Key benchmark indices edged higher after witnessing a bout of volatility in late trade. The barometer index, the S&P BSE Sensex, garnered 102.32 points or 0.4%, up 166.52 points from the day's low and off 35.11 points from the day's high. The market breadth indicating the overall health of the market was positive.
The Sensex has risen 1,358.87 points or 5.61% in this month so far (till 12 June 2014). The Sensex has gained 4,405.53 points or 20.8% in calendar year 2014 so far (till 12 June 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,127.50 points or 46.57%. The Sensex is off 148.91 points or 0.57% from a record high of 25,725.12 touched on Wednesday, 11 June 2014.
Coming back to today's trade, pharma stocks extended recent gains. PSU OMCs reversed initial gains as crude prices rose. Auto stocks edged higher. Tata Motors rose in volatile trade after its British luxury car unit Jaguar Land Rover on Wednesday, 11 June 2014, reported strong growth in retail sales for May 2014. Bharti Airtel dropped after a foreign brokerage downgraded the stock to "underperform" from "neutral" and reduced the target price, citing competition from rival Reliance Jio Infocomm, a unit of Reliance Industries (RIL). Realty stocks edged higher after Wednesday's slide. Metal and mining stocks also gained.
A bout of volatility was witnessed in early trade as key benchmark indices alternately swung between gains and losses. The Sensex extended gains in morning trade. Key benchmark indices retained positive zone in mid-morning trade. Key benchmark indices trimmed gains after extending intraday gains in early afternoon trade. Key benchmark indices recovered from lower level after trimming intraday gains in mid-afternoon trade. High volatility was witnesses as the Sensex regained positive zone after slipping into negative zone from positive zone for a brief period in late trade.
The S&P BSE Sensex garnered 102.32 points or 0.4% to settle at 25,576.21, its highest closing level since 10 June 2014. The index jumped 137.43 points at the day's high of 25,611.32 in early trade. The index fell 64.20 points at the day's low of 25,409.69 in early trade.
The CNX Nifty garnered 23.05 points or 0.3% to settle at 7,649.90, its highest closing level since 10 June 2014. The index hit a high of 7,658 and low of 7,593.80 in intraday trade.
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The BSE Mid-Cap index garnered 47.42 points or 0.52% to settle at 9,166.31, outperforming the Sensex. The BSE Small-Cap index garnered 35.45 points or 0.36% to settle at 9,985.48, underperforming the Sensex.
The total turnover on BSE amounted to Rs 3799 crore, lower than Rs 4722.59 crore on Wednesday, 11 June 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1,746 shares rose and 1,356 shares fell. A total of 87 shares were unchanged.
The S&P BSE Healthcare index (up 1.39%), the S&P BSE Auto index (up 0.6%), the S&P BSE FMCG index (up 0.46%) outperformed the Sensex.
The S&P BSE Realty index (up 0.39%), the S&P BSE Power index (up 0.35%), the S&P BSE IT index (up 0.24%), the S&P BSE Bankex (up 0.15%), the S&P BSE Metal index (up 0.11%), the S&P BSE Capital Goods index (up 0.08%), the S&P BSE Consumer Durables index (down 0.02%), the S&P BSE Oil & Gas index (down 0.15%) and the S&P BSE Teck index (down 0.19%) underperformed the Sensex.
HDFC (up 2.56%) and HDFC Bank (up 2.43%) edged higher from the Sensex pack.
Metal and mining stocks also gained. NMDC (up 0.93% to Rs 184.30), Steel Authority of India (Sail) (up 0.72% to Rs 104.20), Jindal Steel & Power (up 2.43% to Rs 334.70), JSW Steel (up 1.24% to Rs 1,305.40), Tata Steel (up 0.13% to Rs 549.90), Hindustan Copper (up 1.03% to Rs 118.20), National Aluminium Company (up 0.62% to Rs 56.50) gained. Sesa Sterlite (down 0.75% to Rs 292.30) and Hindustan Zinc (down 0.79% to Rs 169.05) fell.
