Key benchmark indices further pared intraday gains in early afternoon trade. Firm Asian stocks supported domestic bourses. The barometer index, the S&P BSE Sensex, was up 76.90 points or 0.38%, up close to 85 points from the day's low and off almost equal points from the day's high. Index heavyweight and cigarette major ITC trimmed intraday gains. Another index heavyweight Reliance Industries (RIL) also cut intraday gains. The market breadth, indicating the overall health of the market, was positive. Shares of PSU banks gained. Shares of private banks declined.
The market edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex hit highest level in over 28 months. The 50-unit hit over 30 month high. It held firm in morning trade. It trimmed gains after hitting fresh intraday high in mid-morning trade. It further pared intraday gains in early afternoon trade.
The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 17 May 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 867.93 crore on Friday, 17 May 2013, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was up 76.90 points or 0.38% to 20,363.02. The index rose 157.50 points at the day's high of 20,443.62 in mid-morning trade, its highest level since 5 January 2011. The index fell 8.36 points at the day's low of 20,277.76 in opening trade.
The CNX Nifty was up 14.45 points or 0.23% to 6,201.75. The index hit a high of 6,229.45 in intraday trade, its highest level since 11 November 2010. The index hit a low of 6,195.25 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,126 shares advanced and 827 shares declined. A total of 106 shares were unchanged.
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Among the 30-share Sensex pack, 23 stocks rose and the rest of them fell. M&M, Tata Motors and Maruti Suzuki India rose by 2.18% to 2.73%.
Index heavyweight Reliance Industries (RIL) rose 1.38% to Rs 845.95. The stock hit high of Rs 854.80 and low of Rs 835.15 so far during the day.
Index heavyweight and cigarette major ITC rose 0.52% to Rs 336.45. The stock hit high of Rs 342.20 and low of Rs 334.90 so far during the day. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced during market hours on Friday, 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
Shares of private banks declined. Axis Bank fell 0.23% to Rs 1,529.20. The stock reversed direction after hitting 52-week high of Rs 1,546.10 in intraday trade today, 20 May 2013.
Kotak Mahindra Bank shed 0.96% to Rs 784. The stock had hit record high of Rs 796 in intraday trade on Friday, 17 May 2013. The bank said during market hours on 16 May 2013, that at the meeting of the Preferential Issue and Allotment Committee of the bank held on Thursday, 16 May 2013, the Committee has allotted 2 crore equity shares on preferential basis to Heliconia Pte, an affiliate of Government of Singapore Investment Corporation, on the terms approved by the shareholders of the bank at the Extraordinary General Meeting of the bank held on 9 May 2013.
ICICI Bank declined 0.94% to Rs 1216. The stock reversed direction after hitting 52-week high of Rs 1,233.90 in intraday trade today, 20 May 2013. The bank after trading hours on Thursday, 16 May 2013, said it has received an aggregate equity capital repatriation of Canadian dollar 75 million from ICICI Bank Canada, its wholly owned banking subsidiary in Canada. Post the repatriation, the share capital of ICICI Bank Canada is Canadian dollar 857 million and its capital adequacy ratio continues to be strong, ICICI Bank said in a statement.
ICICI Bank said it already has a strong capital adequacy ratio, and the return of capital by the subsidiary will enhance the bank's ability to optimise capital deployment and return on equity. .
HDFC Bank declined 0.69% to Rs 713.75. The stock's intraday high of Rs 724 matched with a record high hit in intraday trade on Friday, 20 May 2013.
Yes Bank fell 0.86% to Rs 537.65. The stock reversed direction after hitting record high of Rs 547.15 in intraday trade today, 20 May 2013.
Shares of PSU banks gained. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), rose 1.11%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained by 0.77% to 2.18%.
HDFC rose 0.1% to Rs 904.40. The stock had hit record high of Rs 916.65 in intraday trade on Thursday, 16 May 2013.
As per the Q4 results calendar, 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, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Global credit rating agency Standard & Poor's (S&P) on Friday, 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. 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 at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. 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.
Asian stock markets edged higher on Monday boosted by US equities hitting record closing highs on Friday as encouraging economic data prompted investors to buy into growth companies. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore and Taiwan rose by 0.09% to 1.66%. South Korea's Kospi fell 0.22%.
Thailand's growth was slower than economists estimated in the first quarter as exports cooled, boosting the case for the central bank to cut interest rates. Gross domestic product increased 5.3% in the three months through March from a year earlier, after expanding a revised 19.1% in the previous quarter, the National Economic and Social Development Board said in Bangkok today.
Trading in US index futures indicated a flat opening of US stocks on Monday, 20 May 2013. US stocks rose on Friday, advancing to a fourth weekly gain, with both the Dow Jones Industrials Average and the S&P 500 at their all-time closing high as gauges for leading indicators and consumer sentiment advanced more than estimated. The index of U.S. leading indicators climbed in April, a rebound from March that suggests the world's largest economy may be poised for further expansion. The Conference Board's gauge of the outlook for the next three to six months climbed 0.6% last month after falling a revised 0.2% in March that was steeper than previously reported, the New York-based group said. Americans' confidence in the economy climbed in May to the highest level in almost six years as rising real estate values and record stock prices boosted household wealth.
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