Key benchmark indices held firm in morning trade as firmness in Asian stocks boosted sentiment. The barometer index, the S&P BSE Sensex, was up 138.67 points or 0.72%, up close to 30 points from the day's low and off about 100 points from the day's high. Index heavyweight and cigarette major ITC pared gains after hitting record high in early trade. Index heavyweight Reliance Industries (RIL) was slightly lower. The market breadth, indicating the overall health of the market, was strong.
FMCG stocks rose after the India Meteorological Department (IMD) on Friday, 26 April 2013, forecast normal southwest monsoon seasonal rainfall during 2013. FMCG major Hindustan Unilever (HUL) surged over 16% to hit record high after the company's foreign parent, Unilever PLC offered to acquire 48.70 crore shares, or 22.52% stake in Hindustan Unilever at Rs 600 each. Capital goods pivotals edged lower in a firm market.
The market surged in early trade. The barometer index, the S&P BSE Sensex hit its highest level in 16-1/2 weeks. The 50-unit CNX Nifty hit its highest level in over 17 weeks. It held firm in morning trade.
The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 29 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 620.38 crore on Monday, 29 April 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 138.67 points or 0.72% to 19,526.17. The index surged 235.18 points at the day's high of 19,622.68 in early trade, its highest level since 15 March 2013. The index gained 105.33 points at the day's low of 19,492.83 in opening trade.
The CNX Nifty was up 31.75 points or 0.54% to 5,935.85. The index hit a high of 5,962.30 in intraday trade, its highest level since 11 March 2013. The index hit a low of 5,932.60 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 803 shares advanced and 379 shares declined. A total of 53 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) declined 0.08% to Rs 791.95. The scrip hit high of Rs 796.70 and a low of Rs 790.25 so far during the day. 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 next 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.
Index heavyweight and cigarette major ITC rose 1.46% to Rs 329.10. The stock hit record high of Rs 335.90 in intraday today, 30 April 2013. West Bengal chief minister Mamata Banerjee on 24 April 2013, announced a 10% 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 major Hindustan Unilever (HUL) surged 16.45% to Rs 579.45 as company's parent firm, Unilever PLC's voluntary open offer to HUL's shareholders was priced at a premium to the current ruling price. The stock hit record high of Rs 597 in intraday trade today, 30 April 2013. The parent company will buy the shares for Rs 600 each, which is a 20.5% premium to HUL's Monday's closing price of Rs 497.60 on BSE.
HSBC Securities and Capital Markets (India) (Manager to the open offer) said before market hours today, 30 April 2103 that, Unilever PLC along with Unilever N.V. in its capacity as person acting in concert is making a voluntary open offer to acquire 48.70 crore shares representing 22.52% of the total voting share capital from the public shareholders of Hindustan Unilever. The consideration of open offer will be payable in cash of Rs 600 per share. Unilever PLC and Unilever N.V. are the two parent companies of the Unilever Group of companies.
As on 31 March 2013, foreign promoters held 52.48% stake in HUL. After the open offer, holding of foreign promoters will rise to 75% in HUL.
HUL stock had vaulted 6.98% to Rs 497.60 on Monday on good Q4 results. HUL's net profit before exceptional items rose 18% to Rs 781 crore on 12.13% growth in total income from operations to Rs 6465.81 crore in Q4 March 2013 over Q4 March 2012. The company announced the Q4 results during market hours on Monday, 29 April 2013. While commodity costs were relatively benign during the quarter, competitive intensity remained at high levels, HUL said. The company said it continued to invest behind its brands. The company's expenditure on Advertising and Promotions (A&P) rose by Rs 144 crore in Q4 March 2013. Despite this step up, profit before interest and tax (PBIT) grew 17% and PBIT margin improved by 60 bps, the company said.
HUL said that during the quarter, the domestic consumer business grew at 13% with strong 6% underlying volume growth. Both Home and Personal Care (HPC) and Foods and Beverages (F&B) registered double digit growth in Q4 March 2013, the company said in a statement.