Hindalco Industries jumped 3.7% to Rs 168.65 after its US unit Novelis Inc. on Wednesday, 11 June 2014, announced the commissioning of its aluminium recycling and casting center at Nachterstedt, Germany. Located adjacent to the company's existing aluminium rolling mill, the new plant will produce up to 400,000 metric tons of aluminium sheet ingot from recycled material annually, and is projected to be the world's largest aluminium recycling center, Novelis said. The new recycling center will support the company's drive to significantly expand its recycling activity in Europe, a region in which Novelis is already the leading recycler of used beverage cans. The center will process cans as well as numerous other forms of aluminium scrap from across continental Europe, Novelis said.
Infosys slipped in volatile trade after the company before trading hours today, 12 June 2014, announced the selection of Dr. Vishal Sikka as the Chief Executive Officer and Managing Director (CEO & MD) of the company. The stock lost 0.47% at Rs 3,163.80. The stock hit high of Rs 3,298 and low of Rs 3,120.65. Dr. Sikka will be inducted as a whole-time director of the board of Infosys and CEO & MD (Designate) on 14 June 2014. He will take over as CEO & MD from Mr. S. D. Shibulal on 1 August 2014.
The board has also elevated Mr. U.B. Pravin Rao, President and whole-time director, as Chief Operating Officer, with effect from 14 June 2014. In addition, the company has elevated twelve leaders to the position of Executive Vice President with additional responsibilities.
Dr. Vishal Sikka was, until recently, a member of the Executive Board of SAP AG, leading all products and driving innovation globally. He has worked closely with leaders of global companies in building breakthrough business solutions, Infosys said in a statement.
Infosys also said that Mr. N.R. Narayana Murthy will voluntarily step down as Executive Chairman of the company on 14 June 2014. Mr. S. Gopalakrishnan will voluntarily step down as Executive Vice Chairman on 14 June 2014. In order to facilitate a smooth transition of responsibilities, both of them will continue on the board till 10 October 2014 -- with Murthy as Non-executive Chairman and Gopalakrishnan as Non-executive Vice Chairman. Mr. K. V. Kamath will become the Non-executive Chairman of the board on 11 October 2014. Mr. Murthy will be designated as Chairman Emeritus with effect from 11 October 2014 in recognition of his contributions to the company.
Mr. S. D. Shibulal will step down as CEO & MD and from the board on 31 July 2014.
The Executive Chairman's office will be dissolved with effect from 14 June 2014. Dr. Rohan Murty, whose appointment was co-terminus with the Executive Chairman, will leave the company on 14 June 2014. The remaining members of the Chairman's office will take up other responsibilities in the company.
Meanwhile, Infosys today, 12 June 2014, denied rumours of the company planning share buyback.
Wipro rose 0.49% to Rs 529.55 after the company announced before market hours that it has been selected by Outokumpu, a global leader in stainless steel, as its global prime partner for applications maintenance and development of legacy applications across ten countries including UK, Poland, Ital, Spain, Germany, Sweden, Finland, USA, Mexico and China.
L&T rose 0.26% to Rs 1,720.20. Shares of L&T Finance Holdings declined 1.93% to Rs 76.35, with the stock extending Wednesday's losses. On Wednesday, 11 June 2014, bids were received for a total of 8.79 crore shares or 3.19 times for the Offer for Sale (OFS) of L&T Finance Holdings shares. The OFS was completed in a single trading session on Wednesday, 11 June 2014. L&T, the promoter of L&T Finance Holdings, had put on block 1.65 crore shares of L&T Finance Holdings, constituting 0.96% of the equity share capital of L&T Finance Holdings, through Offer for Sale (OFS) via the stock exchanges mechanism on Wednesday, 11 June 2014. L&T had also said it may sell additional 1.1 crore shares of L&T Finance Holdings via the OFS.
