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Shares of footwear makers rally

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Last Updated : Jun 04 2013 | 1:32 PM IST

Key benchmark indices hovered in a narrow range in positive terrain in early afternoon trade. The S&P BSE Sensex was up 79.48 points or 0.41%, off close to 50 points from the day's high and up about 115 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Index heavyweight and cigarette major ITC edged higher in volatile trade.

Auto stocks edged higher on renewed buying. Shares of car major Maruti Suzuki India extended Monday's losses triggered by the company reporting weak sales in May 2013. Shares of companies which may apply for banking licenses rose after the Reserve Bank of India (RBI) on Monday, 3 June 2013, said the validity of in-principle approval for new banks has been extended to 18 months from one year.

The market edged higher amid initial volatility. The market extended initial gains to hit fresh intraday high in morning trade. The Sensex trimmed gains in mid-morning trade. The market was range bound in positive terrain in early afternoon trade.

At 12:20 IST, the S&P BSE Sensex was up 79.48 points or 0.41% to 19,689.96. The index rose 132.22 points at the day's high of 19,742.70 in morning trade. The index lost 34.30 points at the day's low of 19,576.18 in early trade.

The CNX Nifty was up 28.30 points or 0.48% to 5,967.60. The index hit a high of 5,981.60 in intraday trade. The index hit a low of 5,932.85 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,086 shares rose and 804 shares fell. A total of 117 shares were unchanged.

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Among the 30-share Sensex pack, 23 stocks gained and the rest of them fell. L&T, Cipla and Dr Reddy's Laboratories rose by 1.81% to 2.79%. Jindal Steel & Power, Sterlite Industries and Infosys shed by 0.7% to 1.24%.

Orbit Corporation (up 8.86%), Kothari Products (up 7.28%), Orchid Chemicals & Pharmaceuticals (up 7.21%), Sandur Manganese (up 6.86%) and SKS Microfinance (up 5.62%), were the biggest gainers from the BSE Small-cap index in that order.

Index heavyweight and cigarette major ITC rose 0.34% to Rs 337.45 in volatile trade. The stock hit high of Rs 338.90 and low of Rs 335.20 so far during the day.

OnMobile Global rose 1.16% after the company said it has entered into a definitive agreement to acquire the business assets and liabilities of Livewire Mobile for $17.8 million. OnMobile Global said that post acquisition of Livewire Mobile, the resultant new US-based entity will be called OnMobile Live Inc, a 100% subsidiary of OnMobile LLC, US. Boston-headquartered Livewire Mobile is a leading provider of end-to-end managed mobile entertainment solutions for network operators and consumer device manufacturers. The company provides an integrated suite of solutions including full track music, ringback tones, ringtones and infotainment services.

OnMobile Global said it is already one of the largest B2B digital music provider providing path-breaking music services for top telecom operators in Asia, Latin America, Africa and Europe. With the acquisition of Livewire Mobile, OnMobile will now expand its music and ringback tone services to leading operators in North America, the company added.

Shares of footwear retailer Bata India jumped 6.41% after a domestic brokerage initiated coverage on the stock with a buy rating citing strong earnings and growth visibility. The brokerage said that Bata India's focus is on aggressive growth by expanding presence in Tier II, III cities and rural India. The brokerage expects the company's margins to increase on the back of outsourcing of certain manufacturing operations and control over employee costs.

Shares of two other footwear makers also rallied. Liberty Shoes (up 6.6%), Relaxo Footwear (up 5.4%), surged.

Shares of companies which may apply for banking licenses rose after the Reserve Bank of India (RBI) on Monday, 3 June 2013, said the validity of in-principle approval for new banks has been extended to 18 months from one year. M&M Financial Services, IDFC, IFCI, L&T Finance Holdings, LIC Housing Finance and Reliance Capital rose 0.12% to 3.52%.

The aspirants will have to create a holding company which will house the bank and all their other financial-services businesses, the RBI said. They will have to separately approach regulators such as the Insurance Regulatory and Development Authority and the Securities and Exchange Board of India to bring their nonbank financial services entities under the holding company, it said. The last date to apply for bank licenses is 1 July 2013.

