A bout of volatility was witnessed as key benchmark indices regained positive terrain after reversing initial gains in morning trade. The barometer index, the S&P BSE Sensex, was up 23.26 points or 0.11%, up about 50 points from the day's low and off close to 30 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Firmness in Asian stocks supported domestic bourses.
Asian stocks edged higher on Tuesday, 24 December 2013, after data showed the US economic recovery gaining momentum. US economy is the world's biggest economy.
Capital goods stocks extended Monday's gains. Bajaj Auto rose after three block deals were executed in the counter on BSE in early trade. Index heavyweight and cigarette major ITC edged higher in volatile trade. Shares of biotechnology major, Biocon, scaled record high.
The Sensex edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices alternately swung between positive and negative zone in morning trade.
The market may remain volatile this week, which is a truncated trading week, as traders roll over positions in the futures & options (F&O) segment from the near month December 2013 series to January 2014 series. The near month December 2013 derivatives contract expire on Thursday, 26 December 2013. The stock market remains closed tomorrow, 25 December 2013, on account of Christmas.
Foreign institutional investors (FIIs) bought shares worth a net Rs 135.42 crore on Monday, 23 December 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 23.26 points or 0.11% to 21,124.39. The index rose 55.89 points at the day's high of 21,156.92 in early trade. The index fell 24.87 points at the day's low of 21,076.16 in morning trade.
The CNX Nifty was up 6 points or 0.1% to 6,291.90. The index hit a high of 6,301.50 in intraday trade. The index hit a low of 6,278.15 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,079 shares gained and 561 shares fell. A total of 104 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks gained and rest of them declined. NTPC (up 1.24%), Reliance Industries (up 0.78%) and Infosys (up 0.76%) gained.
Index heavyweight and cigarette major ITC rose 0.08% to Rs 319.45 in volatile trade. The stock hit a high of Rs 320 and low of Rs 317.95 so far during the day.
Capital goods stocks extended Monday's gains. Bhel (up 1.12%), BEML (up 1.41%), ABB (up 1.11%), Punj Lloyd (up 0.7%), Crompton Greaves (up 1.05%) and Siemens (up 0.52%) gained.
L&T gained 1.28%, with the stock extending Monday's gains triggered by the company's announcement that it is in discussions with a large global institutional investor for a proposed acquisition of a stake in its subsidiary viz. L&T Infrastructure Development Projects. The announcement was made after market hours on Friday, 20 December 2013.
L&T Infrastructure Development Projects (L&TIDPL) has submitted an application to the Foreign Investment Promotion Board (FIPB) seeking approval in relation to a proposed foreign direct investment in L&T IDPL. Subject to completion of the due diligence processes and necessary agreement on governance and other terms of the transaction with the investor, there is a contemplation of an initial infusion of Rs 1000 crore into L&T IDPL, followed by a second tranche of Rs 1000 crore (or such higher amount as may be agreed between L&T and investor) after twelve months from the date of initial investment. The proposed transactions are subject to various factors, and may or may not be completed, and parties have not yet entered into any agreement, L&T said in a statement. In the meantime, shareholders and any other investors are reminded to exercise caution when dealing in the company's securities, pending definitive announcement(s) from the company, if any, L&T said.
L&T IDPL is primarily engaged in public-private partnership projects in India, with business interests spread across sectors involving roads and bridges, ports, metro rail, wind energy and power transmission lines. It has experience in identifying and assessing viability of projects, achieving financial closure, project management, operations and maintenance of infrastructure assets across various sectors as well as divestiture.
Bajaj Auto rose 1.01% to Rs 1963.90. Three block deals were executed in the counter on BSE in early trade. First block deal was of 2.81 lakh shares at Rs 1951 per share at 9:15 IST, the second block deal was of 13,060 shares at Rs 1951 per share at 9:15 IST and the third block deal was of 13,060 shares at Rs 1946 per share at 9:15 IST.
Biocon rose 2.86% to Rs 480 after hitting record high of Rs 486.10 in intraday trade. The company, last week, said it has entered into a licensing and collaboration agreement with Quark Pharmaceuticals, Inc. for the development of a range of small interfering RNA based novel therapeutics. The collaboration will enable Biocon to co-develop, manufacture & commercialize QPI-1007, a novel small interfering RNA (siRNA) drug candidate for ophthalmic conditions, for India and other key markets, Biocon said on 18 December 2013. Biocon will have access to Quark's innovative and proprietary siRNA technology platform that can be leveraged for the development of novel therapeutics for various unmet medical needs.
UPL rose 1.22% to Rs 191.05 after the company said its board will meet on 30 December 2013 to consider a proposal for buyback of the company's equity shares in accordance with the applicable provisions of law. The announcement was made after market hours on Monday, 23 December 2013. The stock hit 52-week high of Rs 193.75 in intraday trade.
In foreign exchange market, rupee edged higher against the dollar in early trade on global risk on sentiment. The partially convertible rupee was hovering at 61.835, compared with its close of 61.9525/9625 on Monday, 23 December 2013.
Asian stocks edged higher on Tuesday, 24 December 2013, after data showed the US economic recovery gaining momentum. US economy is the world's biggest economy. Key benchmark indices in China, Hong Kong, Japan, Taiwan, Singapore and South Korea rose 0.14% to 1.13%. In Indonesia, Jakarta Composite was off 0.23%.
China's central bank conducted the first reverse-repurchase agreements in three weeks, helping to ease the tightest financing conditions since a record cash crunch in June.
In Japan, the Cabinet Office released its December economic report today, 24 December 2013. The report dropped a reference to the word deflation for the first time since October 2009, saying "prices are holding firm."
Trading in US index futures indicated that the Dow could fall 5 points at the opening bell on Tuesday, 24 December 2013. US stocks on Monday jumped to new records after strong economic data gave new momentum to last week's rally. US household purchases, which account for almost 70 percent of the economy, rose 0.5% after a 0.4% gain in October that was larger than previously estimated, the Commerce Department reported in Washington. A separate report showed consumer confidence increased in December. The Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 82.5 from 75.1 a month earlier.
The US 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 over the next year.
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