Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon 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 308.03 points or 1.68%, up close to 340 points from day's low and off about 20 points from the day's high. The S&P BSE Sensex, hit its highest level in over 1-1/2-week. The 50-unit CNX Nifty hit its highest level in almost two weeks. The market breadth, indicating the overall health of the market, was positive.
Index heavyweight Reliance Industries (RIL) extended intraday gain ahead of its Q4 results today, 16 April 2013. Another index heavyweight and cigarette major ITC also extended intraday gains. Aviation stocks were mostly higher on fall in crude oil prices. Auto stocks edged higher as slowing wholesale price inflation has raised rate cut expectations. Shares of two-wheeler makers rose after PSU OMCs reduced petrol prices by Rs 1 per litre on Monday.
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. It strengthened to hit fresh intraday high in early afternoon trade. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in over 1-1/2-week. Key benchmark indices held firm after striking fresh intraday high in afternoon trade. The Sensex extended intraday gains to strike fresh intraday high in mid-afternoon 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 14:20 IST, the S&P BSE Sensex was up 308.03 points or 1.68% to 18,665.83. The index jumped 328.42 points at the day's high of 18,686.22 in mid-afternoon trade, its highest level since 4 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 95.25 points or 1.71% to 5,663.65. The index hit a high of 5,669.25 in intraday trade, its highest level since 3 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, 1,132 shares advanced and 1,003 shares declined. A total of 142 shares were unchanged.
Among the 30-share Sensex pack, 24 stocks advanced while rest of them declined.
Index heavyweight Reliance Industries (RIL) rose 1.69% at Rs 807. The scrip hit high of Rs 808,25 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 1.73% to Rs 305.15. The scrip hit high of Rs 305.70 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.
Aviation stocks were mostly higher on fall in crude oil prices. SpiceJet (up 2.57%) and Jet Airways (India) (up 1%) edged higher. But, Kingfisher Airlines was locked at 5% lower circuit.
PSU OMCs revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight. Aviation turbine fuel or jet fuel constitutes more than 50% of operating cost for airliners. Prices of jet fuel are directly linked to crude oil prices
Auto stocks edged higher as slowing wholesale price inflation has raised rate cut expectations. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Tata Motors rose 0.46%. The company on 12 April 2013 said that its global wholesales, including Jaguar Land Rover were 116,521 units in March 2013. Cumulative wholesales for the year ended 31 March 2013 (FY 2013) were 1,196,416 units.
Tata Motors' British luxury car unit Jaguar Land Rover (JLR) on 10 April 2013 said its global sales rose 16% to a record 53,772 units in March 2013 over March 2012. JLR's global sales rose 17% to a record 115,504 units in Q1 March 2013 over Q1 March 2012. JLR said the Jaguar brand demonstrated strong growth with sales of 9,856 in March up 28% and sales for the quarter of 20,210 up 31%. Land Rover, meanwhile, delivered the best single month and quarter in its 65 year history with March sales of 43,916, up 14% and quarter one sales of 95,294, up 15% versus 2012, JLR said.
Mahindra & Mahindra (M&M) gained 3.05%. The company after market hours on 12 April 2013 announced that its new Sub 4 metre Verito will be named the 'Verito Vibe'. The much awaited launch of the 'Verito Vibe' is scheduled next month. The 'Verito Vibe' is indigenously designed and developed by M&M and is smartly packaged in a sub-4 metre length on the proven Verito platform, M&M said.
The 'Verito Vibe' will be packaging the well acclaimed strengths of class-leading space and comfort, robust build and the ever reliable 1.5 Litre dCi Diesel Engine. The Verito Vibe will sport some first in class styling elements in this younger and sportier avatar. M&M has decided on the name 'Vibe' for its newest offering, with the aim of conveying a distinctive youthful and vibrant imagery. 'Vibe' targets the socially aware, young consumer of today, M&M said.
Small-car maker Maruti Suzuki India edged higher after reduction in petrol price. The stock was up 2.56%.
Shares of two-wheeler makers rose after PSU OMCs reduced petrol prices by Rs 1 on Monday. Hero MotoCorp (up 3.11%) and Bajaj Auto (up 1.37%) gained.
PSU OMCs announced cut in petrol price by Re 1 per litre, excluding value added tax (VAT), effective midnight Monday because of fall in international oil prices. The recent cut in petrol price comes on the back of 85 paise a litre reduction in rates on 2 April 2013 and Rs 2 a litre decrease effected on 16 March 2013. There was no change in price of diesel.
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. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 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, recent 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.
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.
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 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.
European markets edged lower on Tuesday as concerns about global growth remained in the spotlight after recent weaker-than-expected data in both China and the US. Key benchmark indices in UK, Germany and France were down by 0.59% to 0.72%.
Later in the global day, attention turns to Germany's ZEW economic sentiment indicator to gauge the economic development in Europe's largest economy.
Asian stocks reversed intraday losses on Tuesday. Key benchmark indices in South Korea, China, Taiwan, Indonesia and Singapore rose by 0.09% to 0.77%. Key benchmark indices in Japan and Hong Kong fell by 0.41% to 0.46%.
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.
Moody's Investors Service on Tuesday affirmed China's government's bond rating of Aa3 but cut the outlook to stable from positive, the second pessimistic revision by a foreign ratings agency this month. Last week, Fitch Ratings cut China's long-term local currency credit rating to A-plus from AA-minus, citing concerns about the risk that excessive local government borrowing posed to the wider economy. Moody's referred to the same issue in justifying its negative revision.
Trading in US index futures indicated that the Dow could gain 50 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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