Key benchmark indices edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex, was up 120.40 points or 0.57%, off close to 5 points from the day's high and up about 120 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The market sentiment was boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 20 December 2013.
Asian stocks rose on Monday after data showed faster-than-estimated economic growth in the US and the International Monetary Fund said it's raising its outlook for the world's largest economy.
L&T gained after L&T Infrastructure Development Projects (L&T IDPL), a subsidiary of the company has submitted an application to the Foreign Investment Promotion Board (FIPB) seeking approval in relation to a proposed foreign direct investment in L&T IDPL. GMR Infrastructure (GMR) gained after GMR Energy on Friday, 20 December 2013 signed a joint development agreement (JDA) with the International Finance Corporation (IFC), the private sector lending arm of the World Bank, to jointly develop the prestigious Upper Marsyangdi-2 hydropower project (600 MW) in Nepal. Infosys dropped after the company announced the changes to the board of directors of the company.
The market sentiment was also boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 20 December 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 990.19 crore on Friday, 20 December 2013, as per provisional data from the stock exchanges.
The market may remain volatile in a truncated trading week as traders roll over positions in the futures & options (F&O) segment from the near month December 2013 series to January 2014 series. The near month December 2013 derivatives contract expire on Thursday, 26 December 2013. The stock market remains closed on Wednesday, 25 December 2013, on account of Christmas.
At 9:30 IST, the S&P BSE Sensex was up 120.40 points or 0.57% to 21,200.12. The index jumped 126.48 points at the day's high of 21,206.20 in early trade. The index rose 0.82 points at the day's low of 21,080.54 in opening trade.
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The CNX Nifty was up 31.60 points or 0.5% to 6,305.85. The index hit a high of 6,306.25 in intraday trade. The index hit a low of 6,266.95 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 656 shares gained and 162 shares fell. A total of 36 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined. Hindalco Industries (up 1.55%), Bhel (up 1.18%) and RIL (up 1.23%) gained.
Infosys dropped 0.59% after the company announced after market hours on Friday, 20 December 2013 the changes to the board of directors of the company. Mr. V. Balakrishnan has conveyed his intention to resign as a member of the board and from the services of the company. The resignation is effective 31 December 2013. The board places on record deep sense of appreciation of the services rendered by Mr. V. Balakrishnan during his tenure as the member of the board, Chief Financial Officer of the company and then as the Member of the Board in-charge of Infosys BPO, Lodestone, Finacle, India Business Unit and Global Immigration.
Mr. N. R. Narayana Murthy, Executive Chairman said, "Bala has been an early adopter and a keen anchor-builder of Infosys. It is difficult to imagine Infosys without Bala's passion, commitment, and intellect. The Board and every Infoscion thank Bala for his wonderful contribution and wish him great success in his future endeavors."
Mr. S. D. Shibulal, Chief Executive Officer and Managing Director said, "Bala during his two decades of association with Infosys, has played a pivotal role in building the finance function and has been a key driver behind all of our achievements in areas of investor relations and corporate governance. Over the last few years, he has also provided leadership to BPO, Finacle, India Business Unit, Global Immigration and most recently, to Lodestone. I would like to wish him the very best in all his future endeavors."
Balakrishnan said, "I have enjoyed every moment of my stint at Infosys and it was a great learning experience. While my heart will always be with Infosys my mind wants to do something beyond Infosys. I thank all my colleagues who supported and encouraged me during my career at Infosys. I wish Infosys all the very best in its future endeavors."
The Nominations and Governance Committee of the company recommended the induction of Mr. U. B. Pravin Rao as a Whole-time Director of the company. Mr. Pravin Rao is currently a Member of the Executive Council, Senior Vice President and Global Head-Retail, Consumer Packaged Goods, Logistics and Life Sciences. Mr. Rao also serves as a Member of the Board of Infosys Lodestone. Mr. Rao is also the Director of the Infosys Leadership Institute (ILI). Mr. Rao holds a degree in electrical engineering from Bangalore University, India.
Welcoming Mr. Pravin Rao, Mr. N. R. Narayana Murthy, Executive Chairman said, "I am very happy that Pravin will be joining the Board. I have worked with Pravin closely and have benefited immensely from his wisdom. My congratulations to him."
