Key benchmark indices moved in a narrow range in positive zone in afternoon trade. The barometer index, the S&P BSE Sensex, was up 70.03 points or 0.33%, off 58.14 points from the day's high and up 69.21 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The market sentiment was boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 20 December 2013. Gains in Asian stocks also boosted sentiment on the domestic bourses.
Index heavyweight and cigarette major ITC rose in volatile trade. Among IT stocks, HCL Technologies hit record high. Wipro reversed direction after hitting 52-week high. Infosys dropped after the company after trading hours on Friday, 20 December 2013, announced the changes to the board of directors of the company.
Shares of a number of small-cap and mid-cap companies rose for the second day in a row, boosted by stock market regulator Securities and Exchange Board of India's (Sebi) announcement on 19 December 2013 that it has decided to rationalize the rules on trading of thinly-traded stocks. BSE Small-Cap and Mid-Cap indices were up more than 1% each, with both these indices outperforming the Sensex.
Asian stocks edged higher on Monday, 23 December 2013, after data showed faster-than-estimated economic growth in the US and after the International Monetary Fund said it's raising its outlook for the world's largest economy.
The market edged higher in early trade on firm Asian stocks. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost two weeks. A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming initial gains in morning trade. The Sensex hovered in positive terrain in mid-morning trade. The Sensex trimmed gains in early afternoon trade. Key benchmark indices moved in a narrow range in positive zone in afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 20 December 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 990.19 crore on Friday, 20 December 2013, as per provisional data from the stock exchanges. FIIs bought shares worth a net Rs 2244.20 crore from the secondary equity markets on Thursday, 19 December 2013, as per data from Securities & Exchange Board of India. Continuation of FII buying after the US Federal Reserve's decision on 18 December 2013 to gradually reduce monetary stimulus for the US economy, has helped the market shrug off fears of slowdown in foreign inflows. Market men are worried that the reduced availability of cash in the global financial system could temper the flow of foreign money into India, which has been one of the biggest beneficiaries of foreign capital. Foreign institutional investors (FIIs) have purchased shares worth a net Rs 110792.50 crore in 2013 so far (till 19 December 2013). FIIs had bought shares worth a net Rs 128359.80 crore in calendar 2012.
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 on Wednesday, 25 December 2013, on account of Christmas.
At 13:15 IST, the S&P BSE Sensex was up 70.03 points or 0.33% to 21,149.75. The index jumped 128.17 points at the day's high of 21,207.89 in early trade, its highest level since 11 December 2013. The index rose 0.82 points at the day's low of 21,080.54 in opening trade.
The CNX Nifty was up 25.05 points or 0.4% to 6,299.30. The index hit a high of 6,310.75 in intraday trade, its highest level since 11 December 2013. The index hit a low of 6,266.95 in intraday trade.
The S&P BSE Mid-Cap index was up 84.71 points or 1.3% at 6,587.20. The BSE Small-Cap index was up 75.48 points or 1.2% at 6,367.44. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,504 shares gained and 820 shares fell. A total of 141 shares were unchanged.
The total turnover on BSE amounted to Rs 1155 crore by 13:15 IST.
Among the 30-share Sensex pack, 21 stocks gained and rest of them declined. Bhel (up 2.78%), Hindalco Industries (up 2.98%) and Hero MotoCorp (up 1.51%) edged higher from the Sensex pack.
Index heavyweight and cigarette major ITC rose 1.09% to Rs 318.65 in volatile trade. The stock hit a high of Rs 319 and low of Rs 315 so far during the day.
IT shares slipped as the rupee edged higher against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
Infosys dropped 2.32%, with the stock extending intraday losses after the company announced after market hours on Friday, 20 December 2013, changes to the board of directors of the company. Mr. V. Balakrishnan has conveyed his intention to resign as a member of the board and from the services of the company. The resignation is effective 31 December 2013.
Mr. N. R. Narayana Murthy, Executive Chairman said, "Bala has been an early adopter and a keen anchor-builder of Infosys. It is difficult to imagine Infosys without Bala's passion, commitment, and intellect. The Board and every Infoscion thank Bala for his wonderful contribution and wish him great success in his future endeavors."
Mr. S. D. Shibulal, Chief Executive Officer and Managing Director said, "Bala during his two decades of association with Infosys, has played a pivotal role in building the finance function and has been a key driver behind all of our achievements in areas of investor relations and corporate governance. Over the last few years, he has also provided leadership to BPO, Finacle, India Business Unit, Global Immigration and most recently, to Lodestone. I would like to wish him the very best in all his future endeavors."
