Key benchmark indices surged, with market sentiment boosted by data showing that domestic institutional investors (DIIs) turned buyers of equities for the first time this month on Thursday, 28 November 2013, and that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Thursday, 28 November 2013. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained their highest closing level in more than a week. The Sensex garnered 257.02 points or 1.25%, off about 25 points from the day's high and up close to 230 points from the day's low. All the thirteen sectoral indices on BSE were in the green. The market breadth, indicating the overall health of the market, was positive.
Indian stocks gained for the second day in a row today, 29 November 2013. From a recent low of 20,420.26 Wednesday, on 27 November 2013, the Sensex has garnered 371.67 points or 1.82% in two trading sessions. The Sensex shed 372.59 points or 1.76% in November 2013. The Sensex has garnered 1,365.22 points or 7.02% in calendar 2013 so far (till 29 November 2013). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,343.22 points or 19.16%. From a record high of 21,321.53 on 3 November 2013, the Sensex has fallen 529.60 points or 2.48%.
Coming back to today's trade, bank stocks rose across the board. Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. Capital goods stocks also gained. Shares of organised retailers rose.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 28 November 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 211.20 crore from the secondary equity markets on Thursday, 28 November 2013, as per the data from the Securities & Exchange Board of India (Sebi).
Data released by the stock exchanges after trading hours on Thursday, 28 November 2013, showed that domestic institutional investors (DIIs) turned buyers of equities for the first time this month on Thursday, 28 November 2013. DIIs bought shares worth a net Rs 330.51 crore on Thursday, 28 November 2013.
The S&P BSE Sensex garnered 257.02 points or 1.25% to settle at 20,791.93, its highest closing level since 19 November 2013. The index jumped 284.86 points at the day's high of 20,819.77 in mid-morning trade. The index gained 24.02 points at the day's low of 20,558.93 in early trade.
The CNX Nifty jumped 84.25 points or 1.38% to settle at 6,176.10, its highest closing level since 19 November 2013. The index hit a high of 6,182.50 and a low of 6,103.80 in intraday trade.
The BSE Mid-Cap index rose 0.83% and the BSE Small-Cap index gained 0.84%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2049 crore, lower than Rs 2243.60 crore on Thursday, 28 November 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,461 shares rose and 1,032 shares dropped. A total of 179 shares were unchanged.
From the 30-share Sensex pack, 25 rose and only five fell.
Bank stocks rose across the board. HDFC Bank (up 1.16%) and ICICI Bank (up 3.01%) rose.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank rose 3.03% to 5.12%.
Syndicate Bank jumped 5.71% after the state-run bank after market hours on Thursday, 28 November 2013, said that a meeting of the board of directors of the bank will be held on 3 December 2013 for considering issuance of equity shares aggregating to Rs 200 crore by way of preferential allotment in favour of Government of India. The Government of India holds 66.17% stake in Syndicate Bank (as per the shareholding pattern as on 30 September 2013).
Index heavyweight Reliance Industries (RIL) rose 0.34% at Rs 851.10. The scrip hit high of Rs 856.95 and low of Rs 849.55. Minister for Petroleum & Natural Gas Veerappa Moily said early this week that RIL may be allowed to raise gas prices from April 2014 as the company has offered financial guarantees to the government to settle any claims against it over a shortfall in its gas output. In June, the government approved a move to higher, market-related rates for locally-produced gas from April 2014, but the finance ministry later said prices for RIL should be capped because the company's gas production from the offshore D6 block was far below its supply commitment. RIL, which operates the D6 block off India's eastern coast, has reported a sharp decline in gas output since 2010. RIL and partner BP have cited geological complexities for the fall in output, but the oil regulator believes they failed to drill enough wells. Falling output had already prompted the government to disallow proportionate cost recovery to RIL, leading to arbitration proceedings over the issue.
Capital goods stocks rose on renewed buying. ABB (up 3.05%), BEML (up 0.47%) and Bhel (up 3.65%) gained.
L&T rose 2.07%. The company after market hours said it is evaluating alternatives for monetisation of certain assets of its subsidiary L&T Infrastructure Development Projects (L&T IDPL), including a potential initial public offering and listing in Singapore of selected road assets of L&T IDPL, through a business trust in Singapore. The proposed transactions are subject to various factors including approvals and market conditions and may or may not be completed, L&T said. In the meantime, shareholders and other investors are reminded to exercise caution when deal in the company's shares, pending any definite announcement from the company, L&T said in a statement.
L&T IDPL is primarily engaged in public-private partnership projects in India, with business interests spread across sectors involving roads and bridges, ports, metro rail, wind energy and power transmission lines. It has experience in identifying and assessing viability of projects, achieving financial closure, project management, operations and maintenance of infrastructure assets across various sectors as well as divestiture.
