Key benchmark indices held firm in mid-morning trade. The S&P BSE Sensex was up 50.08 points or 0.26%, up 71.41 points from the day's low and off 34.34 points from the day's high. Index heavyweight and cigarette major ITC hovered in the red. Another index heavyweight Reliance Industries (RIL) extended initial gains. The market breadth, indicating the overall health of the market, was positive.
IT stocks were in demand on an upbeat April jobs report. Bank stocks cut intraday fall triggered after online portal Cobrapost today, 6 May 2013, claimed that its sting operation showed that a total of 23 major Indian banks, both public and private, and insurance companies, are running a nation-wide money laundering racket.
Key benchmark indices edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as the key benchmark indices regained positive zone after slipping into the red in morning trade. Key benchmark indices held firm in mid-morning trade.
At 11:24 IST, the S&P BSE Sensex was up 50.08 points or 0.26% to 19,625.72. The index gained 84.42 points at the day's high of 19,660.06 in mid-morning trade. The index declined 21.33 points at the day's low of 19,554.31 in morning trade.
The CNX Nifty was up 11.20 points or 0.19% to 5,955.20. The index hit a low of 5,928.45 in intraday trade, its lowest level since 2 May 2013. The index hit a high of 5,963 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,113 shares advanced and 765 shares declined. A total of 104 shares were unchanged.
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The total turnover on BSE amounted to Rs 657 crore by 11:20 IST compared to Rs 405 crore by 10:20 IST.
Among the 30-share Sensex pack, 18 stocks gained while rest of them declined.
Index heavyweight Reliance Industries (RIL) rose 1.6% to Rs 814. The scrip hit high of Rs 814.90 and a low of Rs 802.50 so far during the day.
Index heavyweight and cigarette major ITC shed 0.92% to Rs 327.70 on profit booking. The scrip hit high of Rs 332.40 and a low of Rs 326.70 so far during the day. The stock had hit record high of Rs 335.90 in intraday on 30 April 2013. 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.
IT stocks were in demand on an upbeat April jobs report. US is the biggest outsourcing market for the Indian IT firms.
Infosys gained 1.07%. The company said during market hours on Thursday, 2 May 2013, that Golomt Bank, Mongolia's largest private banking and financial services provider, has selected Infosys Finacle to power its technology transformation.
Wipro gained 1.11%. Wipro had issued weak revenue outlook at the time of announcement of Q4 March 2014 results on 19 March 2013. Wipro expects a between 0.63% fall to a growth of 1.57% in revenue from IT services business at between $1.575 billion to $1.61 billion in Q1 June 2013 over Q4 March 2013. At a post-result conference call, Wipro's management indicated that Q1 for Wipro will be the traditionally weak quarter on account of softness from the India business. The management expects Q2 September 2013 to be better than Q1 June 2013 for the company.
Wipro's IT services revenue rose 0.5% to $1.585 billion in Q4 March 2013 over Q3 December 2012. On year on year basis, IT services revenue rose 3.2% to $1.585 billion in Q4 March 2013 over Q4 March 2012.
HCL Technologies rose 0.47% to Rs 754.45. The stock had hit a record high of Rs 809 in intraday trade on 17 April 2013 after the company reported strong Q3 results. Consolidated net profit as per US accounting standards rose 7.8% to Rs 1040 crore on 2.4% growth in revenue at Rs 6425 crore in Q3 March 2013 over Q2 December 2012.
Tata Consultancy Services (TCS) advanced 2.25%. TCS posted good Q4 results on 17 April 2013. Its consolidated net profit rose 1.9% to Rs 3616 crore on 2.2% growth in revenue to Rs 16430 crore in Q4 March 2013 over Q3 December 2012. Net profit jumped 33.6% to Rs 13917 crore on 28.8% growth in revenue to Rs 62989 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company clocked volume growth of 16.8% in FY 2013 over FY 2012.
At a post result conference call held on 17 April 2013, TCS' management said it expects FY 2014 to be better year than FY 2013 and anticipates defending the margins in narrow band despite the headwinds from the wage hikes through other levers.
