Key benchmark indices regained strength in afternoon trade as firm European stocks and higher Asian stocks supported domestic bourses. The S&P BSE Sensex was up 171.82 points or 0.87%, up close to 200 points from the day's low and off about 15 points from the day's high. Index heavyweight Reliance Industries (RIL) surged over 4% after the company along with partners announced huge gas discovery in KG-D6 block. Another index heavyweight and cigarette major ITC also gained. The market breadth, indicating the overall health of the market, was positive. Auto stocks were mixed. Capital goods pivotals were mixed.HDFC hit record high.
Volatility ruled the roost in early trade as the key benchmark indices rose to intraday high after sliding in the red following a positive start. The CNX Nifty regained the psychological 6,000 mark in early trade. Key benchmark indices hit fresh intraday high in mid-morning trade. Key benchmark indices pared gains after striking fresh intraday high in early afternoon trade. It regained strength in afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 238.56 crore on Friday, 24 May 2013, as per provisional data from the stock exchanges.
At 13:20 IST, the S&P BSE Sensex was up 171.82 points or 0.87% to 19,876.15. The index jumped 187.02 points at the day's high of 19,891.35 in early afternoon trade, its highest level since 23 May 2013. The index fell 26.02 points at the day's low of 19,678.31 in early trade.
The CNX Nifty was up 43.65 points or 0.73% to 6,027.20. The index hit a high of 6,034.45 in intraday trade, its highest level since 23 May 2013. The index hit a low of 5,975.55 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,112 shares rose and 932 shares fell. A total of 139 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and the rest of them fell. Cipla, ONGC and Tata Steel shed by 0.34% to 1.95%. Bharti Airtel, Sun Pharmaceutical Industries and HDFC Bank rose by 1.57% to 3.59%.
Index heavyweight Reliance Industries (RIL) advanced 4.18% to Rs 819.50 and was the top gainer from the Sensex pack. RIL after market hours on Friday, 24 May 2013 said that the company and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India.
RIL said that the discovery, named 'D-55', has been notified to the Government of India (GoI) and the Management Committee of the block. This discovery is expected to add to the hydrocarbon resources in the KG D6 block. Appraisal will now commence to better define the scale and quality of the field, RIL said in a statement.
RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
Index heavyweight and cigarette major ITC rose 0.3% to Rs 331. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
Capital goods pivotals were mixed. L&T fell 0.74%. The company reported 6.9% fall in net profit to Rs 1787.94 crore on 9.9% rise in total income to Rs 20686.93 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 22 May 2013.
Bharat Heavy Electricals (Bhel) rose 0.75% on bargain hunting after previous two sessions of losses triggered by weak Q4 results. The company reported Q4 results during market hours on Thursday, 23 May 2013. Bhel reported 4.2% fall in net profit to Rs 3237.54 crore on 2.2% decline in net sales to Rs 18850.16 crore in Q4 March 2013 over Q4 March 2012.
HDFC rose 1.37% to Rs 920. The stock hit record high of Rs 922 in intraday trade today, 27 May 2013.
Auto stocks were mixed. India's largest utility vehicle maker by sales, M&M shed 2.38%.
India's largest car maker by sales, Maruti Suzuki India declined 1.65%.
Tata Motors rose 0.52%. The company said on 18 May 2013 that TML Holdings, a wholly owned subsidiary of the company, issued and allotted S$350 million in principal amount of 4.25% senior notes due 2018. The net proceeds from the issue will be used for the redemption of preference shares issued to Tata Motors and for general corporate purposes. Australia and New Zealand Banking Group, Citigroup Global Markets Singapore, Deutsche Bank AG, Singapore Branch and Standard Chartered Bank acted as joint lead managers and joint bookrunners for the issue.
This announcement does not constitute nor form a part of any offer or solicitation to purchase or subscribe for securities in Singapore, the United States, India or elsewhere, company said.
Bajaj Auto fell 1.8%. The company's net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced on 16 May 2013.
Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said.
India's largest motorcycle maker by sales, Hero MotoCorp was flat. The company after market hours on Thursday, 23 May 2013 said that it has fixed 30 May 2013 as record date for ascertaining the names of the equity shareholders of Hero Investments (HIPL) in proportion of their holdings in HIPL for considering their entitlement for the purpose of issuance and allotment of equity shares in HMCL in the ratio of 1:1 i.e. one equity share for every one existing equity share held in HMCL by HIPL.
As per the Q4 results calendar, Sun Pharmaceutical Industries, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results tomorrow, 28 May 2013. Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. DLF, M&M and Tata Power unveil Q4 results on 30 May 2013.
The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near-month May 2013 series to June 2013 series. The May 2013 derivatives contracts expire on Thursday, 30 May 2013.
On a the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data on Friday, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.
Global credit rating agency Standard & Poor's (S&P) on 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. 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 at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. 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 rose on Monday as Chinese Premier Li Keqiang said his country will rely on Germany to lead the euro out of its crisis and boost the global economy as European leaders begin to tackle soaring unemployment after three years of budget cuts. Key benchmark indices in France and Germany rose by 0.64% to 0.99%. UK markets remain closed today, 27 May 2013 for a holiday.
Asian stocks were mostly higher today, 27 May 2013. Key benchmark indices in China, Taiwan, Hong Kong, South Korea and Singapore rose by 0.03% to 0.86%. Indonesia's Jakarta Composite fell 1.39%. Japan's Nikkei 225 slumped 3.22% on the yen's strength and further profit-taking after concerns about a rise in bond-market volatility helped stoke extreme swings late last week.
US financial markets remain closed today, 27 May 2013 for Memorial Day. US markets were mixed on Friday, 24 May 2013 as prospects of the Federal Reserve starting to reduce its bond-buying stimulus rattled a market trading at historic highs.
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