Key benchmark indices extended gains to hit fresh intraday high in early afternoon trade as gains in Asian stocks boosted sentiment. The barometer index, the S&P BSE Sensex, hit its highest level in over five weeks. The CNX Nifty hit its highest level in nearly six weeks. The Sensex was up 170.92 points or 0.89%, up close to 160 points from the day's low and off about 15 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Index heavyweight Reliance Industries (RIL) extended intraday gains. Another index heavyweight and cigarette major ITC retained positive zone. Bank stocks rose as slowing wholesale price inflation has raised expectations that the the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost economic growth. Axis Bank surged after strong Q4 results. Metal stocks rose on renewed buying. In pharma pack, Dr Reddy's Laboratories scaled record high.
The market edged higher in early trade on higher Asian stocks. The S&P BSE Sensex hit its highest level in over five weeks. The CNX Nifty hit its highest level in nearly six weeks. The market held firm in morning trade. The market extended gains to hit fresh intraday high in mid-morning trade. The market further extended gains to hit fresh intraday high in early afternoon trade.
The market sentiment boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 23 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 226.21 crore on Tuesday, 23 April 2013, as per provisional data from the stock exchanges.
The market may remain volatile today, 25 April 2013, as traders roll over positions in the futures & options (F&O) segment from the near month April 2013 series to May 2013 series. The April 2013 F&O contracts expire today, 25 April 2013.
At 12:20 IST, the S&P BSE Sensex was up 170.92 points or 0.89% to 19,350.28. The index jumped 185.59 points at the day's high of 19,364.95 in early afternoon trade, its highest level since 19 March 2013. The index rose 12.75 points at the day's low of 19,192.11 in opening trade.
The CNX Nifty was up 60.85 points or 1.04% to 5,897.75. The index hit a high of 5,906.70 in intraday trade, its highest level since 15 March 2013. The index hit a low of 5,853.30 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,106 shares advanced and 835 shares declined. A total of 106 shares were unchanged.
Among the 30-share Sensex pack, 24 stocks gained while rest of them fell. NTPC, Tata Motors and Bajaj Auto rose by 2.49% to 3.52%.
Index heavyweight Reliance Industries (RIL) rose 2.17% to Rs 820.95. The scrip hit high of Rs 822.40 and a low of Rs 806 so far during the day. The company's telecom arm -- Reliance Jio Infocomm -- and Bharti Airtel on Tuesday, 23 April 2013, signed an agreement for international data connectivity under which Bharti will provide Reliance Jio data capacity on its i2i submarine cable. i2i connects India to Singapore and is wholly owned by Bharti. Reliance Jio will utilize a dedicated fiber pair on i2i. The high speed link will enable Reliance Jio to extend its network and service reach to customers across Asia Pacific region.
Earlier, at the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Index heavyweight and cigarette major ITC rose 0.72% to Rs 319.70. The stock hit record high of Rs 320 in intraday trade today, 25 April 2013. The stock hit low of Rs 313.15 in intraday trade today, 25 April 2013. West Bengal chief minister Mamata Banerjee on Wednesday, 24 April 2013, announced a 10% tax hike on cigarettes to raise money for a relief fund for those depositors who have lost money in the Saradha chit fund scam.
Earlier, 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, which was unveiled on 28 February 2013.
Bank stocks rose as slowing wholesale price inflation has raised expectations that the the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost economic growth. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), rose 0.83%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained by 0.73% to 2.91%.
HDFC Bank declined 0.63% to Rs 685.05, with the stock declining for the second straight day on profit booking after the private sector bank reported strong Q4 results during trading hours on Tuesday, 23 April 2013. The stock had witnessed pre-result rally. The stock jumped 12.68% to settle at Rs 699.25 on BSE on Monday, 22 April 2013, from a recent low of Rs 620.55 on 9 April 2013.
