Key benchmark indices surged as the battered Indian rupee recovered against the dollar after the latest data showed that India's current account deficit (CAD) moderated sharply to 3.6% of GDP in Q4 of March 2013 from a historically high level of 6.7% of GDP in Q3 December 2012. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit one-week high. The Sensex was provisionally up 315.14 points or 1.7%, up 178.98 points from the day's low and off 58.49 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
The rupee edged higher, backing off from a record low of 60.76 hit on Wednesday, 27 June 2013, as the country's current account deficit (CAD) narrowed in the January-March quarter, easing some concerns about the funding of the deficit. The rupee was hovering at 60.3650 versus the dollar, higher than Wednesday's close of 60.7150/7250.
Reliance Industries (RIL), ONGC and Oil India edged higher on reports that a meeting of Cabinet Committee on Economic Affairs (CCEA) will be held today, 27 June 2013, to consider a proposal for a steep hike in natural gas prices. IT and pharma stocks gained IT stocks rose on a recent steep slide in rupee against the dollar. Index heavyweight and cigarette major ITC slipped in volatile trade. NTPC reversed initial gains in volatile trade.
The market was volatile as traders rolled over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expired today, 27 June 2013. Key benchmark indices surged in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices regained strength after paring initial gains. Key benchmark indices held firm in mid-morning trade. Key benchmark indices pared gains to register intraday low in early afternoon trade. The Sensex regained strength in afternoon trade. The market extended intraday gain to strike one-week high in mid-afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 547.79 crore on Wednesday, 26 June 2013, as per provisional data from the stock exchanges.
As per provisional closing, the S&P BSE Sensex was up 315.14 points or 1.7% to 18,867.26. The index jumped 373.63 points at the day's high of 18,925.75 in late trade, its highest level since 20 June 2013. The index rose 136.16 points at the day's low of 18,688.28 in early afternoon trade.
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The CNX Nifty was up 90.25 points or 1.61% to 5,678.95. The index hit a high of 5,699.35 in intraday trade, its highest level since 20 June 2013. The index hit a low of 5,630.95 in intraday trade.
The market breadth, indicating the overall health of the market, turned positive from negative in late trade. On BSE, 1,252 shares rose and 1,128 shares declined. A total of 144 shares were unchanged.
The total turnover on BSE amounted to Rs 1576 crore, higher than Rs 1491 crore on Wednesday, 26 June 2013.
Among the 30-share Sensex pack, 21 stocks gained and the rest of them declined. Maruti Suzuki India (down 1.26%), Jindal Steel & Power (down 0.55%) and Coal India (down 0.45%) edged lower from the Sensex pack.
Reliance Industries (RIL), ONGC and Oil India edged higher on reports that a meeting of Cabinet Committee on Economic Affairs (CCEA) will be held today, 27 June 2013, to consider a proposal for a steep hike in natural gas prices.
Reliance Industries (RIL) gained 3.18% at Rs 828.10. The stock hit a high of Rs 835.55 and low of Rs 814.35.
Oil India (up 1.7%) and ONGC (up 4.29%) edged higher.
The CCEA last week deferred a decision on a proposal to hike natural gas prices as Oil Minister M Veerappa Moily was away on an official tour. The oil ministry has proposed an increase in gas prices to $6.775 million British thermal unit (mbtu) from current $4.2 mbtu. The Oil Ministry has proposed raising gas price for state-run firms immediately and that for Reliance Industries (RIL) from April 2014 when it is contractually due.
Index heavyweight and cigarette major ITC shed 0.37% at Rs 321.80 in volatile trade. The stock hit a high of Rs 326.95 and low of Rs 317.55.
IT stocks rose on on a recent steep slide in rupee against the dollar. TCS (up 3.79%), Infosys (up 3.02%) and HCL Technologies (up 3.67%), edged higher. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Wipro shed 0.22%. The stock turned ex-dividend today, 27 June 2013, for final dividend of Rs 5 per share for the year ended 31 March 2013.