Shares of power generation and power distribution companies gained. GVK Power & Infrastructure, Tata Power Company, Adani Power, Torrent Power, Power Grid Corporation of India and Reliance Infrastructure rose 0.69% to 3.79%. NTPC fell 0.3%.
The Cabinet Committee on Economic Affairs has approved amendments to the scheme for Financial Restructuring of State distribution companies which had been approved by the CCEA on 24th September 2012 to enable the financial turnaround of the State distribution companies for their long term viability. The Central Government had notified the Financial Restructuring Plan (FRP) for State owned distribution companies vide OM dated 5 October 2012. The scheme is under implementation in Tamil Nadu, Rajasthan, Uttar Pradesh, Haryana and Himachal Pradesh. Utilities of Jharkhand, Bihar and Andhra Pradesh which were facing financial difficulties and were keen to participate in the scheme could not do so due to practical difficulties in meeting certain requirements of the FRP scheme. Therefore, to enable these three States for participation under the scheme, the cutoff date for reckoning the eligible amount of short term liabilities for issuance of bonds/reschedulement by lenders is now shifted to 31 March 2013 from 31 March 2012 (for these three States only). The scheme will be available to these States upto 31 December 2013 unless extended by Government of India.
The expected outcomes from implementation of the scheme in these three States would be providing comfort to lenders by securing State takeover of and guarantee for debt, bringing about financial discipline in the distribution sector in the States, providing a commercial orientation to the functioning of distribution companies, casting responsibility on the State Government to ensure a steady flow of revenue to the distribution companies by improving efficiency of their operation, accelerate the AT&C loss reduction effort of DISCOMs, through additional incentive from the Central Government, ensure regular rationalization of tariff to cover cost of service, ensure timely audit of DISCOM accounts, gradual elimination of the gap between ACS and ARR and to improve the financial health of distribution utilities to enable them to procure more electricity for meeting growing demand.
NHPC rose 1.97% to Rs 18.15 as the company's buyback offer commenced from today, 29 November 2013. NHPC plans to buyback around 123 crore fully paid up equity shares of Rs 10 each at a price of Rs 19.25 per share, aggregating Rs 2368 crore, from the open market. The buyback offer will close on 12 December 2013.
Reliance Power rose 2.49% after the company said that pre-commissioning activities have commenced for its concentrated solar power project in Rajasthan's Jaisalmer district. The announcement was made during trading hours today, 29 November 2013. Reliance Power's (RPower) concentrated solar power (CSP) project in Rajasthan's Jaisalmer district is the world's largest CSP project based on CLFR technology. The 100 megawatts (MW) CSP plant is being built at a cost of Rs 2100 crore adjacent to the 40 MW solar photovoltaic project commissioned by the company last year. The project is all set to be commissioned during Q1 2014, the company said.
Metal stocks edged higher. Hindalco Industries (up 1.03%), Jindal Steel & Power (up 0.98%), Tata Steel (up 0.02%), Sail (up 0.37%), Hindustan Copper (up 0.73%), JSW Steel (up 0.38%), Hindustan Zinc (up 3.33%), and National Aluminum Company (up 0.27%) gained.
In mid-November 2013, China released a broad outline for structural reform of the economy. China is the world's largest consumer of copper and aluminum.
Sesa Sterlite edged higher on reports that the government may take a decision today, 29 November 2013, on the long-delayed plans to sell government's stake in Balco and Hindustan Zinc. The stock jumped 4.42% to Rs 183. Sesa Sterlite had acquired the government's 51% stake in Balco in 2001 for Rs 551 crore. It had also acquired a 45% stake in Hindustan Zinc for Rs 750 crore and the remaining 20% through an open offer. Both were acquired during privatisation carried out by the Atal Bihari Vajpayee-headed NDA government. The government owns 29.5% in Hindustan Zinc and 49% in Balco.
HDFC rose 1.23% to Rs 824.45. Two block deals were executed in the counter on BSE. One block deal was of 4.5 lakh shares at 817.50 per share at 9:28 IST and second block deal was of 5 lakh shares at Rs 825 per share at 10:05 IST.
Realty stocks edged higher. DLF (up 1.81%), HDIL (up 0.9%), D B Realty (up 1.1%) and Unitech (up 3.38%) gained.
Pharma stocks were in demand. Cipla (up 2.92%), Dr Reddy's Laboratories (up 1.15%), Lupin (up 0.04%), Ranbaxy Laboratories (up 0.33%) and Sun Pharmaceutical Industries (up 0.19%) rose.
Jubilant Life Sciences spurted 9.78% after the company said it has received abbreviated new drug application approval from USFDA for a generic version of AstraZeneca's Seroquel. The announcement was made after market hours on Thursday, 28 November 2013.
