Key benchmark indices settled with marginal gains as index heavyweight Reliance Industries (RIL) gained ahead of the company's annual general meeting (AGM) scheduled tomorrow, 6 June 2013. The S&P BSE Sensex advanced 22.44 points or 0.11%, up about 125 points from the day's low and off close to 35 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Shares of search service provider Just Dial surged on debut.
Indian stocks today, 5 June 2013, snapped three-day losing streak. The Sensex declined 669.62 points or 3.31% in the past three trading sessions to settle at 19,545.78 on 4 June 2013, from a recent high of 20,215.40 on 30 May 2013. The Sensex has lost 192.08 points or 0.97% in this month so far (till 5 June 2013). The Sensex has gained 141.51 points or 0.72% in calendar 2013 so far (till 5 June 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 875.40 points or 4.28%. From a 52-week low of 16,100.36 on 6 June 2012, the Sensex has surged 3,467.86 points or 22.53%.
Coming back to today's trade, RIL rose a day ahead of its annual general meeting amid speculation the company may have new announcements about a potential tie-up with Reliance Communications. Shares of Reliance Communications (RCom) jumped 5.29%. Cement makers fell on a likely seasonal slowdown in demand as construction activity slows during the monsoon season. Pharmaceutical major Sun Pharmaceutical Industries after Sweden's Meda denied recent reports that the company is in talks to sell itself to Sun Pharma. Metal stocks gained. Two wheeler makers declined.
The S&P BSE Sensex was up 22.44 points or 0.11% to 19,568.22, its highest closing level since 3 June 2013. The index rose 58.65 points at the day's high of 19,604.43 in mid-afternoon trade. The index lost 104.43 points at the day's low of 19,441.35 in early trade, its lowest level since 30 April 2013.
The CNX Nifty was up 4.40 points or 0.07% to 5,923.85, its highest closing level since 3 June 2013. The index hit a high of 5,935.20 in intraday trade. The index hit a low of 5,883.70 in intraday trade, its lowest level since 30 April 2013.
The BSE Mid-Cap index rose 0.06% and underperformed the Sensex. The BSE Small-Cap index gained 0.12% and outperformed the Sensex.
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The BSE Oil & Gas index (up 1.77%), BSE Realty index (up 1.35%), BSE Metal index (up 0.4%), BSE PSU index (up 0.33%), BSE Capital Goods index (up 0.31%), BSE HealthCare index (up 0.27%) and BSE Auto index (up 0.24%), outperformed the Sensex.
The BSE IT index (down 0.76%), BSE Teck index (down 0.59%), BSE FMCG index (up 0.5%), BSE Consumer Durables index (down 0.45%) and BSE Bankex (up 0.08%), underperformed the Sensex
The BSE Power index rose 0.11% and matched with the performance of Sensex.
The total turnover on BSE amounted to Rs 1444 crore, lower than Rs 1471.88 crore on Tuesday, 4 June 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,256 shares fell and 1,083 shares rose. A total of 149 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and the rest of them fell.
Index heavyweight Reliance Industries (RIL) rose 2.56% ahead of the company's annual general meeting scheduled tomorrow, 6 June 2013, amid speculation the company may have new announcements about a potential tie-up with Reliance Communications. Shares of Reliance Communications (RCom) jumped 5.29% to Rs 116.35. On 2 April 2013, RCom and RIL's telecom unit Reliance Jio Infocomm had announced the signing of a definitive agreement for approximately Rs 1200 crore as one time indefeasible right to use (IRU) fees for sharing RCom's nationwide inter-city fiber optic network infrastructure. RCom had said at that time that the agreement between the two companies was the first in an intended comprehensive framework of business co-operation between Reliance Jio Infocomm and RCom to provide for optimal utilization of the existing and future infrastructure of both companies on reciprocal basis, including inter alia, inter-city fiber, intra-city fiber, towers and related assets.
ONGC gained 1.95%.
Cement makers fell on a likely seasonal slowdown in demand as construction activity slows during the monsoon season. Ambuja Cements, ACC and UltraTech Cement fell by 0.55% to 1.94%.
Cadila Healthcare declined 4.42% as investors booked profits after Tuesday's 5.48% rally after the drugmaker announced regulatory approval for a diabetes drug, disappointing investors who had expected a bigger announcement. Cadila Healthcare announced during trading hours today, 5 June 2013, that it received regulatory approval to market Lipaglyn, its new drug to treat a form of diabetes, in India. Lipaglyn is a new chemical entity (NCE), Cadila said in a statement.
