Key benchmark indices surged, snapping three day losing streak as firmness in global stocks boosted sentiment. The barometer index, the S&P BSE Sensex hit highest closing level in over two-weeks. The 50-unit CNX Nifty hit more than one week closing high. The Sensex rose 390.49 points or 1.49% to settle at 26,637.28. The market breadth indicating the overall health of the market was strong with over two gainers for every loser. All the twelve sectoral indices ended in the green.
Realty stocks surged. Bank stocks rose across the board. Capital goods stocks gained on renewed buying. Bharat Heavy Electricals (Bhel) surged after announcing large order win. In auto stocks, Ashok Leyland scaled record high.
In overseas markets, European and Asian stocks rose today, 9 October 2014 as US Federal Reserve concerns over a global economic slowdown spurred bets that US interest rates will remain low. US stocks scored their biggest one-day gains of the year yesterday, 8 October 2014 after minutes of September Federal Open Market Committee meeting reaffirmed the central bank's intent to be prudent in raising interest rates.
Earlier, key indices held firm after opening with an upward gap mirroring positive Asian stocks.
In the foreign exchange market, the rupee edged higher past the 61 mark against the dollar on sustained selling of the US currency by exporters and banks.
Brent crude futures edged lower in choppy trade today, 9 October 2014 after rebounding from a 27-month low hit in the previous session.
The S&P BSE Sensex rose 390.49 points or 1.49% to settle at 26,637.28, its highest closing level since 24 September 2014. The index jumped 441.91 points at the day's high of 26,688.70 in late trade. The index gained 147.42 points at the day's low of 26,394.21 in early trade.
The CNX Nifty rose 117.85 points or 1.5% to settle at 7,960.55, its highest closing level since 30 September 2014. The index hit a high of 7,972.35 and a low of 7,886.50 in intraday trade.
The BSE Mid-Cap index rose 172.55 points or 1.83% to settle at 9,576.38. The BSE Small-Cap index gained 167.55 points or 1.59% to settle at 10,731.69. Both these indices outperformed the Sensex.
All the twelve sectoral indices were in the green. The S&P BSE Healthcare index (up 1.13%), the S&P BSE Consumer Durables index (up 0.55%), the S&P BSE Teck index (up 0.53%), the S&P BSE Oil & Gas index (up 1.34%), the S&P BSE Auto index (up 0.96%), the S&P BSE FMCG index (up 0.28%), and the S&P BSE IT index (up 0.07%) underperformed the Sensex.
the S&P BSE Capital Goods index (up 3.01%), the S&P BSE Bankex (up 2.51%), the S&P BSE Power index (up 2.25%), the S&P BSE Metal index (up 1.91%), and the S&P BSE Realty index (up 2.61%) outperformed the Sensex.
The market breadth indicating the overall health of the market was strong with over two gainers for every loser. On BSE, 2,015 shares gained and 932 shares fell. A total of 94 shares were unchanged.
The total turnover on BSE amounted to Rs 2653 crore, lower than Rs 2796.49 crore on Wednesday, 8 October 2014.
Capital goods stocks gained on renewed buying. ABB India (up 0.47%), Bharat Electronics (up 4.27%), BEML (up 2.77%), Crompton Greaves (up 3.51%), Siemens (up 2.98%) and Thermax (up 2.28%) gained.
Bharat Heavy Electricals (Bhel) surged 8.37%. Bhel announced after market hours on Wednesday, 8 October 2014, that it has bagged a contract for setting up a 1,320 megawatts (MW) supercritical thermal power project on engineering, procurement & construction (EPC) basis from Tamil Nadu Generation and Distribution Corporation (TANGEDCO) valued at around Rs 7800 crore. The order for setting up a 2x660 MW coal-fired supercritical thermal power project at Ennore special economic zone (SEZ) in Tamil Nadu. For this tender, Bhel has partnered with Power Finance Corporation (PFC), another PSU, by syndicating the financing package in the current competitive environment.
Larsen & Turbo (L&T) advanced rose 2.66%, with the stock extending Wednesday's gain. L&T Technology Services, the wholly owned subsidiary of L&T, during market hours on Wednesday, 8 October 2014, announced the intent to acquire the asset of US based Dell Product and Process Innovation Services, the engineering services division of Dell.
Shares related to power sector were in demand on renewed buying. Reliance Infrastructure (up 2.09%), Tata Power Company (up 2.55%), Reliance Power (up 3.27%), NHPC (up 2.09%), Power Grid Corporation of India (up 0.22%), Adani Power (up 3.4%), JSW Energy (up 6.58%) edged higher. NTPC shed 0.49%.
Among power finance companies, REC (up 4.58%) and Power Finance Corporation (up 4.68%) gained.
