Key benchmark indices alternately swung between positive and negative zone near the flat line in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 6.35 points or 0.03%, off close to 75 points from the day's high and up about 80 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Tata Motors extended intraday losses. Bank stocks dropped after the latest data showed slower loan as well deposit growth of the banking sector than the Reserve Bank of India's full-year projection. HDFC Bank edged higher in choppy trade, with the stock recovered from Tuesday's slide triggered by the private sector bank reporting decline in net interest margin (NIM) in Q2 September 2013. Realty stocks edged higher. NMDC rose after the company reported increase in production as well as sales of iron-ore in Q2 September 2013.
The market slipped into the red after a positive start triggered by higher Asian stocks. A bout of volatility was witnessed as key benchmark indices recouped entire initial losses in morning trade. Intraday volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices alternately swung between positive and negative zone near the flat line in early afternoon trade.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment after the US lawmakers on Wednesday, 16 October 2013, voted to reopen the US government and raise the nation's debt ceiling, avoiding a default. The partially convertible rupee was hovering at 61.55, stronger than its close of 61.835/845 on Tuesday, 15 October 2013. Indian financial markets were closed on Wednesday, 16 October 2013, on account of Bakri Id.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1136.23 crore on Tuesday, 15 October 2013, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was up 6.35 points or 0.03% to 20,553.97. The index gained 82.18 points at the day's high of 20,629.80 in mid-morning trade. The index declined 76.37 points at the day's low of 20,471.25 in morning trade.
The CNX Nifty was down 4.95 points or 0.08% to 6,084.10. The index hit a low of 6,064.85 in intraday trade. The index hit a high of 6,110.75 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,166 shares gained and 930 shares fell. A total of 145 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and rest fell. TCS (down 3.67%) and L&T (down 2.04%) dropped.
Tata Motors fell 3.62% to Rs 375.15, with the stock extending intraday losses. The stock had hit record high hit of Rs 393 in intraday trade on Tuesday, 15 October 2013.
NMDC rose 0.62% NMDC rose after the company reported increase in production as well as sales of iron-ore in Q2 September 2013. The company said during market hours that total iron-ore sales rose 8.09% to 13.75 million tonnes in Q2 September 2013 over Q2 September 2012. Production rose 5.31% to 12.89 million tonnes in Q2 September 2013 over Q2 September 2012.
Bank stocks dropped after the latest data showed slower loan as well deposit growth of the banking sector than the Reserve Bank of India's full-year projection.
ICICI Bank shed 0.88%. State Bank of India dropped 1.08%.
Banks' loans grew about 11% to Rs 58.46 lakh crore, while deposits rose 12% to Rs 75.64 lakh crore during the period from 22 March 2013 to 4 October 2013. The RBI has projected loans to grow at 15% and deposits by 14% in the current fiscal year ending in March 2014. Banks' investments in government securities rose 12% to Rs 22.47 lakh crore during the period from 22 March 2013 to 4 October 2013.
HDFC Bank edged higher in choppy trade, with the stock recovered from Tuesday's slide triggered by the private sector bank reporting decline in net interest margin (NIM) in Q2 September 2013. The stock was up 0.5% at Rs 655. The scrip hit high of Rs 656.90 and low of Rs 643.40 so far during the day. HDFC Bank's net profit rose 27.07% to Rs 1982.32 crore on 17.65% rise in total income to Rs 11937.69 crore in Q2 September 2013 over Q2 September 2012. The bank's net interest margin (NIM) declining to 4.3% in Q2 September 2013 from 4.4% in Q2 September 2012. The bank announced Q2 result during market hours on Tuesday, 15 October 2013.
HDFC Bank's ratio of net non-performing assets to net advances stood at 0.3% as on 30 September 2013, compared with 0.3% as on 30 June 2013 and 0.2% as on 30 September 2012. The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 1.1% as on 30 September 2013, compared with 1% as on 30 June 2013 and 0.9% as on 30 September 2012.
Provisions and contingencies fell 1.02% to Rs 385.93 crore in Q2 September 2013 over Q2 September 2012. Provisions and contingencies dropped 26.78% in Q2 September 2013 over Q1 June 2013.
Axis Bank rose 0.03%, with the stock reversing intraday losses ahead of its Q2 results today, 17 October 2013.
Realty stocks edged higher. HDIL (up 0.97%), DLF (up 0.52%) and D B Realty (up 1.08%), edged higher. But, Unitech fell 0.27%.
Reserve Bank of India Governor Raghuram Rajan on Tuesday, 15 October 2013, said that the economy will pick up by the year-end thanks to the start-up of billions of dollars worth of stalled resource projects and a good monsoon season that will bolster agricultural production. He said about half of the $115 billion worth of stalled projects had been cleared. Rajan also said that the question of using interest rates to address inflation is more complicated in India than in the United States. "In the US you know there is a large interest rate-sensitive sector that is going to be affected when you raise interest rates ... But what if you have a large part of the country that is not connected directly to the financial system?" he said, referring to India's massive rural population.
The World Bank on Wednesday, 16 October 2013, sharply lowered its forecast for India's economic growth to 4.7% from 6.1% for the current fiscal year, citing a sharp slowdown in manufacturing and investment as well as negative business confidence. In a report released on Wednesday, the World Bank said that high headline inflation, an elevated current account deficit and rising pressure on fiscal balances from the depreciation of the rupee could impede the country's growth. Economic activity is expected to pick up in the second half of FY 2014, although the speed of economic recovery could be impacted by the country's present vulnerabilities, the World Bank said in its India Development Update report. The latest report forecasts economic growth to pick up to 6.2% in the 2014/15 fiscal year that begins next April.
Most Asian stocks rose on Thursday, 17 October 2013, as investors heaved a sigh of relief after the US lawmakers on Wednesday, 16 October 2013, voted to reopen the US government and raise the nation's debt ceiling, avoiding a default. Key benchmark indices in Indonesia, South Korea, Japan and Taiwan rose 0.29% to 0.83%. Key benchmark indices in China and Hong Kong fell 0.1% to 0.32%.
Trading in US index futures indicated that the Dow could fall 24 points at the opening bell on Thursday, 17 October 2013. US stocks rose on Wednesday after US lawmakers came to an apparent deal to lift the debt ceiling and reopen government operations.
The US House of Representatives and the US Senate o Wednesday, 16 October 2013, voted to restore federal operations, funding the government through Jan. 15, and to raise the debt ceiling until Feb. 7. The House passed the Senate-crafted bill by a 285-to-144 margin. US President Barack Obama said he will sign the legislation immediately, and federal workers are expected to return to work Thursday. Investors worldwide had been concerned that the US could default on its debt obligations, resulting in a disruption of business activity and long-running efforts to encourage global economic growth.
The widely watched monthly US jobs report for September 2013 is among the data that weren't released during the 16-day government shutdown.
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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