Auto stocks edged higher on renewed buying. Hero MotoCorp (HMCL) rose 1.31% to Rs 1,689.45 after the world's largest two-wheeler manufacturer after market hours on Monday, 3 June 2013, reported record monthly sales in May 2013. The stock came off the day's high of Rs 1,713.20. The company's two-wheeler sales rose 0.22% to a record 5.57 lakh units in May 2013 over May 2012. The company also said its retail sales in May 2013 were the highest ever retail sales for any non-festival period. With demand for Hero MotoCorp products among customers at an unprecedented high, the company retailed over 11 lakh two-wheelers for the combined months of April and May -- its highest-ever retail sales for any non-festival period.

HMCL made its debut in Central America in May 2013 by launching brand 'Hero' and its range of two-wheelers in Guatemala, El Salvador and Honduras. Hero MotoCorp has appointed the reputed Indy Motos Group of Guatemala as the authorised distributor of its range of two-wheelers in these countries.

Bajaj Auto gained 0.08%. The company said during market hours on Monday, 3 June 2013, that total sales fell 4% to 3.39 lakh units in May 2013 over May 2012. Motorcycle sales fell 5% to 3.04 lakh units in May 2013 over May 2012. Domestic motorcycle sales rose 3% to 2.12 lakh units in May 2013 over May 2012, owing to the launch of new Discover models. Sales of Commercial vehicles rose 14% to 34,568 units in May 2013 over May 2012. Total exports declined 14% to 1.11 lakh units in May 2013 over May 2012.

Mahindra & Mahindra (M&M) rose 1.03%, with the stock gaining for the second straight day. The company during market hours on Monday, 3 June 2013, announced that its tractor sales rose 24% to 23,626 units in May 2013 over May 2012. The company's domestic tractor sales jumped 25% to 22,471 units in May 2013 over May 2012. Exports rose 16% to 1,155 units in May 2013 over May 2012.

The company on Saturday, 1 June 2013, said its total sales declined 1% at 43,460 units in May 2013 over May 2012. Auto sales in the domestic market rose 5% to 42,104 units in May 2013 over May 2012. The passenger vehicles segment which includes the UVs and Verito registered a growth of 5% at 22,244 units in May 2013 over May 2012. The four-wheeler commercial segment which includes the passenger and load vehicles registered a 12% growth at 14,848 units while the three-wheeler segment witnessed a 7% decline in sales at 4,028 units in May 2013 over May 2012. Exports declined sharply by 67% at 1,356 units in May 2013 over

Tata Motors rose 0.88%. The company's total sales (including exports) of Tata commercial and passenger vehicles declined 23.37% to 49,304 vehicles in May 2013 over May 2012. The company's domestic sales of Tata commercial and passenger vehicles declined 24.44% to 45,430 units in May 2013 over May 2012. Exports declined 8.17% to 3,874 units in May 2013 over May 2012.

Maruti Suzuki India fell 0.43% to Rs 1,562.80, with the stock extending Monday's 2.27% losses triggered by the company reporting fall in sales in May 2013. The stock was volatile. The scrip hit high of Rs 1,587.40 and low of Rs 1,556.85 so far during the day. The company said during market hours today, 4 June 2013 that production fell 2.54% to 1.01 lakh units in May 2013 over May 2012.

The company on Saturday, 1 June 2013, reported 14.4% fall in total sales to 84,677 units in May 2013 over May 2012. The company's domestic sales declined 13% to 77,821 units in May 2013 over May 2012. Exports fell 27.1% to 6,856 units in May 2013 over May 2012.

Asian stocks edged lower on Tuesday, 4 June 2013, after data overnight showed an unexpected contraction in US manufacturing activity last month. Key benchmark indices in China, Taiwan, Hong Kong, Indonesia and Singapore shed by 0.06% to 1.14%. South Korea's Kospi was flat. But, Japan's Nikkei Average rose 2.05%.

A report Monday, 3 June 2013, from HSBC showed activity in China's manufacturing sector contracted in May 2013.

Trading in US index futures indicated that the Dow could gain 8 points at the opening bell on Tuesday, 4 June 2013. US stocks rallied on Monday as investors gauged the impact of disappointing factory data on potential quantitative-easing moves by the Federal Reserve. The Institute for Supply Management said Monday its business-conditions index last month fell to 49% in its first contraction since November.

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First Published: Jun 04 2013 | 12:14 PM IST

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