Key benchmark indices edged higher in early trade on firm Asian stocks. The S&P BSE Sensex was up 45.24 points or 0.22%, off 31.39 points from the day's high and up 21.86 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Asian markets rose on Monday, 21 October 2013, as traders continued buying spree that began last week on bets the US Federal Reserve will continue its monetary stimulus for the US economy.
Shares of engineering and construction major L&T edged higher in early trade after the company reported a strong growth in order inflow in Q2 September 2013 at the time of announcing its Q2 results after market hours on Friday, 18 October 2013. HDFC fell ahead of its Q2 results today, 21 October 2013. Asian Paints rose ahead of its Q2 results today, 21 October 2013. Hindalco Industries rose after the Prime Minister's Office (PMO) on Saturday, 19 October 2013, said that the Prime Minister is satisfied that the final decision of allocation of Talabira-II and III coal blocks in Odisha to Mahanadi Coalfields, Neyveli Lignite Corporation and Hindalco Industries was entirely appropriate and is based on the merits of the case placed before him. UltraTech Cement dropped after the company reported weak Q2 results on Saturday, 19 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1752.98 crore on Friday, 18 October 2013, as per provisional data from the stock exchanges.
At 9:25 IST, the S&P BSE Sensex was up 45.24 points or 0.22% to 20,928.13. The index gained 76.63 points at the day's high of 20,959.52 in early trade. The index rose 23.38 points at the day's low of 20,906.27 in early trade.
The CNX Nifty was up 11.35 points or 0.18% to 6,200.70. The index hit a high of 6,209.85 in intraday trade. The index hit a low of 6,192.35 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 876 shares gained and 301 shares fell. A total of 46 shares were unchanged.
The total turnover on BSE amounted to Rs 162 crore by 09:30 IST.
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Among the 30-share Sensex pack, 20 stocks gained and rest of them declined. Maruti Suzuki India (up 1.68%), Tata Motors (up 1.25%) and Wipro (up 0.95%) edged higher. TCS (down 0.9%), Coal India (down 0.77%) and Infosys (down 0.55%) edged lower.
HDFC fell 0.46% ahead of its Q2 results today, 21 October 2013.
Asian Paints rose 1.32% ahead of its Q2 results today, 21 October 2013.
Engineering and construction giant L&T surged 3.54%. The company after market hours on Friday, 18 October 2013, said its recurring profit after tax rose 7% to Rs 978 crore on 10% growth in gross revenue at Rs 14648 crore in Q2 September 2013 over Q2 September 2012. The company attributed top line growth to pick-up in execution of various jobs.
L&T said that the upward trend in order inflow was sustained in the second consecutive quarter of the year. Order inflow rose 27% to Rs 26533 crore in Q2 September 2013 over Q2 September 2012. L&T said that its order book at Rs 1.76 lakh crore as on 30 September 2013, increased 11% on year-on-year basis. International order book constituted 15% of the total order book.
L&T said that the macro-economic environment continues to remain weak and uncertain on account of the twin deficits, tight liquidity, persistent inflation and heightened volatility in the financial markets. Investment climate in the economy is yet to show sign of recovery. Deferral of new projects and delayed decision making/execution features the weak performance of the core sector this far, L&T said. The recent government measures such as improved allocation of resources to kick-start the stalled projects are, however, a welcome move to improve the investment sentiment, L&T said.
The company said its strategy of business development in select international markets has started yielding results as is evident from the increased share of international business. The company continues to focus on emerging prospects in the Middle East and other select international markets as part of its twin strategy to hedge against domestic slowdown and attain global competitiveness, L&T said in a statement. With its growing order book, increased international presence, and improved competiveness, the company is hopeful of meeting its growth aspirations in the near and medium term, L&T said.
Hindalco Industries rose 2.62% after the Prime Minister's Office (PMO) on Saturday, 19 October 2013, said that the Prime Minister is satisfied that the final decision of allocation of Talabira-II and III coal blocks in Odisha to Mahanadi Coalfields, Neyveli Lignite Corporation and Hindalco Industries was entirely appropriate and is based on the merits of the case placed before him. The PMO said that the final decision on the Talabira coal block allocation differed from the earlier recommendation of the Screening Committee, and this was done following a representation received in the Prime Minister's Office from one of the parties, which was referred to the Ministry of Coal.
