Key benchmark indices edged higher as upmove in global stocks boosted sentiment. The S&P BSE Sensex attained its highest closing level in more than 2-1/2 years. The 50-unit CNX Nifty attained its highest closing level in more than 7-1/2 weeks. The Sensex advanced 143.01 points or 0.71%, up about 55 points from the day's low and off close to 50 points from the day's high. The market breadth was almost even. Bank stocks edged higher. Realty stocks also gained. FMCG major Hindustan Unilever scaled record high. Index heavyweight and cigarette maker ITC also hit record high. Reliance Industries (RIL) edged higher in volatile trade.
Shares of jewellery makers reversed intraday losses after the Reserve Bank of India on Monday, 22 July 2013, said it has decided to rationalize the import of gold in any form/purity including import of gold coins/dore into the country.
The Sensex advanced for the fifth straight trading session today, 23 July 2013. From a recent low of 19,851.23 on 16 July 2013, the Sensex has gained 450.90 points or 2.27% in five trading sessions. The Sensex has risen 906.32 points or 4.67% so far in July 2013 (till 23 July 2013). The Sensex has gained 875.42 points or 4.5% in calendar 2013 so far (till 23 July 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 141.49 points or 0.69%. From a 52-week low of 16,598.48 on 26 July 2012, the Sensex has surged 3,703.65 points or 22.31%.
The market may remain volatile during the next two trading sessions 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.
The S&P BSE Sensex rose 143.01 points or 0.71% at 20,302.13, its highest closing level since 4 January 2011. The index jumped 191.94 points at the day's high of 20,351.06 in afternoon trade. The index gained 90.86 points at the day's low of 20,249.98 in opening trade.
The CNX Nifty was up 46 points or 0.76% at 6,077.80, its highest closing level since 30 May 2013. The index hit a high of 6,093.35 and a low of 6,061.30 in intraday trade.
The BSE Mid-Cap index rose 0.06%. The BSE Small-Cap index fell 0.1%. Both these indices underperformed the Sensex.
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The total turnover on BSE amounted to Rs 1598 crore, lower than Rs 1651 crore on Monday, 22 July 2013.
The market breadth, indicating the overall health of the market, was almost even. On BSE, 1,149 shares gained and 1,150 shares fell. A total of 173 shares were unchanged.
FMCG major Hindustan Unilever (HUL) rose 3.19% to Rs 718.90. The stock hit record high of Rs 722.10 in intraday trade today, 23 July 2013. Unilever PLC on 11 July 2013 said that pursuant to the voluntary open offer to increase its stake in HUL, the shareholders of HUL tendered a total of 31.99 crore shares, out of which 31.95 crore shares have been accepted by Unilever PLC on completion of the verification of the shares tendered. Based on the shares tendered which represent 14.78% of HUL, the Unilever Group will increase its stake in HUL from 52.48% to 67.26%.
Index heavyweight and cigarette maker ITC rose 1.84% to Rs 375.65. The stock hit record high of Rs 376.10 in intraday trade today, 23 July 2013. The company announces Q1 results on Thursday, 25 July 2013.
Reliance Industries (RIL) rose 0.07% to Rs 909.10 in volatile trade. The scrip had risen as much as 1.78% at day's high of Rs 924.70. The stock hit low of Rs 907.15 in intraday trade. 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 on Friday, 19 July 2013.
Most bank stocks edged higher. Among PSU bank stocks, State Bank of India, Canara Bank, Bank of India, Bank of Baroda and Punjab National Bank gained by 1.28% to 5.05%. Union Bank of India shed 1.06%.
Among private sector banks, ICICI Bank advanced 1.64%. HDFC Bank shed 0.15%.
The Reserve Bank of India (RBI) on 15 July 2013 announced measures to tighten liquidity in the banking system to arrest slide in rupee against the dollar.
ING Vysya Bank rose 0.32% on strong Q1 result. The bank's net profit surged 34.6% to Rs 175.12 crore on 15.7% growth in total income to Rs 1553.08 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Monday, 22 July 2013.
ING Vysya Bank's ratio of net non-performing assets (NPAs) to net advances stood at 0.19% as on 30 June 2013, as against 0.03% as on 31 March 2013 and 0.19% as on 30 June 2012. The ratio of gross NPAs to gross advances stood at 1.75% as on 30 June 2013, as against 1.76% as on 31 March 2013 and 1.97% as on 30 June 2012.
ING Vysya Bank's provisions and contingencies jumped 155.28% to Rs 68.11 crore in Q1 June 2013 over Q1 June 2012.
The bank's capital adequacy ratio (CAR) as per Basel II norms stood at 12.81% as on 30 June 2013, as against 13.24% as on 31 March 2013 and 13.35% as on 30 June 2012. CAR as per Basel III norms stood at 12.59% as on 30 June 2013.
