Key benchmark indices extended gains to hit fresh intraday high in afternoon trade as the government's gas and energy sector reforms and firm global stocks boosted sentiment. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit over one-week high. The Sensex was up 408.76 points or 2.17%, up close to 190 points from the day's low and off about 20 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Auto stocks were mostly higher. Bank stocks also gained. Coal India jumped nearly 5% after the government on Thursday, 27 June 2013, approved setting up of a coal regulator in a bid to further liberalize the energy sector and revitalize economic growth. Jindal Steel & Power extended intraday gain.
The Cabinet Committee on Economic Affairs (CCEA) on Thursday, 27 June 2013, approved a hefty increase in gas prices by clearing a proposal for fixation of price of domestic natural gas according to the recommendations of the committee constituted under the Chairmanship of Dr. C. Rangarajan on Production Sharing Contract (PSC) mechanism in the petroleum industry. In another decision, the government on Thursday approved setting up of a coal regulator in a bid to further liberalize the energy sector and revitalize economic growth.
Key benchmark indices rallied in early trade on the government's gas and energy sector reforms, with market sentiment also lifted by higher Asian stocks. The barometer index, the S&P BSE Sensex, hit over one-week high above the psychological 19,000 mark. Key benchmark indices regained strength after paring gains after an initial surge. Key benchmark indices extended gains to strike fresh intraday high in mid-morning trade. Key benchmark indices held firm in early afternoon trade. The market extended gains to hit fresh intraday high in afternoon trade.
At 13:20 IST, the S&P BSE Sensex was up 408.76 points or 2.17% to 19,284.71. The index jumped 426.89 points at the day's high of 19,302.84 in afternoon trade, its highest level since 18 June 2013. The index gained 217.23 points at the day's low of 19,093.18 in opening trade.
The CNX Nifty was up 121.60 points or 2.14% to 5,803.95. The index hit a high of 5,811.05 in intraday trade, its highest level since 19 June 2013. The index hit a low of 5,749.50 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 1,335 shares gained and 752 shares fell. A total of 118 shares were unchanged.
Among the 30-share Sensex pack, 25 stocks gained and only five of them declined.
Jindal Steel & Power spurted 6.33%, with the stock extending intraday gains.
Auto stocks were mostly higher. Bajaj Auto gained 2.58%. The company on 25 June 2013, said workmen at its Chakan plant in Pune have stopped coming to work. Bajaj Auto said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift of 28 June 2013. The reason for the strike was that management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share, Bajaj Auto added. The workmen have, however, stopped coming to the Chakan plant from 25 June 2013, itself, without assigning any reason for this stoppage, the company said in a filing.
Hero MotoCorp fell 0.08%.
Maruti Suzuki India shed 0.17%. M&M advanced 1.73%. Tata Motors gained 4.01%.
JMT Auto was locked at upper circuit limit of 5% at Rs 121.95 after Amtek Auto said it will acquire majority stake in the company. Shares of Amtek Auto rose 1.2%. On Thursday, 27 June 2013, Amtek Auto executed share purchase agreement (SPA) with the promoters of JMT Auto for acquisition of substantial shares along with complete control and management of JMT Auto.
Amtek Auto signed an SPA with promoters of JMT Auto to acquire 38.30 lakh fully paid equity shares of the company.
Amtek Auto also made an open offer to acquire up to 37.42 lakh equity shares, constituting 26% of the fully paid up equity share capital, from public shareholders of the JMT Auto at Rs 149 per share.
The open offer price is at 28.28% premium to JMT Auto's closing price of Rs 116.15 on Thursday, 27 June 2013.