The Nominations and Governance Committee of the company recommended the induction of Ms. Kiran Mazumdar-Shaw as an Independent Member of the Board. Ms. Kiran Mazumdar-Shaw is the Chairman & Managing Director of Biocon Limited a biotechnology company based in Bangalore, India. Ms. Shaw is highly respected in the corporate world and has been named among TIME magazine's 100 most influential people in the world. Recently, Economic Times placed her at India Inc's top 10 most powerful women CEO for the year 2012. Her pioneering efforts in biotechnology have drawn global recognition both for Indian Industry and Biocon. Ms. Shaw received a graduate honors degree in Zoology from Bangalore University (1973) and qualified as a Master Brewer from Ballarat University, Australia (1975). Ms. Shaw has also received many honorary Doctorates in recognition of her pre-eminent contributions to the field of biotechnology.
Welcoming Ms. Shaw, Mr. N. R. Narayana Murthy, Executive Chairman said, "Kiran is a well-recognized and respected corporate leader. She will bring immense value to the board. I am honored to welcome her to our Board."
The board of directors will adopt appropriate resolutions on the above recommendations of the Nominations and Governance Committee, at the meeting scheduled for 10 January 2014.
L&T gained 1.55% after the company announced after market hours on Friday, 20 December 2013 that L&T Infrastructure Development Projects (L&T IDPL), a subsidiary of the company has submitted an application to the Foreign Investment Promotion Board (FIPB) seeking approval in relation to a proposed foreign direct investment in L&T IDPL. The company is in discussion with a large global institutional investor for a proposed acquisition of stake in L&T IDPL. Subject to completion of the due diligence processes and necessary agreement on governance and other terms of the transaction with the investor, there is a contemplation of an initial infusion of Rs 1000 crore into L&T IDPL, followed by a second tranche of Rs 1000 crore (or such higher amount as may be agreed between the company and investor) after twelve months from the date of initial investment. The proposed transactions are subject to various factors, and may or may not be completed, and parties have not yet entered into any agreement, company said.
GMR Infrastructure (GMR) gained 1.96% after the company on Friday, 20 December 2013 said that GMR Energy on Friday, 20 December 2013 signed a joint development agreement (JDA) with the International Finance Corporation (IFC), the private sector lending arm of the World Bank, to jointly develop the prestigious Upper Marsyangdi-2 hydropower project (600 MW) in Nepal.
The 600 MW Upper Marsyangdi-2 Project is located on the Marsyangdi River, in the Manang and Lamjung districts of Nepal, which is in an advanced stage of development. The project is currently being undertaken by Mis Himtal Hydro Power Company, a subsidiary of GMR Energy, which in turn is a subsidiary of GMR Infrastructure.
The Government of Nepal has identified the proposed Upper Marsyangdi-II as one of the National Priority Projects and it is being facilitated by the Investment Board of Nepal (IBN). The project has completed all survey and investigation works, finalized the feasibility studies and has already received a majority of clearances from the Government of Nepal. The Project Development Agreement is expected to be signed early next year, GMR said in a statement.
The project aims at a total investment of around $1 billion and is targeted for commissioning by FY 2021.
Zee Entertainment Enterprises rose 0.41%. The company after market hours on Friday, 20 December 2013 said that the Bombay High Court has, at the hearing held on Friday, 20 December 2013, approved the Scheme of Arrangement between the company and its equity shareholders for issuance of bonus preference shares to the company's equity shareholders.
Asian stocks rose on Monday after data showed faster-than-estimated economic growth in the US and the International Monetary Fund said it's raising its outlook for the world's largest economy. Key benchmark indices in China, Hong Kong, Taiwan, Singapore and South Korea rose 0.32% to 0.72%. In Indonesia, Jakarta Composite was off 0.7%.
US stocks rallied Friday, lifting the Dow Jones Industrial Average and the S&P 500 to record levels, after a government report showed the economy grew at its fastest pace in two years last quarter.
The rate of US growth in the third quarter was faster than previously estimated as consumers stepped up spending on services such as health care and companies invested more in software. Gross domestic product climbed at a 4.1% annualized rate, the strongest since the final three months of 2011 and up from a previous estimate of 3.6%, Commerce Department figures showed 20 December 2013.
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