IDFC rose 1.08%. IDFC during market hours today, 9 October 2014 announced the final closure for IDFC Alternatives, a wholly owned subsidiary of IDFC, IIF II at its hard cap of Rs 5500 crore (approx. $900 million). This includes a commitment of $90 million from IDFC and remaining $810 million from third party Limited Partners. Investors in IIF II include global institutional investors from North America, Europe and the Middle East, IDFC said.
UltraTech Cement rose 0.84%. With respect to news article titled "Ultratech eyes Jaypee's 3 Cement Plants in MP" the company has clarified that the news item is speculative in nature and the company would not like to comment on the same. The company would, as in the past, promptly inform of any event or information that may have a bearing on the performance / operations of the company.
Infosys fell 0.13% ahead of its Q2 results tomorrow, 10 October 2014. Investors will keenly watch Infosys' commentary regarding changes in its strategy under the new CEO, Dr. Vishal Sikka, when the company unveils its Q2 September 2014 results tomorrow, 10 October 2014. At the time of announcing Q1 June 2014 results in July 2014, Infosys had forecast 7% to 9% growth in the company's revenue in dollar terms for the year ending 31 March 2015 (FY 2015). At that time, the company had forecast 5.6% to 7.6% growth in revenue in rupee terms for FY 2015. The guidance was based on rupee dollar exchange rate of 60. With deprecation of rupee against the dollar since that time, there is a room for upward revision in revenue guidance in rupee terms.
Coal India rose 0.57%. Coal India during market hours said that the company and its subsidiaries, on a provisional basis, achieved 96% of targeted production at 34.88 million tonne in September 2014. Coal India achieved 96% of targeted offtake at 35.12 million tonne in September 2014.
Bank stocks gained across the board. Among private bank stocks, HDFC Bank (up 2.25%), IndusInd Bank (up 0.18%), Kotak Mahindra Bank (up 2.14%), Axis Bank (up 2.32%), Yes Bank (up 4.17%), and ICICI Bank (up 2.64%) gained.
DCB Bank rose 3.47% at Rs 83.55. DCB Bank after market hours on Wednesday, 8 October 2014 said that in respect of the qualified institutional placement (QIP), the bank's Capital Raising Committee of the Board (CRC) at its meeting held on 8 October 2014, has approved the closure of the QIP on 8 October 2014. The CRC has approved the issue price of Rs 82.15 per share which is at a discount of Rs 4.30 per share, to the floor price of Rs 86.45 per share, for the shares to be allotted to eligible qualified institutional buyers (QIBs) in the QIP. The QIP opened on 29 September 2014.
Among PSU bank stocks, State Bank of India (SBI) (up 2.84%), Punjab National Bank (up 2.47%), Bank of Baroda (up 1.66%), Bank of India (up 4.96%) and Union Bank of India (up 4.33%) gained.
Metal and mining stocks gained on renewed buying. Hindustan Copper (up 1.31%), JSW Steel (up 3.39%), Tata Steel (up 2.31%), Sesa Sterlite (up 1.69%), Steel Authority of India (Sail) (up 1.73%), and National Aluminum Company (up 3.92%) gained. Hindustan Zinc (down 0.71%), Jindal Steel & Power (down 0.39%), and NMDC (down 0.56%) declined.
Hindalco Industries jumped 6.01% after US based aluminum major Alcoa Inc reported better-than-expected Q3 earnings. Alcoa Inc reported a stronger-than-expected increase in third-quarter profit on Wednesday, 8 October 2014, as higher aluminum prices and lower costs drove a recovery in its business unit that produces aluminum.
In the third quarter, Alcoa's net income rose to $149 million, or 12 cents a share, from $24 million, or 2 cents, even as it took restructuring charges for smelter closures. Third-quarter after-tax operating income in Alcoa's primary metals unit, which houses its aluminum mining, refining and smelting operations, jumped to $245 million from $8 million. It also benefited from an increase in average realized prices to $2,538 a tonne from $2,180.
Realty stocks also gained on renewed buying. Housing Development and Infrastructure (HDIL) (up 4.19%), D B Realty (up 8.03%), DLF (up 2.62%), Unitech (up 4.58%), Godrej Properties (up 2.45%) and Parsvnath Developers (up 1.49%) edged higher.
Cipla rose 1.03%. Medpro Pharmaceutical (Pty), a subsidiary company of Cipla Medpro, during market hours today, 9 October 2014 announced that it has entered into a collaboration with TevaPharmaceutical(Pty), an affiliate of Teva Pharmaceutical Industries (Teva). The collaboration is restricted to the territory of South Africa. The collaboration is a sales and distribution whereby Cipla Medpro will exclusively market Teva's broad pharamaceutical product portfolio in South Africa, Cipla said.