FMCG stocks rose after the India Meteorological Department (IMD) on Friday, 26 April 2013, forecast normal southwest monsoon seasonal rainfall during 2013. FMCG firms derive substantial sales from rural India. Marico, Dabur India, Godrej Consumer Products, Nestle India and Tata Global Beverages rose by 1.11% to 4.87%.
The year 2013 will most likely have a normal southwest monsoon seasonal rainfall for the country as a whole i.e. 96 to 104% of Long Average during June to September, the Union Minister of Earth Sciences & Science and Technology Mr. S. Jaipal Reddy announced on Friday, 26 April 2013. Quantitatively, the monsoon seasonal rainfall is likely to be 98% of the Long Period Average with a model error of 5%. Also, the probability for normal rainfall is 46%, as against the climatological value of 33%.
The IMD will issue the update forecast in June 2013 as a part of the second stage forecast. Along with the update forecast, separate forecasts for the monthly (July and August) rainfall over the country as a whole and seasonal (June-September) rainfall over the four geographical regions of India will be issued.
Capital goods pivotals edged lower in a firm market. L&T and Bhel shed by 0.29% to 0.81%.
The stock market remains closed tomorrow, 1 May 2013, on account of Maharashtra Day.
The focus of the market is on Q4 results. IDFC announces Q4 results tomorrow, 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on Thursday, 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on Friday, 3 May 2013. Grasim and Jaiprakash Associates unveil Q4 results on Saturday, 4 May 2013. HDFC and Lupin unveil Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints announces Q4 results on 9 May 2013. NTPC announces Q4 results on 10 May 2013. 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. M&M announces Q4 results on 30 May 2013.
The Prime Minister's Economic Advisory Council (PMEAC) in a report released on 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. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13, the PMEAC said. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for April 2013 tomorrow, 1 May 2013. The HSBC India Manufacturing PMI fell to 52 in March 2013, after a surge to 54.2 in February 2013. Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for April 2013 on Friday, 3 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to a 17-month low of 51.4 in March from 54.2 in February. Services make up over 60% of India's economy.
Slowing wholesale price inflation has raised expectations that the Reserve Bank of India (RBI) will cut its key policy rate viz. the repo rate to boost economic growth. The (RBI) will announce the Monetary Policy Statement 2013-14 on Friday, 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 to 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 needs to pass many crucial bills, including the finance Bill in the last two weeks of the Budget Session which ends on 10 May 2013. Neither House has transacted any business so far after Parliament reconvened for the second half of the Budget session last week with adjournments and uproar over various issues.
Asian stocks rose on Tuesday after U.S. housing sales gained and amid speculation central banks will keep stimulating growth. Key benchmark indices in Hong Kong, Taiwan, Singapore and South Korea rose by 0.55% to 1.28%. Key benchmark indices in Japan and Indonesia fell by 0.02% to 0.25%. Stock markets in mainland China were closed for a holiday.
Japanese and South Korean industrial output was less than estimates in March and Taiwan's first-quarter growth was half the forecast pace as weakness in global demand limits recoveries in Asian economies. In Japan, production climbed 0.2% from the previous month, the trade ministry said in Tokyo today. South Korea's output fell 2.6%, a separate report showed. Taiwan's gross domestic product rose 1.54%.
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 30 April 2013. US stocks gained on Monday with S&P 500 index ending at an all-time high as growth-oriented stocks, including energy and technology, lead the way to the index's sixth rise in the past seven sessions. A report showed contracts to buy previously owned homes rose last month to their highest level since April 2010, showing underlying strength in the housing market recovery, even though the pace of sales growth has cooled in recent months.
A two-day meeting of the Federal Open Market Committee on US interest rates begins today, 30 April 2013.
In Europe, the European Central Bank's (ECB) Governing Council meets in Bratislava on Thursday, 2 May 2013, to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% as economic conditions continue to deteriorate across the euro zone and as inflation remains well below the bank's target.
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