Sensex hits over 1-1/2-week high

Key benchmark indices extended gains to strike fresh intraday high in early afternoon trade. Equities rose as steep drop this week in gold and oil prices will ease concerns of high current account and fiscal deficit. Firmness in Asian stocks also supported domestic bourses. The barometer index, the S&P BSE Sensex, was up 230.97 points or 1.26%, up close to 260 points from day's low and off about 15 points from the day's high. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in over 1-1/2-week. Index heavyweight Reliance Industries (RIL) edged higher ahead of its Q4 results today, 16 April 2013. Another index heavyweight and cigarette major ITC extended intraday gain. The market breadth, indicating the overall health of the market, was positive.

Cement stocks were mostly higher. Realty stocks gained for the second straight day as slowing wholesale price inflation raised rate cut expectations. Cairn India declined as US crude oil futures slipped to the lowest level in almost four months. Pharma stocks edged higher on renewed buying with Sun Pharmaceutical Industries hitting record high.

Key benchmark indices reversed initial fall and moved into positive zone. Key benchmark indices surged to strike intraday high in morning trade as Asian stocks reversed initial decline. The 50-unit CNX Nifty hit over 1-1/2-week high. Key benchmark indices extended gain to strike fresh intraday high in mid-morning trade. It strengthened to hit fresh intraday high in early afternoon trade. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in over 1-1/2-week.

Foreign institutional investors (FIIs) sold shares worth a net Rs 418.37 crore on Monday, 15 April 2013, as per provisional data from the stock exchanges.

At 12:20 IST, the S&P BSE Sensex was up 230.97 points or 1.26% to 18,588.77. The index jumped 245.31 points at the day's high of 18,603.11 in early afternoon trade, its highest level since 4 April 2013. The index declined 32.07 points at the day's low of 18,325.73 in early trade.

The CNX Nifty was up 68.05 points or 1.22% to 5,636.45. The index hit a high of 5,642.35 in intraday trade, its highest level since 4 April 2013. The index hit a low of 5,555.85 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,045 shares advanced and 824 shares declined. A total of 120 shares were unchanged.

Among the 30-share Sensex pack, 24 stocks advanced while rest of them declined.

Index heavyweight Reliance Industries (RIL) rose 0.4% at Rs 797. The scrip hit high of Rs 801.50 and a low of Rs 786.20 so far during the day. RIL announces Q4 results today, 16 April 2013.

Cairn India lost 1.59% as US crude oil futures slipped to the lowest level in almost four months amid signs global economic growth may slow, curbing fuel demand. US crude oil futures for May 2013 delivery were down $1.05 a barrel at $87.66 a barrel in the electronic trading today, 16 April 2013. The contract had tumbled $2.58 a barrel or 2.82% to settle at $88.71 a barrel on the New York Mercantile Exchange on Monday, 15 April 2013, its lowest closing level since 24 December 2012. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.

Index heavyweight and cigarette major ITC rose 1.37% to Rs 304.20. The scrip hit high of Rs 305.70 and a low of Rs 298 so far during the day. The stock had hit record high of Rs 310.75 on 4 February 2013. The government 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, which was unveiled on 28 February 2013.

Realty stocks gained for the second straight day as slowing wholesale price inflation raised rate cut expectations. Purchases of both residential and commercial property are largely driven by finance. D B Realty, HDIL, Unitech and Sobha Developers rose by 0.62% to 2.85%. But, realty major DLF fell 0.54%.

Cement stocks were mostly higher. ACC and UltraTech Cement rose by 0.23% to 1.41%. Ambuja Cement fell 0.74%.

Pharma stocks edged higher on renewed buying. Cipla, Dr Reddy's Laboratories and Ranbaxy Laboratories rose by 0.16% to 1.64%.

Sun Pharmaceutical Industries rose 1.44% to Rs 882.05. Thes stock hit record high of Rs 883.70 in intraday trade today, 16 April 2013. The company on Monday, 15 April 2013, announced that the USFDA has granted its subsidiary, two tentative approvals for its Abbreviated New Drug Applications (ANDA) for generic version of Januvia, Sitagliptin Tablets and generic version of Glumetza, Metformin HCl Extended-release tablets.

Sitagliptin tablets, 25 mg, 50 mg and 100 mg are therapeutic equivalents of Merck Sharp & Dohme Corporation's Januvia tablets. Sitagliptin tablets have annual sales of approximately $2.7 billion in the US. Sitagliptin tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type-2 diabetes mellitus.

