as sharply as in August, on a dearth of new orders which pushed firms to cut staff, a survey showed on Tuesday. The HSBC Manufacturing PMI, compiled by Markit, rose to 49.6 in September from 48.5 in August, but remaining below the watershed 50 mark that separates growth from contraction. The new orders sub-index rose to 49.6 last month from 47.5 in August.
In the foreign exchange market, the rupee edged higher against the dollar, with the Indian currency finding support from data showing a lower-than-expected current account deficit in Q1 June 2013. The partially convertible rupee was hovering at 62.39, compared with its close of 62.60/61 on Monday, 30 September 2013.
India's current account deficit (CAD) widened to $21.8 billion or 4.9% of GDP in Q1 June 2013 from $16.9 billion or 4% of GDP in Q1 June 2012, data released by the Reserve Bank of India (RBI) after trading hours on Monday, 30 September 2013, showed. The CAD was $18.1 billion in Q4 March 2013. The RBI said that the year-on-year rise in CAD in Q1 June 2013 was due to a rise in imports and some decline in merchandise exports. Merchandise trade deficit (balance of payments basis) widened to $50.5 billion in Q1 June 2013 from $43.8 billion in Q1 June 2012. The trade deficit, coupled with a slow recovery in net invisibles (income and services), led to widening of CAD on year-on-year basis in Q1 June 2013, the RBI said. On balance of payments (BoP) basis, there was a slight drawdown in foreign exchange reserves of $0.3 billion in Q1 June 2013 as against an accretion of $0.5 billion in Q1 June 2012.
Bond prices rose after the Reserve Bank of India (RBI) on Monday, 30 September 2013, said will infuse Rs 10000 crore into the banking system through open-market operations next week to ease liquidity constraints. The yield on the federal benchmark paper 7.16% GS 2023 was hovering at 8.6899%, lower than its close of 8.7658% on Monday, 30 September 2013. Bond yield and bond prices are inversely related.
Based on the current assessment of prevailing and evolving market conditions, the RBI will purchase government securities for an aggregate amount of Rs 10000 crore on 7 October 2013, the RBI said in a press release on Monday, 30 September 2013.
The government's fiscal deficit for the April-August period has reached about three-fourths of its target for the year ending March, data released after trading hours on Monday, 30 September 2013, showed. By the end of August, the gap between the government's revenue and expenses has reached 74.6% of its target for the fiscal year, according to data released on Monday. Expenses during the first five months were about 40% of the aim for the year, while revenue was way short at 23% of the target. The government aims to limit the deficit within 4.8% of gross domestic product, compared with 4.9% last year.
The combined output of the eight core infrastructure sectors rose 3.7% in August 2013, supported by strong growth in coal and cement production and electricity generation, data released by the government after trading hours on Monday, 30 September 2013, showed. It was the highest growth in core sector output in seven months.
Asian stocks rose on Tuesday, 1 October 2013, as a report showed confidence among large Japanese manufacturers increased before Prime Minister Shinzo Abe unveils plans for an economic-support package. Key benchmark indices in Japan, South Korea, Taiwan, Indonesia, and Singapore rose 0.08% to 1.4%. China's local markets are shut from today, 1 September 2013 till 7 October 2013 for National Day holidays.
A Chinese factory gauge rose less than economists forecast in September, signaling limits on the nation's rebound from a two-quarter economic slowdown. The Purchasing Managers' Index was at 51.1, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That compares with 51 in August.
The Bank of Japan's quarterly Tankan index for big manufacturers rose to 12 in September, the highest since 2007, from 4 in June.
Trading in US index futures indicated that the Dow could gain 27 points at the opening bell on Tuesday, 1 October 2013. US stocks closed lower on Monday with just hours to go before a midnight deadline to avert a federal government shutdown.
The US government began a partial shutdown on Tuesday for the first time in 17 years after lawmakers could not break a political stalemate that sparked new questions about the ability of a deeply divided Congress to perform its most basic functions. Some US government offices and national parks will be shuttered, but spending for essential functions related to national security and public safety will continue, including pay for US military troops.
There are also fears that the conflict could spill over into the more crucial dispute over raising the federal government's borrowing authority. A failure to raise the $16.7 trillion debt ceiling would force the country to default on its obligations, dealing a potentially painful blow to the economy and sending shockwaves around global markets.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. 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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