Key benchmark indices regained strength in mid-morning trade. The S&P BSE Sensex was up 163.64 points or 0.83%, up close to 55 points from the day's low and off about 190 points from the day's high . The market breadth, indicating the overall health of the market, was positive.
Infosys jumped in volatile trade after the company retained its guidance of 6% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014) after announcing Q1 June 2013 results before trading hours. Other stocks from the IT pack also gained after Infosys' Q1 results, with TCS and HCL Technologies hitting record high. Capital goods pivotals edged higher for the second straight day. Dr Reddy's Laboratories scaled record high after the company announced the launch of a generic drug in the United States.
Auto stocks were mostly lower. Tata Motors rose after the company's British luxury car unit, Jaguar Land Rover (JLR), reported good sales for June 2013.
The 50-unit CNX Nifty fell below the psychological 6,000 level soon after a firm opening took the index above that level at the onset of the trading session. The market further pared gains to hit fresh intraday low in morning trade. The market regained strength in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 638.26 crore on Thursday, 11 July 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 163.64 points or 0.83% to 19,839.70. The index jumped 286.72 points at the day's high of 19,962.78 in early trade, its highest level since 31 May 2013. The index gained 109.53 points at the day's low of 19,785.59 in morning trade.
The CNX Nifty was up 32.85 points or 0.55% to 5,967.95. The index hit a high of 6,018.40 in intraday trade, its highest level since 31 May 2013. The index hit a low of 5,951.15 in intraday trade.
Also Read
The market breadth, indicating the overall health of the market, was positive. On BSE, 879 shares rose and 730 shares fell. A total of 96 shares were unchanged.
From the 30-share Sensex pack, 15 stocks fell and rest of them rose. Reliance Industries (up 0.82%), Sun Pharmaceutical Industries (up 0.75%) and NTPC (up 0.63%), edged higher.
Infosys jumped 11.55% to Rs 2,808 in volatile trade. The stock jumped 14.96% at the day's high of Rs 2,905 in initial trade. It hit low of Rs 2779.40 in intraday trade so far. The company retained its guidance of 6% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014) at the time of announcing Q1 June 2013 result before market hours today, 12 July 2013. The company has raised the guidance in rupee terms due to a steep depreciation of the rupee against the dollar. The company has forecast 13% to 17% growth in revenue in rupee terms for FY 2014, higher than its earlier guidance of 6% to 10% growth which the company had given at the time of announcement of Q4 March 2013 results.
The company's consolidated net profit declined 0.8% to Rs 2374 crore on 7.8% growth in revenue to Rs 11267 crore in Q1 June 2013 over Q4 March 2013. The results are as per International Financial Reporting Standards (IFRS).
Infosys Chief Financial Officer (CFO) Rajiv Bansal said that the company has announced compensation increases for FY 2014 effective July which will affect the company's profit margins in the future quarters. Infosys CEO and Managing Director S. D. Shibulal said that the management is cautiously optimistic about rest of the year. Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, the company has done well in Q1 June 2013, he said.
Infosys and its subsidiaries added 66 clients in Q1 June 2013. There was a gross addition of 10,138 employees and net addition of 575 employees by Infosys and its subsidiaries in Q1.
TCS rose 3.74% to Rs 1618.70. The stock hit record high of Rs 1,622.75 in intraday trade today, 12 July 2013.
HCL Technologies gained 2.61% to Rs 861.40. The stock hit record high of Rs 862 in intraday trade today, 12 July 2013.
Wipro rose 2.52%.
Dr Reddy's Laboratories rose 0.61% to Rs 2305.05. The stock hit record high of Rs 2307.30 in intraday trade today, 12 July 2013. The company announced during market hours today, 12 July 2013 that it has launched Decitabine for Injection (50 mg), a therapeutic equivalent generic version of Dacogen (Decitabine for Injection), in the US market on 11 July 2013, following the approval by the United States Food & Drugs Administration (USFDA) of Dr Reddy's ANDA for Decitabine for Injection. The Dacogen brand had sales of approximately $260 million for twelve months ended 30 June 2013 in the US according to IMS Health data.
Shares of Dr Reddy's Lab turned ex-dividend today, 12 July 2013, for final dividend of Rs 15 per share for the year ended 31 March 2013 (FY 2013).
Capital goods pivotals edged higher for the second straight day. L&T (up 0.36%) and Bhel (up 0.86%), edged higher.
