Key benchmark indices strengthened further to hit fresh intraday high in mid-afternoon trade as European and Asian stocks rose on speculation that the US Federal Reserve is unlikely to make any changes to its quantitative easing program at its policy-setting meeting next week. Investor sentiment also got a boost from the latest data showing that inflation, based on the wholesale price index, eased further in May 2013. The S&P BSE Sensex was up 317.09 points or 1.68%, up about 195 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 strong. All the 13 sectoral indices on BSE were in the green.
Metal stocks gained on renewed buying. Hindalco Industries jumped over 5%. Capital goods stocks also gained. Shares of index heavyweight Reliance Industries (RIL) extended intraday gains after partner Niko Resources provided clarity on the companies' recent gas and condensate discovery at key KG-D6 block in India. Shares of television broadcaster Sun TV Network dropped in volatile trade, with the stock extending Thursday's losses.
The market edged higher in early trade. The barometer index, the S&P BSE Sensex, regained the psychological 19,000 level. The market extended initial gains to hit fresh intraday high in morning trade. The market was range bound in mid-morning trade. The Sensex extended gains to hit fresh intraday high in early afternoon trade after the latest data showed that inflation based on the wholesale price index eased further in May 2013. Key benchmark indices hit fresh intraday high in afternoon trade after European markets opened higher. The market strengthened further to hit fresh intraday high in mid-afternoon trade.
At 14:20 IST, the S&P BSE Sensex was up 317.09 points or 1.68% to 19,144.25. The index jumped 322.80 points at the day's high of 19,149.96 in mid-afternoon trade, its highest level since 11 June 2013. The index gained 124.93 points at the day's low of 18,952.09 in early trade.
The CNX Nifty was up 98.35 points or 1.73% to 5,797.45. The index hit a high of 5,800.70 in intraday trade, its highest level since 11 June 2013. The index hit a low of 5,739.40 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,316 shares rose and 817 shares fell. A total of 154 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks rose and the rest of them fell. Tata Motors (up 4.65%), Maruti Suzuki India (up 4.02%) and Tata Power Company (up 3.01%), edged higher.
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Shares of index heavyweight Reliance Industries (RIL) gained 2.69% to Rs 810.35 after its KG-D6 block partner Niko Resources said its proved reserves increased by 160%, and that a recent gas discovery in the D6 block off India's east coast could add significantly to future reserves. RIL is the operator of the block with a 60% stake. BP Plc holds 30% and Niko the rest.
Capital goods stocks gained. L&T (up 2.4%), Bhel (up 1.69%) and Siemens (up 0.76%), edged higher.
Infosys gained 0.75% after the company said CareFirst BlueCross BlueShield (CareFirst) has selected Infosys Public Services, a US-based subsidiary of Infosys, to support CareFirst's IT operations and provide application development and other support services as part of a new managed services contract. Infosys Public Services will support CareFirst's IT area to help create a cost-effective delivery model. Through its agreement with Infosys Public Services, CareFirst aims to reduce costs and achieve efficiencies in application support during the three-year contract term, Infosys said.
Infosys today, 14 June 2013, said that the Securities and Exchange Board of India (Sebi) has requested details on a crucial board meeting held on 1 June 2013, where Infosys founder N.R. Narayana Murthy was appointed as chairman. Infosys said Sebi has sought "certain clarifications" and the company has provided the details. Infosys didn't say what information the regulator had asked for.
Infosys also after market hours on Thursday, 13 June 2013, announced salary increments for all eligible employees for fiscal year 2014. The company announced an average increase of 8% for employees based in India. Employees based in other geographies, who have not been covered by salary increments in February 2013, can look forward to an average increase of 3%, Infosys said. These increments will be effective 1 July 2013. The global sales force will see an average increase of 8% which will be effective 1 May 2013, Infosys said.
Apollo Tyres tumbled 7.07% to Rs 63.75, with the stock extending Thursday's 25.43% losses triggered investor concerns about the impact on the company's balance sheet of a large US acquisition that the company announced on Wednesday, 12 June 2013. The stock hit 52-week low of Rs 62.70 in intraday trade today, 14 June 2013. Apollo Tyres on Wednesday said it has entered into a definitive merger agreement under which a wholly-owned step subsidiary of the company will acquire Cooper Tire & Rubber Company (Cooper), a company listed on the New York Stock Exchange in an all-cash transaction valued at approximately $2.5 billion.
This strategic combination will bring together two companies with highly complementary brands, geographic presence, and technological expertise to create a global leader in tire manufacturing and distribution, Apollo Tyres said in a statement. Cooper is the 11th largest tyre company in the world by revenue and it supplies premium and mid-tier tyres worldwide through renowned brands such as Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon. The combined company will be the seventh-largest tyre company in the world and will have a strong presence in high-growth end-markets across four continents, Apollo Tyres said. With a combined $6.6 billion in total sales in 2012, the combined company will have a comprehensive portfolio of signature brands and greater ability to cross-sell products in diverse countries with negligible overlap, Apollo Tyres said.
Metal stocks gained on renewed buying. Hindalco Industries jumped 5.52%, with the stock extending intraday gains.
Tata Steel rose 3.17% to Rs 274.60, with the stock recovering on bargain hunting after 6-day 11.03% slide. Shares of Tata Steel had declined 11.03% in six trading sessions to settle at Rs 266.15 on Thursday, 13 June 2013, from a recent high of Rs 299.15 on 5 June 2013.
Jindal Steel & Power (up 3.01%), Sterlite Industries (up 2.15%) and Sail (up 1.12%), edged higher.
Sun TV Network lost 2.15% to Rs 348.20. The stock was volatile. The scrip reversed direction after gaining as much as 3.97% at the day's high of Rs 370 in early trade. Volumes were high. On BSE, 11.53 lakh shares changed hands in the counter, against average daily volume of 1.43 lakh shares in the past one quarter. The volatility in the counter followed a steep slide on Thursday, 12 June 2013. The stock had lost 10.9% to settle at Rs 355.85 on Thursday following a television report that promoter Kalanithi Maran may be prosecuted by the Central Bureau of Investigation (CBI) in the case related to irregular spectrum allocations.
On macro front, the Central Statistics Office (CSO) today, 14 June 2013, said inflation based on the wholesale price index (WPI) eased further to 4.7% in May 2013 from 4.89% in April 2013. Build up inflation rate in the financial year so far was 0.88% compared to a build up rate of 1.80% in the corresponding period of the previous year. WPI inflation for March 2013 was revised downwards to 5.65% from 5.96% reported earlier. Core inflation or non-food manufacturing inflation eased further to 41-month low of 2.35% in May 2013, the latest data showed.
European shares rose on Friday after concerns eased overnight that the US Federal Reserve will soon taper its bond purchases. Key benchmark indices in UK, France and Germany were up by 0.32% to 0.81%.
Asian stocks rebounded on Friday as US economic data surpassed expectations and on bets the Federal Reserve will signal plans to keep record-low interest rates. Key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea and Singapore rose by 0.35% to 3.33%. Taiwan's Taiwan Weighted fell 0.18%.
Trading in US index futures indicated that the Dow could fall 8 points at the opening bell on Friday, 14 June 2013. US stocks rallied on Thursday bolstered by upbeat economic data. The latest data showed retail sales climbed the most in three months and the number of claims for jobless benefits dropped by 12,000 last week.
The Federal Open Market Committee holds a two-day policy meeting on interest rates in the United States on 18 and 19 June 2013.
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