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Sensex strikes intraday high above 20,000 in late trade

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Capital Market
Last Updated : May 27 2013 | 5:02 PM IST

Key benchmark indices pared gains after striking intraday high in late trade. The barometer index, the S&P BSE Sensex, struck day's high above the psychological 20,000 mark in late trade. Firm European stocks and mostly higher Asian stocks supported domestic bourses. The S&P BSE Sensex was provisionally up 296.97 points or 1.51%, up 322.99 points from the day's low and off 82.17 points from the day's high. Index heavyweight Reliance Industries (RIL) surged nearly 5% after the company along with partners announced huge gas discovery in KG-D6 block. Another index heavyweight and cigarette major ITC also gained. The market breadth, indicating the overall health of the market, was positive.

Shares of mortgage lender HDFC hit record high. Coal India rose ahead of its consolidated FY 2013 results today, 27 May 2013. Sun Pharmaceutical Industries scaled record high ahead of Q4 results tomorrow, 28 May 2013. Shares of Britannia Industries galloped to record high after announcing strong Q4 results after market hours on Friday, 24 May 2013. Telecom stocks were in demand on reports that Reliance Communications (RCom) has raised basic rates for prepaid mobile-to-mobile calls by 33%.

Volatility ruled the roost in early trade as the key benchmark indices rose to intraday high after sliding in the red following a positive start. The CNX Nifty regained the psychological 6,000 mark in early trade. Key benchmark indices hit fresh intraday high in mid-morning trade. Key benchmark indices pared gains after striking fresh intraday high in early afternoon trade. It regained strength in afternoon trade. Key benchmark indices extended gains to strike fresh intraday high in mid-afternoon trade. Key benchmark indices pared gains after striking intraday high in late trade.

Foreign institutional investors (FIIs) sold shares worth a net Rs 238.56 crore on Friday, 24 May 2013, as per provisional data from the stock exchanges.

As per provisional closing, the S&P BSE Sensex was up 296.97 points or 1.51% to 20,001.30. The index jumped 379.14 points at the day's high of 20,083.47 in late trade, its highest level since 22 May 2013. The index fell 26.02 points at the day's low of 19,678.31 in early trade.

The CNX Nifty was up 88.55 points or 1.48% to 6,072.10. The index hit a high of 6,099.90 in intraday trade, its highest level since 22 May 2013. The index hit a low of 5,975.55 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,404 shares rose and 1,001 shares fell. A total of 145 shares were unchanged.

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The total turnover on BSE amounted to Rs 1881 crore, lower than Rs 1981.93 crore on Friday, 24 May 2013.

Among the 30-share Sensex pack, 27 stocks gained and only three of them fell. Cipla (down 1.76%), M&M (down 1.59%) and Maruti Suzuki India (down 1.44%) edged lower from the Sensex pack.

Bajaj Auto (up 4.21%), Bhel (up 2.39%) and Tata Motors (up 2.15%) edged higher from the Sensex pack.

Index heavyweight Reliance Industries (RIL) advanced 4.95% to Rs 826.90 and was the top gainer from the Sensex pack. RIL after market hours on Friday, 24 May 2013 said that the company and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India.

RIL said that the discovery, named 'D-55', has been notified to the Government of India (GoI) and the Management Committee of the block. This discovery is expected to add to the hydrocarbon resources in the KG D6 block. Appraisal will now commence to better define the scale and quality of the field, RIL said in a statement.

RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.

Index heavyweight and cigarette major ITC rose 1.09% to Rs 333.60. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.

On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.

ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.

Britannia Industries galloped 16.14% to Rs 667.15 after striking a record high of Rs 680 in intraday trade today, 27 May 2013. The company's net profit jumped 65.7% to Rs 87.85 crore on 13.5% growth in net sales to Rs 1486.63 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Friday, 24 May 2013.

Britannia Industries' net profit rose 25.2% to Rs 233.87 crore on 12.5% growth in net sales to Rs 5564.38 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

On consolidated basis, Britannia Industries' net profit rose 30% to Rs 259.50 crore on 12.4% growth in net sales to Rs 6135.91 crore in FY 2013 over FY 2012.

Commenting on the company's performance, Ms. Vinita Bali, MD, Britannia Industries said, "Our results are a reflection of our focus on driving consumer off-take & operational efficiencies to generate sustainable and profitable growth, which has resulted in a standalone revenue growth of 12.5% and net profit increase of 25.2% for the year. We have also seen a 100 bps increase in operating margin".

Britannia Industries' board of directors at a meeting held on Friday, 24 May 2013, recommended dividend of Rs 8.50 per share for FY 2013.

Coal India rose 0.97% ahead of its consolidated FY 2013 results today, 27 May 2013.

Sun Pharmaceutical Industries surged 4.66% to Rs 1,014.85 after striking a record high of Rs 1,024.75 ahead of Q4 results tomorrow, 28 May 2013.

Shares of mortgage lender HDFC rose 2.25% to Rs 928. The stock hit record high of Rs 929.70 in intraday trade today, 27 May 2013.

Metal stocks were in demand on renewed buying. Sterlite Industries (India) (up 2.46%), JSW Steel (up 0.76%), Tata Steel (up 1.04%), Sail (up 1.17%), National Aluminium Company (up 2.23%), Hindustan Zinc (up 2.01%), Jindal Steel & Power (up 3.54%) and Hindalco Industries (up 3.13%) edged higher.

Telecom stocks were in demand on reports that Reliance Communications (RCom) has raised basic rates for both GSM and CDMA prepaid mobile-to-mobile calls by 33% to 2 paise per second from 1.5 paise per second.

RCom will reportedly charge base rate of 2 paise per second for mobile-to-mobile calls. The base rate, or the headline tariff, applies to customers not covered under any special scheme offered by their telecom operator.

Bharti Airtel (up 3.66%), Idea Cellular (up 3.96%), MTNL (up 2.41%), and Reliance Communications (up 5.36%) gained. Tata Teleservices (Maharashtra) was unchanged at Rs 8.12.

As per the Q4 results calendar, Sun Pharmaceutical Industries, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results tomorrow, 28 May 2013. Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. DLF, M&M and Tata Power unveil Q4 results on 30 May 2013.

The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near-month May 2013 series to June 2013 series. The May 2013 derivatives contracts expire on Thursday, 30 May 2013.

On a the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data on Friday, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.

Global credit rating agency Standard & Poor's (S&P) on 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.

The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. 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 at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. 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 stocks rose on Monday as Chinese Premier Li Keqiang said his country will rely on Germany to lead the euro out of its crisis and boost the global economy as European leaders begin to tackle soaring unemployment after three years of budget cuts. Key benchmark indices in France and Germany rose by 0.63% to 0.66%. UK markets remain closed today, 27 May 2013 for a holiday.

Asian stocks were mostly higher today, 27 May 2013. Key benchmark indices in China, Taiwan, Hong Kong, South Korea and Singapore rose by 0.2% to 0.86%. Indonesia's Jakarta Composite fell 1.36%. Japan's Nikkei 225 slumped 3.22% on the yen's strength and further profit-taking after concerns about a rise in bond-market volatility helped stoke extreme swings late last week.

US financial markets remain closed today, 27 May 2013 for Memorial Day. US markets were mixed on Friday, 24 May 2013 as prospects of the Federal Reserve starting to reduce its bond-buying stimulus rattled a market trading at historic highs.

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First Published: May 27 2013 | 3:47 PM IST

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