Coal India jumped 4.74% to Rs 300.55 after the government on Thursday, 27 June 2013, approved setting up of a coal regulator in a bid to further liberalize the energy sector and revitalize economic growth. The coal ministry today, 28 June 2013, said that the Union Cabinet has approved the proposal for setting up of an independent regulatory authority for the coal sector and also approved the introduction of the Coal Regulatory Authority Bill, 2013 in Parliament. The coal ministry said that the setting up of an independent regulatory body for the coal sector shall help in the regulation and conservation of coal resources and will benefit all stakeholders; that is coal companies, coal consuming industries such as power, steel, cement and coal bearing states and people, directly or indirectly associated with the coal industry. The Union Cabinet also approved that pending enactment of the legislation, the regulator will be set up through an executive order. The coal regulatory authority will specify methods of testing for declaration of grades or quality of coal, monitor and enforce closure of mines, specify principles and methodologies for price determination of raw coal and washed coal and any other by-produce generated during the process of coal washing, adjudicate upon disputes between parties and discharge other functions as the Central Government may entrust to it.
Bank stocks gained across the board. ICICI Bank (up 3.23%), HDFC Bank (up 2.64%), edged higher.
Yes Bank rose 2.05%, with the stock extending intraday gain. The Cabinet Committee on Economic Affairs has approved to the proposal of Yes Bank to increase foreign equity participation upto 60% through a qualified Institutional Placement (QIP) of its equity shares to eligible non-residents and/or issue of Global Depository Receipts (GDRs) to eligible non-resident investors, as recommended by the Foreign Investment Promotion Board (FIPB). The approval would result in foreign investment amounting to Rs 2650 crore approximately being received in the country, the finance ministry said in a statement.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained by 1.01% to 3.36%.
Cipla rose 0.68% after the company said today, 28 June 2013 that the company received approval from the takeover regulation panel of South Africa on 27 June 2013 regarding the proposed acquisition of 100% of issued shares of Medpro by the company and that all conditions precedent to the scheme have now been fulfilled or waived and accordingly on 27 June 2013 scheme has become unconditional.
IFCI (up 9.91%), Gujarat State Petronet (up 6.88%), Hindustan Zinc (up 5.48%), Bhel (up 5.31%) and Essar Oil (up 5.25%), were the biggest gainers from the BSE A Group.
European stock markets opened higher on Friday, 28 June 2013, in the wake of soothing comments by US Federal Reserve officials. Key benchmark indices in Germany and UK rose by 0.1% to 0.27%, France's CAC 40 fell 0.02%.
German retail sales were better than expected in May, as consumers returned to the shops after being kept away for months by the cold and rainy weather, data from the Federal Statistics Office showed on Friday. Retail sales in May increased 0.8% from April, following three consecutive months of declines, beating economists' forecasts of a 0.3% drop in sales. The data are inflation-adjusted and also consider calendar effects.
Asian stocks edged higher on Friday, 28 June 2013, tracking an overnight rise in global equities on easing fears of an early end to US monetary stimulus. Key benchmark indices in China, Hong Kong, Indonesia, Taiwan, Singapore and South Korea were up 1.2% to 2.26%.
In Japan, the Nikkei 225 index jumped 3.51% as a weakened yen combined with upbeat industrial-production data to lift sentiment.
Japan's industrial production showed a surprise jump in May, while retail sales for the same month also gained, though the largest retailers saw a decline. Industrial output rose 2% during the last month, the Ministry of Economy, Trade and Industry said Friday, accelerating from a 0.9% gain in April.
Trading in US index futures indicated that the Dow could gain 44 points at the opening bell on Friday, 28 June 2013. US stocks surged for a third session on Thursday on upbeat economic data and reiterations from Federal Reserve officials that monetary policy depends on the economic outlook. In a speech on Thursday, Federal Reserve Bank of New York President William Dudley played down the possibility that rate hikes are in the cards anytime soon. Atlanta Fed President Dennis Lockhart said that the markets had mistaken Bernanke's framework for tapering central-bank asset purchases, and reiterated the Fed's approach would be flexible, and based on economic conditions. On Wednesday, Fed Bank of Richmond President Jeffrey Lacker said he believes the economic recovery will remain lackluster for a few more years.
The US Department of Labor reported the number of Americans filing for state unemployment benefits fell by 9,000 to 346,000 last week. The National Association of Realtors reported that pending home sales jumped to a six-year high in May.
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 Wednesday had gross domestic product expanding at a less-than-estimated 1.8% annualized pace in the first quarter, bolstering the view that the Fed would continue the rate of its quantitative easing until late this year or early in 2014.
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