Jubilant Life Sciences said that it has received abbreviated new drug application (ANDA) approval from the US Food and Drug Administration (USFDA) for Quetiapine Fumarate Tablet, 25 mg (base), the generic version of AstraZeneca's Seroquel, which is an atypical antipsychotic medication indicated for the treatment of schizophrenia, and for the treatment of acute manic episodes associated with bipolar disorder.
The current total market size for Quetiapine Fumarate Tablet, 25 mg (base) as per IMS is $59 million per annum, the company said. Jubilant Life Sciences said it expects to launch this product in Q4 FY 2014.
As on 30 September 2013, Jubilant Life Sciences had a total of 676 filings for formulations of which 218 have been approved in various regions of the world. This includes 58 ANDAs filed in the US and 48 Dossier filings in Europe, the company said in a statement.
Tech Mahindra rose 0.43% after the company said its board approved the amalgamation of Mahindra Engineering Services with the company. The announcement was made during trading hours today, 29 November 2013. As per the amalgamation scheme approved by the Tech Mahindra's board, shareholders of Mahindra Engineering Services (MES) will receive five shares of Tech Mahindra for every 12 shares of MES. The appointed date of the scheme would be 1 April 2013. All assets and liabilities of MESL are to be transferred and vested in Tech Mahindra.
MES is a global engineering consultant and service provider catering to automotive, aerospace, defense and manufacturing industries. MES had revenue of Rs 250.59 crore for the year ended 31 March 2013 (FY 2013). Tech Mahindra said that the merger will see the creation of one of the prominent players providing engineering services from India with strengths in aerospace and automotive verticals. MES will benefit due the larger global reach and deeper resource pool of Tech Mahindra, while Tech Mahindra will get access to some of the key automotive clients across the globe.
Shares of state-run oil-marketing companies (PSU OMCs) rose. Indian Oil Corporation (IOC) rose 0.77%. HPCL gained 3.56%. BPCL rose 1.93%. PSU OMCs undertake a review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight.
Airline stocks also gained. Jet Airways (up 2.96%), Kingfisher Airlines (up 1.98%) and SpiceJet (up 6.93%) rose.
MRF lost 1.38%. The company's net profit rose 11.73% to Rs 184.10 crore on 4.87% growth in total income to Rs 3159.80 crore in Q4 September 2013 over Q4 September 2012. The Q4 result was announced after market hours on Thursday, 28 November 2013.
MRF's operating profit margin edged up to 13.84% in Q4 September 2013, from 11.7% in Q4 September 2012.
MRF's net profit jumped 40.15% to Rs 802.21 crore on 2.16% growth in total income to Rs 12160.19 crore in the year ended 30 September 2013 (FY 2013) over the year ended 30 September 2012 (FY 2012). On consolidated basis, the company's net profit jumped 39.55% to Rs 808.60 crore on 2.28% increase in total income to Rs 12273.29 crore in FY 2013 over FY 2012.
MRF's board of directors at a meeting held on Thursday, 28 November 2013, recommended a final dividend of Rs 24 per share for the year ended 30 September 2013.
IL&FS Transportation Networks rose 1.65% after the company said its Spain-based subsidiary received a road maintenance contract in Ukraine worth approximately Rs 427 crore. The announcement was made during trading hours today, 29 November 2013.
IL&FS Transportation Networks (ITNL) said that Elsamex SA, a wholly-owned subsidiary of the company in Spain, has received a contract by state road agency of Ukraine for rehabilitation and improvement of a road and for executing routine and periodic maintenance of the same over a period of seven years.
The estimated total contract value is 50.5 million euros (approximately Rs 427 crore), which is being financed by the European Bank for reconstruction and development, ITNL said in a statement.
In a separate announcement today, ITNL said that its wholly-owned subsidiary, ITNL International (IIPL), in Singapore entered into an agreement with three Chinese companies to establish an equity joint venture (JV) by the name of 'Chongqing Heng Yi Project Maintenance and Technology Consultancy' in which IIPL will hold 28% equity interest. The JV will provide road construction and maintenance services.
ITNL said that the JV partners believe that there is huge market for testing and inspection of roads, tunnels and bridges and other services related to operation and maintenance of expressways in China and other countries and hence wish to work together through a strategic alliance for providing specialised services in this field.
The alliance aims at utilising the experience of Elsamex SA, a wholly-owned subsidiary of ITNL in Spain, for over 25 years in operation and maintenance of expressways across Europe, ITNL said in a statement.
Steel Strips Wheels jumped 3.47% after the company said it has received an export order worth approximately $5 million from SSangYong Motors Company, Korea. The announcement was made during trading hours today, 29 November 2013.
Steel Strips Wheels (SSWL) said it has received an order from SSangYong Motors Company (SYMC) in Korea for exporting car wheel rims. SSWL said it will serve SYMC for a minimum of five years and the order size will be approximately $5 million. SSWL will initially serve 20% of the total demand and will gradually ramp up along with the performance of the company.
