Key benchmark indices extended intraday gains and hit fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex, the 50-unit CNX Nifty, both, hit one-week high. The Sensex was up 116.76 points or 0.62%, up 198.93 points from day's low and off 36.74 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Gains in Asian stocks underpinned sentiment.
Index heavyweight Reliance Industries edged higher, with the stock reversing initial decline. ONGC fell in choppy trade after the company reported weak Q1 result after market hours on Monday, 12 August 2013. Hindalco Industries dropped after its US subsidiary Novelis Inc. reported weak Q1 result on Monday, 12 August 2013.
Key benchmark indices reversed direction after an initial slide triggered by weak industrial production data for June 2013 released by the government after trading hours on Monday, 12 August 2013. Key benchmark indices pared gains after striking fresh intraday high in morning trade. The Sensex moved past the psychological 19,000 mark. Key benchmark indices extended intraday gains and hit fresh intraday high in mid-morning trade. The Sensex and 50-unit CNX Nifty, both, hit one-week high.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 12 August 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 408.35 crore on Monday, 12 August 2013, as per provisional data from the stock exchanges.
The rupee trimmed initial losses. The partially convertible rupee was hovering at 61.35, weaker than its close of 61.2750/2850 on Monday, 12 August 2013. The rupee had record low of 61.80 in intraday deals on 6 August 2013.
At 11:16 IST, the S&P BSE Sensex was up 116.76 points or 0.62% to 19,063.74. The index gained 153.50 points at the day's high of 19,100.48 in mid-morning trade, its highest level since 6 August 2013. The index fell 82.17 points at the day's low of 18,864.81 in early trade.
Also Read
The CNX Nifty was up 32.15 points or 0.57% to 5,644.55. The index hit a high of 5,654.95 in intraday trade, its highest level since 6 August 2013. The index hit a low of 5,578.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,051 shares gained and 663 shares fell. A total of 115 shares were unchanged.
The total turnover on BSE amounted to Rs 707 crore by 11:20 IST compared to Rs 486 crore by 10:20 IST.
Among the 30-share Sensex pack, 22 stocks gained and rest of them declined.
Hindalco Industries lost 3.09% after its US subsidiary Novelis Inc. reported weak Q1 result on Monday, 12 August 2013. Novelis' net profit fell 84.61% to $14 million on 5.56% decline in net sales to $2.408 billion in Q1 June 2013 over Q1 June 2012. Excluding certain tax-effected items, net profit for Q1 June 2013 was $21 million. Novelis is a subsidiary of Hindalco Industries.
Adjusted EBITDA declined 21.23% to $204 million in Q1 June 2013 over Q1 June 2012. Novelis said that latest quarter's results included a non-recurring $14 million amendment to the company's employee Long-Term Incentive Plan. In addition, the company faced continued pricing headwinds and softer than expected demand for beverage can sheet partially driven by unfavorable weather conditions.
Novelis said the decline in sales was primarily due to a 7% decline in average aluminum prices, lower shipments, and lower conversion premiums.
"Despite the challenges we faced in the first quarter, we maintained financial discipline through good cost control and will continue this focus on cost containment going forward. In addition, our global strategic expansions and favorable demand trends supported by the 2014 World Cup in Brazil and automotive material substitution towards aluminum sheet will also help drive our business forward in the second half of this fiscal year", said Phil Martens, President and Chief Executive Officer for Novelis.
Other metal and mining stocks were mostly higher. JSW Steel (up 0.21%), Sail (up 0.84%), National Aluminium Company (up 1.46%), NMDC (up 1.01%) edged higher. Hindustan Zinc (down 1.1%) and Jindal Steel & Power (down 0.97%) declined.
Steel major Tata Steel rose 0.3%, with the stock extending Monday's 8.29% rally. The company declares its Q1 results today, 13 August 2013.