Pharmaceutical major Sun Pharmaceutical Industries rose 1.91% to Rs 1038.30 after Sweden's Meda denied recent reports that the company is in talks to sell itself to Sun Pharma. "Due to the recent speculation in the press and news media concerning Meda merging with another pharmaceutical company, we have decided to inform the market that there are currently no such discussions. Meda's policy is not to comment on speculation and will not do so in the future. This announcement is an exception to our policy", the company said in a statement issued today, 5 June 2013. Media reports had said recently that Sun Pharma is talks to buy Meda for between $5 billion and $6 billion to boost its generics business in developed markets.
Meanwhile, Sun Pharma announced after market hours on Tuesday, 4 June 2013, that it has received final approval from the United States Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for generic version of an injection which is indicated for replacement therapy in the male in conditions associated with symptoms of deficiency or absence of endogenous testosterone. It is a generic version of Pfizer's Depo-Testosterone Injection. As per April-2013 IMS MAT data, the product had annual revenue of approximately $130 million in the US.
Dr Reddy's Laboratories rose 0.22% to Rs 2,157.50, with the stock gaining for the third straight day. The stock pared gains after hitting record high of Rs 2,173.40 in intraday trade today, 5 June 2013. The company on Monday, 3 June 2013, said that FUJIFILM Corporation and the company have decided to terminate the memorandum of understanding (MoU) to enter into a exclusive partnership in the generic drugs business for the Japanese market and to establish joint venture in Japan. Based on MoU signed on 28 July 2011, the two companies had conducted detailed studies on the establishment of a joint venture for developing and manufacturing generic drugs in Japan. However, as Fujifilm realigns its long term growth strategy in pharmaceutical business, both companies have decided to terminate the MoU.
The two companies will continue to explore partnerships/alliance in other pharmaceutical businesses such as active pharmaceutical ingredients (API) development and manufacturing, contract research and development and manufacturing, and the development and marketing of super-generics.
HDFC, ITC and Bharti Airtel dropped by 0.69% to 1.23%.
IT stocks were mostly lower. Infosys, Wipro and HCL Technologies dropped by 1.2% to 1.59%.
TCS rose 0.21%, with the stock reversing intraday losses. The company said during market hours today, 5 June 2013, that it has been selected by UK based Network Rail Infrastructure as part of the latter's strategic information technology (IT) transformation journey. The IT solutions and system integration framework agreement for four years encompasses identifying, defining, designing, building and integration of next generation IT solutions for Network Rail.
Shares of search service provider Just Dial settled at Rs 611.45, a premium of 15.37% over the initial public offer price of Rs 530 per share. The stock hit high of Rs 631.90 and low of Rs 589. The stock opened at Rs 590, a premium of 11.32% to the initial public offer (IPO) price. On BSE, 44.24 lakh shares changed hands in the counter.
L&T rose 0.73% after the company said during market hours today, 5 June 2013 that a joint venture company viz. Larsen Toubro Arabia LLC, has achieved a major breakthrough in the kingdom of Saudi Arabia by securing a large engineering, procurement and construction (EPC) project from the Saudi Arabian Oil Company (Saudi Aramco). The project is scheduled to be completed in 37 months.
Fertiliser shares rose on reports that a group of ministers will meet today, 5 June 2013, to discuss a new urea pricing policy for existing producers of the fertilizers. National Fertilizer, GNFC, Rashtriya Chemicals & Fertilizers, Nagarjuna Fertilizers & Chemicals and Chambal Fertiliser & Chemicals rose by 0.01% to 6.63%.
A group of ministers (GoM) headed by agriculture minister Sharad Pawar will reportedly meet for the first time today, 5 June 2013, to discuss a new urea pricing policy for existing producers of the fertilizers. Urea is the only fertiliser that is still under control and sold at a government-notified price. The New Pricing Scheme stage III (NPS III), under which subsidies are given to the urea producing units, expired three years ago in March 2010 and is currently running on a temporary basis, media reports suggested.
Educomp Solutions was locked at 5% lower circuit at Rs 45.20 after rating agency CARE on Tuesday, 4 June 2013, cut the rating on the instruments and bank facilities of the company. CARE has cut the rating on the long-term bank facilities of Rs 299.07 crore as well as that on long-term/short-term bank facilities of Rs 410 crore of Educomp Solutions. The revision in the ratings of Educomp Solution (ESL) takes into consideration the ongoing delays by the company in the servicing of its debt obligations pertaining to the bank facilities on account of a significant deterioration in the company's liquidity position and financial risk profile during the year ended 31 March 2013 (FY 2013), CARE said.