Pharma stocks extended intraday gains. Pharma companies are likely to benefit from the depreciation of rupee against the dollar as pharma firms derive substantial revenue from exports. Sun Pharmaceutical Industries (up 3.32%), Dr Reddy's Laboratories (up 3.72%) and Cipla (up 1.8%) gained.
Ranbaxy Laboratories rose 1.86% to Rs 318.10. The Supreme Court of India on 25 June 2013, dismissed a public interest lawsuit against the company for allegedly manufacturing and selling substandard medicines due to lack of evidence against the company.
NTPC reversed initial gains in volatile trade. The stock was off 0.78% to Rs 140.10. The stock rose as much as 1.26% at the day's high of Rs 143 in early trade. The company said after market hours on Wednesday, 26 June 2013, that the board of directors of the company at its meeting held on 25 June 2013 has accorded investment approval for the development of a 50 megawatts (MW) solar photo voltaic based project at Rajgarh, Madhya Pradesh at an appraised current project cost of Rs 346.42 crore.
The Reserve Bank of India (RBI) today, 27 June 2013, said that as per the preliminary data, India's current account deficit (CAD) moderated sharply to 3.6% of GDP in Q4 of March 2013 from a historically high level of 6.7% of GDP in Q3 December 2012 as trade deficit narrowed. The RBI said that non-oil non-gold component of imports showed a decline in Q4 March 2013, reflecting slowdown in domestic economic activity. Net invisibles recorded a decline of 7.7% in Q4 March 2013 as compared to a growth of 27.5% n Q4 March 2012 on account of decline in net services, transfers and income receipts.
The CAD edged up to 4.8% of GDP in the year ended 31 March 2013 (FY 2013), from 4.2% of GDP in the year ended 31 March 2012 (FY 2012). Burgeoning trade deficit along with significant decline in invisible earnings caused widening of CAD in FY 2013, RBI said.
The RBI released the Balance of Payment (BoP) data a day ahead of its release scheduled on Friday, 28 June 2013, after the rupee hit record low below 60 versus the dollar on Wednesday, 26 June 2013.
Most European stocks edged higher on Thursday, 27 June 2013, on hopes that a downward revision to US first-quarter gross domestic product growth might delay the Federal Reserve's plans to reduce asset purchases. Key benchmark indices in Germany and UK rose by 0.03% to 0.33%. France's CAC 40 shed 0.07%.
European finance ministers reached an agreement early Thursday on rules for winding down insolvent banks, inking a deal in which banks' shareholders, creditors and big depositors would take the first hit in the event of a bank crisis. The deal still needs legislative approval from the European Parliament.
Asian stocks advanced on Thursday, 27 June 2013, on hopes that a downward revision to US first-quarter gross domestic product growth might delay the Federal Reserve's plans to reduce asset purchases. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Singapore and Japan were up 0.5% to 2.96%. China's Shanghai Composite shed 0.08%.
Profit at major Chinese industrial firms in May rose 15.5% from the year-earlier period, the National Bureau of Statistics said on Thursday. Profit at the firms from the newly adjusted measure of "core operating activities" rose 8.8% from a year earlier, 2.8 percentage points slower than in April, the data said. In the January-May period, overall industrial profit was up 12.3% from the same period in 2012, though up 11.4% in terms of core activities, the bureau said.
South Korean stocks jumped after data released on Thursday, 27 June 2013, showed that the nation's current-account surplus rose to a record high in May on the back of robust exports, even against the backdrop of a global slowdown. The Seoul Composite was up 2.87%.
Trading in US index futures indicated that the Dow could gain 22 points at the opening bell on Thursday, 27 June 2013. US stocks jumped on Wednesday, 26 June 2013, pulling benchmark indexes into positive terrain for the week, as a downward revision in economic growth calmed concern about US monetary policy. Gross domestic product expanded 1.8% from January through March, down from an earlier estimate of 2.4%, the Commerce Department reported.
Federal Reserve Chairman Ben Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.
Data on consumer spending in May and a separate report on weekly initial claims for unemployment benefits are due later in the global day today, 27 June 2013. Also set for Thursday are speeches by three Federal Reserve officials and a report on pending home sales for May from the National Association of Realtors.
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