Key benchmark indices extended gains to strike fresh intraday high in mid-morning trade. Equities rose as steep drop this week in gold and oil prices will ease concerns of high current account and fiscal deficit. The barometer index, the S&P BSE Sensex, was up 214.09 points or 1.17%, up 246.16 points from day's low and off 4.19 points from the day's high. Index heavyweight Reliance Industries (RIL) pared gains amid volatility ahead of its Q4 results today, 16 April 2013. Another index heavyweight and cigarette major ITC extended intraday gain. The market breadth, indicating the overall health of the market, was positive.
Power generation stocks gained on renewed buying. Tata Power advanced after the Central Electricity Regulatory Commission in an order issued on Monday allowed the company to raise electricity tariffs on a temporary basis at its Mundra power plant on account of rising cost of imported coal. Sun TV Network surged after bulk deal. Gold financing companies dropped after prices of the yellow metal declined sharply.
Key benchmark indices reversed initial fall and moved into positive zone. Key benchmark indices surged to strike intraday high in morning trade as Asian stocks reversed initial decline. The 50-unit CNX Nifty hit over 1-1/2-week high. Key benchmark indices extended gain to strike fresh intraday high in mid-morning trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 418.37 crore on Monday, 15 April 2013, as per provisional data from the stock exchanges.
At 11:15 IST, the S&P BSE Sensex was up 214.09 points or 1.17% to 18,571.89. The index jumped 218.28 points at the day's high of 18,576.08 in mid-morning trade, its highest level since 11 April 2013. The index declined 32.07 points at the day's low of 18,325.73 in early trade.
The CNX Nifty was up 63.75 points or 1.14% to 5,632.15. The index hit a high of 5,634.95 in intraday trade, its highest level since 4 April 2013. The index hit a low of 5,555.85 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,011 shares advanced and 720 shares declined. A total of 90 shares were unchanged.
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The total turnover on BSE amounted to Rs 689 crore by 11:20 IST compared to Rs 442 crore by 09:30 IST.
Among the 30-share Sensex pack, 25 stocks advanced while rest of them declined.
Index heavyweight Reliance Industries (RIL) rose 0.18% at Rs 795. The scrip hit high of Rs 801.50 and a low of Rs 786.20 so far during the day. RIL announces Q4 results today, 16 April 2013.
Index heavyweight and cigarette major ITC rose 1.38% to Rs 304.10. The scrip hit high of Rs 304.45 and a low of Rs 298 so far during the day. The stock had hit record high of Rs 310.75 on 4 February 2013. The government 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, which was unveiled on 28 February 2013.
Tata Power advanced 3.13% after the Central Electricity Regulatory Commission in an order issued on Monday allowed the company to raise electricity tariffs on a temporary basis at its Mundra power plant on account of rising cost of imported coal. The CERC has allowed Coastal Gujarat Power, a unit of Tata Power that operates the plant in Gujarat, to charge "compensatory" tariffs for electricity until the fuel supply situation improves. The regulator will direct the setting up of a panel to finalise details of the compensatory tariff.
The order follows a similar ruling by the regulator earlier this month, which allowed Adani Power to raise tariffs for electricity from its power plant at Mundra.
Tata Power's 4,000-megawatt (MW) plant at Mundra runs on imported coal from Indonesia, but it has been suffering from mounting losses after the South East Asian nation raised levies on coal exports, which Tata Power has not been able to pass on to its customers so far.
Other power generation shares were also in demand on renewed buying. Reliance Infrastructure (up 2.4%), CESC (up 2.12%), NTPC (up 1.81%), Reliance Power (up 3.06%), Adani Power (up 1.5%), JSW Energy (up 2.39%) edged higher.
Sun TV Network surged 3.95% to Rs 366 on high volume of 10.97 lakh shares after a bulk deal of 10.02 lakh shares was executed on the counter at Rs 354 per share at 10:01 IST on the BSE today, 16 April 2013.
Gold financing companies dropped after a recent steep slide in gold prices. Muthoot Finance (down 8.68%) and Manappuram Finance (down 9.77%) declined.
Gold finance companies run the risk of rising defaults on gold loans amid falling gold prices. Bullion metal prices plunged on Monday, 15 April 2013, as the metal extended its dive into a second straight session. Gold for June delivery ended lower by $140.3 (9.3%) at $1,361.1 an ounce on the Comex division of the New York Mercantile Exchange on Monday. Prices had shed 4.7% last week.
