Gains in Asian and European stocks aided gains on the domestic bourses as key benchmark indices hit fresh intraday high in mid-afternoon trade. The barometer index, the S&P BSE Sensex, hit its highest level in more than 13 weeks. The CNX Nifty hit over 13-week high above the psychological 6,000 level. The Sensex was up 192.84 points or 0.98%, up 169.15 points from the day's low and off 3.20 points from the day's high. Index heavyweight and cigarette major ITC extended intraday gain. The market breadth, indicating the overall health of the market, was positive.
Index heavyweight Reliance Industries (RIL) trimmed intraday gain. GlaxoSmithKline Pharmaceuticals pared gains after the company reported Q1 March 2013 result during market hours. Lupin scaled a record high ahead of its Q4 March 2013 results tomorrow, 8 May 2013. Telecom stocks were in demand.
Key benchmark indices edged higher in early trade on positive Asian stocks. Key benchmark indices extended gains to strike fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, hit its highest level in over 13 weeks. Key benchmark indices held firm in mid-morning trade. Key benchmark indices held firm in early afternoon trade. The market trimmed gains after hitting fresh intraday high in afternoon trade. Key benchmark indices scaled fresh intraday high in mid-afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 6 May 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 897.47 crore on Monday, 6 May 2013, as per provisional data from the stock exchanges
At 14:21 IST, the S&P BSE Sensex was up 192.84 points or 0.98% to 19,866.48. The index jumped 196.04 points at the day's high of 19,869.68 in mid-afternoon trade, its highest level since 4 February 2013. The index rose 23.69 points at the day's low of 19,697.33 in opening trade.
The CNX Nifty was up 62.05 points or 1.04% to 6,033.10. The index hit a high of 6,033.45 in intraday trade, its highest level since 4 February 2013. The index hit a low of 5,982.95 in intraday trade.
The total turnover on BSE amounted to Rs 1469 crore by 14:20 IST
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,255 shares advanced and 1,095 shares declined. A total of 145 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks gained while rest of them declined. Coal India (down 1.78%), Wipro (down 1.63%) and Dr Reddy's Laboratories (down 0.84%) edged lower from the Sensex pack.
Jindal Steel & Power (up 2.99%), Hero MotoCorp (up 2.84%) and ICICI Bank (up 1.99%) edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 0.3% to Rs 824. The scrip hit high of Rs 835.65 and a low of Rs 819.40 so far during the day.
Index heavyweight and cigarette major ITC rose 2.34% to Rs 333.95. The scrip hit high of Rs 333.95 and a low of Rs 325.15 so far during the day. The stock had hit record high of Rs 335.90 in intraday on 30 April 2013. The Centre 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.
Shares of Kotak Mahindra Bank rose 1.45% to Rs 722.50. Shares of Karnataka Bank fell 1.25% to Rs 154.50. Both the banks today, 7 May 2013, separately denied speculation of merger of the two private sector banks. Shares of Karnataka Bank had jumped 7.3% on Monday, 6 May 2013, on rumours that Kotak Mahindra Bank is in takeover talks with the bank.
GlaxoSmithKline Pharmaceuticals surged 4.43% to Rs 2,420. The stock pared gains after striking a record high of Rs 2,522 in intraday trade today, 7 May 2013. The pharma company during market hours today, 7 May 2013 reported 37.53% rise in net profit to Rs 169.01 crore on 1.51% increase in total income to Rs 713.84 crore in Q1 March 2013 over Q1 March 2012. GlaxoSmithKline Pharmaceuticals profit before operations before other income and exceptional items fell 17.19% to Rs 163.45 crore in Q1 March 2013 over Q1 March 2012.
The company said the growth for the quarter was impacted by the core pharmaceuticals business, which was flat compared to the same period last year. There was a significant impact on growth due to supply chain related issue, the company said.
