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Sensex hits over 14-week high above 20,000

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Capital Market
Last Updated : May 10 2013 | 2:35 PM IST

Key benchmark indices surged to hit fresh intraday high in afternoon trade as firm opening of European stocks boosted sentiment. Data showing improvement in industrial production in March 2013 aided gains on the domestic bourses. The barometer index, the S&P BSE Sensex, was currently above the psychological 20,000 mark, having alternately moved above and below that level so far during the day. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in over 14 weeks. The Sensex was up 127.92 points or 0.64%, off about 30 points from the day's high and up close to 155 points from the day's low.

Index heavyweight and cigarette major ITC hit record high. Another index heavyweight Reliance Industries (RIL) edged lower in volatile trade. Shares of major private banks rose. Shares of PSU banks declined. Realty stocks also declined. NTPC rose after Q4 results. The market breadth, indicating the overall health of the market, was positive.

Key benchmark indices edged higher in early trade as Asian stocks rose. Key benchmark indices extended intraday gains in morning trade. A bout of volatility was seen in mid-morning trade as the key benchmark indices regained positive zone after reversing intraday gains. Key benchmark indices were a tad higher in early afternoon trade. The market surged to hit fresh intraday high in afternoon trade.

At 13:20 IST, the S&P BSE Sensex was up 127.92 points or 0.64% to 20,066.96. The index surged 157.93 points at the day's high of 20,096.97 in afternoon trade, its highest level since 29 January 2013. The index fell 30.24 points at the day's low of 19,908.80 in early trade.

The CNX Nifty was up 36.25 points or 0.6% to 6,086.40. The index hit a high of 6,095.75 in intraday trade, its highest level since 29 January 2013. The index hit a low of 6,045.60 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 852 shares rose and 791 shares fell. A total of 71 shares were unchanged.

Among the 30-share Sensex pack, 22 stocks gained while rest of them declined. Jindal Steel & Power, Coal India and Sun Pharmaceutical Industries shed 1.17% to 1.56%. Maruti Suzuki India, Tata Motors and Hero MotoCorp rose by 2.38% to 3.56%.

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Index heavyweight Reliance Industries (RIL) shed 0.2% to Rs 816.50. The stock hit a high of Rs 820.50 and low of Rs 810 so far during the day. The stock turned ex-dividend today, 10 May 2013, for dividend of Rs 9 per share for the year ended 31 March 2013 (FY 2013).

Index heavyweight and cigarette major ITC rose 1.22% to Rs 348.65. The stock hit record high of Rs 349.40 in intraday trade today, 10 May 2013. The scrip hit low of Rs 342.10 so far during the day. The Uttar Pradesh state government on Tuesday, 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.

NTPC rose 1.5% on strong Q4 results. The company's net profit jumped 68.94% to Rs 4381.61 crore on 6.03% rise in total income from operations (net) to Rs 17349.09 crore in Q4 March 2013 over Q4 March 2012. The net profit was boosted by exceptional item. The company received outstanding receivables of Rs 835.97 crore of erstwhile Delhi Electric Supply Undertaking from the Delhi state government. Interest of Rs 1684.11 crore on the outstanding amount was recognized as exceptional item in Q4 March 2013. The company announced its Q4 results during market hours today, 10 May 2013.

Realty stocks declined. D B Realty, HDIL, DLF and Unitech shed by 0.01% to 1.14%.

Shares of major private banks rose. ICICI Bank rose 0.12%. HDFC Bank gained 1.28%.

Shares of PSU banks declined. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell 0.06%.

Among other PSU bank stocks, Bank of India and Bank of Baroda shed by 0.21% to 0.89%.

Indian Bank declined 0.53%. The bank's net profit declined 15.42% to Rs 292.12 crore on 14.99% growth in total income to Rs 4022.46 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results during trading hours on Thursday, 9 May 2013.

Indian Bank's ratio of gross non-performing assets (NPAs) to gross advances increased to 3.33% as on 31 March 2013, from 3.18% as on 31 December 2012 and 2.03% as on 31 March 2012. The ratio of net NPAs to net advances increased to 2.26% as on 31 March 2013, from 2.17% as on 31 December 2012 and 1.33% as on 31 March 2012.

Punjab National Bank (PNB) shed 1.91%. The state-run bank during market hours on Thursday, 9 May 2013, reported 20.59% fall in net profit to Rs 1130.80 crore on 5.37% rise in total income to Rs 11552.84 crore in Q4 March 2013 over Q4 March 2012. The bank's net profit fell 2.8% to Rs 4747.67 crore on 13.35% rise in total income to Rs 46109.25 crore in the year ended March 2013 over the year ended March 2012.

Union Bank of India dropped 2.14%. The bank's net profit rose 2.09% to Rs 789.38 crore on 15.41% growth in total income to Rs 7500.59 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results during trading hours on Thursday, 9 May 2013.

The bank's ratio of net non-performing assets to net advances decreased to 1.61% as on 31 March 2013, from 1.7% each as on 31 December 2012 and as on 31 March 2012. Union Bank of India's ratio of gross non-performing assets (NPAs) to gross advances decreased to 2.98% as on 31 March 2013, from 3.36% as on 31 December 2012 and 3.01% as on 31 March 2012.

The stock exchanges have decided to conduct a special trading session for a short duration tomorrow, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.

The focus of the market is on Q4 results. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. ITC unveils Q4 results on 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. 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.

Industrial production rose 2.5% in March 2013, compared with a revised growth of 0.46% in February 2013, data released by the government today, 10 May 2013, showed. The manufacturing sector recorded a growth of 3.2% and electricity generation rose 3.5%. The production of the mining sector declined 2.9%. As per use-based classification, production of basic goods rose 2.6% and capital goods production rose 6.9%. The production of intermediate goods declined 0.2%. The production of consumer goods rose 1.6%. Within consumer goods sector, the production of consumer non-durables rose 6.5%. Production of consumer durables declined 4.5%. 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.

European stock markets extended their recent gains on Friday, keying off gains in Asia, where Japanese shares jumped after the US dollar climbed above the 100-yen level for the first time in four years. Key benchmark indices in France, Germany and UK rose by 0.38% to 0.86%.

Asian stocks were mostly higher on Friday, 10 May 2013. Key benchmark indices in Indonesia, Hong Kong, Singapore and China rose by 0.13% to 0.62%. Key benchmark indices in Taiwan and South Korea fell by 0.07% to 1.75%.

Japanese stocks rose as the yen weakened against the dollar. The Nikkei 225 Average jumped 2.93%

Trading in US index futures indicated that the Dow could gain 46 points at the opening bell on Friday, 10 May 2013. US stocks declined moderately on Thursday, halting Wall Street's record-setting streak, even as data showed that weekly jobless claims fell to a five-year low.

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First Published: May 10 2013 | 1:24 PM IST

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