Key benchmark indices extended intraday gains to hit fresh intraday high in mid-morning trade. The S&P BSE Sensex was up 85.36 points or 0.43%, up close to 125 points from the day's low and off about 15 points from the day's high. The 50-unit CNX Nifty regained psychological 6,000 mark. Index heavyweight and cigarette major ITC edged higher in choppy trade. Another index heavyweight Reliance Industries (RIL) was slightly higher. The market breadth, indicating the overall health of the market, was positive.
Metal stocks rose on renewed buying. But, Tata Steel declined in choppy trade after the company said on Monday that it expects non-cash write down of the goodwill and assets of around $1.6 billion in the consolidated financial statements for the year ended 31 March 2013 due to weak economic and market conditions in Europe, its main market. Bank stocks were mostly higher.
The key benchmark indices were marginally higher in early trade. The Sensex regained positive terrain after slipping into the red for a brief period in morning trade. The S&P BSE Sensex and the 50-unit CNX Nifty, both, recovered after hitting their lowest level in more than a week. The market extended intraday gains to hit fresh intraday high in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 244.08 crore on Monday, 13 May 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 85.36 points or 0.43% to 19,777.03. The index rose 98.70 points at the day's high of 19,790.37 in mid-morning trade. The index declined 38.98 points at the day's low of 19,652.69 in early trade, its lowest level since 6 May 2013.
The CNX Nifty was up 29.35 points or 0.49% to 6,009.80. The index hit a high of 6,012 in intraday trade. The index hit a low of 5,970.05 in intraday trade, its lowest level since 6 May 2013.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 1,035 shares advanced and 698 shares declined. A total of 83 shares were unchanged.
Among the 30-share Sensex pack, 21 stocks rose while rest of them fell. Bajaj Auto, Wipro and Hero MotoCorp shed by 0.21% to 0.7%. Bharti Airtel, GAIL (India) and ONGC rose by 1.07% to 2.15%.
Index heavyweight Reliance Industries (RIL) rose 0.31% to Rs 805.50. The stock hit a high of Rs 806.70 and low of Rs 800 so far during the day.
Index heavyweight and cigarette major ITC rose 0.76% to Rs 338.40, on bargain hunting after Monday's 5.31% slide. The stock hit a high of Rs 339.90 and low of Rs 333.10 so far during the day. The stock had hit record high of Rs 355 in intraday trade during the special trading session held on Saturday, 11 May 2013. The Uttar Pradesh state government on 7 May 2013 slashed VAT on cigarette/cigar from existing 50% to 25%. The state government had last year increased VAT on cigarette/cigar and tobacco products from 12.5% to 50%.
The Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14.
Bank stocks were mostly higher. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), gained 0.25%.
Bank of Baroda rose 0.74%. The bank's net profit fell 32.23% to Rs 1028.85 crore on 13.82% rise in total income to Rs 10262.50 crore in Q4 March 2013 over Q4 March 2012. The bank announced the results during market hours on Monday, 13 May 2013.
Bank of Baroda's net profit fell 10.51% to Rs 4480.72 crore on 17.32% growth in total income to Rs 38827.28 crore in the year ended 31 March 2013 over the year ended 31 March 2012. On a consolidated basis, the state-run bank's net profit fell 8.47% to Rs 4804.23 crore on 18.4% growth in total income to Rs 40952.68 crore in the year ended 31 March 2013 over the year ended 31 March 2012.
Among other PSU bank stocks, Canara Bank, Union Bank of India, and Punjab National Bank rose by 0.39% to 0.95%.
Bank of India declined 0.42%, with the stock extending Monday's 4.35% slide triggered by weak Q4 results. The bank's net profit fell 20.58% to Rs 756.57 crore on 5.55% rise in total income to Rs 9265.55 crore in Q4 March 2013 over Q4 March 2012. The bank announced the results during market hours on Monday, 13 May 2013.
ICICI Bank gained 0.45%. Axis Bank rose 1.09%.
HDFC Bank dropped 0.3% to Rs 691. The stock had hit record high of Rs 711.55 in intraday trade on Monday, 13 May 2013.
Metal stocks rose on renewed buying. JSW Steel, Sterlite Industries, Jindal Steel & Power Sail, Hindalco Industries and Hindustan Zinc rose by 0.03% to 2.39%.
Tata Steel edged lower in choppy trade. The stock was off 0.77% at Rs 303. The scrip hit high of Rs 304.10 and low of Rs 296.70. The company said after market hours on Monday, 13 May 2013, that the company has substantially completed its year end impairment review for the consolidated financial statements for the financial year end 31 March 2013 (FY 2013) as required under the Indian Accounting Standards. This review was undertaken taking into account the external economic environment and macroeconomic conditions especially in Europe, the underlying demand-supply imbalance of the global steel industry and the prudent view of the forecast of the businesses. Following the review, the company expects non-cash write down of the goodwill and assets in the consolidated financial statements for the year ended 31 March 2013 of around $1.6 billion.
The impairment is primarily due to a weaker macroeconomic and market environment in Europe where apparent steel demand has fallen significantly in 2012-13 by almost 8% which in aggregate results in almost 30% since the emergence of the global financial crisis in 2007. This has led to a downward revision of cash flow expectations underlying the valuation of the European business. The impairment also includes the effect of write down of assets in the ferro chrome business in South Africa and the mini blast furnace in Tata Steel Thailand which has been impacted by the high cost of raw material feedstock. The final figures will be included in the full year results on 23 May 2013, Tata Steel said. The company's financial covenants are unaffected by the above non-cash write down of goodwill and assets, it added.
The focus of the market is on Q4 results. Bajaj Auto announces Q4 results on Thursday, 16 May 2013. ITC unveils Q4 results on Friday, 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Tata Steel State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
On the macro front, the government will unveil data on the wholesale price index (WPI) for April 2013 today, 14 May 2013. WPI eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013.
The consumer price inflation fell below the 10% mark in April 2013. The combined consumer price inflation for rural and urban India eased to 9.39% in April 2013 from 10.39% in March 2013, data released by the government on Monday, 13 May 2013, showed.
India's trade deficit widened to $17.787 billion in April 2013 from $14.041 billion in April 2012, data released by the government on Monday, 13 May 2013, showed. While exports rose 1.68% at $24.164 billion, imports jumped 10.96% to $41.951 billion in April 2013 over April 2012.
Industrial production rose 2.5% in March 2013, compared with a revised growth of 0.46% in February 2013, data released by the government on Friday, 10 May 2013, showed. Industrial production rose 1% for the year ended 31 March 2013 (FY 2013).
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
Most Asian markets fell on Tuesday. Key benchmark indices in Indonesia, Japan, China, Hong Kong and fell by 0.08% to 1.33%. Key benchmark indices in Taiwan, South Korea and Singapore rose by 0.08% to 0.91%.
Trading in US index futures indicated that the Dow could gain 10 points at the opening bell on Tuesday, 14 May 2013. US stocks finished little changed on Monday as investors mulled when the Federal Reserve may begin to scale back its $85-billion-a-month bond-buying program.
US retail sales rose 0.1% in April, which was higher than forecast, signaling that central bank efforts to spur economic growth are working.
In Europe, a report on euro-zone industrial production in March 2013 and Germany's gauge of investor confidence -- the ZEW -- for May 2013 are due for release later in the global day today, 14 May 2013.
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