Key benchmark indices regained strength in afternoon trade as the battered Indian rupee recovered against the dollar after the latest data showing 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 S&P BSE Sensex was up 202.77 points or 1.09%, up about 65 points from the day's low and off close to 20 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Cairn India gained along with crude oil prices. Bank pivotals edged higher. South Indian Bank rose after the Reserve Bank of India on Wednesday, 26 June 2013, withdrew restrictions placed on the purchase of its shares by foreign investors. Pharma stocks rose on a recent steep slide in rupee against the dollar.
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 may remain volatile today, 27 June 2013, as traders roll 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 expire today, 27 June 2013.
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.
At 13:20 IST, the S&P BSE Sensex was up 202.77 points or 1.09% to 18,754.89. The index jumped 223.25 points at the day's high of 18,775.47 in early trade, its highest level since 25 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 61.40 points or 1.1% to 5,650.10. The index hit a high of 5,662.25 in intraday trade, its highest level since 25 June 2013. The index hit a low of 5,630.95 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,027 shares declined and 1,005 shares gained. A total of 133 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks gained and the rest of them declined. ONGC (up 3.77%), Bajaj Auto (up 3.44%) and Reliance Industries (up 2.98%), edged higher.
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 surged 4.85%, with the stock extending intraday gain. Dr Reddy's Laboratories (up 2.43%) and Cipla (up 2.06%), gained.
Cairn India rose 1.9% as US crude oil futures rose for a fourth straight day as US refiners boosted crude processing to the highest rate this year and industrial profits increased in China. US crude oil futures for August 2013 delivery were up 46 cents a barrel at $95.96 a barrel in the electronic trading today, 27 June 2013. The contract had risen 18 cents or 0.18% to settle at $95.50 a barrel on the New York Mercantile Exchange on Wednesday, 26 June 2013, its highest closing level since 19 June 2013. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms like Cairn India.
Bank pivotals edged higher. ICICI Bank (up 0.21%), State Bank of India (up 0.62%) and HDFC Bank (up 2.6%), edged higher.
South Indian Bank rose 3.5% to Rs 21.80 after the Reserve Bank of India on Wednesday, 26 June 2013, withdrew restrictions placed on the purchase of its shares by foreign investors. The ceiling on investment by foreign institutional investors (FIIs) in South Indian Bank is 49%.
Tech Mahindra rose 4.59% and Mahindra Satyam gained 5.09%. The two IT companies on 25 June 2013 announced the formal amalgamation of Mahindra Satyam with Tech Mahindra. The merged entity is amongst the top 5 Indian IT services companies, with revenue of $2.7 billion, a team of 84,000 professionals servicing 540 customers across 46 countries, the two companies said. The board of directors of Tech Mahindra at its meeting held on 25 June 2013 fixed 5 July 2013 as the record date for determining the shareholders of Mahindra Satyam who would be entitled to receive shares Tech Mahindra as per the amalgamation scheme. The swap ratio for merger has been fixed at two shares of Tech Mahindra for every 17 shares held in Mahindra Satyam.
Piramal Enterprises (up 5.14%), Jubilant Foodworks (up 4.16%) and UltraTech Cement (up 3.99%), were the other biggest gainers from the BSE A Group.
CMC (up 5%), Tube Investments of India (up 4.76%), Emami (up 4.58%), Zydus Wellness (up 4.32%) and HDIL (up 4.39%), were the biggest gainers from the BSE Mid-Cap index.
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 rupee edged higher, backing off from a record low of 60.76 hit on Wednesday, 26 June 2013, as the country's current account deficit narrowed in the January-March quarter, easing some concerns about the funding of the deficit. The rupee was hovering at 60.25 against the dollar, higher than Wednesday's close of 60.7150/7250. 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 lower on Thursday. Key benchmark indices in France and Germany shed by 0.13% to 0.49%. UK's FTSE 100 rose 0.32%.
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 0.48% 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 16 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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