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Market pares gains after hitting fresh intraday high

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Capital Market
Last Updated : Aug 12 2013 | 11:59 PM IST

A bout of volatility was witnessed as key benchmark indices pared gains after data showing a sharp decline in trade deficit on year on year basis in July 2013 sent the key indices surging in mid-afternoon trade. The S&P BSE Sensex was currently below the psychological 19,000 mark, after hitting intraday high above that mark. The Sensex was up 209.41 points or 1.11%, off 68.22 points from the day's high and up 202.74 points from the day's low. The market breadth, indicating the overall health of the market, was strong.

Index heavyweight and cigarette major ITC advanced after a foreign brokerage upgraded the stock to overweight from neutral, citing prospects of earnings growth resilience. Index heavyweight Reliance Industries (RIL) hovered in red. Steel major Tata Steel spurted ahead of its Q1 results tomorrow, 13 August 2013. Britannia Industries scaled record high after declaring strong Q1 result.

Key benchmark indices edged higher in early trade on firm Asian stocks. The Sensex and the 50-unit CNX Nifty hit highest level in almost a week. Key benchmark indices pared gains in morning trade as index heavyweight Reliance Industries dropped in volatile trade. Key benchmark indices regained strength in mid-morning trade. Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade as index heavyweight and cigarette major ITC advanced. The Sensex extended intraday gain and hit fresh intraday high in afternoon trade. Key benchmark indices pared gains in mid-afternoon trade as European stocks dropped.

At 14:20 IST, the S&P BSE Sensex was up 209.41 points or 1.11% to 18,998.75. The index jumped 277.63 points at the day's high of 19,066.97 in mid-afternoon trade, its highest level since 6 August 2013. The index rose 6.67 points at the day's low of 18,796.01 in morning trade.

The CNX Nifty was up 60.95 points or 1.1% to 5,626.60. The index hit a high of 5,644.10 in intraday trade, its highest level since 6 August 2013. The index hit a low of 5,557.10 in intraday trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,385 shares gained and 794 shares fell. A total of 131 shares were unchanged.

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The total turnover on BSE amounted to Rs 1283 crore by 14:20 IST on BSE

Among the 30-share Sensex pack, 23 stocks gained and rest of them declined. Tata Power Company (down 1.8%), TCS (down 1.61%) and HDFC Bank (down 1.03%) edged lower from the Sensex pack. HDFC (up 4.13%), Jindal Steel & Power (up 6.8%) and Coal India (up 2.91%) edged higher from the Sensex pack.

Index heavyweight and cigarette major ITC gained 2.83% to Rs 334.65 after a foreign brokerage upgraded the stock to overweight from neutral, citing prospects of earnings growth resilience.

Index heavyweight Reliance Industries (RIL) declined 0.96% to Rs 857.10. The stock hit a high of Rs 871 and low of Rs 852.05 so far during the day.

Steel major Tata Steel surged 8.7% to Rs 237.45 ahead of its Q1 results tomorrow, 13 August 2013.

Britannia Industries surged 6.38% to Rs 738.60 after striking a record high of Rs 774.80 in intraday trade today, 12 August 2013. The company's consolidated net profit jumped 93% to Rs 89.50 crore on 14% growth in revenue to Rs 1539.60 crore in Q1 June 2013 over Q1 June 2012. The result was announced during market hours today, 12 August 2013.

Britannia said its operating margin at 7.7% in Q1 June 2013, increased significantly from 4.7% in Q1 June 2012, despite an increase in brand investment at 9.6% of revenue in Q1 June 2013 from 8.4% of revenue in Q1 June 2012.

Commenting on the company's Q1 performance, Ms. Vinita Bali, Managing Director, Britannia Industries said: "The expansion in margin is consequent to an improvement in product mix and higher price realization coupled with an emphasis on cost management -- the growth momentum we saw in the second half of last year, continued."

GVK Power & Infrastructure jumped 10.71% after the company reported improved Q1 June 2013 consolidated results during trading hours today, 12 August 2013. On a consolidated basis, GVK Power & Infrastructure reported a net loss of Rs 30.59 crore in Q1 June 2013, lower than the net loss of Rs 64.30 crore in Q1 June 2012. Net sales fell 14.54% to Rs 699.52 crore in Q1 June 2013 over Q1 June 2012.

Neyveli Lignite Corporation rose 1.71% after net profit declined 3.5% to Rs 278.43 crore on 17.1% growth in net sales to Rs 1559.57 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced on Friday, 9 August 2013. The stock market was closed on that day on account of Ramzan Id.

Neyveli Lignite Corporation (NLC) said there was exceptional expenditure of Rs 64.57 crore in Q1 June 2013. This includes Rs 62.09 crore towards income tax reimbursement claim pertaining to the earlier years, disallowed by the appeallate authority (APTEL) in respect of KSEB. Decision with regard to further appeal is under consideration, NLC said.

India's trade deficit declined sharply on year on year basis in July 2013 as exports surged and imports fell, data released by the government today, 12 August 2013, showed. Merchandise exports jumped 11.64% to $25.83 billion in July 2013 over July 2012. Total imports declined 6.2% to $38.10 billion in July 2013 over July 2012. Oil imports declined 8.02% to $12.70 billion in July 2013 over July 2012. Non-oil imports declined 5.26% to $25.39 billion in July 2013 over July 2012. The trade deficit declined sharply on year on year basis at $12.26 billion in July 2013, from $17.47 billion in July 2012.

Industrial production is seen registering a decline of 1.5% in June 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had registered a contraction of 1.6% in May 2013. The government will unveil industrial production data for June 2013 today, 12 August 2013.

Consumer price inflation is expected to ease a bit in July 2013. The combined consumer price index (CPI) for urban and rural India is expected to ease at 9.7% in July 2013, from 9.9% in June 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will also unveil the CPI data for July 2013 today, 12 August 2013.

European stocks declined on Monday, 12 August 2013, as a report showed Japan's economy grew less than estimated last quarter. Key benchmark indices in France, UK and Germany were off 0.3% to 0.69%.

Mainland Chinese and Hong Kong stocks jumped to lead most Asian markets higher on Monday, 12 August 2013, after a newspaper report in South China Morning Post that Beijing was "quietly offering financial stimulus" to key cities and provinces to support the local economies. China is the world's second biggest economy after the United States. Key benchmark indices in China, Hong Kong, Singapore, South Korea and Taiwan were up by 0.1% to 2.39%. Key benchmark indices in Indonesia and Japan fell by 0.63% to 0.7%.

Data released on Friday, 9 August 2013, showed that Chinese banks made 699.9 billion yuan ($114.3 billion) worth of local-currency loans in July, beating expectations.

Japan's economy grew an annualized 2.6% in the April-June period, the Cabinet Officer reported Monday, cooling sharply from a rapid 4.1% gain in the first calendar quarter. On a seasonally adjusted quarterly basis, gross domestic product rose 0.6% from the first quarter's 0.9% increase.

Trading in US index futures indicated that the Dow could fall 36 points at the opening bell on Monday, 12 August 2013. US stock indexes declined Friday, 9 August 2013, with the Dow Jones Industrial Average halting its longest weekly winning streak since August of last year.

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First Published: Aug 12 2013 | 2:29 PM IST

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