Volatility ruled the roost as key benchmark indices regained positive zone after slipping into the red for a brief period in afternoon trade. The barometer index, the S&P BSE Sensex, was up 34.27 points or 0.19%, off about 197 points from the day's high and up close to 152 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Jindal Steel & Power tumbled over 8% after the company's board approved buyback proposal. Shares of capital goods companies dropped.
A bout of volatility was witnessed in early trade as key benchmark indices trimmed losses after slipping into the red after a positive opening. The market regained positive terrain and hit fresh intraday high in morning trade. The Sensex extended gains and hit fresh intraday high in mid-morning trade. A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in early afternoon trade as Asian stocks reversed intraday gains. Volatility ruled the roost as key benchmark indices regained positive zone after slipping into the red for a brief period in afternoon trade.
In the foreign currency market, the rupee dropped amid high intraday volatility. The partially convertible rupee was hovering at 66.645, weaker than its close of 66.55/56 on Thursday, 29 August 2013. The rupee fell as stronger than expected US GDP growth in Q2 June 2013 raised fears that the data may lead the Federal Reserve to reduce the pace of its bond purchases soon.
The Prime Minister said that the rupee's tumble is a "matter of concern", but is part of a needed adjustment due to India's large current account deficit and will have a positive impact on export competitiveness in coming months. He said India's current account deficit was "unsustainably large" and to remedy this there needed to be a reduction in demand for gold and oil imports. He added that although the rupee fall was a matter of concern the government will not meet the rupee decline with capital control measures.
The Prime Minister urged people to control the consumption of gold and oil. "We need to reduce our appetite for gold and economise the use of petroleum products and take steps to increase our exports," Singh said.
The Prime Minister said that the government won't go back on reforms in the current economic situation. "There is no question of reversing economic reforms. The cabinet decisions to give go-ahead to projects will show results in the second quarter," he said. Dr. Singh urged the Opposition to help in passing of certain bills for economic growth. "Many bills are stalled due to lack of political consensus. I urge political parties to come together and get them through for the economic growth," Singh said.
At 13:20 IST, the S&P BSE Sensex was up 34.27 points or 0.19% to 18,435.31. The index jumped 231.19 points at the day's high of 18,632.23 in early afternoon trade, its highest level since 26 August 2013. The index fell 117.30 points at the day's low of 18,283.74 in early trade.
The CNX Nifty was flat at 5,409.35. The index hit a high of 5,469.10 in intraday trade, its highest level since 26 August 2013. The index hit a low of 5,367.35 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,091 shares rose and 931 shares fell. A total of 145 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks rose and rest of them fell. Tata Power (down 2.27%), Tata Motors (down 2.22%), Sesa Goa (down 2.13%), Coal India (down 1.72%), Hindalco Industries (down 1.5%), Reliance Industries (down 1.32%), Maruti Suzuki India (down 1.18%) and Infosys (down 0.94%), edged lower from the Sensex pack.
Cipla (up 3.26%), Sun Pharmaceutical Industries (up 2.63%), TCS (up 2.09%), Hindustan Unilever (up 2.05%), Bajaj Auto (up 1.78%), Wipro (up 1.77%), HDFC Bank (up 1.75%) and HDFC (up 1.68%), edged higher from the Sensex pack.
Jindal Steel & Power (JSPL) tumbled 8.03% to Rs 223.90 after the company's board approved share buyback proposal through open market purchases. The company said it has set aside Rs 1000 crore for share buyback. The ceiling price for the share buyback through the open market purchases has been set Rs 261 per share.
The maximum buyback price of Rs 261 per share is at a premium of 16.56% to the stock's ruling market price.
Shares of Pipavav Defence and Offshore Engineering Company fell by maximum permissible 5% of the day at Rs 52.35 on BSE, extending Thursday's 5% loss. The company during trading hours on Thursday, 29 August 2013, said a consortium of the company and L&T has bagged an order worth over $170 million from ONGC. Pipavav Defence also said that the order book of the company has now crossed Rs 12000 crore.