Axis Bank dropped 1.88% to Rs 1,904.90 as the stock turned ex-dividend today, 12 June 2014, for dividend of Rs 20 per share for the year ended 31 March 2014 (FY 2014).
Jammu & Kashmir Bank (J&K) rose 0.46% to Rs 1,631.40, with the stock reversing intraday fall in volatile trade after the bank's board approved a 10-for-1 stock split proposal. The announcement was made during market hours today, 12 June 2014. J&K Bank's board of directors at its meeting held today, 12 June 2014, considered and approved a 10-for-1 stock split.
Bank of Baroda fell 1.91% to Rs 874.90 as the stock turned ex-dividend today, 12 June 2014, for final dividend of Rs 10.50 per share for the year ended 31 March 2014 (FY 2014).
Bajaj Finance edged higher in choppy trade after the company said that an early detection and quick investigation of a fraud by few senior employees of the company's mortgage business has resulted in the incidence having no material financial loss for the company. The stock rose 2.95% at Rs 2,085. The scrip hit high of Rs 2,127.40 and low of Rs 1,979. Bajaj Finance said that based on a whistleblower complaint, the company had identified fraudulent connivance between a few senior employees and some delinquent customers in its mortgage business. This resulted in manipulation of a few customer EMI payments and consequent mis-reporting of delinquencies. The RBI NPA provisioning standards require NBFCs to provision at 180 DPD. Based on RBI norms, there is additional Rs 15 lakh provision to be made on account of the fraud detected in the mortgage business, Bajaj Finance said. However, there is no change in gross and net NPA figures, it said. Since, the company maintains a more stringent provisioning policy over RBI norms, an additional provision of up to Rs 5 crore may be required in Q1 June 2014, Bajaj Finance said.
Post the investigation of fraud, the company has separated with the concerned employees, Bajaj Finance said. The company also said that the management conducted a rapid portfolio review across all other SME businesses and has not found anything adverse.
Shares of Bajaj Finserv rose marginally by 0.02% at Rs 921.85 in volatile trade. The scrip hit high of Rs 929.50 and low of Rs 880. Bajaj Finance is a subsidiary of Bajaj Finserv.
Telecom stocks declined. MTNL (down 1.37% to Rs 32.50), and Reliance Communications (down 0.84% to Rs 147) declined. Tata Teleservices (Maharashtra) surged 3.42% to Rs 12.70
Bharti Airtel lost 3.98% to Rs 340.10 after a foreign investment bank downgraded the stock to "underperform" from "neutral" and reduced the target price to Rs 265 from Rs 275, citing competition from rival Reliance Jio Infocomm, a unit of Reliance Industries (RIL).
Idea Cellular shed 1.78% to Rs 141.05. The company said after market hours on Wednesday, 11 June 2014, that the Securities Allotment Committee of the board of directors of the company at its meeting held on 11 June 2014 issued and allotted 22.38 crore shares to eligible qualified institutional buyers (QIBs) at a price of Rs 134 per share, including a premium of Rs 124 per share, aggregating approximately to Rs 3000 crore under the SEBI Regulations and Section 42 of the Companies Act, 2013 and the rules made thereunder.
Some pharma stocks extended recent gains. Cipla (up 0.75% to Rs 414.75), Ranbaxy Laboratories (up 2.5% to Rs 471.50), Lupin (up 1.35% to Rs 993.50) and Sun Pharmaceutical Industries (up 2.86% to Rs 631.05) gained. Dr Reddy's Laboratories fell 0.08% to Rs 2,430.
Auto stocks edged higher. Maruti Suzuki India (up 1.97% to Rs 2,494.80), and Ashok Leyland (up 3.72% to Rs 33.50) edged higher. Mahindra & Mahindra (M&M) fell marginally by 0.02% to Rs 1,224.25.