The company said it has become the first Indian company to supply components to SYMC in Korea and will be looking forward to extend this relationship for building a long-term partnership with the Korean company.
Shares of organised retailers gained. Shoppers Stop rose 2.33% to Rs 329 after IDFC Mutual Fund's IDFC Premier Equity Fund bought 9.99 lakh shares of Shoppers Stop at Rs 321.25 through a bulk deal on the NSE on Thursday, 28 November 2013. Eastspring Investments India Equity Open sold 7.58 lakh equity shares of Shoppers Stop on NSE at Rs 321.25 per share.
Trent gained 4.2%. Future Retail rose 0.35%.
Nestle India extended Thursday's losses triggered by the company's overseas parent Nestle S.A.'s clarification that there is no plan at present to increase stake in Nestle India. The stock was off 1.6%. Swiss food giant Nestle S.A. currently holds 62.76% stake in Nestle India (as per the shareholding pattern as on 30 September 2013).
Alphageo (India) rose 2.51% after the company secured two separate contracts worth an aggregate of Rs 47.87 crore for acquiring 2D and 3D seismic data. The announcement was made during trading hours today, 29 November 2013. Alphageo (India) said it secured two separate contracts from GAIL (India) and Bharat Petro Resources for acquisition of 2D and 3D seismic data.
The contract from Bharat Petro Resources is for an estimated value of Rs 17.50 crore. The contract from GAIL (India) is for an estimated value of Rs 30.37 crore, the company said in a statement.
In the foreign exchange market, the rupee edged lower against the dollar in volatile trade. The partially convertible rupee was hovering at 62.45, lower than its close of 62.41/42 on Thursday, 28 November 2013.
The yield on 10-year benchmark federal paper, 7.16% GS 2023, was once again above the 9% level after falling below that mark earlier during the day. The yield on 7.16% GS 2023 was hovering at 9.0449%, higher than its close of 9.0138% on Thursday, 28 November 2013. Bond yields and bond prices are inversely related.
On macro data front, the government unveils Q2 September 2013 GDP growth data after trading hours today, 29 November 2013. The GDP growth for Q2 September 2013 is projected at 4.7%, as per the median estimate of a poll of economists carried out by Capital Market. India's GDP grew at its slowest pace in four years at 4.4% in Q1 June 2013.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.
European stocks rose on Friday, 29 November 2013, after global credit rating agency Standard & Poor's lifted its debt outlook on Spain. Key benchmark indices in France, Germany and UK rose 0.06% to 0.29%.
Euro-area unemployment unexpectedly declined in October in a sign that a nascent recovery is starting to show its effect on the labor market. The jobless rate fell to 12.1 percent in the 17-nation economy from a record 12.2 percent in the prior month, the European Union's statistics office in Luxembourg said today.
Standard & Poor's today, 29 November 2013, revised up its outlook on Spain to stable from negative, and affirmed its BBB sovereign-debt rating. "The stable outlook incorporates our view that Spain's credit metrics are stabilizing and that we currently see less than a one-in-three probability of the rating moving up or down over the next two years," said S&P in a press release. S&P said it sees improvement in Spain's external position as growth resumes, and expects GDP will contract by 1.2% in 2013, but then slowly recover, with 0.8% growth in 2014 and 1.2% in 2015, helped largely by robust exports. S&P said Spain's government will broadly meet its budgetary deficit target of 5.8% of GDP in 2014.
S&P raised its score for Cyprus to B- from CCC+. It lowered the Netherlands to AA+ from AAA, citing weaker growth prospects than previously forecast.
German retail sales unexpectedly dropped in October, indicating that business on the high streets has remained slack ahead of the Christmas season. Retail sales declined 0.8% from September and sales volumes hit the lowest level since December 2012, data from the federal statistics office showed on Friday, 29 November 2013. However, the overall trend remains slightly positive, with German retail sales in the first 10 months of the year up 0.2% on the year. Germany is Europe's biggest economy.
Asian stocks edged higher in choppy trade on Friday, 29 November 2013. Key benchmark indices in Indonesia, China, Hong Kong and Taiwan were up 0.05% to 0.53%. Key benchmark indices in South Korea, Singapore, and Japan were down 0.04% to 0.41%.
Consumer prices excluding fresh food, the Bank of Japan's gauge for its 2 percent inflation target, rose 0.9% in October from a year earlier, a fifth straight gain, according a government report today.
Trading in US index futures indicated that the Dow could advance 44 points at the opening bell on Friday, 29 November 2013. The US stock market will close early at 1:00 p.m. today, 29 November 2013. The market was closed on Thursday, 28 November 2013, for the Thanksgiving holiday.
Investors are keeping a close watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth. The US government will release the influential US non-farm payrolls data for November 2013 on 6 December 2013. The Fed has said improvement in the labor market is a key factor in its policy assessment.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.
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