Financials

A benchmark index of Indian equities was trading flat at 15.31 points or 0.07 percent down during the pre-noon trade Monday.

Good buying was observed in the metal and auto sectors, while selling pressure was seen in the baking index (bankex) and IT sectors.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 21,260.15 points, was trading at 21,178.27 points in the pre-noon session, down 15.31 points or 0.07 percent from the last trading day’s close at 21,193.58 points.

China is expected to overtake the US in 2028 to become the world’s largest economy while India is predicted to overtake Japan that year for the third place in the same league, a London-based economic and business research group has said.

The Center for Economics and Business Research (CEBR) said Thursday in its annual report that China’s gross domestic product (GDP) in dollars would overtake the US in 2028, the China Daily reported Friday.

As the new year knocks on the door, iron ore mining industry – which is going through the most trying times following the Supreme Court restrictions – continues to grapple with challenges.

While ban on iron ore mining in Goa continued throughout 2013, production of the mineral in Karnataka is yet to stabilise.

Many mines in the Southern state are yet to reopen for want of clearances, even though the Supreme Court in April had lifted nearly 2-year old ban with some stiff conditions.

Turnover of the commodity exchanges fell by 60 percent to Rs 2.77 lakh crore in the first fortnight of December due to sharp drop in trading volumes in most commodities.

The business at the bourses stood at Rs 6.88 lakh crore in the same period last year, the commodity markets regulator Forward Markets Commission (FMC) said in its latest report.

Analysts are of the view that investors are reluctant to invest in commodity futures trading platform mainly due to payment crisis at National Spot Exchange Ltd (NSEL), promoted by Financial Technologies India Ltd (FTIL).

India’s foreign exchange (forex) reserves declined by USD 12.6 million to USD 295.50 billion for the week ended Dec 20, Reserve Bank of India (RBI) data showed.

This is the second consecutive week of decline in the country’s forex reserves.

The foreign exchange reserves had declined by USD 192.8 million to USD 295.51 billion for the week ended December 31 after posting strong gains in the previous five weeks largely due to the special swap window opened by the RBI.

The last week of 2013 closed with gains and is poised to cross another milestone in the next year as the benchmark S&P BSE Sensex closed at almost three-week high of 21,193.58, up by 114 points, due to firm global cues amid sustained capital inflows.

The market was closed on December 25 on account of Christmas holiday. It gained three out of four trading sessions during the week.

Buying in realty, consumer durables, capital goods, power, banking and metal counters mainly supported the market to remain upbeat for the second week in a row.

India’s foreign exchange (forex) reserves declined by $12.6 million to $295.50 billion for the week ended Dec 20, Reserve Bank of India (RBI) data showed.

This is the second consecutive week of decline in the country’s forex reserves.

The foreign exchange reserves had declined by $192.8 million to $295.51 billion for the week ended Dec 31 after posting strong gains in the previous five weeks largely due to the special swap window opened by the RBI.

Tracking overnight gains on the Wall Street, the benchmark Sensex on Friday jumped by 119 points to nearly three-week high levels on the back of gains in IT and banking shares amid heavy capital inflows.

After rising 41.88 points in the previous session, the Sensex spurted by 118.99 points, or 0.56 percent, to end at 21,193.58, a level last seen on December 10. Eighteen constituents of the 30-share index rose.

A benchmark index of Indian equities markets gained 136.33 points or 0.65 percent during the pre-noon trade Friday.

Good buying was seen in IT, banking index (bankex) and technology, media and entertainment (TECK) sectors.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 21,114.49 points, was trading at 21,210.92 points in the pre-noon session, up 136.33 points or 0.65 percent from the last trading day’s close at 21,074.59 points.

The Sensex touched a high of 21,217.12 points, and a low of 21,113.25 points during the trade so far.

The rupee today recovered 13 paise to 62.03 against the dollar in early trade at the Interbank Foreign Exchange market on increased selling of the US currency by exporters and banks.

Forex dealers said strengthening of the euro against the dollar overseas and a higher opening in the domestic equity market also supported the local currency.

The rupee had lost 37 paise to end at a more than three-week low of 62.16 against the dollar yesterday on month-end demand for the US currency from importers and banks.

The benchmark BSE Sensex today rose over 97 points in early trade, extending yesterday’s gains on sustained buying by funds and retail investors amid a mixed trend overseas.

The 30-share index, which had gained 41.88 points in the previous session, gained another 97.40 points, or 0.46 per cent, to 21,171.99 with all the sectoral indices, led by realty and consumer durables, rising up to 1.34 per cent.

Similarly, wide-based National Stock Exchange index, Nifty, edged higher by 28.20 points, or 0.45 per cent to 6,307.10.

CNG or compressed natural gas price in the national capital was Thursday hiked by a steep Rs 4.50 per kg, the second increase in rates in three months.

Also, the price of cooking gas piped to kitchens has been increased by Rs 5.15 per kg with effect from midnight tonight.

CNG will cost Rs 50.10 per kg in Delhi and Rs 56.70 per kg in Noida, Greater Noida & Ghaziabad from midnight tonight, Indraprastha Gas Ltd (IGL) said.

More efforts are required to reduce the subsidy and government needs to set an overall quantity for it, prioritising the areas that need greater focus, Prime Minister’s Economic Advisory Council (PMEAC) Chairman C Rangarajan has said.

He also said that India will be able to contain the fiscal deficit at 4.8 percent for which higher growth is a must so as to increase government revenues.