Sesa Goa rose 0.15%. The company after market hours on Monday, 12 August 2013, said that the Division Bench of the High Court of Bombay at Goa vide its order dated 12 August 2013 has dismissed the appeal filed by the shareholder of Sesa Goa and sanctioned the Scheme of amalgamation and arrangement amongst Sterlite Industries (India), Madras Aluminium Company, Sterlite Energy, Vedanta Aluminium and Sesa Goa and their respective shareholders and creditors and the scheme of amalgamation of Ekaterina with the company and their respective shareholders and creditors.
Sterlite Industries (India) rose 0.38%, with the stock extending Monday's 2.42% gain. The company on 8 August 2013 said that the National Green Tribunal (NGT) has in its judgment upheld its interim order of 31 May 2013, and has allowed the company's Tuticorin Copper Smelter to continue to operate.
Index heavyweight Reliance Industries rose 0.79% to Rs 851.95, with the stock reversing initial decline. The stock hit a high of Rs 854.40 and low of Rs 835 so far during the day.
ONGC fell in choppy trade after the company reported weak Q1 result after market hours on Monday, 12 August 2013. The stock was off 1.28% at Rs 274.10. The scrip hit high of Rs 278.60 and low of Rs 270.90 so far during the day. ONGC's net profit fell 33.92% to Rs 4015.98 crore on 3.35% decline in total income to Rs 20505.03 crore in Q1 June 2013 over Q1 June 2012.
ONGC gave a gross subsidy discount of Rs 12622 crore in Q1 June 2013, which was higher than Rs 12346 crore in Q1 June 2012. The subsidy discount impacted the profit before tax (PBT) by Rs 10803 crore and profit after tax (PAT) by Rs 7131 crore. ONGC shares the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
ONGC said that due to changes in accounting policies, the profit before tax was higher by Rs 222 crore.
ONGC said it has provided for Rs 1611 crore in Q1 June 2013 towards contribution for conversion of Post Retirement Benefit Scheme from Defined Benefit Scheme to Defined Contributory Scheme based on guidelines of the Department of Public Enterprise.
ONGC reported 4 hydrocarbon discoveries in Q1 June 2013 and an additional discovery in August 2013.
On the macro front, industrial production registered a contraction of 2.2% in June 2013, data released by the government after trading hours on Monday, 12 August 2013, showed. Mining production registered a decline of 4.1% and manufacturing production fell 2.2%. Electricity generation remain stagnant in June 2013. As per use-based classification, production of basic goods declined 1.9% in June 2013. Capital goods production fell 6.6%. Production of intermediate goods rose 1.1%. Consumer goods production declined 2.3%. Production of consumer durables declined 10.5%. Production of consumer non-durables rose 5%.
On a cumulative basis, industrial production registered a contraction of 1.1% during April-June 2013.
Inflation based on the consumer price index (CPI) eased in July 2013, data released by the government after trading hours on Monday, 12 August 2013, showed. The combined consumer price index (CPI) for urban and rural India eased to 9.64% in July 2013, from 9.87% in June 2013. The data showed that inflation under the category 'food and beverages' stood at 11.24% in July 2013.
Asian markets were trading higher on Tuesday, 13 August 2013, led by sharp upmove in Japanese shares which rose after yen eased following a report on Tuesday that said the Prime Minister Shinzo Abe is considering a corporate tax cut as a way to offset the impact of a planned two-stage increase in the sales tax. Key benchmark indices in Hong Kong, Indonesia, Singapore, South Korea, Japan and Taiwan were up by 0.33% to 2.32%. China's Shanghai Composite index fell 0.09%.
Japan's core machinery orders, seen as a leading indicator of capital spending, fell 2.7% in June, the Cabinet Office said Tuesday. Core machinery orders, which exclude volatile purchases for power-generation equipment and ships, can nonetheless vary wildly from month to month: They rose 10.5% in May, fell 8.8% in April, and rose 14.2% in March. A quarterly forecast included with the June results showed expectations the orders would fall 5.7% in the July-September period compared to the previous quarter.
Trading in US index futures indicated that the Dow could gain 18 points at the opening bell on Tuesday, 13 August 2013. US stocks closed a low-volume, light-news session with slight losses on Monday, though the technology-dominated Nasdaq Composite managed a gain.
Powered by Capital Market - Live News