Tata Motors rose in volatile trade after its British luxury car unit Jaguar Land Rover (JLR) on Wednesday, 11 June 2014, reported strong growth in retail sales for May 2014. The stock was up 0.99% at Rs 450. The scrip hit high of Rs 451.30 and low of Rs 442.25. JLR's retail sales rose 20% to 38,831 vehicles in May 2014 over May 2013.
Sales of the Jaguar brand rose 4% to 6,450 vehicles in May 2014 over May 2013. Sales of the Land Rover brand jumped 23% to 32,381 vehicles in May 2014 over May 2013, with strong performances across the range.
Commenting on the May performance Andy Goss, Jaguar Land Rover Group Sales Operations Director said: "This has been another solid month for Jaguar Land Rover with continued strong demand for models across the range in our international markets. The continued success of F-Type convertible, coupled with the launch of Coupe, has supported Jaguar sales momentum. For Land Rover, the Range Rover Sport and Evoque continue to deliver impressive sales performance".
Shares of two wheeler makers declined. Hero MotoCorp (down 0.05% to Rs 2,704) and TVS Motor Company (down 1.66% to Rs 130) fell.
Bajaj Auto rose 0.22% to Rs 2,180.
Asian Paints gained 1.34% to Rs 549.10 after the company after market on Wednesday, 11 June 2014, said that the company has completed the acquisition of the entire front and sales business including brands, network and sales infrastructure Ess Ess Bathroom Products. Ess Ess is a prominent player in the bath and wash business segment in India and has high quality products in this segment. On 14 May 2014, Asian Paints had entered into a binding agreement with Ess Ess Bathroom Products and its promoters to acquire its entire front and sales business including brands, network and sales infrastructure, subject to satisfaction of certain conditions precedents and applicable statutory approvals.
NHPC rose 2.5% to Rs 28.70. The company said during market hours that 14.73 kilometers Head Race Tunneling of Kishanganga HE Project through TBM has been successfully completed on 10 June 2014.
PSU OMCs reversed initial gains as crude prices rose, reacting to increased violence in oil-producing Iraq. Indian Oil Corporation (IOCL) was down 0.2% to Rs 351. The stock hit high of Rs 356.75 and low of Rs 349.05.
BPCL was down 1.03% to Rs 599.75. The stock hit high of Rs 621 and low of Rs 594.60.
HPCL was up 0.18% to Rs 428. The stock hit high of Rs 437.05 and low of Rs 424.25.
Brent crude oil futures for July delivery were up 1.1% at $111.16 a barrel. Higher crude oil prices will increase under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
As per reports, the oil ministry is preparing a fresh proposal for the Cabinet to deregulate diesel price to reduce the government's fuel subsidy burden. The government's total fuel subsidy burden in 2013-14 was about Rs 140000 crore, with subsidy on diesel estimated at Rs 62800 crore, according to reports. The diesel subsidy figure has been progressively coming down as the government has followed a policy of hiking diesel prices by 50 paise a month. To protect customers from volatility in international oil markets, the government may allow fuel retailers to increase diesel rates up to a limit, which would be determined by the Cabinet, reports suggest.
UltraTech Cement fell 0.31% to Rs 2,759.25. The company said during market hours that the scheme between Jaypee Cement Corporation (JCCL) and the company and its respective shareholders and creditors, for the acquisition of the cement unit of JCCL in Gujarat, comprising of an integrated cement unit at Sewagram and grinding unit at Wanakbori has been approved by the High Court at Bombay and the High Court of Allahabad.
The Demerger Implementation Committee constituted by the board of directors to exercise all powers and discharge all functions of the board for effecting the demerger in terms of the scheme, at its meeting held today, 12 June 2014, declared the scheme effective from 12 June 2014, which is the effective date.
Further, the Demerger Implementation Committee has also allotted 1.14 lakh shares of the company credited as fully paid-up to the equity and preference share holders of JCCL in terms of the scheme.
Shares of Jaiprakash Associates dropped 2.34% to Rs 81.35.
