Key benchmark indices moved into positive zone from negative zone in afternoon trade. The barometer index, the S&P BSE Sensex, was up 13.78 points or 0.06%, up 86.74 points from the day's low and off 19.93 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Index heavyweight and cigarette maker ITC rose in volatile trade after realty deveper D B Realty denied media reports that it is in talks to sell its hospitality business to ITC for Rs 1300 crore. Bharti Infratel retained positive zone reporting strong Q3 result.
Among side counters, Radico Khaitan edged higher after Morgan Stanley Asia Singapore acquired 1.54% equity stake through bulk deals on the BSE and the NSE on Wednesday, 22 January 2014. D B Corp scaled record high. Dewan Housing Finance Corporation hit 52-week high. Ess Dee Aluminium also hit 52-week high.
A bout of volatility was witnessed as key benchmark indices trimmed losses after a weak start triggered by weak Asian stocks. Key benchmark indices swung alternately between positive and negative terrain near the flat line in mid-morning trade. Key benchmark indices languished in negative zone in early afternoon trade. Key benchmark indices moved into positive zone from negative zone in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 279.45 crore on Wednesday, 22 January 2014, as per provisional data from the stock exchanges.
At 13:16 IST, the S&P BSE Sensex was up 13.78 points or 0.06% to 21,351.45. The index rose 33.71 points at the day's high of 21,371.38 in afternoon trade. The index dropped 72.96 points at the day's low of 21,264.71 in early trade.
The CNX Nifty was up 0.60 points or 0.01% to 6,339.55. The index hit a high of 6,345.05 in intraday trade. The index hit a low of 6,316.40 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,303 shares fell and 1,153 shares rose. A total of 144 shares were unchanged.
The total turnover on BSE amounted to Rs 1109 crore by 13:15 IST.
Among the 30-share Sensex pack, 16 stocks rose and the rest slipped.
D B Realty rose 0.44%. The company during market hours denied media reports that it is in talks to sell its hospitality business to ITC for Rs 1300 crore.
. Index heavyweight and cigarette maker ITC rose 0.47% to Rs 328.95 in volatile trade. The stock hit high of Rs 329 and low of Rs 325.20 so far during the day.
Bharti Infratel rose 1.39% after consolidated net profit jumped 62% to Rs 410.50 crore on 4% growth in revenue to Rs 2731 crore in Q3 December 2013 over Q3 December 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 16% to Rs 1130 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during market hours today, 23 January 2014.
With regard to the company's dividend policy, Bharti Infratel said that the company intends to have a total dividend payout between 60% to 80% of the net profit for the year or 100% of any dividend received by the company from its investee company(ies), whichever is higher, subject to the company retaining adequate liquidity to take care of planned business activities and expansion plans including capital expenditure and other use of such funds including, but not limited to, any debt servicing requirements, acquisitions, and ensuring an acceptable credit rating, as may be determined, by the board of directors from time to time.
The company further said that the declaration of dividend will always, however, be at the sole discretion of the board of directors (subject to approval by the shareholders) who will review this policy at least once every three financial years keeping in mind the business environment and requirements of the company, its subsidiaries and joint ventures.
Radico Khaitan jumped 2.78% to Rs 164.30 after Morgan Stanley Asia Singapore acquired 20.46 lakh shares, or 1.54% equity, of the company in bulk deals on the BSE and the NSE on Wednesday, 22 January 2014. On Wednesday, 22 January 2014, Morgan Stanley Asia Singapore PTE bought 9.80 lakh shares of Radico Khaitan at Rs 159.84 per share on the BSE and 10.65 lakh shares at Rs 159.50 per share on the NSE.
D B Corp jumped 5.11% to Rs 327 after striking a record high of Rs 344.50 in intraday trade.
Dewan Housing Finance Corporation gained 4.73% to Rs 232.70 after striking a 52-week high of Rs 238 in intraday trade.
Ess Dee Aluminium surged 5.4% to Rs 675.85 after striking a 52-week high of Rs 702.05 in intraday trade.
In the foreign exchange market, the rupee edged lower against the dollar on global risk off sentiment. The partially convertible rupee was hovering at 61.9225, compared with its close of 61.815/825 on Wednesday, 22 January 2014.
Bond prices dropped for the second day in a row after a committee set up by the Reserve Bank of India in its report submitted to the central bank early this week recommended that the central bank should start using a consumer-price inflation target to determine monetary policy. The panel's recommendations if accepted by the central bank may result in increase in interest rates to achieve the panel's 4% consumer-price inflation target by 2016. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.619%, higher than its close of 8.6085% on Wednesday, 22 January 2014. Bond yield and bond prices move in opposite direction.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
Assuring global investors that India is prepared to face the impact of the US Fed tapering, finance minister P Chidambaram on Wednesday said the country is poised to clock 5% growth in 2013-14 and over 6% in 2014-15. Addressing a meeting of the World Economic Forum (WEF), Chidambaram said the Indian economy has "stabilised and it is poised to return to high-growth path and step by step we will go back to 8% growth rate".
On the impact of the calibrated tapering of bond purchases by the US central bank, Chidambaram said: "We were concerned in May. But now I think we have done a lot of preparatory work. There will be some consequences in developing and emerging economies but I think we are better prepared for the taper than when we were surprised in May".
Asian stocks declined on Thursday, 23 January 2014, after a private gauge of China's manufacturing in January unexpectedly contracted. Key benchmark indices in Japan, South Korea, Singapore, China, Taiwan and Hong Kong were down 0.35% to 1.4%. Indonesia's Jakarta Composite rose 0.32%.
A preliminary reading of HSBC's January China manufacturing Purchase Manufacturing Index fell to 49.6, below the 50 boundary between expansion and contraction, and down from 50.5 in the final result for December. It was the first contraction for the sector in six months, according to the HSBC data.
South Korea's economic growth slowed as expected in the final quarter of last year on weaker construction spending, despite robust exports that reaffirms a recovery in Asia's fourth-largest economy. Gross domestic product rose a seasonally adjusted 0.9% in the October-December period from the previous quarter, when the economy expanded 1.1%, the Bank of Korea said on Thursday, 23 January 2014.
Trading in US index futures indicated that the Dow could drop 58 points at the opening bell on Thursday, 23 January 2014. US stocks closed mostly higher on Wednesday after trading in a narrow range for the bulk of the session. Markets shrugged off largely disappointing earnings, but results from IBM weighed on the blue chips.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.
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