Auto stocks were mostly lower. Mahindra & Mahindra (M&M) fell 1.62%. M&M announced on Thursday, 11 July 2013, that it would be observing 'No Production Days' at its automotive plants for a period ranging from 1 to 8 days during the remaining period of July 2013 with a view to align production with sales requirements. M&M also said that its wholly owned subsidiary viz. Mahindra Vehicle Manufacturers would also be observing 'No Production Days' for about 8 days during the remaining period of July 2013 at its plant situated at Chakan in Maharashtra. The company said that the scheduled production cut this month is unlikely to have an adverse impact on availability of vehicles in the market due to adequate inventory.
Shares of car major Maruti Suzuki India fell 2.01%. The company on 8 July 2013 said its production fell 25.36% to 61,668 vehicles in June 2013 over June 2012. Earlier, the company had reported 12.6% fall in total sales to 84,455 units in June 2013 over June 2012. The company's domestic sales fell 7.8% to 77,002 units in June 2013 over June 2012. Exports declined 43% to 7,453 units in June 2013 over June 2012. The company announced the monthly sales data on 1 July 2013.
Tata Motors rose 0.93% after the company's British luxury car unit, Jaguar Land Rover (JLR), on Thursday, 11 July 2013, said its sales rose 7% to 33,739 vehicles in June 2013 over June 2012. Sales of the Jaguar brand jumped 34% to 6,574 vehicles in June 2013 over June 2012. Land Rover sales rose 2% to 27,165 units in June 2013 over June 2012 despite the run out of Range Rover Sport, JLR said.
During the first six months of 2013, JLR sold 210,190 vehicles, an increase of 14% versus the same period last year.
Commenting on the half year performance Phil Popham, Jaguar Land Rover Group Sales Operations Director said "It is very encouraging to see both our Jaguar and Land Rover brands delivering strong sales performances across our 178 markets. New model introductions have been incredibly well received with the all-new Range Rover retailing more than 22,000 units since launch. The F-TYPE which received a rapturous reception from media during its global launch last month is off to an excellent start with new customers and will go on sale in China this month".
Two wheeler stocks declined. Bajaj Auto fell 0.75%. Hero MotoCorp dropped 0.56%.
Car sales in India fell an annual 9% to 1,39,632 units in June 2013 over June 2012, an industry body said on Friday, as demand continued to suffer due to rising ownership costs and sluggish economic growth. Sales of motorcycles fell 9.2% in June to 799,139 vehicles, Society of Indian Automobile Manufacturers (SIAM) said, while truck and bus sales were down 13.5% at 56,197 vehicles.
On macro front, industrial production is seen rising a tepid 1.5% in May 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had risen 2.3% in April 2013. The government unveils industrial production data for May 2013 today, 12 July 2013.
Inflation based on the combined consumer price index (CPI) of urban and rural India is projected at 9.3% in June 2013, same as in May 2013, as per the median estimate of a poll of economists carried out by Capital Market. CPI inflation had eased to 9.31% in May 2013 from 9.39% in April 2013. The government unveils CPI data for June 2013 today, 12 July 2013.
Most Asian stocks fell on Friday, 12 July 2013, as investors turned cautious ahead of Chinese data, including second-quarter growth and June industrial production which is scheduled for release next week. Key benchmark indices in China, Hong Kong, Singapore and South Korea fell by 0.39% to 0.65%. Key benchmark indices in Taiwan, Indonesia and Japan rose by 0.14% to 0.34%.
China's finance minister on Friday, 12 July 2013, said economic growth will likely average 7% this year. The projection is lower than the government's target of 7.5%.
Singapore's economy grew at the fastest pace in more than two years last quarter as services strengthened and manufacturing rebounded, reducing pressure on the central bank to ease monetary policy. Gross domestic product rose an annualized 15.2% in the three months through June from the previous quarter, when it grew 1.8%, the Trade Ministry said in a statement today.
Trading in US index futures indicated that the Dow could fall 14 points at the opening bell on Friday, 12 July 2013. US stocks surged to an all-time high on Thursday after the Federal Reserve chairman Ben Bernanke said on Wednesday, 10 July 2013, the central bank will keep supporting the economy. In a speech late Wednesday after US markets had closed, Fed chairman Ben Bernanke said the economy needs the central bank's easy-money policy for the foreseeable future. The US economy needs help because unemployment is high, he said.
On Wednesday, 10 June 2013, the minutes of the Fed's June meeting showed that while "several members judged that a reduction in asset purchases would likely soon be warranted," many want to see further improvement in the labor market before reducing the central bank's $85 billion-a-month quantitative easing program. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth. At a press conference following the June 18-19 meeting, Bernanke said the central bank could start reducing its $85 billion in monthly bond purchases later this year if the economy continues to improve in line with its forecasts.
Powered by Capital Market - Live News