The ratings revision further takes into consideration the weak financial performance of the company during FY 2013 characterized by a decline in the operating income, low PBILDT margins and net loss incurred during the year, CARE added. Going forward, the company has plans to reduce its debt levels and improve its liquidity profile by sale of some more non-core assets, including land parcels and the ability of the company to realize proceeds from the same as envisaged would be a key rating sensitivity, CARE said. Furthermore, the ability to improve its operational performance, maintain its market leadership position amidst a competitive scenario and improvement in the performance of its group companies would remain the key rating sensitivities, CARE said.
Two wheeler makers declined. Bajaj Auto and Hero MotoCorp shed by 0.25% to 0.48%.
Tata Motors gained 0.23%.
Mahindra & Mahindra (M&M) rose 0.26%, with the stock gaining for the third straight day after the company reporting strong tractor sales for May 2013. The company during market hours on Monday, 3 June 2013, announced that its tractor sales rose 24% to 23,626 units in May 2013 over May 2012. The company's domestic tractor sales jumped 25% to 22,471 units in May 2013 over May 2012. Exports rose 16% to 1,155 units in May 2013 over May 2012.
The company on 1 June 2013 said its total sales declined 1% at 43,460 units in May 2013 over May 2012. Auto sales in the domestic market rose 5% to 42,104 units in May 2013 over May 2012. The passenger vehicles segment which includes the UVs and Verito registered a growth of 5% at 22,244 units in May 2013 over May 2012. The four-wheeler commercial segment which includes the passenger and load vehicles registered a 12% growth at 14,848 units while the three-wheeler segment witnessed a 7% decline in sales at 4,028 units in May 2013 over May 2012. Exports declined sharply by 67% at 1,356 units in May 2013 over
Maruti Suzuki India rose 1.28% on bargain hunting after sliding in prior two trading sessions triggered by the company reporting fall in sales in May 2013. The company said during market hours on Tuesday, 4 June 2013, that its production fell 2.54% to 1.01 lakh units in May 2013 over May 2012. The company on Saturday, 1 June 2013, reported 14.4% fall in total sales to 84,677 units in May 2013 over May 2012. The company's domestic sales declined 13% to 77,821 units in May 2013 over May 2012. Exports fell 27.1% to 6,856 units in May 2013 over May 2012.
Hanung Toys & Textiles jumped 5.89% after the company said its board will consider stock split on 12 June 2013.
Goodyear India was locked at 20% upper circuit at Rs 345.75 on BSE on reports that the company's US parent is in advanced stages to finalise delisting of the Indian subsidiary. US based Goodyear Tire & Rubber Company holds 74% stake in Goodyear India.
Metal stocks rose on renewed buying. Hindalco Industries, Sterlite Industries, Tata Steel and Jindal Steel & Power rose by 0.27% to 1.34%.
India's services activity expanded last month at its fastest pace since February as burgeoning new orders drove optimism to a five-month high, a business survey showed on Wednesday. The HSBC Markit Services Purchasing Managers' Index, based on a survey of around 400 companies, rose to 53.6 in May from 50.7 in April. The April reading was the weakest since October 2011. Services make up almost 60% of India's economy.
European stock markets extended losses on Wednesday, 5 June 2013 taking a cue from a weak trading session in Asia where Japanese stocks slumped after a speech from Prime Minister Shinzo Abe fell short of expectations. Key benchmark indices in UK, France and Germany were down by 1.22% to 1.71%.
Asian stocks declined on Wednesday on prospects the Federal Reserve will scale back stimulus efforts as the US economy improves. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Taiwan, Singapore and South Korea shed by 0.11% to 3.83%.
Japan's prime minister delivered his long-awaited speech today, 5 June 2013 on how to boost the country's economy, but failed to meet expectations. The growth strategy revealed plans to attract foreign funds and boost investment and wages, but dodged some of the tough decisions needed to fix the economy.
Activity in China's services sector expanded in May but at a pace little changed from the month before, the latest sign that the world's No. 2 economy is struggling to regain momentum. The HSBC/Markit Purchasing Managers' Index (PMI) for the services industry, released on Wednesday, inched up to 51.2 in May 2013 after seasonal adjustment, the second-lowest reading since August 2011. The services sector accounted for 46 percent of China's gross domestic product in 2012.
Australia's economy expanded less than economists forecast last quarter as machinery and equipment investment declined. First-quarter gross domestic product advanced 0.6% from the previous three months, when it expanded at the same pace, a Bureau of Statistics report released in Sydney today showed.
Trading in US index futures indicated that the Dow could fall 50 points at the opening bell on Wednesday, 5 June 2013. US stocks fell on Tuesday as Wall Street remained on alert for clues as to central-bank policy moves ahead.
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