Volatility ruled the roost as the key benchmark indices regained positive zone after reversing intraday gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 22.50 points or 0.11%, up 72.29 points from the day's low and off 249.04 points from the day's high. The Sensex was currently trading well below the psychological 21,000 level, having alternately moved above and below that mark in intraday trade so far. The market breadth, indicating the overall health of the market, turned negative from positive in mid-afternoon trade. In the foreign exchange market, the rupee edged higher against the dollar in choppy trade on speculation the Federal Reserve will maintain stimulus for the US economy in the foreseeable future after disappointing US job data for September 2013 released early this week.
Index heavyweight Reliance Industries (RIL) edged lower in choppy trade. Kotak Mahindra Bank edged higher in volatile trade after the private sector bank reported Q2 results during trading hours. Infosys reversed direction after hitting 52-week high in volatile trade. Asian Paints hit record high. Radico Khaitan dropped on high volume in volatile trade. Jubilant Life Sciences and United Breweries surged.
Key benchmark indices reversed small initial fall. Key benchmark indices extended initial gains in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than 35 months. Key benchmark indices pared gains in mid-morning trade. Key benchmark indices further pared gains in early afternoon trade. The Sensex gave away a lion's part of strong initial gains in afternoon trade as index heavyweight Reliance Industries (RIL) reversed intraday gains and as another index heavyweight ITC pared intraday gains. Volatility ruled the roost as the key benchmark indices regained positive zone after reversing intraday gains in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 644.80 crore on Wednesday, 23 October 2013, as per provisional data from the stock exchanges.
At 14:15 IST, the S&P BSE Sensex was up 22.50 points or 0.11% to 20,790.38. The index jumped 271.54 points at the day's high of 21,039.42 in morning trade, its highest level since 8 November 2010. The index fell 49.79 points at the day's low of 20,718.09 in mid-afternoon trade.
The CNX Nifty was up 5.50 points or 0.09% to 6,183.85. The index hit a high of 6,252.45 in intraday trade, its highest level since 11 November 2010. The index hit a low of 6,158.40 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in mid-afternoon trade. On BSE, 1,223 shares declined and 1,175 shares gained. A total of 172 shares were unchanged.
Index heavyweight Reliance Industries was off 0.9% at Rs 887.75. The stock hit high of Rs 909.95 and low of Rs 883.80 so far during the day.
Infosys shed 0.4% to Rs 3,310.25. The stock was volatile. The scrip rose as much as 1.44% at the day's high of Rs 3,372, also its 52-week high. Thes stock fell as much as 0.72% at day's low of Rs 3,300.20 so far during the day.
Asian Paints rose 0.75% to Rs 525.50 after hitting a record high of Rs 533 in intraday trade.
Radico Khaitan lost 3.87% to Rs 145.30 in volatile trade. The stock hit a high of Rs 154 and low of Rs 143.60 so far during the day. The stock dropped on volume of 14.63 lakh shares, higher than average volume of 99,422 shares in the past one quarter.
Jubilant Life Sciences jumped 16.06%. The company during market hours today, 24 October 2013, denied media reports that the company is planning to delist from Indian stock exchanges and may be listed on New York Stock Exchange.
Kotak Mahindra Bank edged higher in volatile trade after the private sector bank reported Q2 results during trading hours. The stock was up 0.59% at Rs 713. The stock hit high of Rs 729.40 and low of Rs 706.60 so far during the day. The bank's net profit jumped 26% to Rs 353 crore in Q2 September 2013 over Q2 September 2012. Net interest income surged 22% to Rs 924 crore in Q2 September 2013 over Q2 September 2012. The bank announced Q2 result during market hours.
Advances as on 30 September 2013 were up 11% year-on-year (YoY) to Rs 50609 crore (Rs 45443 crore as on 30 September 2012). Kotak Mahindra Bank said that it is cautiously slowing down on CECV lending. Without considering CECV, the growth in advances was 18% YoY in Q2 September 2013.
Restructured loans considered standard stood at 0.09% of net advances as on 30 September 2013.
Savings deposits as on 30 September 2013 grew by 42% to Rs 8385 crore from Rs 5926 crore as on 30 September 2012. CASA ratio was 29% as on 30 September 2013.
The Reserve Bank of India vide circular dated 23 August 2013, as a one-time measure permitted banks to transfer SLR securities from AFS/HFT category to HTM category at valuation rates prevailing on 15 July 2013. Kotak Mahindra Bank said it has not transferred any SLR security from AFS/HFT category to HTM category. The bank's total HTM securities as on 30 September 2013 were 11.4% of NDTL. As permitted under the same RBI circular, the Kotak Mahindra Bank has opted to distribute the net depreciation on the AFS and HFT portfolios in equal installments during the financial year 2013-14. Accordingly, of the net depreciation of Rs 264 crore as on 30 September 2013, the bank has recognised depreciation of Rs 88 crore till 30 September 2013.
Kotak Mahindra Bank's consolidated net profit rose 16% to Rs 583 crore in Q2 September 2013 over Q2 September 2012. Consolidated advances rose 11% to Rs 68226 crore as on 30 September 2013 from Rs 61255 crore as on 30 September 2012. Without considering CECV, the growth in advances was 16% YoY. Total assets managed/advised by the Kotak Mahindra Group stood at Rs 60450 crore as on 30 September 2013, compared with Rs 55850 crore as on 30 September 2012.
United Breweries surged 9.53% to Rs 966.35
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade on speculation the Federal Reserve will maintain stimulus for the US economy in the foreseeable future after disappointing US job data for September 2013 released early this week. The partially convertible rupee was hovering at 61.525, compared with its close of 61.59/60 on Wednesday, 23 October 2013.
Indian government bond prices rose on speculation the Federal Reserve will maintain stimulus for the US economy in the foreseeable future after disappointing US job data for September 2013 released early this week. The yield on the 10-year benchmark government security 7.16% GS 2023 was hovering at 8.5946%, lower than its close of 8.6315% on Wednesday, 23 October 2013. Bond yield and bond prices are inversely related.
European stocks edged higher on Thursday, 24 October 2013, as investors welcomed upbeat manufacturing data from China. Key benchmark indices in France, Germany and UK were up 0.07% to 0.43%.
Private-sector activity in the euro zone grew at a slower pace in October, suggesting that the currency area's return to economic growth remains tentative as it enters the final quarter of the year. Distilling the results of its survey of 5,000 companies in the services and manufacturing sectors, data firm Markit said its Composite Purchasing Managers Index fell to 51.5 from 52.2 in September. A level below 50 indicates activity is declining, while a reading above that mark shows that activity is increasing. The PMI for the services sector fell to 50.9 from 52.2, while the PMI for manufacturing rose to 51.3 from 51.1.
Asian markets edged higher on Thursday, 24 October 2013, after a measure of Chinese factory hit a seven-month high. Key benchmark indices in South Korea, Singapore, Indonesia, Japan and Taiwan rose by 0.24% to 0.79%. Key benchmark indices in Hong Kong and China fell 0.71% to 0.86%.
The initial October reading for China's manufacturing activity came out at 50.9, compared to a final reading of 50.2 in September. The score was a seven-month high, above the 50 mark that separates expansion and contraction in factory activity. The preliminary reading was among the first economic data on the region's largest economy in the third quarter, coming less than a week after figures showed that Chinese growth picked up from a dip in the second quarter.
Trading in US index futures indicated that the Dow could advance 35 points at the opening bell on Thursday, 24 October 2013. US stocks closed lower on Wednesday with the S&P 500 falling from a record, as investors assessed mixed results from US corporations, including a disappointment from equipment-maker Caterpillar Inc.
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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