Key benchmark indices pared gains in afternoon trade as index heavyweights ITC and Reliance Industries (RIL) pared gains. The S&P BSE Sensex was up 235.24 points or 1.16%, off 139.35 points from the day's high and up 81.37 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Asian stocks climbed the most in a month on Thursday after Federal Reserve chairman nominee Janet Yellen signaled stimulus will be maintained until the US economy improves. Back home, Reserve Bank of India (RBI) governor, Raghuram Rajan, expressed comfort on Wednesday about core inflation and highlighted the narrowing current account deficit in his efforts to boost sentiments after recent sell off in financial markets.
Foreign institutional investors (FIIs) bought shares worth a net Rs 299.70 crore on Wednesday, 13 November 2013, as per provisional data from the stock exchanges.
At 13:15 IST, the S&P BSE Sensex was up 235.24 points or 1.16% to 20,429.64. The index surged 374.59 points at the day's high of 20,568.99 in morning trade, its highest level since 12 November 2013. The index gained 153.87 points at the day's low of 20,348.27 in early trade.
The CNX Nifty was up 76.50 points or 1.28% to 6,066.10. The index hit a high of 6,101.65 in intraday trade, its highest level since 12 November 2013. The index hit a low of 6,036.65 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,371 shares gained and 859 shares fell. A total of 122 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks gained and rest of them declined. Tata Motors (up 4.89%), ICICI Bank (up 4.4%), L&T (up 3.65%), M&M (up 3.21%) and Tata Steel (up 2.89%), gained.
Coal India (down 3.16%), Cipla (down 1.76%) and TCS (down 0.59%) declined.
Index heavyweight and cigarette major ITC rose 0.17% to Rs 315, off day's high of Rs 317.90.
Reliance Industries gained 1.08% to Rs 854.50, off day's high of Rs 864.
Rural Electrification Corporation rose 2.15% after net profit rose 16.43% to Rs 1110.67 crore on 27.47% growth in total income to Rs 4224.25 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Suzlon Energy hit an upper circuit limit of 10% at Rs 9.15 on bargain hunting after the stock tumbled 18.19% in the preceding six trading sessions to Rs 8.32 on 13 November 2013 from a recent high of Rs 10.17 on 5 November 2013.
Ricoh India was locked at 10% upper circuit at Rs 103.75, also its record high, with the stock extending recent rally triggered by the company's board of directors approving delisting proposal of foreign promoters.
Prestige Estates Projects (up 5.9%), Future Retail (up 5.82%), Axis Bank (up 5.68%), Max India (up 5.35%), IRB Infrastructure Developers (up 5.06%), Siemens (up 4.49%) and Indian Bank (up 4.45%) were among the key gainers from BSE's 'A' group.
As per a circular issued evening Wednesday, 13 November 2013, stock markets will remain closed tomorrow, 15 November 2013 on account of Moharram. Bourses had previously declared 14 November 2013 as trading holiday.
The headline inflation accelerated to an eight-month high of 7% in October, mainly driven by higher fuel and manufactured goods prices, government data showed on Thursday. Wholesale prices, India's main inflation measure, had risen 6.46% in September. Food prices rose 18.19% year-on-year in October, slower than an annual rise of 18.4% in September. The WPI inflation reading for August was revised to 6.99% from 6.1%.
Reserve Bank of India (RBI) governor, Raghuram Rajan, expressed comfort on Wednesday about core inflation and highlighted the narrowing current account deficit as he sought to reassure investors worried the country would be hit hard in a global market sell-off. Most immediately, he pledged to move slowly if needed in winding down an oil window that provides dollars directly to state-run oil companies, while announcing a bond purchase of 80 billion rupees on Monday to inject liquidity in markets. Both had been key concerns in markets.
The news briefing, announced earlier on that day, was an unprecedented departure for the traditionally cautious central bank. Since taking the helm of the RBI in September, Rajan has pledged to be more communicative and has so far been warmly welcomed by investors.
"It's important that the RBI clarifies interpretation of economic events and the likely direction of economic policies at times of uncertainty so that the market worries about the right things and does not get into a tizzy about the wrong ones. That is my quote today," Rajan told reporters.
"There is no fundamental reason for volatility in value of the rupee," he also said. "At some time, it makes sense to take a deep breath and examine the fundamentals. I hope you all will do that."
Rajan addressed reporters after stronger-than-expected U.S. jobs data last week had sparked concerns about an early end to the Federal Reserve's stimulus, hitting the rupee and sending Indian bonds and shares tumbling, although markets remain well above the levels of the summer lows.
At his briefing, Rajan called food inflation "worryingly high", but said he was comforted by a downward trend in the core consumer price index. Rajan also surprised marketmen by saying the RBI's estimate for the current account deficit for the fiscal year ending in March was $56 billion, the first time in recent memory the central bank has given such a forecast. Rajan also sought to reassure investors worried about the rupee's stability after the RBI has allowed oil companies to source dollars directly in markets instead of a special window provided by the central bank.
That window was opened as an emergency measure by the RBI in late August and was cited as a key reason behind the recovery in the rupee, which is still up 8.8% since its record low in late August. Rajan said the RBI had flexibility in managing the return of oil companies to markets, and would go slow if needed.
In the foreign exchange market, the rupee edged higher against the dollar as comments from nominee for Federal Reserve chair Janet Yellen and Reserve Bank of India governor Raghuram Rajan delivered a two-dose boost of optimism for a currency that had fallen to a two-month low. The partially convertible rupee was hovering at 63.20, stronger compared with its close of 63.30 on Wednesday, 13 November 2013.
Asian stocks climbed the most in a month on Thursday while metals gained after Federal Reserve chairman nominee Janet Yellen signaled stimulus will be maintained until the U.S. economy improves. Key benchmark indices China, Hong Kong, Indonesia, Japan, Taiwan, Singapore, and South Korea rose by 0.2% to 2.12%.
Trading in US index futures indicated that the Dow could rise 30 points at the opening bell on Thursday, 14 November 2013. US stocks rose on Wednesday, sending benchmark indexes to records, as Macy's Inc. led a rally among retailers and investors speculated the Federal Reserve's Janet Yellen will continue the central bank's stimulus policy as chairman.
Janet Yellen, nominated to be the next chairman of the Federal Reserve, said the economy and labor market are performing "far short of their potential" and must improve before the Fed can begin reducing monetary stimulus. A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases," Yellen, the Fed's vice chairman, said in testimony prepared for her nomination hearing tomorrow before the Senate Banking Committee. "I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy." The remarks show Yellen is committed to the central bank's strategy of attempting to boost the economy and lower 7.3% unemployment, more than four years after the economy began to recover from the longest and deepest recession since the Great Depression. She also signaled support for capital and liquidity rules to help reduce the perception that some banks are too big to fail.
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