Realty stocks edged higher. HDIL (up 4.33%), DLF (up 3.04%), D B Realty (up 2.32%), and Unitech (up 0.53%), edged higher.
Shares of jewellery makers reversed intraday losses while gold financing firms rose after the Reserve Bank of India on Monday, 22 July 2013, said it has decided to rationalize the import of gold in any form/purity including import of gold coins/dore into the country. Among jewellery makers, Tribhovandas Bhimji Zhaveri (up 6.44%), Shree Ganesh Jewellery House (up 11.54%), PC Jeweller (up 20%) edged higher.
Titan Industries rose 5.85% on high volumes. On BSE, 16.15 lakh shares changed hands on the counter, compared with average daily volume of 4.01 lakh shares in the past one quarter.
On a review of the above instructions and in consultation with Government of India, it has been decided to rationalize the import of gold in any form/purity including import of gold coins/dore into the country, RBI said. Nominated banks/ Nominated agencies will ensure that at least one fifth of every lot of import of gold (in any form/purity including import of gold coins/dore) is exclusively made available for the purpose of export. They shall make available gold in any form for domestic use only to entities engaged in jewellery business/bullion dealers supplying gold to jewellers. Stating this, the Reserve Bank of India has in a notification issued to Nominated banks/ Nominated agencies asked them to ensure that they comply with these instructions while effecting the foreign exchange transactions put through by/for their clients. The instructions will, however, not apply to import of gold by units in the SEZ/EOUs / star trading houses who would import gold only for the purpose of exports, it added.
Auto stocks gained. Maruti Suzuki India rose 0.04%. Mahindra & Mahindra (M&M) gained 2.11%. Tata Motors advanced 0.44%.
Two wheeler stocks edged lower. Hero MotoCorp fell 0.27%. The company unveils Q1 results tomorrow, 24 July 2013.
Bajaj Auto declined 0.39%. The stock had risen in the preceding two trading sessions after the company reported a significant improvement in profit margin 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.
L&T rose 0.07% after Monday's steep losses triggered by the company reporting weak Q1 results. L&T's net profit declined 12.46% to Rs 756.03 crore on 3.69% growth in total income to Rs 13027.66 crore in Q1 June 2013 over Q1 June 2012. L&T attributed the decline in net profit to unfavorable job mix, lower margin accruals and lower other income. The Q1 result was announced during trading hours on Monday, 22 July 2013.
L&T's order inflow jumped 28% to Rs 25159 crore in Q1 June 2013 over Q1 June 2012. International order inflow jumped 2.28 times at Rs 3617 crore in Q1 June 2013 over Q1 June 2012. International orders constituted 14% of the total order inflow in Q1 June 2013. The major orders during the year came from Building & Factories, Transportation Infrastructure, Hydrocarbon and Heavy Civil Infrastructure businesses, L&T said.
With a healthy order book, strong balance sheet, wide ranging capabilities and international presence, the company is optimistic about its prospects as both the Indian and global economies work towards their recovery, L&T said. On the international front, the company continues to focus on good prospects in various countries in the Middle East and select markets in CIS region, Africa and South Asia, L&T said.
L&T Finance Holdings fell 0.13%. The company's consolidated net profit rose 20% to Rs 144.90 crore on 29.43% growth in total income to Rs 1183.06 crore in Q1 June 2013 over Q1 June 2012. The growth in net profit was driven by the continued momentum in the retail finance business. The reduction in losses in the investment management business and positive contribution from the microfinance business also aided profit growth, the company said.
LTFH's loans and advances surged 31.1% year on year (YoY) to Rs 34337.20 crore as on 30 June 2013. Loans and advances rose 3.1% from Rs 33309.90 crore as on 31 March 2013.
LTFH said that the uncertain macro environment resulted in an increase in gross non-performing assets (NPAs), contributed mainly by the corporate, infrastructure and SME segments. Gross NPAs stood at 2.54% of loan assets as on 30 June 2013, as compared to 2.03% as on 31 March 2013. Net NPAs stood at 1.67% of loan assets as on 30 June 2013, as compared to 1.26% as on 31 March 2013.
LTFH said it continues to follow a conservative provisioning policy with contingent and voluntary provisions of Rs 256.10 crore over and above RBI norms.
With regard to future business outlook, LTFH said that early indications of good monsoons are expected to keep the rural economy buoyant, in turn contributing to growth in disbursements and book. The company said that margins are expected to be stable or witness a marginal improvement due to an expected improvement in the interest environment in the second half of FY 2014. Even as the company continues to be cautious in credit selection and asset monitoring, concerns on asset quality remain, LTFH said. Improvement in the overall business environment is expected to enable stabilization of asset quality, it added.
