Key benchmark indices hovered in positive terrain in early afternoon trade. Firm Asian stocks supported domestic bourses. The S&P BSE Sensex was up 159.56 points or 0.79%, off close to 25 points from the day's high and up about 70 points from the day's low. The market breadth, indicating the overall health of the market, was positive. All the thirteen sectoral indices on BSE were in the green. Most auto stocks gained. Asian Paints extended Monday's losses triggered by the company reporting weak Q1 result. Reliance Industries (RIL) extended intraday gain. From FMCG pack, Dabur India scaled record high.
The market surged in early trade on firm Asian stocks. The market held firm in morning trade. Key benchmark pared gains after hitting fresh intraday high in mid-morning trade. The Sensex pared gains after hitting its highest level in over nine weeks. The 50-unit CNX Nifty trimmed gains after scaling 7-1/2-week high. It hovered in positive terrain in early afternoon trade.
The market may remain volatile this week as traders roll over positions in the futures & options (F&) segment from the July 2013 series to August 2013 series. The near month July 2013 derivatives contracts expire on Thursday, 25 July 2013.
At 12:20 IST, the S&P BSE Sensex was up 159.56 points or 0.79% to 20,318.68. The index jumped 186.17 points at the day's high of 20,345.29 in mid-morning trade, its highest level since 20 May 2013. The index gained 90.86 points at the day's low of 20,249.98 in opening trade.
The CNX Nifty was up 52.20 points or 0.87% to 6,084. The index hit a high of 6,089.75 in intraday trade, its highest level since 31 May 2013. The index hit a low of 6,061.30 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1011 shares gained and 811 shares fell. A total of 100 shares were unchanged.
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Among the 30-share Sensex pack, 26 stocks rose and only 4 of them fell. Sterlite Industries (up 2.29%), Bhel (up 2.07%) and Dr Reddy's Laboratories (up 2%), edged higher.
Reliance Industries (RIL) rose 1.65%, with the stock extending intraday gain. The company's net profit rose 18.9% to Rs 5352 crore on 4.6% decline in revenue to Rs 90589 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Friday, 19 July 2013.
Auto stocks gained. Ashok Leyland advanced 0.33%. Maruti Suzuki India rose 0.51%. Mahindra & Mahindra (M&M) gained 0.6%. But, Tata Motors fell 0.1%.
Two wheeler stocks also rose. Hero MotoCorp rose 0.26%. The company unveils Q1 results tomorrow, 24 July 2013.
Bajaj Auto rose 0.27%, with the stock extending recent gain triggered by the company reporting a significant improvement in margins in Q1 June 2013 despite the gloomy automobile scenario in the country. The company's net profit rose 3% to Rs 738 crore on 1% growth in total income to Rs 5087 crore in Q1 June 2013 over Q1 June 2012. The result was announced during trading hours on Friday, 19 July 2013.
Bajaj Auto said its EBITDA margin surged to 21.3% in Q1 June 2013 from 18.9% in Q1 June 2012. The company said its strategy to focus on international markets has paid rich dividends. The company said its strategy to hedge future earnings from exports has ensured the company's ability to leverage to its advantage the depreciation of the rupee against the dollar. While exports were almost flat at $327 million, in rupee terms, exports recorded a growth of 10% to Rs 1876 crore in Q1 June 2013 over Q1 June 2012. The company said that taking into account the current trend of the rupee against dollar and current position of hedged contracts, a further benefit on account of depreciating rupee would accrue to the company in the coming quarters.
Dabur India rose 0.76% to Rs 172.25. The stock hit record high of Rs 174.20 in intraday trade today, 23 July 2013.
Asian Paints declined 1.56%, with the stock extending Monday's 1.69% losses triggered by the company reporting weak Q1 result. The company's consolidated net profit fell 4.57% to Rs 275.20 crore on 11.6% growth in income from operations to Rs 2841.10 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours on Monday, 22 July 2013. Profit before depreciation, interest and taxes (PBDIT) rose 4% to Rs 464.70 crore in Q1 June 2013 over Q1 June 2012.
Bayer CropScience tumbled 8.17% to Rs 1606 after the company on Monday, 22 July 2013, announced share buyback through tender offer route at a steep discount to the ruling market price.
