Key benchmark indices surged and hit fresh intraday high in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 335.57 points or 1.66%, off close to 35 points from the day's high and up about 230 points from the day's low. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by a drop in crude oil prices after the US and five other world powers agreed with Iran on Sunday, 24 November 2013, to ease part of an economic stranglehold in exchange for steps aimed at capping Iran's nuclear program and ensuring the country's Islamist government doesn't rush to develop atomic weapons.
Metal and mining stocks edged higher. ICICI Bank extended intraday gains.
The market surged in early trade as Asian stocks rose after the US and five other world powers reached an historic agreement with Iran on Sunday, 24 November 2013, that would roll back Iran's nuclear program. The 50-unit CNX Nifty regained the psychological 6,000 mark. The market extended initial gains and hit fresh intraday high in morning trade. Key benchmark indices trimmed intraday gains in mid-morning trade. Firmness continued on the bourses in early afternoon trade. Key benchmark indices were off the day's high in afternoon trade as index heavyweight Reliance Industries pared intraday gains and as another index heavyweight Infosys dropped. The Sensex surged and hit fresh intraday high in mid-afternoon trade.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month November 2013 series to December 2013 series. The near month November 2013 derivatives contract expire on Thursday, 28 November 2013.
Concerns over India's fiscal deficit and current account deficit eased as crude oil prices dropped after the US and five other world powers reached an historic agreement with Iran on Sunday, 24 November 2013, that would roll back Iran's nuclear program. Cheaper crude would help shrink India's fiscal deficit because the government's fuel-subsidy bill decreases. India imports majority of its crude oil requirements. Falling oil prices could help contain inflation.
Iran and six world powers clinched a deal on Sunday, 24 November 2013, curbing the Iranian nuclear programme in exchange for initial sanctions relief, signalling the start of a game-changing rapprochement that could ease the risk of a wider Middle East war. Aimed at ending a long festering standoff, the interim pact between Iran and the United States, France, Germany, Britain, China and Russia won the critical endorsement of Iranian clerical Supreme Leader Ayatollah Ali Khamenei. US President Barack Obama said the deal struck after marathon, tortuous and politically charged negotiations cut off Tehran's possible routes to a nuclear bomb. But Israel, Iran's arch-enemy, denounced the agreement as an "historic mistake". Iran's oil exports will be held to about 1 million barrels a day under sanctions that remain in force after the deal. The six-month agreement, which offers Iran about $7 billion in relief from sanctions in exchange for curbs on its nuclear program, leaves in place banking and financial measures that have hampered its crude exports. Sanctions on sales of refined products also remain, while Iran gains access to $4.2 billion in oil revenue frozen in foreign banks, the White House said. As part of the deal, the European Union (EU) will lift a ban on insurance for tankers transporting Iranian oil, making it easier for the Persian Gulf nation's six remaining customers to take delivery. The EU will continue to prohibit crude imports from Iran.
At 14:20 IST, the S&P BSE Sensex was up 335.57 points or 1.66% to 20,552.96. The index jumped 369.52 points at the day's high of 20,586.91 in mid-afternoon trade, its highest level since 20 November 2013. The index rose 109.27 points at the day's low of 20,326.66 in early trade.
The CNX Nifty was up 102.40 points or 1.71% to 6,097.65. The index hit a high of 6,109.20 in intraday trade, its highest level since 20 November 2013. The index hit a low of 6,035.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,333 shares gained and 1,005 shares fell. A total of 161 shares were unchanged.
From 30-share Sensex pack, 27 stocks rose and the rest of them fell. State Bank of India (up 3.6%), L&T (up 3.5%) and ONGC (up 3.33%) edged higher from the Sensex pack.
ICICI Bank jumped 5.17%, with the stock extending intraday gains.
Metal and mining stocks edged higher. Tata Steel (up 1.35%), Hindustan Copper (up 2.05%), NMDC (up 1.72%), National Aluminium Company (up 2.47%), Sail (up 1.38%), JSW Steel (up 1.62%), Hindustan Zinc (up 1.84%), Sesa Sterilte (up 0.03%), Hindalco Industries (up 0.04%) and Bhushan Steel (up 0.45%) gained.
