Key benchmark surged on the last trading session of the week as the latest data showing further easing of inflation in May 2013 triggered expectations that the central bank may cut its key policy rate at mid-quarter monetary policy review on Monday, 17 June 2013. The S&P BSE Sensex regained the psychological 19,000 level. The Sensex jumped 350.77 points or 1.86%, up about 225 points from the day's low and off close to 30 points from the day's high. The market breadth, indicating the overall health of the market, was strong. All the 13 sectoral indices on BSE were in the green. Also aiding sentiment, European and Asian stocks rose on speculation that the US Federal Reserve is unlikely to make any changes to its quantitative easing program at its policy-setting meeting next week.
Indian stocks today, 14 June 2013, snapped three-day losing streak. The Sensex had lost 613.91 points or 3.16% in three trading sessions to settle at 18,827.16 on 13 June 2013 from a recent high of 19,441.07 on 10 June 2013. The Sensex has lost 582.37 points or 2.94% in this month so far (till 14 June 2013). The Sensex has fallen 248,78 points or 1.28% in calendar 2013 so far (till 14 June 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 1,265.69 points or 6.19%. From a 52-week low of 16,598.48 on 26 July 2012, the Sensex has surged 2,579.45 points or 15.54%.
Coming back to today's trade, metal stocks gained on renewed buying. Hindalco Industries jumped over 8%. Reliance Industries (RIL) edged higher after partner Niko Resources provided clarity on the companies' recent gas and condensate discovery at key KG-D6 block in India. Interest rate sensitive banking, auto and realty stocks rose as the latest data showing further easing of inflation in May 2013 triggered expectations that the central bank may cut its key policy rate at mid-quarter monetary policy review on Monday, 17 June 2013. Tata Motors gained after the company's British luxury car unit Jaguar Land Rover (JLR) reported good sales in May 2013.
The S&P BSE Sensex jumped 350.77 points or 1.86% to 19,177.93, its highest closing level since 10 June 2013. The index jumped 385.94 points at the day's high of 19,213.10 in late trade. The index gained 124.93 points at the day's low of 18,952.09 in early trade.
The CNX Nifty was up 109.30 points or 1.92% to 5,808.40, its highest closing level since 10 June 2013. The index hit a high of 5,819.40 in intraday trade. The index hit a low of 5,739.40 in intraday trade.
The BSE Mid-Cap index rose 1.19% and the BSE Small-Cap index gained 1.03%. Both these indices underperformed the Sensex.
The BSE Consumer Durables index (up 3.52%), BSE Auto index (up 3.01%), BSE Realty index (up 2.86%), BSE Metal index (up 2.5%), BSE Capital Goods index (up 2.37%), BSE Oil & Gas index (up 2.31%), BSE Power index (up 2.06%) and BSE Bankex (up 1.99%), outperformed the Sensex.
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The BSE IT index (up 0.41%), BSE Teck (up 0.51%), BSE FMCG index (up 0.89%), BSE Healthcare index (up 1.02%), and BSE PSU index (up 1.27%), underperformed the Sensex.
The total turnover on BSE amounted to Rs 2500 crore, higher than Rs 1841.29 crore on Thursday, 13 June 2013.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,422 shares rose and 881 shares fell. A total of 147 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks rose and the rest of them fell.
Capital goods stocks gained. L&T (up 3.38%), Bhel (up 0.8%) and Siemens (up 0.52%), edged higher.
Infosys gained 0.88% after the company said CareFirst BlueCross BlueShield (CareFirst) has selected Infosys Public Services, a US-based subsidiary of Infosys, to support CareFirst's IT operations and provide application development and other support services as part of a new managed services contract. Infosys Public Services will support CareFirst's IT area to help create a cost-effective delivery model. Through its agreement with Infosys Public Services, CareFirst aims to reduce costs and achieve efficiencies in application support during the three-year contract term, Infosys said.
Infosys today, 14 June 2013, said that the Securities and Exchange Board of India (Sebi) has requested details on a crucial board meeting held on 1 June 2013, where Infosys founder N.R. Narayana Murthy was appointed as chairman. Infosys said Sebi has sought "certain clarifications" and the company has provided the details. Infosys didn't say what information the regulator had asked for.
Infosys also after market hours on Thursday, 13 June 2013, announced salary increments for all eligible employees for fiscal year 2014. The company announced an average increase of 8% for employees based in India. Employees based in other geographies, who have not been covered by salary increments in February 2013, can look forward to an average increase of 3%, Infosys said. These increments will be effective 1 July 2013. The global sales force will see an average increase of 8% which will be effective 1 May 2013, Infosys said.
Sun TV Network lost 2.57% to Rs 346.70. The stock was volatile. The scrip reversed direction after gaining as much as 3.97% at the day's high of Rs 370 in early trade. Volumes were high. On BSE, 14.16 lakh shares changed hands in the counter, against average daily volume of 1.43 lakh shares in the past one quarter. The volatility in the counter followed a steep slide on Thursday, 12 June 2013. The stock had lost 10.9% to settle at Rs 355.85 on Thursday following a television report that promoter Kalanithi Maran may be prosecuted by the Central Bureau of Investigation (CBI) in the case related to irregular spectrum allocations.