HDFC Bank's net profit rose 30.06% to Rs 1889.84 crore on 21.08% increase in total income to Rs 11127.54 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 30.18% to Rs 6726.28 crore on 24.54% increase in total income to Rs 41917.49 crore in the year ended March 2013 over the year ended March 2012.
The bank's asset quality remains healthy. The bank's ratio of net non-performing assets (NPA) to net advances stood at 0.2% as on 31 March 2013, unchanged from the level at end December 2012 and at end March 2012. The bank's ratio of gross NPA to gross advances stood at 0.97% as on 31 March 2013, compared with 1% as on 31 December 2012 and 1.02% as on 31 March 2012.
ICICI Bank rose 0.97%. ICICI Bank announces Q4 results tomorrow, 26 April 2013.
Axis Bank surged 3.55% on strong Q4 results. The bank's net profit rose 21.75% to Rs 1555.15 crore on 18.39% growth in total income to Rs 9054.72 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results on Wednesday, 24 April 2013. The bank's net interest income jumped 24.16% to Rs 2664.66 crore in Q4 March 2013 over Q4 March 2012. Other Income comprising fees, trading profit and miscellaneous income jumped 26.43% to Rs 2007.17 crore in Q4 March 2013 over Q4 March 2012, driven by fee income and trading profit. The bank's fee income jumped 22% to Rs 1618 crore. Trading income jumped 63% Rs 238 crore in Q4 March 2013 over Q4 March 2012.
Axis Bank said that its retail franchise continued to show strong growth in Q4 March 2013. CASA plus retail term deposits constituted 68% of the bank's total deposits as on 31 March 2013. Axis Bank said its quality remains stable with the ratio of net non-performing assets to net advances at 0.32% as on 31 March 2013, lower than 0.33% as on 31 December 2012.
Axis Bank said that the bank is well capitalised with equity capital of Rs 5537 crore raised in Q4 March 2013. The bank said that it is well positioned for growth with a healthy capital adequacy ratio (CAR) of 17%, and Tier-I CAR at 12.23% as on 31 March 2013.
Metal stocks rose on renewed buying. Sterlite Industries, Bhushan Steel, JSW Steel, Tata Steel, Sail, Hindalco Industries and Hindustan Zinc rose by 0.12% to 2.24%.
Jindal Steel & Power rose 0.49% ahead of its Q4 results today, 25 April 2013.
Dr Reddy's Laboratories gained 3.47% to Rs 1,969. The stock hit record high of Rs 1,984 in intraday trade today, 25 April 2013.
The focus of the market is on Q4 results. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results tomorrow, 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. Grasim announces Q4 March 2013 results on 4 May 2013. HDFC unveils 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. BPCL announces Q4 results on 29 May 2013.
The Prime Minister's Economic Advisory Council (PMEAC) in a report released on Tuesday, 23 April 2013, projected 6.4% growth in India's GDP for the current fiscal year 2013/14, higher than an estimated 5% growth for the fiscal year 2012/13. In 2013-14, the headline WPI inflation is expected to be around 6%, compared with provisional figure at 5.96% at the end of 2012-13, the PMEAC said. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
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. 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 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
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 government has lined up a number of key bills for consideration and passing during the ongoing 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.
Most Asian stocks edged higher on Thursday as investors weighed earnings reports and energy shares led gains. Key benchmark indices in Singapore, Hong Kong, Japan and South Korea rose by 0.31% to 0.91%. Key benchmark indices in China, Indonesia and Taiwan fell by 0.02% to 0.76%.
Trading in US index futures indicated that the Dow could gain 14 points at the opening bell on Thursday, 25 April 2013. The S&P 500 and Nasdaq ended flat on Wednesday with Boeing's five-year high among the day's highlights, but weakness in Procter & Gamble and AT&T kept the Dow Jones Industrial Average in negative territory. Economic data showed orders for US durable goods fell in March by the most in seven months as demand slumped for commercial aircraft and business investment cooled.
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