Volatility continued as key benchmark indices once again pared gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 63.55 points or 0.31%, up close to 115 points from the day's low and off about 40 points from the day's high. Index heavyweight and cigarette major ITC extended intraday losses. Another index heavyweight Reliance Industries (RIL) extended intraday gains. The market breadth, indicating the overall health of the market, was positive.
Bank stocks rose for the second straight day on expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. Axis Bank hit 52-week high. Kotak Mahindra Bank, HDFC Bank and HDFC hit record high.
The market moved into the positive terrain after opening lower. The barometer index, the S&P BSE Sensex, hit its highest level in over 28 months. The 50-unit CNX Nifty hit its highest level in over 30 months. The market trimmed gains after hitting fresh intraday high in morning trade. The market firmed up again later. The market once again pared gains in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1646.95 crore on Wednesday, 15 May 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 63.55 points or 0.31% to 20,276.51. The index rose 113.52 points at the day's high of 20,326.48 in morning trade, its highest level since 6 January 2011. The index fell 50.84 points at the day's low of 20,162.12 in opening trade.
The CNX Nifty was up 24.65 points or 0.4% to 6,171.40. The index hit a high of 6,187.30 in intraday trade, its highest level since 12 November 2010. The index hit a low of 6,128.25 in intraday trade.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 1,041 shares advanced and 794 shares declined. A total of 110 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose and the rest of them fell. Dr Reddy's Laboratories, Cipla and ONGC gained by 1.16% to 3.22%.
Index heavyweight Reliance Industries (RIL) gained 1.89% to Rs 834.30. The stock hit a high of Rs 838.50 and low of Rs 816 so far during the day.
Index heavyweight and cigarette major ITC fell 1.23% to Rs 338.45. The stock hit a high of Rs 343.50 and low of Rs 337.20 so far during the day. The company announces its Q4 results tomorrow, 17 May 2013. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14.
Bank stocks rose for the second straight day on expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. A rate cut would boost credit offtake.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), rose 1.86%.
Among other PSU bank stocks, Bank of Baroda, Bank of India, Union Bank of India, Canara Bank, and Punjab National Bank rose by 0.52% to 1.68%.
ICICI Bank rose 1.79%.
Axis Bank rose 1.6% to Rs 1,533.20. The stock hit 52-week high of Rs 1,539 in intraday trade today, 16 May 2013.
Kotak Mahindra Bank rose 0.38% to Rs 759.55 after the bank said during market hours today, 15 May 2013, that at the meeting of the Preferential Issue and Allotment Committee of the bank held today, 16 May 2013, the Committee has allotted 2 crore equity shares on preferential basis to Heliconia Pte, an affiliate of Government of Singapore Investment Corporation, on the terms approved by the shareholders of the bank at the Extraordinary General Meeting of the bank held on 9 May 2013. The stock hit record high of Rs 772.65 in intraday trade today, 16 May 2013.
HDFC Bank gained 0.73% to Rs 720. The stock had hit record high of Rs 721.25 in intraday trade today, 16 May 2013.
HDFC rose 0.06% to Rs 910.35. The stock hit record high of Rs 916.65 in intraday trade today, 16 May 2013.
The focus of the market is on Q4 results. ITC unveils Q4 results tomorrow, 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on Wednesday, 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
The annual rate of inflation, based on monthly wholesale price index (WPI), eased sharply to 4.89% in April 2013, from 5.96% in March 2013, data released by the government on Tuesday, 14 May 2013, showed. Core inflation or non-food manufacturing inflation declined further to 2.74% in April 2013 from 3.41% in March 2013.
Meanwhile, WPI inflation for February 2013 was revised upwards to 7.28% from 6.84% reported earlier.
The consumer price inflation fell below the 10% mark in April 2013. The combined consumer price inflation for rural and urban India eased to 9.39% in April 2013 from 10.39% in March 2013, data released by the government on 13 May 2013, showed.
Reserve Bank of India Governor D Subbarao on Tuesday, 14 May 2013, said that the central bank will take note of falling inflation when discussing potential interest rate cuts.
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
Asian shares rose on Thursday after data showed Japan's economy accelerated in the first three months of the year. Key benchmark indices in Indonesia, China, South Korea, Hong Kong and Taiwan rose by 0.2% to 0.81%. Key benchmark indices in Japan and Singapore fell by 0.03% to 1.19%.
Japan's economy grew 0.9% in the first quarter, speeding up from a 0.3% pace in the previous quarter.
Foreign direct investment in China lagged behind analysts' estimates in April, highlighting concern at the growth outlook for the world's second-biggest economy after an unexpected slowdown last quarter. Investment rose 0.4% from a year earlier to $8.4 billion, the Ministry of Commerce said in a statement today in Beijing.
Trading in US index futures indicated that the Dow could fall 11 points at the opening bell on Thursday, 16 May 2013. US stocks rose on Wednesday, with the Dow Jones Industrial Average and S&P 500 hitting new all-time highs in a broad market rally as the recent upward momentum persisted. In the latest reads on the economy, activity in New York state's manufacturing sector unexpectedly contracted in May. Another report showed that US industrial production fell more than expected in April. In other data released on Wednesday, the US Producer Price Index recorded its largest drop in three years in April, falling a seasonally adjusted 0.7%.
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