Key benchmark indices held firm in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 150.54 points or 0.78%, off close to 60 points from the day's high and up about 140 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Index heavyweight Reliance Industries (RIL) trimmed intraday gains. Another index heavyweight and cigarette major ITC was slightly higher. Telecom stocks rose across the board. Cement stocks also edged higher on renewed buying.
The market edged higher in early trade on higher Asian stocks. The market held firm in morning trade. The market extended gains to hit fresh intraday high in mid-morning trade. The market further extended gains to hit fresh intraday high in early afternoon trade. Key benchmark indices pared gains after hitting their highest level in nearly six weeks in afternoon trade. The market held firm in mid-afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 23 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 226.21 crore on Tuesday, 23 April 2013, as per provisional data from the stock exchanges.
The market may remain volatile during the last one hour or so of trade as traders roll over positions in the futures & options (F&O) segment from the near month April 2013 series to May 2013 series. The April 2013 F&O contracts expire today, 25 April 2013.
At 14:20 IST, the S&P BSE Sensex was up 150.54 points or 0.78% to 19,329.90. The index jumped 210.14 points at the day's high of 19,389.50 in afternoon trade, its highest level since 15 March 2013. The index rose 12.75 points at the day's low of 19,192.11 in opening trade.
The CNX Nifty was up 54.55 points or 0.93% to 5,891.45. The index hit a high of 5,909.75 in intraday trade, its highest level since 15 March 2013. The index hit a low of 5,853.30 in intraday trade.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 1,184 shares advanced and 1,035 shares declined. A total of 127 shares were unchanged.
Among the 30-share Sensex pack, 24 stocks gained while rest of them fell. Dr Reddy's Laboratories, Tata Motors and Sterlite Industries gained by 3.63% to 4.79%.
Index heavyweight Reliance Industries (RIL) rose 1.68% to Rs 817.80. The scrip hit high of Rs 826.85 and a low of Rs 806 so far during the day. The company's telecom arm -- Reliance Jio Infocomm -- and Bharti Airtel on Tuesday, 23 April 2013, signed an agreement for international data connectivity under which Bharti will provide Reliance Jio data capacity on its i2i submarine cable. i2i connects India to Singapore and is wholly owned by Bharti. Reliance Jio will utilize a dedicated fiber pair on i2i. The high speed link will enable Reliance Jio to extend its network and service reach to customers across Asia Pacific region.
Earlier, at the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Shares of Bharti Airtel gained 0.37%.
Among other telecom stocks, MTNL, Tata Teleservices (Maharashtra), Reliance Communications and Idea Cellular rose by 0.24% to 2.17%.
Index heavyweight and cigarette major ITC rose 0.19% to Rs 318. The stock hit record high of Rs 320 in intraday trade today, 25 April 2013. The stock hit low of Rs 313.15 in intraday trade today, 25 April 2013. West Bengal chief minister Mamata Banerjee on Wednesday, 24 April 2013, announced a 10% tax hike in the value-added tax (VAT) on cigarettes to 25% from 15% to raise money for a relief fund for those depositors who have lost money in the Saradha chit fund scam.
Earlier, 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, which was unveiled on 28 February 2013.
FMCG stocks dropped. Hindustan Unilever, Godrej Consumer Products and Tata Global Beverages dropped by 0.4% to 1.2%.
Cement stocks rose on renewed buying. ACC and Ambuja Cement gained by 1.56% to 2.25%.
UltraTech Cement rose 1.74%, with the stock recovering on bargain hunting after recent losses triggered by weak Q4 results. The company during market hours on 22 April 2013, said that net profit fell 16.26% to Rs 726 crore on 1.03% rise in net sales to Rs 5389 crore in Q4 March 2013 over Q4 March 2013. The bottom line was adversely impacted by additional tax liability. Tax expenses for the quarter ended 31 March 2013 and year ended 31 March 2013 (FY 2013) includes additional charge for deferred tax liability of Rs 87 crore. This is due to increase in the rate of surcharge on income tax as proposed in the Finance Bill 2013.
The company's net profit rose 8.54% to Rs 2655 crore on 10.24% rise in net sales to Rs 20018 crore in the year ended 31 March 2013 (FY 2013) over FY 2012.
With regard to future business outlook, UltraTech Cement said that the long term cement demand in India is likely to grow over 8% in line with GDP growth. The value drivers for growth will continue to be housing demand and infrastructure development. The cement major said that the company is committed to growth and towards this end, its board has approved the expansion of capacity at Aditya Cement Works in Rajasthan by 2.9 million metric tonnes, including the setting up of two grinding units. The expansion envisages a capital outlay of around Rs 2000 crore to be funded through a mix of internal accrual and borrowing. The additional facility is expected to be commissioned by March 2015.
The focus of the market is on Q4 results. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results tomorrow, 26 April 2013. IDFC announces Q4 results on 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. Grasim announces Q4 March 2013 results on 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Dr. Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013.
The Prime Minister's Economic Advisory Council (PMEAC) in a report released on Tuesday, 23 April 2013, projected 6.4% growth in India's GDP for the current fiscal year 2013/14, higher than an estimated 5% growth for the fiscal year 2012/13. In 2013-14, the headline WPI inflation is expected to be around 6%, compared with provisional figure at 5.96% at the end of 2012-13, the PMEAC said. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
The Reserve Bank of India (RBI) will announce the Monetary Policy Statement 2013-14 on 3 May 2013. The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013. Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
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.
The government has lined up a number of key bills for consideration and passing during the ongoing Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. The Budget Session of the Parliament ends on 10 May 2013.
European stock markets edged lower on Thursday after earnings from some of the region's heavyweights added pressure, offsetting hopes for a rate cut at the European Central Bank's policy-setting meeting next week. Key benchmark indices in UK, France and Germany were down by 0.08% to 0.35%.
Most Asian stocks edged higher on Thursday as investors weighed earnings reports and energy shares led gains. Key benchmark indices in Singapore, Hong Kong, Japan and South Korea rose by 0.15% to 0.98%. Key benchmark indices in China, Indonesia and Taiwan fell by 0.02% to 0.86%.
Trading in US index futures indicated that the Dow could gain 15 points at the opening bell on Thursday, 25 April 2013. The S&P 500 and Nasdaq ended flat on Wednesday with Boeing's five-year high among the day's highlights, but weakness in Procter & Gamble and AT&T kept the Dow Jones Industrial Average in negative territory. Economic data showed orders for US durable goods fell in March by the most in seven months as demand slumped for commercial aircraft and business investment cooled.
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