L&T after market hours on Monday, 22 July 2013, said that the company has been allowed to sell upto 1% equity shares of L&T Finance Holdings on the floor of stock exchanges for meeting the minimum public shareholding requirement of L&T Finance Holdings as prescribed by the Securities Exchange Board of India. In addition to sale of shares of L&T Finance Holdings on the floor of the stock exchanges, the company has been advised to explore other options for meeting the minimum public shareholding norms of L&T Finance Holdings, L&T said. L&T Finance Holdings is a subsidiary of L&T.
Shares of Shriram Transport Finance Company, an asset finance NBFC, rose 2.35% after the company today, 23 July 2013, said its consolidated profit after tax rose 7.07% to Rs 366.27 crore in Q1 June 2013 over Q1 June 2012. Net interest income rose 14.12% to Rs 962.88 crore.
Shares of power equipment major Bharat Heavy Electricals rose 2.23% to Rs 165.10 after the company said it has won turnkey contracts worth Rs 132 crore from NTPC for setting up two eco-friendly grid-connected solar power plants of 10 MW each at Unchahar in Uttar Pradesh and Talcher in Orissa.
Asian Paints declined 2.71%, 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.
Mining and metal stocks rose on expectations that Beijing will fine-tune its policies to support China's economic growth. China is the world's largest consumer of copper and aluminum. Hindustan Zinc (up 3.13%), JSW Steel (up 2.78%), Sterlite Industries (up 1.87%), NMDC (up 1.62%), Sesa Goa (up 1.2%), Hindalco Industries (up 0.86%), Tata Steel (up 0.24%), and Sail (up 0.11%), edged higher. Jindal Steel & Power fell 0.47%.
IT stocks edged higher. IT major TCS rose 0.23% to Rs 1749.80, with the stock extending recent gains triggered by the company's strong Q1 results. The stock hit a record high of Rs 1,780 in intraday trade today, 23 July 2013. TCS' net profit rose 5.9% to Rs 3831 crore on 9.5% growth in revenue to Rs 17987 crore in Q1 June 2013 over Q4 March 2013. The company reported Q1 results on 18 July 2013.
Infosys was up 0.88%. Infosys retained its revenue growth guidance in dollar terms for the year ending 31 March 2014 (FY 2014) at the time of announcing Q1 June 2013 result on 12 July 2013, belying fears that it may lower the guidance.
HCL Technologies advanced 1.08% to Rs 899.75. The stock had hit a record high of Rs 906.15 in intraday trade on Friday, 19 July 2013. The company declares year ended June 2013 results on 31 July 2013.
Tech Mahindra was up 0.59% at Rs 1,179. The stock pared gains after hitting 52-week high of Rs 1,193.90 in intraday trade. The company today, 23 July 2013, said it has signed an agreement with UBS Fund Services (Luxembourg) (UBS FSL) as the first client for its new platform, Tech Mahindra Managed Services, which is designed to support asset managers, wealth managers, investment banks, custodians and administrators. The contract is for an initial five-year term. Under the agreement, Tech Mahindra will provide UBS FSL with a fully managed service across four major areas of data management, pricing, corporate actions and tax data.
But, Wipro fell 2.23%.
Reliance Infrastructure (RInfra) rose 2.55%. The company through its Special Purpose Vehicle (SPV) JR Toll Road announced today, 23 July 2013, the commencement of its ninth road project from Jaipur to Reengus in Rajasthan. The four laning of the 52 kilometer (km) Jaipur Reengus (JR) road has been completed and toll collection has started. The Rs 556 crore project has been executed on DBFOT (Design, Build, Operate, Finance and Transfer) pattern under the aegis of National Highways Authority of India. RInfra has been awarded the contract for a concession period of 18 years. JR road is a section of NH-11 running through two major districts of Rajasthan's -Jaipur and Sikar. The road connects major tourist destinations such as Khatu Shyamji & Salasar Balaji, religious places, industrial zones and Jaipur international airport. The corridor also connects rural villageswith urban cities. More than 50 villages including Rajawas, Govindgarh, Dhodser etc. will now be connected with the state capital - Jaipur.
A car will have to pay Rs 45 for a single trip, while local inhabitants residing within 20 kms of the toll plaza can use this corridor any number of times in a month using a special concession pass of Rs 215, RInfra said.
Century Textiles & Industries edged higher after the company reported strong Q1 results. The stock was up 1.27% at Rs 263.25. The company's net profit jumped 1462.24% to Rs 37.65 crore on 14.39% growth in total income to Rs 1595.59 crore in Q1 June 2013 over Q1 June 2012.
European stock markets edged higher on Tuesday, 23 July 2013, mirroring a positive session in Asia overnight after officials signaled China is committed to supporting growth in the country. Key benchmark indices in UK, Germany and France were up 0.12% to 0.25%.
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 0.6% to 1.88%.
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 jumped 1.95%. In Hong Kong, the Hang Seng index was up 2.33%. 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 advanced 0.82%.
Trading in US index futures indicated that the Dow could gain 22 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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