Among other capital goods shares, AIA Engineering (down 2.07%), Praj Industries (down 2%), Siemens (down 1.63%), Crompton Greaves (down 1.51%), Havells India (down 1.44%), ABB (down 0.89%), Punj Lloyd (down 0.48%), Thermax (down 0.33%), Jindal Saw (down 0.1%), Bharat Electronics (down 0.09%), and ALSTOM India (down 0.06%), edged lower.
Larsen & Toubro was almost flat at Rs 722. The company said during market hours today, 30 August 2013, that L&T Hydrocarbon has recently bagged new orders worth Rs 807 crore for the supply of cracking furnace modules and parts, supply of equipment, EPC execution of cryogenic ethylene package, civil, structural, mechanical, electrical and instrumentation for petrochemical complexes of all companies in India, Fabrication and assembly work for all the modules and equipment will be done at L&T's modular fabrication facility at Hazira near Surat.
The Forward Markets Commission (FMC), which regulates the commodity futures market in India, has raised the initial margin on gold futures to 5% from 4% for domestic traders effective Monday, 2 September 2013. The FMC move comes after gold prices rose 18% to reach a record high earlier this week. The FMC also imposed an additional 5% margin on gold, silver and crude oil futures contracts from Monday, 2 September 2013.
The Central Statistics Office (CSO) will unveil data on gross domestic product (GDP) for Q1 June 2013 at 17:30 IST today, 30 August 2013. The GDP growth is seen moderating further to 4.7% in Q1 June 2013, from 4.78% in Q4 March 2013, as per the median estimate of a poll of economists carried out by Capital Market. The GDP grew 5% in the year ended 31 March 2013, the weakest in a decade, as falling domestic and overseas demand, crumbling domestic infrastructure facilities, bureaucratic delays in approvals for industrial projects and high borrowing costs choked investments in the economy.
European stocks declined on Friday, 30 August 2013, as investors awaited data on unemployment and consumer confidence from the euro zone and digested the latest developments in the Syria conflict. Key benchmark indices in UK, France and Germany were off 0.23% to 0.4%.
Most Asian stocks rose on Friday, 30 August 2013, following overnight gains in US stocks triggered by data showing that the US economy expanded more rapidly than previously thought in the second quarter. Key benchmark indices in China, Singapore, South Korea, Indonesia, and Taiwan rose by 0.03% to 1.32%. Key benchmark indices in Hong Kong and Japan fell by 0.11% to 0.53%.
Japan's consumer prices increased at the fastest pace since 2008 in July, adding to signs that Prime Minister Shinzo Abe is making progress in pulling the economy out of 15 years of deflation. Consumer prices excluding fresh food climbed 0.7% from a year earlier, the statistics bureau said today in Tokyo.
Trading in US index futures indicated that the Dow could gain 7 points at the opening bell on Friday, 30 August 2013. US stocks rose on Thursday, 29 August 2013, as data showed the economy expanded at a faster pace in the second quarter and concerns over Syria eased. Gross domestic product rose at a 2.5% annualized rate, up from an initial estimate of 1.7%, Commerce Department figures showed Thursday in Washington. Jobless claims in the week ended August 24 dropped 6,000 to 331,000 from a revised 337,000 the week before that was higher than initially reported, the Labor Department said
US markets remain closed on Monday, 2 September 2013, for the Labor Day holiday.
The prospect of imminent military strikes on Syria receded as the UK and France said they favor waiting for the results of a United Nations investigation into alleged use of chemical weapons. The UK Parliament has voted against the use of force in Syria. A further vote was set for early next week, specifically on whether the UK should get directly involved.
The US which says it has evidence that Syria's government was responsible, won't act without allies, Defense Secretary Chuck Hagel said. Meanwhile, the White House told US congressional leaders that a potential strike on Syria would focus on removing the regime's chemical-weapons capability.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled next month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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