The collaboration with Teva in South Africa will focus on therapeutic areas, such as oncology, central nervous system, women's health, cardiovascular, ophthalmology and other specialty products, Cipla said.
Ashok Leyland gained 3.19% to Rs 45.25 after scaling a record high of Rs 45.40 in intraday trade.
GVK Power & Infrastructure rose 2.88%. After over 6 years of comprehensive environmental assessments and detailed planning, GVK Hancock has been granted an Environmental Authority (Clearance) for its Alpha Coal Project in the Galilee Basin in Central Queensland, GVK Power & Infrastructure said in a statement during trading hours today, 9 October 2014.
Key benchmark indices snapped three-day falling trend today, 9 October 2014. From a recent high of 26,630.51 on 30 September 2014, the Sensex had declined 383.72 points or 1.44% in three trading sessions to settle at 26,246.79 on 8 October 2014. The Sensex has gained 6.77 points or 0.02% in this month so far (till 9 October 2014). The Sensex has gained 5,466.60 points or 25.82% in calendar year 2014 so far (till 9 October 2014). From a record high of 27,354.99 on 8 September 2014, the Sensex has declined 717.71 points or 2.62%. From a 52-week low of 19,826.96 on 9 October 2013, the Sensex has risen 6,810.32 points or 34.34%.
The government will unveil industrial production data for August 2014 tomorrow, 10 October 2014. India's index of industrial production (IIP) growth moderated to 0.5% in July 2014, showing moderation in the pace of growth from 3.9% (revised) increase recorded in the previous month of June 2014.
In the foreign exchange market, the rupee edged higher past the 61 mark against the dollar on sustained selling of the US currency by exporters and banks. The partially convertible rupee was hovering at 60.985, compared with its close of 61.4 during the previous trading session.
Brent crude futures edged lower in choppy trade today, 9 October 2014 after rebounding from a 27-month low hit in the previous session. Brent for November settlement was down 30 cents at $91.08 a barrel. The contract had declined 73 cents to settle at $91.38 a barrel yesterday, 8 October 2014. It had dropped to $90.57 yesterday, the lowest since June 2012.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 8 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1440.99 crore on that day.
European stocks rallied today, 9 October 2014, rebounding from a two-month low, on speculation that the Federal Reserve will keep interest rates near zero amid concerns about slower global growth. Key benchmark indices in France, Germany and UK rose 0.44% to 1.13%.
The Bank of England (BOE) will announce its latest policy decision today, 9 October 2014. Reports indicated that interest rates are expected to remain on hold today, 9 October 2014 as signs of slowing economic growth and a cooling housing market ease pressure on the Bank of England for an imminent hike. The BOE has held the main rate at a historic low of 0.5% since March 2009.
Asian stocks closed higher today, 9 October 2014 as US Federal Reserve concerns over a global economic slowdown spurred bets that US interest rates will remain low. Key benchmark indices in Singapore, Taiwan, China, Hong Kong and Indonesia rose by 0.13% to 1.17%. Japan's Nikkei 225 index shed 0.75% Markets in South Korea were closed for holiday.
Japanese core machinery orders rose for the third straight month in August, the government said today, 9 October 2014. The 4.7% rise in August follows monthly gains of 3.5% in July and 8.8% in June, after a record 19.5% drop in May.
Trading in US index futures indicated that the Dow could gain 33 points at the opening bell on Thursday, 9 October 2014. US stocks scored their biggest one-day gains of the year yesterday, 8 October 2014 after minutes of September Federal Open Market Committee meeting reaffirmed the central bank's intent to be prudent in raising interest rates.
Slowing global growth and a stronger dollar pose potential risks to the US outlook, Fed policy makers said at their Sept. 16-17 meeting, according to the minutes released yesterday, 8 October 2014.
The Federal Open Market Committee (FOMC) last month retained a pledge to keep interest rates near zero for a considerable time after it concludes an asset purchase program that's due to end after its October meeting. Policy makers next begin their two-day meeting on 28 October 2014.
The influential US monthly non-farms payroll data is due tomorrow, 10 October 2014. The data pertains to September 2014.
Meanwhile, finance ministers and central bankers from the Group of 20 nations are scheduled to meet today, 9 October 2014 and tomorrow, 10 October 2014 in Washington will discuss the outlook for inflation and the economy.
The IMF and World Bank begin their annual meetings in Washington tomorrow, 10 October 2014 as finance ministers and central bankers from around the world discuss ways to bolster the global economic recovery, weather the latest bout of geopolitical instability and lift incomes in poor countries.
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