Key benchmark indices trimmed initial losses as two index heavyweights -- ITC and Reliance Industries (RIL) -- edged higher in choppy trade. The barometer index, the S&P BSE Sensex, was down 26.28 points or 0.13%, up 130.37 points from the day's low and off 0.08 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Shares of pharma major Sun Pharmaceutical Industries struck record high. Realty stocks extended Tuesday's gains triggered by the Reserve Bank of India's (RBI) surprise announcement on Monday evening to improve liquidity conditions in the banking system. DLF rose after the company on Tuesday said its subsidiaries have divested 60% stake in Star Alubuild Private (Star Alubuild) at an enterprise value of Rs 79.80 crore.
Key benchmark indices edged lower amid initial volatility after Reserve Bank of India (RBI) Governor Raghuram Rajan in an interview to a newspaper retained hawkish monetary policy stance by saying that monetary policy should aim at bringing down inflation expectations. Key benchmark indices trimmed initial losses as two index heavyweights -- ITC and Reliance Industries (RIL) -- edged higher in choppy trade.
In the foreign exchange market, the rupee fell below 62 against the dollar. The partially convertible rupee was hovering at 62.16, weaker than its close of 61.7925/8025 on Tuesday, 8 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 226.32 crore on Tuesday, 8 October 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was down 26.28 points or 0.13% to 19,957.33. The index lost 156.65 points at the day's low of 19,826.96 in early trade, its lowest level since 7 October 2013. The index fell 26.20 points at the day's high of 19,957.41 in morning trade.
The CNX Nifty was down 10.70 points or 0.18% to 5,917.70. The index hit a low of 5,877.10 in intraday trade, its lowest level since 7 October 2013. The index hit a high of 5,919.05 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 973 shares declined and 642 shares gained. A total of 110 shares were unchanged.
The total turnover on BSE amounted to Rs 349 crore by 10:20 IST compared to Rs 119 crore by 09:30 IST.
Among the 30-share Sensex pack, 18 stocks declined and rest of them gained. ICICI Bank (down 2.42%), Bharti Airtel (down 1.45%) and NTPC (down 1.15%) edged lower from the Sensex pack.
Index heavyweight and cigarette major ITC rose 0.19% to Rs 348.15. The stock hit high of Rs 348.85 and low of Rs 344.05 so far during the day.
Index heavyweight Reliance Industries rose 0.6% to Rs 849. The stock hit high of Rs 850 and low of Rs 838 so far during the day.
Sun Pharmaceutical Industries gained 1.61% to Rs 623.25, with the stock extending initial gain. The stock hit a record high of Rs 624.05 in intraday trade.
Realty stocks extended Tuesday's gain triggered by the Reserve Bank of India's (RBI) surprise announcement on Monday evening to improve liquidity conditions in the banking system. Purchases of both residential and commercial property are largely driven by finance. HDIL (up 1.11%), Unitech (up 0.6%), Oberoi Realty (up 1.04%) and Indiabulls Real Estate (up 1.42%) gained.
DLF gained 1.26%. The company after market hours on Tuesday, 8 October 2013 said its two subsidiaries viz. DLF Home Developers and DLF Projects have divested 60% stake in Star Alubuild (Star Alubuild), a subsidiary, at an enterprise value of Rs 79.80 crore. Star Alubuild specializes in designing, engineering, fabrication and installation of curtain walls for commercial buildings, retail malls and doors & windows for projects throughout India. Accordingly, Star Alubuild has ceased to be subsidiary of the company, DLF said. The transaction is a part of DLF's objective of divesting its non core assets.
Greaves Cotton rose 1.79% after the company said it has divested its entire stake in its step-down German subsidiary Greaves Farymann Diesel GmbH (GFD) for strategic reasons. The stake in GFD was held through the company's wholly owned subsidiary, Greaves Cotton Netherlands B.V. The announcement was made after market hours on Tuesday, 8 October 2013.
PTC India jumped 4.06% after the company said it has received Rs 778 crore from UP Power Corporation towards past outstanding dues against purchase of power from the company. The announcement was made before trading hours today, 9 October 2013.
The International Monetary Fund (IMF) forecast economic growth for India to dip to 4.25% in the year to 31 March 2014 in its World Economic Outlook released on Tuesday, saying the economy would continue to underperform because of regulatory, infrastructural, and financing issues. The multilateral agency expects the country's growth to improve somewhat to 5% in the next fiscal year if exports strengthen and supply bottlenecks ease.
Asian markets were mixed on Wednesday, 9 October 2013. Key benchmark indices in China, Taiwan and Hong Kong and fell by 0.08% to 0.57%. Key benchmark indices in Indonesia, Singapore and Japan rose by 0.06% to 0.63%. South Korea's markets were closed today for a holiday.
Trading in US index futures indicated that the Dow could rise 39 points at the opening bell on Wednesday, 9 October 2013. US stocks fell on Tuesday hit by growing jitters over the budget impasse in Washington, with the partial government shutdown extending into a second week with few signs of a deal to end it or raise the nation's debt ceiling.
US President Barack Obama on Tuesday warned of economic chaos if the US fails to pay its bills.
As per media reports, Obama will nominate Federal Reserve Vice Chair Janet Yellen to be the next head of the US central bank on Wednesday, 9 October 2013, putting her on course to be the first woman to lead the institution in its 100-year history. Seen as a monetary policy dove, Yellen is considered more likely to maintain the Fed's current stance. 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.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength. Government data from payrolls to retail sales will be delayed as long as the shutdown continues.
The International Monetary Fund on Tuesday cut its global growth forecast to 2.9% for 2013 from its July estimate of 3.1%. IMF sees a modest pickup next year to 3.6%.
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