Key benchmark indices surged in early trade as Asian stocks rose after an accord was struck on Sunday, 24 November 2013, to set limits on Iran's nuclear program. The 50-unit CNX Nifty regained the psychological 6,000 mark. The barometer index, the S&P BSE Sensex, was up 238.58 points or 1.18%, up close to 130 points from the day's low and off about 10 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Tata Power Company rose after the company announced the signing of a Memorandum of Understanding (MoU) with the Ministry of Industry and Trade, Government of Vietnam for developing the Long Phu 2 Power Project in Soc Trang Province of Vietnam. AXIS Bank and Jindal Steel & Power, both, gained after the Bombay Stock Exchange (BSE) announced that AXIS Bank will replace Jindal Steel & Power (JSPL) in the 30-share S&P BSE Sensex with effect from 23 December 2013.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month November 2013 series to December 2013 series. The near month November 2013 derivatives contract expire on Thursday, 28 November 2013.
Iran and six world powers clinched a deal on Sunday, 24 November 2013, curbing the Iranian nuclear programme in exchange for initial sanctions relief, signalling the start of a game-changing rapprochement that could ease the risk of a wider Middle East war. Aimed at ending a long festering standoff, the interim pact between Iran and the United States, France, Germany, Britain, China and Russia won the critical endorsement of Iranian clerical Supreme Leader Ayatollah Ali Khamenei. US President Barack Obama said the deal struck after marathon, tortuous and politically charged negotiations cut off Tehran's possible routes to a nuclear bomb. But Israel, Iran's arch-enemy, denounced the agreement as an "historic mistake".
At 9:30 IST, the S&P BSE Sensex was up 238.58 points or 1.18% to 20,455.97. The index jumped 247.18 points at the day's high of 20,464.57 in early trade. The index rose 109.27 points at the day's low of 20,326.66 in early trade.
The CNX Nifty was up 67.95 points or 1.13% to 6,063.40. The index hit a high of 6,065.10 in intraday trade. The index hit a low of 6,035.95 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 819 shares gained and 225 shares fell. A total of 33 shares were unchanged.
Among the 30-share Sensex pack, 29 stocks gained and only one declined. ICICI Bank (up 2.07%), HDFC Bank (up 2.05%) and Hindalco Industries (up 1.83%), gained from the Sensex pack.
AXIS Bank gained 1.46%. Jindal Steel & Power rose 0.08%. The Bombay Stock Exchange (BSE) announced after market hours on Friday, 22 November 2013, that AXIS Bank will replace Jindal Steel & Power (JSPL) in the 30-share S&P BSE Sensex with effect from 23 December 2013.
Tata Power Company rose 0.84% after the company after market hours on Friday, 22 November 2013 announced the signing of a Memorandum of Understanding (MoU) with the Ministry of Industry and Trade, Government of Vietnam for developing the Long Phu 2 Power Project in Soc Trang Province of Vietnam. The MoU has been signed to develop a thermal power plant, which will utilize imported coal, Tata Power said in a statement. In accordance with the MoU, Tata Power will carry out feasibility studies for developing this power project on build, own and transfer basis. The Long Phu 2 Power Project is Tata Power's first coal based project outside India. Tata Power was awarded the Long Phu 2 Power Project by the Government of Vietnam based on the pre-feasibility studies earlier this year.
Speaking on the occasion, Mr. Anil Sardana, CEO & MD, Tata Power said: "It gives us immense pride to announce our association with The Ministry of Industry and Trade, Government of Vietnam. We look forward to working with them on developing and building the power plant, thus contributing towards trade relations between India and Vietnam. The signing of this MoU is a significant milestone for Tata Power and we endeavour to be a significant player in the international energy market.
Siemens declined 0.9% after reporting its Q4 result. The company reported a net profit of Rs 149.19 crore in Q4 September 2013 as against net loss of Rs 55.76 crore in Q4 September 2012. Total income declined 3.41% to Rs 3272.24 crore in Q4 September 2013 over Q4 September 2012. The result was announced after market hours on Friday, 22 November 2013.
In Q4 September 2013, Siemens initiated the sale and transfer of its Postal & Parcel Logistics Technologies and Airport Logistics Technologies business (both forming part of the Infrastructure and Cities Sector) to Siemens Postal Parcel & Airport Logistics, a 100% subsidiary of Siemens AG, effective from the close of business on 30 September 2013 for a consideration of Rs 128 crore and a profit of Rs 115 crore. In view of the amalgamations, current quarter figures are not comparable with corresponding quarter figures.
Siemens' net profit fell 43.47% to Rs 194 crore on 12.29% decline in sales to Rs 11145.20 crore in the year ending 30 September 2013 (FY 2013) over the year ending 30 September 2012 (FY 2012).
The company's new orders were up by 7% to Rs 10957.30 crore in FY 2013 over FY 2012.
Dr. Armin Bruck, MD, Siemens said: "Overall, the results were in line with the challenging economic environment. While a rise of 35% in new orders for the fourth quarter over the immediately preceding quarter is encouraging, the growth of the company is also dependent on the implementation of government policies to promote infrastructure development within the country and create an environment conducive to investment in capital goods. During the year, the company launched initiatives to optimize its cost position and productivity considering the slowdown in the economic environment".
In spite of the reduced profitability, the board of directors of the company has approved a dividend of Rs 5 per share. "This reflects our confidence in the performance of the company once there is a revival in the economic environment," added Dr. Bruck.
In the foreign exchange market, the rupee edged higher against the dollar in early trade on global risk-on sentiment after an accord was struck on Sunday, 24 November 2013, to set limits on Iran's nuclear program. The partially convertible rupee was hovering at 62.49, compared with its close of 62.87/88 on Friday, 22 November 2013.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
On political front, Mizoram assembly elections under revised schedule take place today, 25 November 2013, and counting of votes will be held on 9 December 2013. The assembly polls in Madhya Pradesh are also being held today, 25 November 2013. Elections in Rajasthan will be held on 1 December 2013. Delhi goes to polls on 4 December 2013. Polls in Chattisgarh are already over. Counting for Delhi, Madhya Pradesh, Chhattisgarh and Rajasthan will be held as per schedule on December 8.
Asian stocks rose on Monday, 25 November 2013, as Iran agreed to limit its nuclear program. Key benchmark indices in Taiwan, Hong Kong, Indonesia, Japan, Singapore and South Korea rose by 0.17% to 1.31%.
China's Shanghai Composite rose 0.32%. China's declared intent to protect an air zone encompassing islands that are disputed with Japan escalated tensions between Asia's largest economies, risking damage to a resurgence in trade. China announced an air defense identification zone in the East China Sea effective Nov. 23 and said its military will take "defensive emergency measures" if aircraft enter the area without reporting flight plans or identifying themselves. Japan lodged a complaint as the US and South Korea expressed concern about China's actions.
US stocks rose on Friday, 22 November 2013, with the S&P 500 index closing above 1,800 for the first time and extending gains into a seventh consecutive week.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy.
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