Lupin rose 1.67% to Rs 710.60, after scaling a record high of Rs 714.80 in intraday trade today, 7 May 2013. The stock gained ahead of its Q4 March 2013 results tomorrow, 8 May 2013.
Telecom stocks were in demand. Bharti Airtel surged 3.37%. The company on 3 May 2013 announced that it has entered into a binding agreement with Qatar Foundation Endowment (QFE), under which Bharti will issue 19.98 crore of its new shares to QFE representing a shareholding of 5% in the company, post issuance of the new shares. As per the agreement, QFE will subscribe to 19.98 crore new shares of Bharti at a price of Rs 340 per share amounting to a total consideration of $1.26 billion (Rs 6796 crore). The investment will further strengthen the capital structure and provide further flexibility for the company to deliver on its growth strategy, Bharti said.
Reliance Communications rose 0.18% to Rs 112.95, after striking a 52-week high of Rs 113.50 in intraday trade today, 7 May 2013. The stock had risen 2.36% to settle at Rs 112.75 on Monday, 6 May 2013, on reports of the company raising tariff. According to reports, Reliance Communications has increased voice call prices on some of its plans by about 20% and cut promotional offers and discounts on some others by up to 65%.
Tata Teleservices (Maharashtra) jumped 4.4% after the Securities and Exchange Board of India provided some relaxation to the offer for sale norms to help the company achieve minimum public shareholding. The announcement was made after market hours on Monday, 6 May 2013.
Tata Teleservices (Maharashtra) (TTML) had sought relaxation from the market regulator the Securities and Exchange Board of India (Sebi) from certain condition applicable to offer for sale (OFS) of shares by promoters through the stock exchange mechanism. Sebi has relaxed the maximum allocation limit of 25% of the size of the OFS to a single investor. It has also permitted TTML to undertake two successive offers with a gap of minimum three days and has also relaxed restrictions with respect to the twelve week cooling off period. Promoters of TTML, who currently own 77.73% stake (as on 31 March 2013), are planning to sell their shares using the OFS route.
The promoter group of the company is allowed to sell the shares of the company up to 1% of the total paid-up share capital of the company on the floor of the stock exchange, subject to certain conditions prescribed in the letter, TTML said in a filing.
Sebi has mandated minimum public shareholding of 25% for private companies and 10% for state-run firms. 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 August 2013.
MTNL (up 2.42%) and Idea Cellular (up 0.49%) gained.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. HDFC and Lupin unveil Q4 results tomorrow, 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on Thursday, 9 May 2013. NTPC announces Q4 results on Friday, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Indian services sector growth eased sharply during April as new orders came in at a much slower pace, a business survey showed on Monday, 6 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 50.7 in April 2013 from 51.4 in March 2013. Services make up over 60% of India's economy.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 on Friday, 10 May 2013. Industrial production rose 0.6% in February 2013.
The Budget session of the Parliament ends on Friday, 10 May 2013.
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
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.
European stocks advanced on Tuesday, with London markets returning to action after a holiday and several companies reacting to earnings news. Key benchmark indices in France, Germany and UK rose by 0.16% to 0.28%. Stock markets in UK were closed for a holiday on Monday, 6 May 2013.
Asian stocks climbed for a second day today, 7 May 2013, dominated by Japanese shares, on optimism central banks will continue to revive growth. Key benchmark indices in Hong Kong, Singapore, Japan, China and Indonesia were up by 0.2% to 3.55%. Key benchmark indices in South Korea and Taiwan were down by 0.07% to 0.36%.
China is due to release a slew of economic data this week. The trade data for April 2013 will be out tomorrow, 8 May 2013. On Thursday, 9 May 2013, attention will shift to China's consumer and producer inflation figures for April 2013.
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 7 May 2013. US stocks mostly advanced on Monday, with S&P 500 index extending its record run above 1,600 after the April jobs report exceeded expectations. US nonfarm payrolls rose by 165,000 last month and the jobless rate fell to a four-year low of 7.5%, the Labor Department had said on Friday, 3 May 2013.
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