Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade as index heavyweight and cigarette major ITC advanced after a foreign brokerage upgraded the stock to overweight from neutral, citing prospects of earnings growth resilience. The S&P BSE Sensex was up 194.12 points or 1.03%, up 187.45 points from the day's low and off 5.50 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Gains in Asian stocks underpinned sentiment.
FMCG stocks were in demand on renewed buying. Britannia Industries rose after declaring strong Q1 result during market hours today, 12 August 2013. HDFC extended intraday gain. Coal India extended intraday gain. Bank stocks declined after the Reserve Bank of India (RBI) on Thursday, 8 August 2013, announced fresh steps to drain cash from the banking system, as it stepped up efforts to stop the rupee's decline against the dollar.
Key benchmark indices edged higher in early trade on firm Asian stocks. The Sensex and the 50-unit CNX Nifty hit highest level in almost a week. Key benchmark indices pared gains in morning trade as index heavyweight Reliance Industries dropped in volatile trade. Key benchmark indices regained strength in mid-morning trade. Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade as index heavyweight and cigarette major ITC advanced.
Foreign institutional investors (FIIs) sold shares worth a net Rs 395.78 crore on Thursday, 8 August 2013, as per provisional data from the stock exchanges.
At 12:15 IST, the S&P BSE Sensex was up 194.12 points or 1.03% to 18,983.46. The index jumped 199.62 points at the day's high of 18,988.96 in early afternoon trade, its highest level since 6 August 2013. The index rose 6.67 points at the day's low of 18,796.01 in morning trade.
The CNX Nifty was up 48.20 points or 0.87% to 5,613.85. The index hit a high of 5,615.95 in intraday trade, its highest level since 6 August 2013. The index hit a low of 5,557.10 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 1,182 shares gained and 661 shares fell. A total of 93 shares were unchanged.
The total turnover on BSE amounted to Rs 773 crore by 12:20 IST on BSE compared to Rs 586 crore by 11:20 IST.
Among the 30-share Sensex pack, 22 stocks gained and rest of them declined. Dr Reddy's Laboratories (down 1.67%), TCS (down 1.47%) and RIL (down 1.17%) edged lower from the Sensex pack.
HDFC gained 3.11%, with the stock extending intraday gain.
Coal India rose 2.77%, with the stock extending intraday gain.
FMCG stocks were in demand on renewed buying. Colgate-Palmolive (India) (up 2%), Dabur India (up 2.76%), Hindustan Unilever (up 1.58%), Nestle India (up 1.5%) and Tata Global Beverages (up 0.86%) gained.
Britannia Industries rose 0.53%. Britannia Industries's consolidated net profit jumped 93% to Rs 89.50 crore on 14% growth in revenue to Rs 1539.60 crore in Q1 June 2013 over Q1 June 2012. Britannia said its operating margin at 7.7% in Q1 June 2013, increased significantly from 4.7% in Q1 June 2012, despite an increase in brand investment at 9.6% of revenue in Q1 June 2013 from 8.4% of revenue in Q1 June 2012. The company announced the first quarter results during trading hours today, 12 August 2013.
Commenting on the company's Q1 performance, Ms. Vinita Bali, Managing Director, Britannia Industries said: "The expansion in margin is consequent to an improvement in product mix and higher price realization coupled with an emphasis on cost management -- the growth momentum we saw in the second half of last year, continued."
Index heavyweight and cigarette major ITC rose 2.23% to Rs 332.70 after a foreign brokerage upgraded the stock to overweight from neutral, citing prospects of earnings growth resilience.
Bank stocks declined after the Reserve Bank of India (RBI) on Thursday, 8 August 2013, announced fresh steps to drain cash from the banking system, as it stepped up efforts to stop the rupee's decline against the dollar.
Among private sector banks, Axis Bank (down 1.94%), Kotak Mahindra Bank (down 0.27%), HDFC Bank (down 1.66%) declined. ICICI Bank rose 0.64%.
Among state-run banks, Punjab National Bank (down 1.88%), Canara Bank (down 2.29%), Union Bank of India (down 2.61%) and Bank of Baroda (down 0.56%) declined.
The RBI on Thursday, 8 August 2013, said it would sell Rs 22000-crore of short-term cash management bills every week on Monday. The sale is in addition to Rs 12000-crore of Treasury bills and Rs 15000-crore of sovereign bonds the government sells every week to fund its fiscal gap.
State Bank of India lost 1.93%. The state-run bank unveils its Q1 result today, 12 August 2013.
Aurobindo Pharma jumped 9.84% after the company reported consolidated net profit of Rs 18.60 crore in Q1 June 2013, as against net loss of Rs 128.91 crore in Q1 June 2012. The Q1 result was announced on Friday, 9 August 2013. The stock market was closed on that day on account of Ramzan Id.
Commenting on the company's Q1 performance, Mr. N. Govindarajan, Managing Director, Aurobindo Pharma said: "Our focus on costs and the qualitative aspect of sales across key markets have reflected positively on our revenues and operating margins on a year on year basis. Our reported bottom-line got impacted by the mark-to- market component of our dollar denominated debt because of rupee depreciation during the quarter. We continue to make steady progress in achieving our strategic objective of strengthening our business mix towards more differentiated product and service offerings to our customers."
Torrent Power (up 14.83%), Muthoot Finance (up 11.72%), NHPC (up 8.74%) and Bajaj Finance (up 8.14%) were among the top gainers from BSE's 'A' group.
Industrial production is seen registering a decline of 1.5% in June 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had registered a contraction of 1.6% in May 2013. The government will unveil industrial production data for June 2013 today, 12 August 2013.
Consumer price inflation is expected to ease a bit in July 2013. The combined consumer price index (CPI) for urban and rural India is expected to ease at 9.7% in July 2013, from 9.9% in June 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will also unveil the CPI data for July 2013 today, 12 August 2013.
Mainland Chinese and Hong Kong stocks jumped to lead most Asian markets higher on Monday, 12 August 2013, after a newspaper report in South China Morning Post that Beijing was "quietly offering financial stimulus" to key cities and provinces to support the local economies. China is the world's second biggest economy after the United States. Key benchmark indices in China, Hong Kong, Singapore, South Korea and Taiwan were up by 0.21% to 2.12%. Key benchmark indices in Indonesia and Japan fell by 0.56% to 0.7%.
Data released on Friday, 9 August 2013, showed that Chinese banks made 699.9 billion yuan ($114.3 billion) worth of local-currency loans in July, beating expectations.
Japan's economy grew an annualized 2.6% in the April-June period, the Cabinet Officer reported Monday, cooling sharply from a rapid 4.1% gain in the first calendar quarter. On a seasonally adjusted quarterly basis, gross domestic product rose 0.6% from the first quarter's 0.9% increase.
Trading in US index futures indicated a flat opening of US stocks on Monday, 12 August 2013. US stock indexes declined Friday, 9 August 2013, with the Dow Jones Industrial Average halting its longest weekly winning streak since August of last year.
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