A bout of volatility was witnessed as key benchmark indices regained strength after trimming intraday gains in afternoon trade. The barometer index, the S&P BSE Sensex, was up 186.44 points or 0.92%, up close to 90 points from the day's low and off about 100 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by upward revision in revenue guidance from IT major Infosys, gains in rupee against the dollar, and provisional data showing that foreign funds remained net buyers of Indian stocks on Thursday, 10 October 2013. Gains in European and Asian stocks triggered by hopes that US lawmakers will lift the debt limit and avoid a default aided upmove on the domestic bourses.
Index heavyweight and cigarette maker ITC reversed initial gain. Another index heavyweight Reliance Industries (RIL) edged lower in choppy trade. IT major Infosys was volatile after the company raised its revenue guidance for the year ending 31 March 2014 (FY 2014) at the time of announcing Q2 results before trading hours. Capital goods pivotals rose on renewed buying. Metal stocks edged lower. Canara Bank rose after the state-run bank said it has raised $500 million through issue of Senior Unsecured Bonds under the $2 billion Medium Term Note (MTN) Programme.
Key benchmark indices pared gains after a firm start triggered by higher Asian shares. Intraday volatility continued as key benchmark indices regained strength after paring initial gains in morning trade. Key benchmark indices held firm in mid-morning trade. Firmness continued on the bourses in early afternoon trade. A bout of volatility was witnessed as key benchmark indices regained strength after trimming intraday gains in afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 10 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 614.27 crore on Thursday, 10 October 2013, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged higher against the dollar tracking gains in regional currencies and the domestic equity market. The Indian currency, however, trimmed initial gains. The partially convertible rupee was hovering at 61.30, higher than its close of 61.39/40 on Thursday, 10 October 2013.
At 13:20 IST, the S&P BSE Sensex was up 186.44 points or 0.92% to 20,459.35. The index jumped 286.78 points at the day's high of 20,559.69 in early trade, its highest level since 20 September 2013. The index rose 95.15 points at the day's low of 20,368.06 in morning trade.
The CNX Nifty was up 52.40 points or 0.87% to 6,073.35. The index hit a high of 6,107.60 in intraday trade, its highest level since 20 September 2013. The index hit a low of 6,046.40 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,247 shares gained and 1,016 shares fell. A total of 155 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks gained and rest of them declined. ICICI Bank (up 4.07%), Tata Motors (up 2.76%) and Maruti Suzuki India (up 2.46%), edged higher from the Sensex pack.
Reliance Industries (RIL) declined 0.14% to Rs 858.60. The stock hit high of Rs 868 and low of Rs 855.10 so far during the day. RIL and the Venezuelan state oil company, Petroleos de Venezuela, SA (Pd VSA) have signed a Joint Study Agreement for Ayacucho Block 8 in Orinoco Oil Belt. As per the study agreement, both the parties will jointly evaluate the development plan for Ayacucho 8. RIL and PdVSA have also extended the term of the memorandum of understanding (MoU) signed between the parties last year by one year for continued cooperation. The signing of the Joint Study Agreement for Ayacucho Block 8 and the extension of MoU marks further strengthening of the long standing relationship between RIL and PdVSA as well as between India and Venezuela, RIL said in statement after market hours on Thursday, 10 October 2013.
Capital goods pivotals rose on renewed buying. L&T rose 2.79%, with the stock extending recent gains triggered by the company's announcement of winning new orders worth Rs 1605 crore across various business segments. L&T announced the new orders during trading hours on Tuesday, 8 October 2013.
Bhel gained 0.27%.
Metal stocks edged lower. Sesa Sterlite (down 1.82%), Bhushan Steel (down 0.19%), NMDC (down 0.19%), Tata Steel (down 0.21%), Sail (down 0.34%), JSW Steel (down 0.47%), Hindalco Industries (down 1.15%) and Hindustan Zinc (down 0.58%), edged lower. But, Jindal Steel & Power rose 0.68%.
Index heavyweight and cigarette maker ITC fell 1.22% to Rs 342.70. The stock hit high of Rs 349.90 and Rs 342.40 so far during the day.
