Key benchmark indices eked out marginal gains after witnessing high volatility during the last one hour or so of the trading session. The barometer index, the S&P BSE Sensex, was provisionally up 10.44 points or 0.05%, off close to 120 points from the day's high and up about 30 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Indian stocks edged higher for the second day in a row today, 23 December 2013.
Shares of a number of small-cap and mid-cap companies rose for the second day in a row, boosted by stock market regulator Securities and Exchange Board of India's (Sebi) announcement on 19 December 2013 that it has decided to rationalize the rules on trading of thinly-traded stocks. BSE Small-Cap and Mid-Cap indices were up more than 1% each, with both these indices outperforming the Sensex.
Index heavyweight Reliance Industries (RIL) edged higher in choppy trade. Realty stocks extended Friday's gains as ICICI Bank joined State Bank of India and HDFC by cutting interest on home loans. Metal and mining stocks extended Friday's gains. Infosys dropped after the company after trading hours on Friday, 20 December 2013, announced the changes to the board of directors of the company.
The market edged higher in early trade on firm Asian stocks. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost two weeks. A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming initial gains in morning trade. The Sensex hovered in positive terrain in mid-morning trade. The Sensex trimmed gains in early afternoon trade. Key benchmark indices moved in a narrow range in positive zone in afternoon trade. A bout of volatility was witnessed as key benchmark indices recovered from lower level after paring intraday gains in mid-afternoon trade. High volatility was witnessed during the last one hour or so of the trading session as key benchmark indices regained positive terrain after slipping into the red.
The market may remain volatile this week, which is a truncated trading week, as traders roll over positions in the futures & options (F&O) segment from the near month December 2013 series to January 2014 series. The near month December 2013 derivatives contract expire on Thursday, 26 December 2013. The stock market remains closed on Wednesday, 25 December 2013, on account of Christmas.
As per provisional figures, the S&P BSE Sensex was up 10.44 points or 0.05% to 21,090.16. The index jumped 128.17 points at the day's high of 21,207.89 in early trade, its highest level since 11 December 2013. The index shed 20.60 points at the day's low of 21,059.12 in late trade.
The CNX Nifty was up 6.85 points or 0.11% to 6,281.10, as per provisional figures. The index hit a high of 6,317.50 in intraday trade, its highest level since 11 December 2013. The index hit a low of 6,266.95 in intraday trade.
The S&P BSE Mid-Cap index garnered 85.77 points or 1.32% at 6,588.26. The BSE Small-Cap index garnered 77.88 points or 1.24% at 6,369.84. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2024 crore, lower than Rs 2210.78 crore on Friday, 20 December 2013.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,592 shares gained and 921 shares fell. A total of 169 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined. Bhel (up 2.33%), ONGC (up 1.64%) and Hero MotoCorp (up 1.51%) edged higher from the Sensex pack.
Infosys dropped 2.5% after the company announced after market hours on Friday, 20 December 2013, changes to the board of directors of the company. Mr. V. Balakrishnan has conveyed his intention to resign as a member of the board and from the services of the company. The resignation is effective 31 December 2013.
Mr. N. R. Narayana Murthy, Executive Chairman said, "Bala has been an early adopter and a keen anchor-builder of Infosys. It is difficult to imagine Infosys without Bala's passion, commitment, and intellect. The Board and every Infoscion thank Bala for his wonderful contribution and wish him great success in his future endeavors."
Mr. S. D. Shibulal, Chief Executive Officer and Managing Director said, "Bala during his two decades of association with Infosys, has played a pivotal role in building the finance function and has been a key driver behind all of our achievements in areas of investor relations and corporate governance. Over the last few years, he has also provided leadership to BPO, Finacle, India Business Unit, Global Immigration and most recently, to Lodestone. I would like to wish him the very best in all his future endeavors."
Balakrishnan said, "I have enjoyed every moment of my stint at Infosys and it was a great learning experience. While my heart will always be with Infosys my mind wants to do something beyond Infosys. I thank all my colleagues who supported and encouraged me during my career at Infosys. I wish Infosys all the very best in its future endeavors."
Infosys also said that the Nominations and Governance Committee of the company has recommended the induction of Mr. U. B. Pravin Rao as a Whole-time Director of the company. Mr. Pravin Rao is currently a Member of the Executive Council, Senior Vice President and Global Head-Retail, Consumer Packaged Goods, Logistics and Life Sciences. Mr. Rao also serves as a Member of the Board of Infosys Lodestone. Mr. Rao is also the Director of the Infosys Leadership Institute (ILI). Mr. Rao holds a degree in electrical engineering from Bangalore University, India.
Welcoming Mr. Pravin Rao, Mr. N. R. Narayana Murthy, Executive Chairman said, "I am very happy that Pravin will be joining the Board. I have worked with Pravin closely and have benefited immensely from his wisdom. My congratulations to him."
The Nominations and Governance Committee of the company has also recommended the induction of Ms. Kiran Mazumdar-Shaw as an Independent Member of the Board. Ms. Kiran Mazumdar-Shaw is the Chairman & Managing Director of Biocon, a biotechnology company based in Bangalore, India. Welcoming Ms. Shaw, Mr. N. R. Narayana Murthy, Executive Chairman said, "Kiran is a well-recognized and respected corporate leader. She will bring immense value to the board. I am honored to welcome her to our Board."
