Intraday volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 97.30 points or 0.48%, up close to 80 points from the day's low and off about 60 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by the Senate Banking Committee's approval on Thursday, 21 November 2013, of Janet Yellen's nomination as the next US Federal Reserve chairman next year, a move considered market-positive as she is expected to leave the US central bank's easy monetary policy little changed. At a Nov. 14 congressional hearing on her nomination to run the Fed, Yellen had indicated she'll press on with the central bank's monetary stimulus until she sees a robust recovery. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.
Capital goods pivotals gained on renewed buying. Auto stocks were mixed. Shares of two-wheeler makers declined. Hindalco Industries extended intraday losses. ONGC extended intraday gains.
A bout of initial volatility was witnessed as key benchmark indices edged higher on firm Asian stocks. The 50-unit CNX Nifty regained the psychological 6,000 mark. Key benchmark indices trimmed initial gains and hit fresh intraday low in morning trade. Volatility continued as key benchmark indices regained strength after trimming intraday gains in mid-morning trade. Key benchmark indices extended intraday gains and hit fresh intraday high in early afternoon trade. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in early afternoon trade.
At 13:20 IST, the S&P BSE Sensex was up 97.30 points or 0.48% to 20,326.35. The index jumped 159.07 points at the day's high of 20,388.12 in early afternoon trade. The index rose 17.54 points at the day's low of 20,246.59 in mid-morning trade.
The CNX Nifty was up 26.70 points or 0.45% to 6,025.75. The index hit a high of 6,049.60 in intraday trade. The index hit a low of 6,003.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,187 shares gained and 1,037 shares fell. A total of 166 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks gained and rest of them declined. HDFC (up 2.16%), Bharti Airtel (up 1.87%) and GAIL (India) (up 1.23%), gained.
Auto stocks were mixed. Tata Motors fell 1.35% to Rs 377.40, with the stock reversing initial gain. The stock hit a high of Rs 385.95 and low of Rs 375.50 so far during the day.
Maruti Suzuki India rose 0.76%. M&M gained 0.71%. Ashok Leyland rose 0.65%.
Shares of two-wheeler makers declined. Hero MotoCorp (down 0.57%) and Bajaj Auto (down 0.56%) fell.
Capital goods pivotals gained on renewed buying. Bhel (up 0.47%) and L&T (up 1.03%) gained.
Hindalco Industries fell 1.89%, with the stock extending intraday losses.
ONGC rose 2.72% with the stock extending intraday gains. ONGC's wholly owned subsidiary ONGC Videsh (OVL) after market hours on Thursday, 21 November 2013, announced that it has on 20 November 2013 signed Memorandum of Understanding (MoU) with Petrovietnam to promote the joint cooperation in hydrocarbon sector in Vietnam, India and other countries. This MoU is in furtherance to the agreement signed between OVL and Petrovietnam on 12 October 2011. Under the MoU, Petrovietnam has offered 5 blocks to OVL. OVL would assess these blocks and if these are of interest, it would make a proposal to Petrovietnam.
ONGC said that Vietnam is one of the focus countries for OVL where it would like to acquire stakes in oil and gas assets depending on techno-commercial viability.
In the foreign exchange market, the rupee trimmed losses after falling below 63 against the dollar. The partially convertible rupee was hovering at 62.97, compared with its close of 62.93/94 on Thursday, 21 November 2013. The rupee dropped today, 22 November 2013, after provisional data released by the stock exchanges showed that foreign institutional investors (FIIs) sold shares worth a net Rs 59.80 crore on Thursday, 21 November 2013.
Government bond yields rose as traders shed positions ahead of the Rs 15000-crore bond auction later in the session, which includes the sale of a new 10-year benchmark bond. The yield on 10-year benchmark federal paper, 7.16% GS 2023, was hovering at 9.0903%, higher than its close of 9.0773% on Thursday 21 November 2013. Bond yield and bond prices are inversely related.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
Asian stocks edged higher on Friday, 22 November 2013, as positive political and economic news from the US supported sentiment. Key benchmark indices in Taiwan, Hong Kong, Japan, and South Korea rose by 0.1% to 0.62%. Key benchmark indices in Indonesia, China and Singapore fell 0.09% to 0.43%.
Bank of Japan (BOJ) Governor Haruhiko Kuroda said in parliament today, 22 November 2013, that the yen isn't excessively weak. Inflation will hit the BOJ's 2% target in the latter half of the central bank's two-year time frame and policy makers will adjust its bond-buying program as needed, he said. The central bank yesterday maintained its unprecedented monetary policy.
Trading in US index futures indicated that the Dow could advance 7 points at the opening bell on Friday, 22 November 2013. The Dow Jones Industrial Average achieved its first-ever close above 16,000 on Thursday, 21 November 2013, as US stocks rallied boosted by better-than-expected data on weekly jobless claims and as investors reconsidered their concerns about the Federal Reserve's potential reduction in its bond-buying program.
The Labor Department said weekly jobless claims fell by 21,000 to 323,000. In addition, wholesale prices dropped 0.2% last month. On the downside, the Philadelphia Fed's index of manufacturing conditions dropped to 6.5 in November.
The US Senate Banking Committee on Thursday, 21 November 2013, voted 14-8 to approve Janet Yellen as the next chairman of the Fed, sending the nomination to the full Senate for approval.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. Minutes from the Federal Reserve's October meeting released this week signaled US stimulus may be reduced in coming months. Fed Bank of St. Louis President James Bullard on Thursday, 21 November 2013, said a cutback in the US central bank's bond-purchase program is "on the table" for policy makers' December meeting.
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