ACC fell 0.04% to Rs 1,479. The company after market hours on Wednesday, 11 June 2014, informed that the Board of Directors of the company at its meeting held on Wednesday, 11 June 2014, has appointed Mr. Harish Badami as Chief Executive Officer & Managing Director (Designate) from 1 August 2014 and as Chief Executive Officer & Managing Director (CEO & MD) with effect from 13 August 2014 for a period of 5 years to succeed Mr. Kuldip Kaura, CEO & MD whose term of office was extended until 31 December 2014.
Mr. Kuldip Kaura, will demit office as CEO & MD of the company with effect from 13 August 2014 and Mr. Badami will assume responsibility as CEO & MD of the company. Mr. Kaura will continue to be associated with the company in the capacity of Advisor to the Board, ACC said.
Ashapura Minechem and Orient Abrasives both edged higher in choppy trade after both these companies denied media reports that the former is set to acquire the latter in a deal worth Rs 400 crore. Orient Abrasives jumped 4.09% to Rs 24.20. The stock hit high of Rs 27.65 and low of Rs 23.80. Ashapura Minechem rose 2.03% at Rs 87.85. The stock hit high of Rs 91 and low of Rs 86.20. Orient Abrasives is engaged in the business of manufacturing and selling Calcined and Fused Alumina Products. The company also has a refractory products division which focuses on providing a wide range of special refractories and monolithics to meet the needs of the iron and steel industry. Ashapura Minechem is India's largest mine owner and exporter of bentonite.
Realty stocks edged higher after Wednesday's slide. DLF (up 2.06% to Rs 225.40), Indiabulls Real Estate (up 0.77% to Rs 98.55), Godrej Properties (up 1.1% to Rs 252), Oberoi Realty (up 2.59% to Rs 263), Sobha Developers (up 0.44% to Rs 533) and Unitech (up 1.47% to Rs 34.45) gained.
Housing Development & Infrastructure fell 3.53% to Rs 96.90 after a foreign fund sold shares of the realty firm in a bulk deal on Wednesday, 11 June 2014. Foreign fund Nomura Singapore sold 20.98 lakh shares of Housing Development & Infrastructure (HDIL) at an average price of Rs 105.95 per share in a bulk deal on NSE on Wednesday, 11 June 2014.
Meanwhile in a separate bulk deal, Shaastra Securities Trading bought 21.19 lakh shares of HDIL at an average price of Rs 104.50 per share and sold 21.19 lakh shares at an average price of Rs 104.57 per share on NSE on Wednesday, 11 June 2014.
Jubilant Life Sciences rose 2.84% to Rs 211.60 after the company announced a price-increase of 9% for Niacinamide, with immediate effect, for non-contract customers and wherever existing contracts permit. The announcement was made during market hours today, 12 June 2014. Jubilant Life Sciences said it delivers unmatched advantages of consistent quality and availability of Vitamin B3 (Niacin & Niacinamide) to its customers globally. The company's nutrition business is backward integrated up to the initial raw material stage with global scale of operations, the company said in a statement.
Den Networks declined 2.74% to Rs 221.55 after 0.32% equity changed hands in a bulk deal on BSE today, 12 June 2014. A bulk deal of 5.83 lakh shares was executed on the Den Networks counter at Rs 225 per share at 10:23 IST on BSE today, 12 June 2014
Ballarpur Industries jumped 14.05% to Rs 20.70 after hitting 52-week high of Rs 20.80 in intraday trade.
Balmer Lawrie & Company gained 5.86% to Rs 522 after hitting record high of Rs 529.95 in intraday trade.
BASF India surged 6.78% to Rs 890 after hitting record high of Rs 906.45 in intraday trade.
Bayer CropScience advanced 4.14% to Rs 1,881.25 after hitting record high of Rs 1,939 in intraday trade.
CRISIL galloped 8.6% to Rs 1,543.30 after hitting record high of Rs 1,614 in intraday trade.
Godrej Industries rose 6.37% to Rs 345 after hitting 52-week high of Rs 345.45 in intraday trade.