Oracle Financial Services Software (up 4.56%), Tech Mahindra (up 2.55%), Mahindra Satyam (up 2.32%), Hexaware Technologies (up 1.08%) and MphasiS (up 0.81%) were the other gainers from the IT pack.
Bank stocks cut intraday losses triggered after online portal Cobrapost today, 6 May 2013, claimed that its sting operation showed that a total of 23 major Indian banks, both public and private, and insurance companies, are running a nation-wide money laundering racket. Cobrapost said that in all, 23 banks and insurance companies have been exposed, namely, State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Dena Bank, Corporation Bank, Allahabad Bank, Central Bank of India, all public sector banks, and their insurance associates; Yes Bank, Dhanlaxmi Bank, Federal Bank, DCB Bank, HDFC Bank, ICICI Bank and Axis Bank, all private banks, and their insurance allies; besides the state-owned LIC of India, Reliance Life Insurance and Birla Sunlife, and Tata AIG, among private sector insurers.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell 0.56% to Rs 2,204.10, off the day's low of Rs 2,183.15.
HDFC Bank dropped 1.12% to Rs 673.40 after falling to intraday low of Rs 670.20.
ICICI Bank shed 0.58% to Rs 1123.20, with the stock recovering from intraday low of Rs 1109.65.
Among other bank stocks, Kotak Mahindra Bank (down 1.37%), Yes Bank (down 1.19%), Axis Bank (down 1.15%), Canara Bank (down 1.17%), Union Bank of India (down 1%), Bank of Baroda (down 0.31%) and Punjab National Bank (down 0.7%) declined. Bank of India rose 0.11%.
Cobrapost said its undercover investigation conducted for more than half a year, and spanning many states including Uttar Pradesh, Rajasthan, Delhi, Haryana, Andhra Pradesh and Karnataka, shows that money laundering practices are part and parcel of banking and insurance business across the board. Even a walk-in customer can avail of such services that help him launder all his unaccounted cash, Cobrapost said. Money laundering services are being offered by banks and insurance companies openly as a standard product across the board, Cobrapost said.
The second round of secret videos have revealed violation of several provisions of the Income Tax Act, FEMA, RBI regulations, KYC norms, the Banking Act and Prevention of Money Laundering Act (PMLA), said Cobrapost in a press release.
Earlier on 13 March 2013, Cobrapost had aired several secret recordings showing that several bank employees were involved in structuring transactions to aid tax evasion and fraudulent transfer of funds. Codenamed 'Operation Red Spider', it exposed money laundering practices in HDFC Bank, ICICI bank and Axis Bank.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. HDFC and Lupin unveil Q4 results on Wednesday, 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on Thursday, 9 May 2013. NTPC announces Q4 results on Friday, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's 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 and Tata Power unveil Q4 results on 30 May 2013.
Indian services growth eased sharply during April as new orders came in at a much slower pace, a business survey showed today, 6 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 50.7 in April 2013, its lowest since October 2011. It was the third straight month of decline, and took the index dangerously close to the 50 mark that separates growth from contraction. The index had stood at 51.4 in March. Services make up over 60% of India's economy.
On the macro front, the Central Statistics Office (CSO) will issue data on industrial production for March 2013 on Friday, 10 May 2013. Industrial production rose 0.6% in February 2013.
The Budget session of the Parliament ends on Friday, 10 May 2013.
The RBI on Friday, 3 May 2013, cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
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.
Asian stocks rose on Monday as investors gave thumbs up to an upbeat US labor force report that sent Wall Street to an all-time closing high on Friday, 3 May 2013. Key benchmark indices in China, Hong Kong, Taiwan, Indonesia and Singapore rose by 0.35% to 1.16%. South Korea's KOSPI Composite index fell 0.05%. Japanese financial markets are shut on Monday for a public holiday and will reopen on Tuesday.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Monday, 6 May 2013. US stocks on Friday, 3 May 2013, rose to record highs, with the Dow industrials soaring above 15,000 and the S&P 500 index above 1,600, as Wall Street celebrated an upbeat April jobs report. US nonfarm payrolls rose by 165,000 last month and the jobless rate fell to a four-year low of 7.5%, the Labor Department said on Friday, 3 May 2013.
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