Shares of Bayer CropScience were on a roll recently. The stock galloped 19.39% in ten trading sessions to settle at Rs 1,748.95 on Monday, 22 July 2013, from a recent low of Rs 1,464.85 on 8 July 2013. The rally in the stock got momentum after the company on 18 July 2013 said its board will consider share buyback proposal on 22 July 2013.
Bayer CropScience's board of directors at a meeting held on Monday, 22 July 2013, unanimously approved a buyback proposal for purchase by the company of up to 28.79 lakh equity shares of Rs 10 each, representing 7.29% of the total equity capital, from all the shareholders of the company on a proportionate basis through the tender offer route as at a price of Rs 1,580 per equity share, aggregating to approximately Rs 455 crore. The board noted the intention of the promoter group of the company to participate in the proposed buyback. The buyback would be subject to approval of the shareholders by way of a special resolution through postal ballot and all other applicable statutory approvals.
The buyback price of Rs 1,580 per share is at a discount of 9.66% to the stock's closing price of Rs 1,748.95 on Monday, 22 July 2013.
Bayer CropScience's promoters own 71.11% stake in the company (as per the shareholding pattern as on 30 June 2013).
Fresenius Kabi Oncology galloped 17.26% after market regulator Securities & Exchange Board of India in its order dated Monday, 22 July 2013, allowed the company to delist its shares from the Indian stock market.
Market regulator Securities & Exchange Board of India (Sebi) in its order dated 22 July 2013, asked Fresenius Kabi Oncology to complete the delisting process within three months-bringing to an end a long-standing dispute. Allowing Fresenius Kabi Oncology to initiate the delisting process, Sebi however, said that the company would have to take into account its pre-OFS (offer for sale) promoter holding to determine the minimum number of shares to be acquired for the delisting. Before the OFS, the promoter holding was 90%, which has now fallen to 81%. The promoter offloaded 9% through OFS in October 2012 reducing its stake to 81% to fulfill the minimum public shareholding norms as per current regulations which is currently at 25%.
For the delisting process to succeed, the promoters would need to acquire more than 9% from the public investors.
The company's overseas parent -- Fresenius Kabi (Singapore) Pte -- had announced delisting plan in April 2013. The foreign promoter had said at that time that it intends to pay an indicative price of up to Rs 130 per share to acquire the shares offered to it in the delisting offer.
Sebi had earlier refused permission to the company for its delisting plans, saying that it had benefited from a specially designed offer-for-sale (OFS) route for expanding the public float of shares. While the company had earlier sold 9% promoter stake through an OFS, it later proposed to delist its shares from the stock exchanges rather than selling a further 6% to meet the minimum public shareholding requirement.
PC Jeweller (up 13.58%), Financial Technologies (up 6.21%), Manappuram Finance (up 5%) and HDIL (up 4.71%), were the other biggest gainers from the BSE Mid-Cap index.
Asian stocks surged on Tuesday, 23 July 2013, after data showing decline in US home sales dampened concerns the Federal Reserve will reduce stimulus measures. Key benchmark indices in Indonesia, South Korea, Singapore and Taiwan were up 0.49% to 1.35%.
Chinese stocks rose on expectations that Beijing will fine-tune its policies to support China's economic growth. In mainland China, the Shanghai Composite index was up 1.59%. In Hong Kong, the Hang Seng index was up 2.21%. Chinese Vice Premier Zhang Gaoli on Monday, 22 July 2013, said that policy makers are committed to speeding up economic restructuring and will take steps to support reasonable infrastructure and social-welfare investments, according to media reports.
China's foreign-exchange regulator said separately that the country wasn't seeing any capital flight.
Japanese shares edged higher after the government upgraded its view of the economy for a third straight month. The Nikkei 225 Average was up 0.82%.
Trading in US index futures indicated that the Dow could gain 43 points at the opening bell on Tuesday, 23 July 2013. US stocks posted modest gains on Monday, with the S&P 500 notching its 23rd record close this year, as the financial and health-care sectors led the market higher. Sales of previously owned US homes unexpectedly dropped 1.2% in June, data yesterday showed.
Federal Reserve Chairman Ben Bernanke last week said it is too early to determine whether the central bank will taper asset purchases at its meeting in September. The central bank currently purchases $85 billion a month in government and US mortgage debt, aimed at encouraging economic growth.
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