The near term focus of the market is on Q4 results. Reliance Industries (RIL) announces Q4 results today, 16 April 2013. TCS announces Q4 results tomorrow, 17 April 2013. IndusInd Bank announces Q2 results on 18 April 2013. Wipro announces Q4 results on 19 April 2013. Cairn India announces Q4 results on 22 April 2013. UltraTech Cement announces Q4 results on the same day.
HDFC Bank announces Q4 results on 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. IDFC announces Q4 results on 1 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. HDFC announces Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Dr. Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013.
Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms could result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014.
Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on Monday, 15 April 2013, showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the latest data showed. The government revised upwards WPI inflation for January 2013 to 7.31% from 6.62% reported earlier. Build up inflation rate in the financial year so far was 5.96% compared to a build up rate of 7.69% in the corresponding period of the previous year, the Ministry of Commerce & Industry said in a statement.
The combined consumer price inflation for rural and urban India stood at 10.39% in March 2013, lower than 10.91% in February 2013, another data showed. Inflation under the category 'food and beverages' stood at 12.42%, the data showed.
The Reserve Bank of India (RBI) will announce the Monetary Policy Statement 2013-14 on 3 May 2013. The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013. The key macroeconomic priorities are to raise the growth rate, restrain inflation pressures and mitigate the vulnerability of the external sector, RBI said at that time. Even as the policy stance emphasises addressing the growth risks, the headroom for further monetary easing remains quite limited, the RBI said. The RBI said it will continue to actively manage liquidity through various instruments, including open market operations (OMO), so as to ensure adequate flow of credit to productive sectors of the economy.
The index of industrial production rose 0.6% in February 2013, data released by the government on Friday, 12 April 2013, showed. Manufacturing sector recorded a growth of 2.2%. The mining sector registered a decline of 8.1% and electricity sector declined 3.2%. As per use-based classification, production of basic goods declined 1.8% and that of intermediate goods fell 0.7%. Capital goods production rose 9.5%. Production of consumer non-durables rose 2.9% whereas that of consumer durables shrunk 2.7%.
Industrial production rose 0.9% during the period April 2012 to February 2013.
The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.
On the political front, the Congress led UPA government has been reduced to a minority government, with DMK removing support to the government in March this year citing differences on the issue of atrocities on Tamils in Sri Lanka. Earlier, the Trinamool Congress withdrew support to the government in September last year as it opposed economic reforms. The Samajwadi Party (SP) along with its regional rival in Uttar Pradesh Bahujan Samaj Party (BSP) provide outside support to the UPA government. SP has 22 MPs in Lok Sabha and BSP has 21 MPs.
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.
The second half of the Budget session of the Parliament begins on 22 April 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. The Budget Session of the Parliament ends on 10 May 2013.
Assembly elections will be held in Karnataka on 5 May 2013 and the counting of votes and results of the election will be declared on 8 May 2013.
Asian stocks were mostly lower as fears about the strength of the Chinese economy and a steep fall in commodity prices prompted the worst sell-off in five months on Wall Street. Key benchmark indices in South Korea, China, Hong Kong and Japan were down by 0.03% to 0.41%. Key benchmark indices in Taiwan, Indonesia and Singapore rose by 0.1% to 0.64%.
Chinese economic data came in weaker than expected, as the nation reported first quarter gross domestic product, March industrial output and other statistics on Monday, 15 April 2013. GDP for the January-March quarter rose 7.7% from a year earlier, weakening from 7.9% growth in the fourth quarter. Industrial production for March increased 8.9% from the year-earlier period, the weakest in more than a year and slowing from a 9.9% average rise for the January-February period, which China's statistics bureau reports in one figure due to seasonal distortions from the Lunar New Year holiday. March retail sales rose 12.6%, improving from 12.3% year-on-year growth in the January-February 2013 period, but far less than the 15.2% gain in December 2012.
Trading in US index futures indicated that the Dow could gain 69 points at the opening bell on Tuesday, 16 April 2013. US stock indices fell the most in five months on Monday, 15 April 2013, after reports from China showed the industrial giant's growth had cooled.
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