IT major Infosys edged higher in volatile trade after the company raised its revenue growth guidance for the year ending 31 March 2014 (FY 2014) at the time of announcement of Q2 September 2013 results before trading hours. The stock was up 3.94% to Rs 3,240.50. The stock surged as much as 7.55% at the day's high of Rs 3,360 at the onset of the trading session, also its 52-week high. The stock rose as much as 1.07% at the day's low of Rs 3,157.65 in early trade. On a consolidated basis, Infosys' net profit rose 1.4% to Rs 2407 crore on 15.1% increase in total revenues to Rs 12965 crore in Q2 September 2013 over Q1 June 2013. Infosys has made a provision of Rs 219 crore towards visa related expenses in Q2 September 2013. The results are as per International Financial Reporting Standards (IFRS).
Infosys said it now expects revenue in dollar terms to grow 9% to 10% in the year ending 31 March 2014 (FY 2014). This is an upward revision from its guidance of 6% to 10% which the company had given at the time of announcing Q1 June 2013 results in July this year. Thanks to depreciation of rupee against the dollar, Infosys has also raised its revenue growth guidance in rupee terms for FY 2014. The company now expects 21% to 22% growth in revenue in FY 2014, which is higher than its earlier forecast 13% to 17% growth.
Commenting on the second quarter results, S. D. Shibulal, CEO and Managing Director, Infosys said: "During the quarter we witnessed broad-based volume growth, robust client additions, five large deal wins and increased sales momentum of our big data and cloud offerings. This growth is a result of our focus on execution, which helps our clients achieve their objectives. We will continue with planned investments and initiatives to explore new avenues of growth. We remain watchful of the sustainability of improving global economic fundamentals."
Rajiv Bansal, Chief Financial Officer, Infosys, said: "The global currency market remains volatile with the Indian Rupee depreciating by 11% during the quarter. We have an active hedging program to minimize its impact on our margins. We will continue our focus on optimizing costs and enhancing the efficiency of our operations".
Infosys and its subsidiaries added 68 clients during the quarter. There was a gross addition of 12,168 employees and net addition of 2,964 employees for the quarter by Infosys and its subsidiaries.
Infosys' liquid assets, including cash and cash equivalents, available-for-sale financial assets, and government bonds were Rs 26907 crore as on 30 September 2013, higher than Rs 24078 crore as on 30 June 2013.
Canara Bank rose 2.3% to Rs 242.50 after the state-run bank said it has raised $500 million through issue of Senior Unsecured Bonds under the $2 billion Medium Term Note (MTN) Programme through the bank's London branch. The coupon rate is 5.25% per annum. The tenure of the bonds is 5 years. The Bonds are listed on Singapore Stock Exchange.
On the macro front, the government will unveil industrial production data for August 2013 after trading hours today, 11 October 2013. Industrial production growth is seen decelerating to 2.4% in August 2013 from 2.6% in July 2013, as per the median estimate of a poll of economists carried out by Capital Market.
European shares edged higher in early trade on Friday, 11 October 2013, on optimism that US lawmakers would reach an agreement on raising the nation's debt limit to avoid a default. Key benchmark indices in Germany and UK rose 0.22% to 0.27%. France's CAC 40 fell 0.06%.
Asian stocks edged higher on Friday, 11 October 2013, amid hopes US lawmakers will lift the debt limit and avoid a default. Key benchmark indices in China, Singapore, Japan, South Korea, Hong Kong, Taiwan and Indonesia rose by 0.06% to 1.7%.
China is scheduled to release a series of economic reports over the weekend including September trade data. China's economy may grow about 7% for the foreseeable future as policy makers rein in house-price gains and local government debt, Deputy Central Bank Governor Yi Gang said on Thursday.
Trading in US index futures indicated that the Dow could gain 3 points at the opening bell on Friday, 11 October 2013. US stocks jumped on Thursday, with the Dow Jones Industrial Average notching its best one-day point gain since December 2011, after House Republican leaders proposed a temporary extension of the nation's debt ceiling.
House Republican leaders and President Barack Obama ended a roughly 90-minute meeting at the White House Thursday night without a deal to re-open the government or raise the US debt limit, but agreed to keep talking. House Speaker John Boehner's office said that Republicans explained their proposal for a six-week extension in the debt limit, and to begin immediate talks on re-opening the government.
Claims for US jobless benefits jumped last week to the highest level in six months, a Labor Department report showed on Thursday.
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.
Powered by Capital Market - Live News