Realty stocks extended Friday's gains as ICICI Bank joined State Bank of India and HDFC by cutting interest on home loans. The reduction in home loan rates by these three major lenders could lead to a revival of interest in the real estate sector, which has been hit by high prices amid a sluggish economy. Purchases of both residential and commercial property are largely driven by finance. DLF (up 4.18%), HDIL (up 7.37%), Unitech (up 2.94%) and Sobha Developers (up 1.25%) gained.
ICICI Bank on Saturday, 21 December 2013, said it has cut its home loan rates for new customers by 15 basis points or 0.15 percentage points, as a part of a special scheme. It will be valid till 31 January 2014. Under the scheme, the bank will offer home loans up to Rs. 75 lakh at an interest rate of 10.25%, while loans above Rs. 75 lakh will be charged 10.50%. The move came shortly after State Bank of India and Housing Development Finance Corporation (HDFC) reducing home loan rates on 19 December 2013.
Shares of ICICI Bank gained 0.99%.
Index heavyweight Reliance Industries (RIL) rose 0.04% to Rs 894.05. The stock hit high of Rs 908.35 and low of Rs 890.50.
Metal and mining stocks extended Friday's gains. Hindalco Industries (up 3.53%), JSW Steel (up 2.6%), SAIL (up 0.42%), Hindustan Copper (up 1.55%), NMDC (up 1.25%), Tata Steel (up 1.29%), National Aluminum Company (up 2.54%) and Sesa Sterlite (up 0.1%) gained. Hindustan Zinc fell 0.07%.
Jindal Steel & Power jumped 5.13%. AXIS Bank replaced Jindal Steel & Power as a constituent of the S&P BSE Sensex with effect from today, 23 December 2013.
Shares of AXIS Bank gained 0.89%
Electrosteel Steels surged 4.99% after the company said that the corporate debt restructuring related documents has been executed on Saturday, 21 December 2013. The announcement was made during trading hours today, 23 December 2013.
It may be recalled that Electrosteel Steels had on 30 September 2013 said that the application of the company for restructuring of its debts to the tune of Rs 6181.20 crore has been approved by corporate debt restructuring (CDR) EG under the CDR mechanism from cut off date of 1 March 2013. The term loan outstanding of non-CDR lenders amounting to Rs 611.91 crore will be outside the purview of CDR, the company said at that time.
Sebi after trading on Thursday, 19 December 2013, said it has rationalized the periodic call auction mechanism by modifying how it classifies illiquid stocks. A stock would now be classified as illiquid if its average daily turnover is less than Rs 2 lakh in the previous two quarters and if it is classified as illiquid at all the exchanges where it is traded. Earlier, a stock was classified to be illiquid if its average daily trading volume in a quarter was less than 10,000, the average daily number of trades was less than 50 in a quarter and if it was classified as illiquid by all the exchanges where it traded.
Henceforth, call auctions will not apply to shares where a company is profitable in at least two of the past three years and not more than 20% of promoters' shareholding is pledged in the latest quarter and the book value is three times or more than the face value. The new rules also exclude companies with a market capitalisation of at least Rs 10 crore or which have paid a dividend in at least two of the past three years.
From now, stock exchanges will determine the number of call auction sessions for illiquid stocks. Exchanges will, however, have at least two sessions in a trading day, with one uniform closing session across the exchanges. So far, periodic call auction sessions of one hour each were conducted throughout trading hours, with the first session starting at 9:30 IST.
In foreign exchange market, rupee strengthened past 62 against the dollar. The partially convertible rupee was hovering at 61.885, compared with its close of 62.04/05 on Friday, 20 December 2013. The rupee rose on global risk on sentiment.
Reserve Bank of India (RBI) governor Dr Raghuram Rajan said the central bank had decided to keep rates on hold even before the high consumer price and retail inflation data for November were released. Rajan was speaking to a television channel in an interview. The RBI surprised markets last week by keeping interest rates on hold despite data showing consumer prices in November posted their biggest annual rise on record -- 11.24% -- while wholesale inflation hit a 14-month high.
European stocks edged higher on Monday, 23 December 2013, after the International Monetary Fund said it is raising its growth outlook for the US economy. Key benchmark indices in UK and Germany were up 0.35% to 0.38%. France's CAC 40 was off 0.01%.
Asian stocks edged higher on Monday, 23 December 2013, after data showed faster-than-estimated economic growth in the US and after the International Monetary Fund said it's raising its outlook for the world's largest economy. Key benchmark indices in China, Hong Kong, Taiwan, Singapore and South Korea rose 0.24% to 0.7%. In Indonesia, Jakarta Composite was off 0.14%. Japanese markets were shut for a holiday.
Trading in US index futures indicated that the Dow could advance 48 points at the opening bell on Monday, 23 December 2013. US stocks rallied Friday, lifting the Dow Jones Industrial Average and the S&P 500 to record levels, after a government report showed the economy grew at its fastest pace in two years last quarter.
The rate of US growth in the third quarter was faster than previously estimated as consumers stepped up spending on services such as health care and companies invested more in software. Gross domestic product climbed at a 4.1% annualized rate, the strongest since the final three months of 2011 and up from a previous estimate of 3.6%, Commerce Department figures showed on Friday, 20 December 2013.
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