Shares of power generation firms rose across the board. JSW Energy (up 7.95%), Tata Power Company (up 3.7%), Reliance Power (up 2.55%), NHPC (up 2.27%), GMR Infrastructure (up 1.29%), NTPC (up 1.24%) and Adani Power (up 0.1%), edged higher.
Bank shares rose as the latest data showing further easing of inflation based on the wholesale price index (WPI) triggered expectations that the central bank may cut its key policy rate at mid-quarter monetary policy review on Monday, 17 June 2013.
Yes Bank (up 4.85%), Axis Bank (up 3.20%), ICICI Bank (up 3.1%), Punjab National Bank (up 2.89%), Canara Bank (up 2.24%), Union Bank of India (up 2.05%), Bank of Baroda (up 1.55%), Bank of India (up 1.23%), HDFC Bank (up 1.46%) and State Bank of India (up 1.31%), edged higher.
MMTC fell by the maximum permissible level of 10% at Rs 171.35 on BSE, with the stock extending Thursday's 10% fall, as the government concluded divestment of 9.33% stake at a huge discount to the stock's ruling market price. The offer for sale (OFS) for divestment of Government of India's 9.33% shareholding in MMTC was oversubscribed by 1.55 times. The OFS was carried out on Thursday, 13 June 2013, through a separate window provided by the stock exchanges for this purpose. Based on the total valid bids received, at an indicative price of Rs 60.86 as against the floor price of Rs 60 for the face value of Re one per share, the Government expects to realize proceeds of Rs 567.90 crore.
The OFS received participation from financial institutions, retail investors and some FIIs. The investor category-wise participation was 65% from insurance companies, 21% from banks and 14% from retail investors.
The divestment was done to make the company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR). Sebi has mandated minimum public shareholding of 10% for state-run firms by August 2013.
Titan Industries jumped 5.19%, with the stock extending Thursday's 4.29% gains on bargain hunting after a recent steep slide triggered by the company's announcement that the Reserve Bank of India (RBI) has clarified that all imports of gold for domestic consumption, either through banks, nominated agencies or directly can be made only with 100% cash margin. The RBI has also clarified that credit of any kind from suppliers or bullion banks for import of gold for domestic use is prohibited, Titan said during trading hours on Tuesday, 11 June 2013. This will affect import of gold through all non consignment routes like gold on lease/loan, Titan Industries said. Titan imports gold for its retail gold jewellery business.
Titan said it had sought some clarifications on gold imports after the Reserve Bank of India issued a notification on 4 June 2013 on changes to the current terms governing import of gold in India.
Housing Development Finance Corporation rose 2.66% after 0.14% equity changed hands in two bulk deals on BSE today, 14 June 2013.
Shares of education & tutorial providers gained. Educomp Solutions, Core Education Technologies, Everonn Education, Aptech, NIIT, Edserv Softsystems and Career Point gained 0.65% to 9.88%. MT Educare fell 0.92%.
Tata Coffee advanced 5.45% to Rs 1085.55, with the stock recovering on bargain hunting after a recent steep slide. Shares of Tata Coffee had declined 29.5% in five trading days to Rs 1,029.45 on 13 June 2013 from a recent high of Rs 1,460.20 on 6 June 2013.
Many bulk deals were executed on Tata Coffee counter on BSE and NSE on Thursday, 13 June 2013. On BSE, Kotak Mahindra Prime sold 3 lakh shares at Rs 880.25 per share. Reliance Mutual Fund bought 1 lakh shares at Rs 880.25. Sharad Kantilal Shah sold 1.08 lakh shares.
On NSE, Kotak Mahindra Prime sold 5.05 lakh shares at Rs 881.17 per share. Reliance Regular Saving Fund under equity option scheme bought 2 lakh shares at Rs 880.50 per share.
Bharti Airtel rose 0.52%, with the stock extending Thursday's 3.47% gains. Bharti Telecom, a promoter group entity of Bharti Airtel, purchased 18.17 lakh shares of Bharti Airtel for around Rs 50.90 crore through open market transactions this week. Bharti Telecom's stake in the company has increased to 45.81% post the purchase from 45.77%, the company said in a filing to the BSE. Bharti Telecom bought 6 lakh shares for Rs 17.07 crore on 10 June 2013, 6.75 lakh shares for Rs 18.74 crore on 12 June 2013 and another tranche of 5.42 lakh shares for Rs 15.09 crore on 12 June 2013, the filing added.