Monsanto India spurted 16.03% to Rs 2,217 after hitting record high of Rs 2,219.90 in intraday trade.
NESCO surged 13.29% to Rs 1,160.30 after hitting 52-week high of Rs 1,228.95 in intraday trade.
Tamil Nadu Newsprint & Papers advanced 6.78% to Rs 163.70 after hitting 52-week high of Rs 169.90 in intraday trade.
Va Tech Wabag jumped 11.62% to Rs 1,370 after hitting record high of Rs 1,443 in intraday trade.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 59.25, compared with its close of 59.27/28 on Wednesday, 11 June 2014.
Monsoon rains were nearly half below average level in the week to 11 June 2014, reflecting the late onset of the annual rains over the southern Kerala coast. Annual rains are important for India as most of its farmlands are dependent on rain for irrigation and more than half of its workforce is employed in agriculture.
In his reply on motion of thanks on President's address in Lok Sabha, Prime Minister Narendra Modi on Wednesday, 11 June 2014, said his promise to reduce inflation is not an empty slogan but a resolve. Just like the way Mahatma Gandhi had turned India's freedom struggle into a mass movement, India needs to make the quest for good governance a mass movement, the Prime Minister said. He urged all elected members of parliament (MPs) to resolve to ensure that every family in India has a house, with basic amenities of water, power and sanitation, on India's 75th anniversary of independence in 2022. The Prime Minister said a way would be found to achieve this, and he would seek the help and cooperation of all senior leaders in this endeavour.
Industrial production is expected to register a growth of 1.7% in April 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government is due to release industrial production data for April 2014 after trading hours today, 12 June 2014. Industrial production shrank for a second straight month in March 2014. Industrial production declined 0.5% in March 2014, compared with a contraction of 1.8% in February 2014.
The rate of inflation based on the combined consumer price index (CPI) for rural and urban India is seen easing at 8.4% in May 2014, from 8.59% in April 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government is due to release CPI inflation for May 2014 after trading hours today, 12 June 2014. CPI inflation accelerated to 8.59% (provisional) in April 2014, from 8.31% (final) in March 2014. Core CPI which excludes food and energy prices eased to 7.8% in April 2014, from 7.81% in March 2014.
European stocks edged higher on Thursday, 12 June 2014, as investors awaited data on US retail sales and jobless claims to gauge the health of the world's largest economy. Key benchmark indices in UK, France and Germany were up 0.03% to 0.14%.
French consumer prices were unchanged in May from April and rose only 0.7% on the year, statistics agency Insee said Thursday. A fall in energy and manufactured goods prices offset rising food prices, Insee said.
Asian shares slipped on Thursday, 12 June 2014, after US stocks stepped back from record levels on Wednesday while civil war in Iraq supported oil prices. Key benchmark indices in China, Indonesia, Japan, Taiwan, South Korea and Hong Kong were off 0.15% to 0.76%. Singapore's Straits Times rose 0.09%.
Japanese machinery orders fell in April from the previous month. Core machinery orders fell 9.1% in April from a month ago, the Cabinet Office said Thursday.
South Korea's central bank Thursday kept its benchmark interest rate steady at 2.5%. The bank last moved the rate in May 2013 with a quarter-percentage-point cut.
Trading in US index futures indicated a flat opening of US stocks on on Thursday, 12 June 2014. US stocks fell on Wednesday, with the Dow Jones Industrial Average breaking a four-day string of record closing highs, following the World Bank's reduction of its global growth forecast.
Adding to the sour tone, the defeat in a primary election of House Majority Leader Eric Cantor, a Republican, further dampened expectations of Washington passing any significant legislation before the November elections.
The US posted a $130 billion budget deficit in May and the smallest shortfall for the first eight months of a fiscal year since 2008, as a stronger economy and rising employment bolster revenue. The deficit last month was about $9 billion less than the $139 billion shortfall in May 2013, the Treasury Department said in Washington.
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