A bout of volatility was witnessed in early trade as key benchmark indices slipped into the red after a firm opening triggered by higher Asian stocks. The barometer index, the S&P BSE Sensex, was down 33.36 points or 0.17%, off about 120 points from the day's high and up close to 40 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Index heavyweight and cigarette maker ITC edged lower in early trade. Auto stocks rose after PSU OMCs reduced petrol price by Rs 3.05 per litre, the first reduction in rates in over five months, while diesel prices were raised by 50 paise a litre.
In the foreign exchange market, the rupee edged higher against the dollar in early trade, with the Indian currency finding support from data showing a lower-than-expected current account deficit in Q1 June 2013. The partially convertible rupee was hovering at 62.425, compared with its close of 62.60/61 on Monday, 30 September 2013.
At 9:30 IST, the S&P BSE Sensex was down 33.36 points or 0.17% to 19,346.51. The index declined 74.62 points at the day's low of 19,305.15 in early trade. The index rose 86.41 points at the day's high of 19,466.18 in early trade.
The CNX Nifty was up 1.70 points or 0.03% to 5,737. The index hit a high of 5,762.40 in intraday trade. The index hit a low of 5,736.80 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 552 shares rose and 473 shares fell. A total of 56 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and rest of them fell. Bhel (up 2.48%), Dr Reddy's Laboratories (up 0.96%) and HDFC (up 0.84%), edged higher.
Index heavyweight and cigarette maker ITC fell 0.38%.
Auto stocks rose after PSU OMCs reduced petrol price by Rs 3.05 per litre, the first reduction in rates in over five months, while diesel prices were raised by 50 paise a litre. This price change by oil companies are excluding local sales tax or VAT and effective from Tuesday, 1 October 2013.
Maruti Suzuki India (up 1.45%), M&M (up 0.24%) and Tata Motors (up 0.93%), gained.
Two-wheeler makers rose. Bajaj Auto rose 0.55%. Hero MotoCorp gained 0.69%.
Auto companies will start unveiling their monthly sales volume data for September 2013 starting today, 1 October 2013.
Punjab National Bank rose 1.35%. The bank said after market hours on Monday, 30 September 2013 that the bank has decided to provide interest at uniform rate of 9% on all NRE term deposits of tenure 3 years and above up to 10 years, considering recent relaxations permitted by the Reserve Bank of India (RBI). These changes shall be effective from 1 October 2013.
Kotak Mahindra Bank declined 0.06%. The bank said after market hours on Monday, 30 September 2013, that the bank has decided not to transfer any SLR security from AFS/HFT to HTM as permitted under Reserve Bank of India (RBI) circular though there is sufficient headroom to do so. Reserve Bank of India, vide its circular dated 23 August 2013 had, as a onetime measure, permitted banks to transfer SLR securities from AFS/HFT to HTM category during the current year up to the limit of 24.50% of net demand and time liabilities (NDTL). To mitigate impact of mark to market losses incurred by banks due to abnormal market conditions, the RBI also gave banks the option of valuing these securities for the purpose of such transfer, as at the close of business of 15 July 2013. Such transfers were to be done no later than 30 September 2013.
Bank of Baroda rose 0.59%. The bank has decided to revise the rates of interest payable on term deposits of below Rs 1 crore and Rs 1 crore and above of some maturities with effect from 1 October 2013.
The Reserve Bank of India (RBI) will infuse Rs 10000 crore into the system through open-market operations next week to ease liquidity constraints. Based on the current assessment of prevailing and evolving market conditions, the RBI will purchase government securities for an aggregate amount of Rs 10000 crore on 7 October 2013, it said in a press release on Monday, 30 September 2013.
Markit Economics will unveil HSBC India Manufacturing Purchasing Managers' Index (PMI), which gauges the business activity of India's factories, for September 2013 today, 1 October 2013.
The combined output of the eight core infrastructure sectors rose 3.7% in August 2013, supported by strong growth in coal and cement production and electricity generation, data released by the government after trading hours on Monday, 30 September 2013, showed. It was the highest growth in core sector output in seven months.
India's current account deficit (CAD) widened to $21.8 billion or 4.9% of GDP in Q1 June 2013 from $16.9 billion or 4% of GDP in Q1 June 2012, data released by the Reserve Bank of India (RBI) after trading hours on Monday, 30 September 2013, showed. The CAD was $18.1 billion in Q4 March 2013. The RBI said that the year-on-year rise in CAD in Q1 June 2013 was due to a rise in imports and some decline in merchandise exports. Merchandise trade deficit (balance of payments basis) widened to $50.5 billion in Q1 June 2013 from $43.8 billion in Q1 June 2012. The trade deficit, coupled with a slow recovery in net invisibles (income and services), led to widening of CAD on year-on-year basis in Q1 June 2013, the RBI said. On balance of payments (BoP) basis, there was a slight drawdown in foreign exchange reserves of $0.3 billion in Q1 June 2013 as against an accretion of $0.5 billion in Q1 June 2012.
The government's fiscal deficit for the April-August period has reached about three-fourths of its target for the year ending March, data released after trading hours on Monday, 30 September 2013, showed. By the end of August, the gap between the government's revenue and expenses has reached 74.6% of its target for the fiscal year, according to data released on Monday. Expenses during the first five months were about 40% of the aim for the year, while revenue was way short at 23% of the target. The government aims to limit the deficit within 4.8% of gross domestic product, compared with 4.9% last year.
Asian stocks rose on Tuesday as investors awaited a potential shutdown of the US government and a report showed confidence among large Japanese manufacturers increased before Prime Minister Shinzo Abe unveils plans for an economic-support package. Key benchmark indices in Japan, Taiwan, Indonesia, Singapore and South Korea rose 0.41% to 0.71%. China's local markets will be shut from today, 1 September 2013 to 7 October 2013 for National Day holidays.
A Chinese factory gauge rose less than economists forecast in September, signaling limits on the nation's rebound from a two-quarter economic slowdown. The Purchasing Managers' Index was at 51.1, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That compares with 51 in August.
The Bank of Japan's quarterly Tankan index for big manufacturers rose to 12 in September, the highest since 2007, from 4 in June.
US stocks closed lower on Monday with just hours to go before a midnight deadline to avert a federal government shutdown.
With a midnight Washington time deadline to keep the US government open approaching, the partisan confrontation showed few signs of ending. Failure to do so may result in as many as 800,000 federal employees being placed on temporary unpaid leave. Even if the budget fight is resolved, both sides still disagree over raising the $16.7 trillion debt ceiling.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. 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.
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