Apollo Hospitals jumped 7.1% to Rs 991.50 after the group said it will spend Rs 2200 crore on expanding facilities and will add 2,700 beds in the next three years. Apollo will be spending part of this on expanding the facility in Mumbai and opening Apollo Clinics there. Of the planned outlay, Apollo will spend about Rs 800-Rs 1000 crore in the next 12 months, Sangita Reddy, Executive Director of the group, said in newspaper interview.
Realty stocks rose as the latest data showing further easing of inflation in May 2013 triggered expectations that the central bank may cut its key policy rate at mid-quarter monetary policy review on Monday, 17 June 2013. Unitech (up 4.05%), HDIL (up 2.17%), DLF (up 1.85%) and D B Realty (up 0.72%), edged higher.
Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance.
Auto stocks rose as the latest data showing further easing of inflation in May 2013 triggered expectations that the central bank may cut its key policy rate at mid-quarter monetary policy review on Monday, 17 June 2013. Lower interest rates may help revive demand for vehicles. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing. Maruti Suzuki India (up 4.09%), Bajaj Auto (up 3.23%) and M&M (up 2.66%), edged higher. But, Hero MotoCorp fell 0.41%.
Tata Motors jumped 5.04% after the company's British luxury car unit Jaguar Land Rover (JLR) reported 12% rise in sales to 32,477 units in May 2013 over May 2012. Jaguar sales rose 36% to 6,174 vehicles while Land Rover sales increased 8% to 26,303 vehicles in May 2013 over May 2012. During the first five months of the year, Jaguar Land Rover sold 176,451 vehicles, up 15%.
Apollo Tyres tumbled 5.61% to Rs 64.75, with the stock extending Thursday's 25.43% losses triggered investor concerns about the impact on the company's balance sheet of a large US acquisition that the company announced on Wednesday, 12 June 2013. The stock hit 52-week low of Rs 62.70 in intraday trade today, 14 June 2013. Apollo Tyres on Wednesday said it has entered into a definitive merger agreement under which a wholly-owned step subsidiary of the company will acquire Cooper Tire & Rubber Company (Cooper), a company listed on the New York Stock Exchange in an all-cash transaction valued at approximately $2.5 billion.
This strategic combination will bring together two companies with highly complementary brands, geographic presence, and technological expertise to create a global leader in tire manufacturing and distribution, Apollo Tyres said in a statement. Cooper is the 11th largest tyre company in the world by revenue and it supplies premium and mid-tier tyres worldwide through renowned brands such as Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon. The combined company will be the seventh-largest tyre company in the world and will have a strong presence in high-growth end-markets across four continents, Apollo Tyres said. With a combined $6.6 billion in total sales in 2012, the combined company will have a comprehensive portfolio of signature brands and greater ability to cross-sell products in diverse countries with negligible overlap, Apollo Tyres said.
Shares of index heavyweight Reliance Industries (RIL) gained 3.29% to Rs 815.15 after its KG-D6 block partner Niko Resources said its proved reserves increased by 160%, and that a recent gas discovery in the D6 block off India's east coast could add significantly to future reserves. RIL is the operator of the block with a 60% stake. BP Plc holds 30% and Niko the rest.
Metal stocks gained on renewed buying. Hindalco Industries jumped 8.42%, with the stock extending intraday gains.
Tata Steel rose 3.01% to Rs 274.15, with the stock recovering on bargain hunting after 6-day 11.03% slide. Shares of Tata Steel had declined 11.03% in six trading sessions to settle at Rs 266.15 on Thursday, 13 June 2013, from a recent high of Rs 299.15 on 5 June 2013.
Jindal Steel & Power (up 2.86%), Sterlite Industries (up 1.84%) and Sail (up 1.22%), edged higher.
On macro front, the Central Statistics Office (CSO) today, 14 June 2013, said inflation based on the wholesale price index (WPI) eased further to 4.7% in May 2013 from 4.89% in April 2013. Build up inflation rate in the financial year so far was 0.88% compared to a build up rate of 1.80% in the corresponding period of the previous year. WPI inflation for March 2013 was revised downwards to 5.65% from 5.96% reported earlier. Core inflation or non-food manufacturing inflation eased further to 41-month low of 2.35% in May 2013, the latest data showed.
European shares rose on Friday after concerns eased overnight that the US Federal Reserve will soon taper its bond purchases. Key benchmark indices in France and Germany were up by 0.16% to 0.22%. UK's FTSE 100 fell 0.18%.
Asian stocks rebounded on Friday as US economic data surpassed expectations and on bets the Federal Reserve will signal plans to keep record-low interest rates. Key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea and Singapore rose by 0.35% to 3.32%. Taiwan's Taiwan Weighted fell 0.18%.
Trading in US index futures indicated that the Dow could fall 17 points at the opening bell on Friday, 14 June 2013. US stocks rallied on Thursday bolstered by upbeat economic data. The latest data showed retail sales climbed the most in three months and the number of claims for jobless benefits dropped by 12,000 last week.
The Federal Open Market Committee holds a two-day policy meeting on interest rates in the United States on 18 and 19 June 2013.
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