Metformin HCl Extended-release tablets, 500 mg and 1000 mg are therapeutic equivalents of Santarus Inc.'s Glumetza tablets. Metformin HCl Extended-release tablets have annual sales of approximately $140 million in the US. Metformin HCl Extended-release tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type-2 diabetes mellitus.

The near term focus of the market is on Q4 results. Reliance Industries (RIL) announces Q4 results today, 16 April 2013. TCS announces Q4 results tomorrow, 17 April 2013. IndusInd Bank announces Q2 results on 18 April 2013. Wipro announces Q4 results on 19 April 2013. Cairn India announces Q4 results on 22 April 2013. UltraTech Cement announces Q4 results on the same day.

HDFC Bank announces Q4 results on 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. IDFC announces Q4 results on 1 May 2013. Kotak Mahindra Bank announces Q4 results on 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. HDFC announces Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Dr. Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013.

Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms could result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014.

Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on Monday, 15 April 2013, showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the latest data showed. The government revised upwards WPI inflation for January 2013 to 7.31% from 6.62% reported earlier. Build up inflation rate in the financial year so far was 5.96% compared to a build up rate of 7.69% in the corresponding period of the previous year, the Ministry of Commerce & Industry said in a statement.

The combined consumer price inflation for rural and urban India stood at 10.39% in March 2013, lower than 10.91% in February 2013, another data showed. Inflation under the category 'food and beverages' stood at 12.42%, the data showed.

The Reserve Bank of India (RBI) will announce the Monetary Policy Statement 2013-14 on 3 May 2013. The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013. The key macroeconomic priorities are to raise the growth rate, restrain inflation pressures and mitigate the vulnerability of the external sector, RBI said at that time. Even as the policy stance emphasises addressing the growth risks, the headroom for further monetary easing remains quite limited, the RBI said. The RBI said it will continue to actively manage liquidity through various instruments, including open market operations (OMO), so as to ensure adequate flow of credit to productive sectors of the economy.

The index of industrial production rose 0.6% in February 2013, data released by the government on Friday, 12 April 2013, showed. Manufacturing sector recorded a growth of 2.2%. The mining sector registered a decline of 8.1% and electricity sector declined 3.2%. As per use-based classification, production of basic goods declined 1.8% and that of intermediate goods fell 0.7%. Capital goods production rose 9.5%. Production of consumer non-durables rose 2.9% whereas that of consumer durables shrunk 2.7%.

Industrial production rose 0.9% during the period April 2012 to February 2013.

The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.

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.

On the political front, the Congress led UPA government has been reduced to a minority government, with DMK removing support to the government in March this year citing differences on the issue of atrocities on Tamils in Sri Lanka. Earlier, the Trinamool Congress withdrew support to the government in September last year as it opposed economic reforms. The Samajwadi Party (SP) along with its regional rival in Uttar Pradesh Bahujan Samaj Party (BSP) provide outside support to the UPA government. SP has 22 MPs in Lok Sabha and BSP has 21 MPs.

The second half of the Budget session of the Parliament begins on 22 April 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. The Budget Session of the Parliament ends on 10 May 2013.

Assembly elections will be held in Karnataka on 5 May 2013 and the counting of votes and results of the election will be declared on 8 May 2013.

Asian stocks reversed intraday losses on Tuesday. Key benchmark indices in South Korea, China, Hong Kong, Taiwan, Indonesia and Singapore rose by 0.05% to 0.6%. Japan's Nikkei Average fell 0.41%.

Chinese economic data came in weaker than expected, as the nation reported first quarter gross domestic product, March industrial output and other statistics on Monday, 15 April 2013. GDP for the January-March quarter rose 7.7% from a year earlier, weakening from 7.9% growth in the fourth quarter. Industrial production for March increased 8.9% from the year-earlier period, the weakest in more than a year and slowing from a 9.9% average rise for the January-February period, which China's statistics bureau reports in one figure due to seasonal distortions from the Lunar New Year holiday. March retail sales rose 12.6%, improving from 12.3% year-on-year growth in the January-February 2013 period, but far less than the 15.2% gain in December 2012.

Moody's Investors Service on Tuesday affirmed China's government's bond rating of Aa3 but cut the outlook to stable from positive, the second pessimistic revision by a foreign ratings agency this month. Last week, Fitch Ratings cut China's long-term local currency credit rating to A-plus from AA-minus, citing concerns about the risk that excessive local government borrowing posed to the wider economy. Moody's referred to the same issue in justifying its negative revision.

Trading in US index futures indicated that the Dow could gain 81 points at the opening bell on Tuesday, 16 April 2013. US stock indices fell the most in five months on Monday, 15 April 2013, after reports from China showed the industrial giant's growth had cooled.

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