Hindalco, last week, claimed that the company had followed every process required for allocation of coal completely as stipulated by the government policy. The company issued the statement after the Central Bureau of Investigation (CBI) on 15 October 2013 named Aditya Birla Group Chairman Kumar Mangalam Birla in its 14th FIR in the coal block allocation case. CBI also filed FIRs against Nalco, Hindalco and former coal secretary PC Parakh.
UltraTech Cement lost 2.81% after net profit fell 52% to Rs 264 crore on 4.19% decline in net sales to Rs 4502 crore in Q2 September 2013 over Q2 September 2012. The cement major announced the second quarter results on Saturday, 19 October 2013.
The combined domestic cement and clinker sales remained unchanged on year on year basis at 9.1 millon tonnes (MnT) in Q2 September 2013. Sales volume of white cement and wall care putty rose 15.06% to 2.75 lakh metric tonnes (LmT) in Q2 September 2013 over Q2 September 2012.
UltraTech Cement said that the results for the quarter were adversely impacted by lower selling prices and subdued demand. Cement demand remained sluggish on account of prolonged monsoon and low off take from the infrastructure and housing sectors, UltraTech Cement said in a statement. The benefit of softening in prices of imported coal was negated by the devaluation of the rupee. Logistics and raw material costs continued to rise given the high diesel prices, UltraTech Cement said. However, optimization of the fuel mix helped in curbing power and fuel cost to some extent, the company added.
The company's capital expenditure plans are progressing on schedule. During the quarter, the company commissioned a 25 megawatts (MW) thermal power plant (TPP) at Rajashree Cement in Karnataka. The company's 1.6 million tonne per annum (mtpa) cement mill at Jharsuguda in Odisha went on stream this month, the company said.
With regard to future business outlook, UltraTech Cement said the outlook continues to remain challenging. Cement demand growth in FY 2014 is likely to be around 5%, though in the long term growth is likely to be over 8%. The key demand drivers will continue be housing and infrastructure spends, UltraTech Cement said.
Bosch rose 1.07%. The company after market hours on Friday, 18 October 2013, said that the company has decided to suspend the manufacturing operations at its Nashik plant between 21 and 23 October 2013 and again on 6 and 7 November 2013 so as to avoid unnecessary buildup of inventory.
Marico rose 0.21%. The company has fixed 5 November 2013 as the record date for determining the shareholders of the company to whom shares of Marico Kaya Enterprises (MaKE) will be issued. Marico's shareholders will receive one fully paid-up equity share of Rs 10 each of MaKE for every 50 equity shares held in Marico. The announcement was made after market hours on Friday, 18 October 2013.
Asian markets rose on Monday, 21 October 2013, as traders continued buying spree that began last week on bets the US Federal Reserve will continue its monetary stimulus for the US economy. Key benchmark indices in Singapore, Hong Kong, China, Indonesia and Japan rose by 0.1% to 1.13%. Key benchmark indices in South Korea and Taiwan fell 0.12% to 0.21%.
Japan posted a record 15th straight monthly trade deficit in September, as growth in exports slowed. Exports last month rose 11.5% from a year earlier, the Finance Ministry reported Monday, slipping from a 14.7% gain in August. Imports rose 16.5%, up from a 16% increase the previous month, as high energy prices continued to take a toll on the Japanese trade account. The results put September's trade deficit at 932.2 billion yen, narrowing slightly from August's 960.3 billion yen.
US stocks rose on Friday, 18 October 2013, with the S&P 500 index continuing its record run, as investors applauded quarterly results from Internet-search titan Google Inc. and investment bank Morgan Stanley.
Federal Reserve officials largely avoided the topic of tapering in a series of speeches on Friday, 18 October 2013. Charles Evans, the president of the Chicago Fed, disputed the notion that interest rates have to normalize to bring stability to the financial system.
The US government will release the influential nonfarm-payroll data for September 2013 tomorrow, 22 October 2013. The data has been delayed due to the 16-day partial shutdown of the US government this month.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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