Key benchmark indices hovered in positive terrain in mid-afternoon trade as firm European markets supported domestic bourses. The barometer index, the S&P BSE Sensex, was up 19.45 points or 0.09%, up about 130 points from the day's low and off close to 180 points from the day's high. The market breadth, indicating the overall health of the market, was weak. The rupee was slightly lower against the dollar. Metal stocks edged higher. Index heavyweight and cigarette maker ITC edged lower in choppy trade.HDFC Bank fell despite reporting good Q2 result.
The market edged higher in early trade on firm Asian stocks. The Sensex hit its highest level in more than 35 months. The 50-unit CNX Nifty hit 21-week high. A bout of volatility was witnessed as key benchmark indices gave away a lion's part of strong initial gains and hit fresh intraday low in morning trade. The Sensex slipped into the red and hit fresh intraday low in mid-morning trade. It trimmed intraday losses in early afternoon trade. Key benchmark indices extended recovery in afternoon trade as European markets edged higher in early trade. It hovered in positive terrain in mid-afternoon trade.
In the foreign exchange market, the rupee edged lower in choppy trade against the dollar. The partially convertible rupee was hovering at 61.5925, slightly weaker than its close of 61.55/56 on Monday, 14 October 2013.
At 14:20 IST, the S&P BSE Sensex was up 19.45 points or 0.09% to 20,626.97. The index fell 160.81 points at the day's low of 20,446.73 in mid-morning trade, its lowest level since 11 October 2013. The index jumped 152.04 points at the day's high of 20,759.58 in morning trade, its highest level since 11 November 2010.
The CNX Nifty was up 2.15 points or 0.04% to 6,114.65. The index hit a low of 6,056.55 in intraday trade, its lowest level since 11 October 2013. The index hit a high of 6,156.30 in intraday trade, its highest level since 21 May 2013.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,336 shares dropped and 810 shares rose. A total of 141 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and the rest rose.
HDFC Bank fell 1.26%. The bank's net profit rose 27.07% to Rs 1982.32 crore on 17.65% rise in total income to Rs 11937.69 crore in Q2 September 2013 over Q2 September 2012. The bank announced Q2 result during market hours.
Index heavyweight and cigarette maker ITC fell 0.41% to Rs 338.10. The stock hit high of Rs 342.20 and low of Rs 333.55 so far during the day.
Metal stocks edged higher. Tata Steel (up 3.43%), Sail (up 0.87%), JSW Steel (up 2%), Bhushan Steel (up 0.03%), Sesa Sterlite (up 0.16%), Hindustan Zinc (up 4.44%), edged higher. But, Jindal Steel & Power fell 0.38%.
Hindalco Industries rose 1.49%, with the stock reversing intraday losses. Shares of Nalco were off 1.07%. The Central Bureau of Investigation has reportedly named Aditya Birla Group Chairman Kumar Mangalam Birla in its 14th FIR in another high profile chargesheet in the coal scam. FIRs have been filed against Kumar Mangalam Birla, Nalco, Hindalco Industries and former secretary coal PC Parakh. Cases of cheating, forgery and financial misrepresentation have been filed. CBI searches are also on in Delhi, Kolkata, Bhubaneswar and Mumbai in connection with the coal scam, reports suggest.
Earlier Congress MP and industrialist Naveen Jindal was summoned by the CBI in September and was subjected to some intense scrutiny. Naveen has been named as an accused in the twelfth FIR of the CBI in coal scam. The CBI in its FIR has said that Naveen's company, Jindal Group, was not recommended by the Jharkhand government. The FIR also accused him of misrepresentation of facts.
The stock market remains closed tomorrow, 16 October 2013, on account of Bakri Id.
Bond prices declined after data released by the government after trading hours on Monday, 14 October 2013, showed that consumer price inflation accelerated in September 2013, adding to concerns that the central bank is likely to increase its main lending rate viz. the repo rate again. The yield on the benchmark federal paper 7.16% GS 2023 was hovering at 8.6353%, higher than its close of 8.5747% on Monday, 14 October 2013. Bond yield and bond prices are inversely related.
The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India rose 9.84% in September 2013, from 9.52% in August 2013. The CPI inflation for rural and urban areas rose 9.71% and 9.93% in September 2013, respectively. Inflation rates (final) for rural and urban areas for August 2013 were 8.93% and 10.32% respectively. The headline CPI (combined) has seen a rise of 1.19% (m-o-m) in September 2013.
Data released by the government during trading hours on Monday, 14 October 2013, showed that inflation based on the wholesale price inflation (WPI) accelerated to a seven-month high in September 2013. Increase in WPI inflation in September 2013 was mainly driven by surge in inflation for crude oil and non-food primary articles viz. fibres and oilseeds. Core inflation accelerated to 2.06% in September 2013 from 1.97% in August 2013. Inflation for July 13 was revised upwards to 5.85% from 5.79% reported earlier.
European stock markets edged higher on Tuesday, as investors welcomed signs US lawmakers are making progress in hammering out a deal to raise the debt ceiling before the deadline on Thursday. Key benchmark indices in UK, France and Germany were up 0.43% to 0.7%.
Asian stocks rose on Tuesday, 15 October 2013, as Senate leaders on Monday, 14 October 2013, said they're optimistic they will forge a deal to reopen the US government and avoid a breach of the debt limit this week. Key benchmark indices in South Korea, Japan, Hong Kong and Taiwan rose 0.26% to 1.14%. China's Shanghai Composite fell 0.19%. Stock markets in Singapore, Indonesia, Malaysia and the Philippines were shut for holidays.
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 15 October 2013. US stocks staged a strong intraday rebound on Monday, 14 October 2013, amid signs lawmakers could reach a deal before the government loses its ability to borrow money later this week.
Senate Majority Leader Harry Reid said on the Senate floor on Monday, 14 October 2013, that he is very optimistic about concluding a deal this week to raise the debt limit as well as end the government shutdown. Sen. Mitch McConnell, the Republican minority leader, said he shared Reid's feeling that "we'll get a result that's acceptable to both sides."
Markets worldwide have been watching Washington as it nears an estimated Oct. 17 deadline for Congress to allow the Treasury to borrow in order to pay the government's bills. Without legislative action, the US could default on its debt obligations at a time when the global economy is still recovering from the financial crisis.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength as policy makers mull the timing of reductions in bond buying. Government data from payrolls to retail sales will be delayed as long as the shutdown continues. 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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