In mid-November 2013, China released a broad outline for structural reform of the economy. China is the world's largest consumer of copper and aluminum.
AXIS Bank gained 3.32%, with the stock extending intraday gains. Jindal Steel & Power rose 0.99%. The Bombay Stock Exchange (BSE) announced after market hours on Friday, 22 November 2013, that AXIS Bank will replace Jindal Steel & Power (JSPL) in the 30-share S&P BSE Sensex with effect from 23 December 2013.
NHPC rose 1.42% after the company said it will commence the buyback of shares from Friday, 29 November 2013. The company made the announcement after market hours on Friday, 22 November 2013. NHPC plans to buyback around 123 crore fully paid up equity shares of Rs 10 each at a price of Rs 19.25 per share, aggregating Rs 2368 crore from the open market. The buyback offer will close on 12 December 2013.
DIC India hit an upper circuit limit of 20% at Rs 282.80 on BSE after the company's promoter proposed a voluntary delisting offer. The company made the announcement after market hours on Friday, 22 November 2013. DIC India informed exchanges that its promoter DIC Asia Pacific has proposed to delist shares of DIC India from all the stock exchanges. The promoter is proposing to acquire the remaining 25.92 lakh equity shares, or 28.25% stake in DIC India at an indicative offer price of Rs 260 per share.
The company said it will use the reverse book building process to delist shares of the company and shareholders are free to tender their shares at a price higher than the indicative offer price.
Meanwhile in a separate announcement, the company said that DIC Asia Pacific has fixed a floor price of Rs 174 per share for the proposed delisting offer.
In the foreign exchange market, the rupee edged higher against the dollar as concerns about India's fiscal deficit and current account deficit eased as crude oil prices dropped after the US and five other world powers reached an historic agreement with Iran on Sunday, 24 November 2013, that would roll back Iran's nuclear program. India imports majority of its crude oil requirements. The partially convertible rupee was hovering at 62.54, compared with its close of 62.87/88 on Friday, 22 November 2013. The Reserve Bank of India on Friday, 22 November 2013, conditionally extended the deadline for banks to swap dollars raised through overseas borrowings at discounted rates, further bolstering the local currency. Indian banks now have until 31 December 2013 to avail themselves of the central bank's offer of concessional swaps for dollars raised through overseas debt, compared with the previous deadline of 30 November 2013, as long as the funds have been committed by the end of this month, the RBI said in a statement after market hours on Friday, 22 November 2013.
Bond prices rose as concerns about India's fiscal deficit and current account deficit eased as crude oil prices dropped eased after the US and five other world powers reached an historic agreement with Iran on Sunday, 24 November 2013, that would roll back Iran's nuclear program. Cheaper crude would help shrink India's fiscal deficit because the government's fuel-subsidy bill decreases. India imports majority of its crude oil requirements. Falling oil prices could help contain inflation. The yield on the most traded new 10-year federal paper, 8.83% GS 2023, was hovering at 8.7379%, lower than its close of 8.7828% on Friday, 22 November 2013. Bond yield and bond prices are inversely related.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
European stocks rose on Monday, 25 November 2013, as Iran agreed to limit its nuclear program and as investors awaited a report on US pending-home sales. Key benchmark indices in France, Germany and UK rose 0.34% to 0.49%.
Asian stocks rose on Monday, 25 November 2013, as Iran agreed to limit its nuclear program. Key benchmark indices in Taiwan, Indonesia, Japan, Singapore and South Korea rose by 0.21% to 1.54%.
China's Shanghai Composite fell 0.47% in choppy trade. Hong Kong's Hang Seng shed 0.05%. China's declared intent to protect an air zone encompassing islands that are disputed with Japan escalated tensions between Asia's largest economies, risking damage to a resurgence in trade. China announced an air defense identification zone in the East China Sea effective Nov. 23 and said its military will take "defensive emergency measures" if aircraft enter the area without reporting flight plans or identifying themselves. Japan lodged a complaint as the US and South Korea expressed concern about China's actions.
Trading in US index futures indicated that the Dow could advance 59 points at the opening bell today, 25 November 2013. US stocks rose on Friday, 22 November 2013, with the S&P 500 index closing above 1,800 for the first time and extending gains into a seventh consecutive week.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy.
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