Balakrishnan said, "I have enjoyed every moment of my stint at Infosys and it was a great learning experience. While my heart will always be with Infosys my mind wants to do something beyond Infosys. I thank all my colleagues who supported and encouraged me during my career at Infosys. I wish Infosys all the very best in its future endeavors."
Infosys also said that the Nominations and Governance Committee of the company has recommended the induction of Mr. U. B. Pravin Rao as a Whole-time Director of the company. Mr. Pravin Rao is currently a Member of the Executive Council, Senior Vice President and Global Head-Retail, Consumer Packaged Goods, Logistics and Life Sciences. Mr. Rao also serves as a Member of the Board of Infosys Lodestone. Mr. Rao is also the Director of the Infosys Leadership Institute (ILI). Mr. Rao holds a degree in electrical engineering from Bangalore University, India.
Welcoming Mr. Pravin Rao, Mr. N. R. Narayana Murthy, Executive Chairman said, "I am very happy that Pravin will be joining the Board. I have worked with Pravin closely and have benefited immensely from his wisdom. My congratulations to him."
The Nominations and Governance Committee of the company has also recommended the induction of Ms. Kiran Mazumdar-Shaw as an Independent Member of the Board. Ms. Kiran Mazumdar-Shaw is the Chairman & Managing Director of Biocon, a biotechnology company based in Bangalore, India. Welcoming Ms. Shaw, Mr. N. R. Narayana Murthy, Executive Chairman said, "Kiran is a well-recognized and respected corporate leader. She will bring immense value to the board. I am honored to welcome her to our Board."
Wipro fell 0.38% to Rs 546.85. The stock reversed direction after hitting 52-week high of Rs 557 in intraday trade.
Tata Consultancy Services (TCS) shed 0.54%. Tech Mahindra fell 0.75%.
HCL Technologies rose 0.76% to Rs 1,245.65. The stock hit record high of Rs 1,259.80 in intraday trade.
Amtek India (up 11.38%), HDIL (up 9.43%), Rajesh Exports (up 9.11%), Mahindra Holidays & Resorts India (up 7.47%) and Indiabulls Housing Finance (up 7.07%) were among the major gainers from the BSE Mid-Cap index.
Jindal Saw (up 13.01%), BEML (up 12.93%), Time Technoplast (up 11.16%), Welspun Corp (up 10.23%) and Gammon Infrastructure Projects (up 9.48%) were among the major gainers from the BSE Small-Cap index.
Sebi after trading on Thursday, 19 December 2013, said it has rationalized the periodic call auction mechanism by modifying how it classifies illiquid stocks. A stock would now be classified as illiquid if its average daily turnover is less than Rs 2 lakh in the previous two quarters and if it is classified as illiquid at all the exchanges where it is traded. Earlier, a stock was classified to be illiquid if its average daily trading volume in a quarter was less than 10,000, the average daily number of trades was less than 50 in a quarter and if it was classified as illiquid by all the exchanges where it traded.
Henceforth, call auctions will not apply to shares where a company is profitable in at least two of the past three years and not more than 20% of promoters' shareholding is pledged in the latest quarter and the book value is three times or more than the face value. The new rules also exclude companies with a market capitalisation of at least Rs 10 crore or which have paid a dividend in at least two of the past three years.
From now, stock exchanges will determine the number of call auction sessions for illiquid stocks. Exchanges will, however, have at least two sessions in a trading day, with one uniform closing session across the exchanges. So far, periodic call auction sessions of one hour each were conducted throughout trading hours, with the first session starting at 9:30 IST.
In foreign exchange market, rupee strengthened past 62 against the dollar. The partially convertible rupee was hovering at 61.97, compared with its close of 62.04/05 on Friday, 20 December 2013. The rupee rose on global risk on sentiment.
Asian stocks edged higher on Monday, 23 December 2013, after data showed faster-than-estimated economic growth in the US and after the International Monetary Fund said it's raising its outlook for the world's largest economy. Key benchmark indices in China, Hong Kong, Taiwan, Singapore and South Korea rose 0.07% to 0.68%. In Indonesia, Jakarta Composite was off 0.65%. Japanese markets were shut for a holiday.
Trading in US index futures indicated that the Dow could advance 46 points at the opening bell on Monday, 23 December 2013. US stocks rallied Friday, lifting the Dow Jones Industrial Average and the S&P 500 to record levels, after a government report showed the economy grew at its fastest pace in two years last quarter.
The rate of US growth in the third quarter was faster than previously estimated as consumers stepped up spending on services such as health care and companies invested more in software. Gross domestic product climbed at a 4.1% annualized rate, the strongest since the final three months of 2011 and up from a previous estimate of 3.6%, Commerce Department figures showed on Friday, 20 December 2013.
Powered by Capital Market - Live News
