Key benchmark indices extended gains to hit fresh intraday high in mid-afternoon trade as index heavyweight Reliance Industries (RIL) strengthened. The S&P BSE Sensex was up 53.25 points or 0.27%, up about 160 points from the day's low and off close to 5 points from the day's high. The market breadth, indicating the overall health of the market, was negative. 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.
Pharmaceutical major Sun Pharmaceutical Industries also extended intraday gains triggered by the company receiving final approval from the United States Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for generic version of an injection. GAIL (India) also extended intraday gains.
The market edged lower amid initial volatility. The Sensex and the 50-unit CNX Nifty, both, hit over 5-week low. The market once again slipped into the red after reversing losses to hit fresh intraday high in mid-morning trade. The Sensex hovered in red in early afternoon trade. The market bounced back in afternoon trade. The S&P BSE Sensex hovered in positive terrain, while the CNX Nifty wiped off early losses to trade almost flat. It extended gains to hit fresh intraday high in mid-afternoon trade.
At 14:20 IST, the S&P BSE Sensex was up 53.25 points or 0.27% to 19,598.78. 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 13.50 points or 0.23% to 5,932.95. 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 market breadth, indicating the overall health of the market, was negative. The market breadth alternately swung between positive and negative zone earlier during the trading session. On BSE, 1127 shares fell and 1013 shares rose. A total of 133 shares were unchanged.
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Among the 30-share Sensex pack, 17 stocks rose and the rest of them fell. Wipro, ITC and Infosys shed by 1.04% to 1.54%.
GAIL (India) rose 1.86%, with the stock extending intraday gains.
Pharmaceutical major Sun Pharmaceutical Industries rose 2.34% to Rs 1,042.60, with the stock extending intraday gains. The company 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.
Index heavyweight Reliance Industries (RIL) rose 2.42%, with the stock extending intraday gains. RIL and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India. RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
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 4.43%.
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.
Others attending the meeting will be finance minister P. Chidambaram, petroleum minister Veerappa Moily, Planning Commission deputy chairman Montek Singh Ahluwalia and minister of state of chemicals and fertilizers U.K. Jena.
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.
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 edged lower 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 0.41% to 0.66%.
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 23 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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