Terming tax benefits necessary to attract pension money to the capital markets, Sebi has sought a clarity on taxation policy to be applied to retirement- focused funds to tap this huge pool of capital.

The total size of pension market in India is estimated to have stood at over Rs 1.5 lakh crore in 2010, while it is expected to rise to over Rs 2 lakh crore by 2015 and further to close to Rs 3 lakh crore in 2020 and more than Rs 4 lakh crore by 2025.

The benchmark BSE Sensex recovered by over 54 points in early trade today largely on the back of covering-up of pending short positions in view of monthly expiry in the derivatives segment amid a firming trend in the Asian region.

The 30-share index rose by 54.38 points, or 0.25 per cent, to trade at 21,087.09, supported by gains in stocks of healthcare, capital goods, power and consumer durable companies.

The Sensex had lost 68.32 points in the previous session on Tuesday. The market remained closed yesterday on account of “Christmas”.

Quantum of funds raised by Indian companies from the markets hit a staggering Rs 4 lakh crore in 2013, with debt market emerging as the most preferred route to garner capital for their business needs.

While there was a lull in the primary stock market — where the companies raise funds through the sale of shares via instruments like IPOs and FPOs, it was private placement of corporate bonds and non-convertible debentures that was used the most to meet funding requirements of businesses in 2013.

It was a year of stocks shining bright when it comes to adding to the investors’ wealth, and the glitter of gold and silver fading for the second straight year in 2013.

Measured by benchmark index Sensex, stock market has generated a positive return of about 9 per cent for investors in 2013, while gold prices fell by about three per cent and its poorer cousin silver plummeted close to 24 per cent.

After outperforming stock market for more than a decade, gold has been on back foot for two consecutive years now vis-a-vis equities, shows an analysis of their price movements.

Rising for the third session in a row, the rupee advanced by 16 paise to close at over one-week high of 61.79 against the US dollar Tuesday after exporters sold the American currency ahead of durable goods order data.

Negative closing in Indian stocks and a firm dollar overseas, however, restricted the rupee’s rise.

The rupee opened higher at 61.84 a dollar from yesterday’s close of 61.95 at the Interbank Foreign Exchange market. However, it fell back in afternoon trade to a low of 61.97 tracking a drop in stocks and a strong dollar abroad.

A surge in food prices ripped common man’s pockets as the UPA government paid for its failure in the assembly polls in four states and may feel the heat in next year’s general elections as well if it is not controlled.

Prices of kitchen essentials such as onions spiked to a record Rs 100 per kg and tomatoes touched Rs 80 in some states during the year, pushing the food inflation to double digit mark, even as the Reserve Bank tried in vain to contain the price rise.

The benchmark BSE Sensex today rose by nearly 56 points in early trade, extending gains for the third consecutive session, on sustained buying by funds amid a firm trend on other Asian bourses.

The 30-share index, which had gained 392.41 points in the last two sessions, rose further by 55.89 points, or 0.26 per cent, to 21,156.92 with capital goods, realty, IT, oil & gas and consumer durables sector stocks leading the rise.

The wide-based Nifty of the National Stock Exchange moved up by 16.45 points, or 0.26 per cent, to 6,300.95.

The benchmark BSE Sensex rose by almost 105 points in early trade today on sustained buying by funds and retail investors amid a firming trend in other Asian markets.

Extending its rising streak for the second straight session, the 30-share index was up by 104.82 points, or 0.50 per cent, to 21,184.54 with all the sectoral indices, led by capital goods and oil and gas, trading in positive territory, rising up to 1.11 per cent.

The Sensex had gained 371.10 points in the previous session.

The wide-based NSE Nifty also moved up by 31.55 points, or 0.50 per cent, to 6,305.80.

The S&P BSE Sensex today rose by 97 points in morning trade on sustained buying by operators mainly in realty, consumer durables, metal, capital goods, banking, healthcare and auto sector stocks on the back of firm Asian cues amidst good foreign fund inflows.

The Sensex resumed higher at 21,080.54 and rose further to 21,207.89 before quoting at 21,176.33 at 1030 hrs, showing a gain of 96.61 or 0.46 per cent from its last weekend’s level.

The NSE 50-share Nifty also firmed up by 31.35 points or 0.50 per cent to 6,305.60 at 1030 hours.

After a gap of five years, benchmark stock indices Sensex and Nifty scaled new highs as robust FII inflows and hopes of wider reforms after the 2014 Lok Sabha elections helped to overcome concerns over slowing economic growth and high inflation.

Raghuram Rajan assuming the office of RBI Governor in September and a strong showing by the BJP in assembly elections also contributed to stock indices breaking their previous all-time highs.

The US gross domestic product reportedly grew at a 4.1 percent rate during the third quarter, despite the government shutdown.

According to a new data released by the Commerce Department, the GDP rate has been the best showing since 1992.

According to the Washington Post, the nation’s economic output in the Q3 has been significantly stronger than the initial estimate of a 2.8 percent annual growth rate.

The data also pointed to improvements in consumer spending and exports that lifted many economists’ outlook for the final months of the year.

Leading stock exchange BSE, which has become the country’s fourth bourse to offer currency derivatives trading, has logged a cumulative turnover of over Rs 10,000 crore in this segment in just about a fortnight.

In 16 days of trade in currency derivatives since launch on November 29, the exchange has also recorded total volumes of nearly 16.50 lakh derivative contracts.

BSE has joined three other stock exchanges — National Stock Exchange (NSE), MCX-SX and United Stock Exchange (USE — in this market.