Key benchmark indices pared gains after an initial rally triggered by firm Asian stocks. The S&P BSE Sensex was up 159.41 points or 0.82%, off 70.02 points from the day's high and up 38.12 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
FMCG stocks rose across the board. Index heavyweight and cigarette major ITC hovered in positive zone. Shares of FMCG giant Hindustan Unilever (HUL) scaled a record high after Anglo-Dutch parent Unilever on Thursday, 4 July 2013, said it has raised its stake in HUL to 67.28% from 52.48% through a voluntary open offer for HUL shareholders. Reliance Industries extended initial gain.
Key benchmark indices edged higher in early trade on firm Asian stocks. The barometer index, S&P BSE Sensex, hit four-week high. Key benchmark indices pared gains in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 164.56 crore on Thursday, 4 July 2013, as per provisional data from the stock exchanges.
At 10:18 IST, the S&P BSE Sensex was up 159.41 points or 0.82% to 19,570.25. The index jumped 229.43 points at the day's high of 19,640.27 in early trade, its highest level since 7 June 2013. The index rose 121.29 points at the day's low of 19,532.13 in morning trade.
The CNX Nifty was up 44.45 points or 0.76% to 5,881.40. The index hit a high of 5,900.45 in intraday trade, its highest level since 1 July 2013. The index hit a low of 5,872.35 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 958 shares gained and 374 shares fell. A total of 62 shares were unchanged.
The total turnover on BSE amounted to Rs 336 crore by 10:20 IST compared to Rs 154 crore by 09:30 IST.
Among the 30-share Sensex pack, 24 shares gained while rest of them declined.
Reliance Industries (RIL) rose 1.79% to Rs 877.15, with the stock extending initial gain. The government on 27 June 2013 agreed to double natural gas prices to industrial and retail consumers to help fund investment in exploration and reverse declining domestic gas output. The price of gas could go up to $8.4 per million metric British thermal units (mmBtu), effective 1 April next year, from current $4.2 mmBtu.
Index heavyweight and cigarette major ITC gained 1.12% to Rs 342.40. The stock extended Thursday's gains triggered by reports that the company has raised the price of its Gold Flake Regular Filter cigarettes from Rs 55 to Rs 58 for a pack of 10 cigarettes.
FMCG giant Hindustan Unilever (HUL) gained 2.62% to Rs 616.50 after scaling a record high of Rs 631.95 in intraday trade today, 5 July 2013. Unilever's shareholding in Hindustan Unilever has increased from 52.48% through a voluntary open offer for HUL shareholders. Anglo-Dutch consumer goods major Unilever had floated an open offer to raise its stake to 75% in Indian unit at Rs 600 per share. The offer opened on 21 June 2013 and closed on 4 July 2013.
Many other FMCG stocks rose. Colgate-Palmolive (India) (up 1.52%), Tata Global Beverages (up 2.16%), Marico (up 1.05%), Dabur India (up 0.38%), Nestle India (up 0.54%) and Godrej Consumer Products (up 1.24%), gained.
Pidilite Industries rose 0.09%. The stock turned ex-dividend today, 5 July 2013, for dividend of Rs 2.60 per share for the year ended 31 March 2013 (FY 2013).
Mahindra & Mahindra (M&M) shed 0.36%. The company after market hours on Thursday, 4 July 2013, said it has allotted 5,000, 9.55% senior unsecured redeemable non-convertible debentures of the face value of Rs 10 lakh each for cash at par aggregating Rs 500 crore to Yes Bank.
MMTC was locked at 5% lower circuit at Rs 79.75, also its 52-week low, with the stock extending recent steep slide triggered by government concluding the divestment of 9.33% stake in the firm at a huge discount to the stock's ruling market price. On 13 June 2013, the Government of India (GoI) sold 9.33% stake in MMTC via Offer for Sale (OFS) through stock exchanges mechanism at an indicative price of Rs 60.86 per share, at a discount of 71.21% to the closing price of the stock of Rs 211.45 on 12 June 2013.
Shares of diamond jewellery maker Gitanjali Gems were locked at 5% lower circuit at Rs 183.15, also its 52-week low. The stock has witnessed a steep slide recently.
Canara Bank rose 1.73%. The state-run bank after market hours on Thursday, 4 July 2013, said it has reduced the base rate by 30 basis points (bps) from 10.25% to 9.95% for all loans/advances viz. agriculture, MSME sector, retail, export credit with effect from 8 July 2013. The bank has also reduced rate of interest on deposits on few maturity slabs.
Asian markets edged higher on Friday, 5 July 2013, after the two most important central banks in Europe on Thursday, 4 July 2013, said after monetary policy review that they are in no hurry to wind down stimulus. Key benchmark indices in China, Hong Kong, Indonesia, Singapore and Japan were up 0.24% to 1.64%. South Korea's KOSPI Composite fell 0.29%.
Trading in US index futures indicated that the Dow could gain 133 points at the opening bell on Friday, 5 July 2013. The US government will unveil the influential nonfarm payrolls data for June 2013 today, 5 July 2013, which the Federal Reserve is monitoring as it decides when it will slow the pace of its bond purchases. Fed Chairman Ben Bernanke said last month that bond purchases, currently at $85 billion a month, may be tapered down this year if the economy improves in line with the central bank's projections. The Fed is looking for the unemployment rate to fall toward 6.5% by next year.
The European Central Bank (ECB), as expected, kept its main lending rate at a record low 0.5% on Thursday, the same level it's been at since it was cut from 0.75% back in May. ECB president Mario Draghi said rates wouldn't rise for "an extended period."
The Bank of England (BOE) decided to keep its key lending rate at a record low 0.5% and to leave the size of its bond-buying program unchanged at 375 billion pounds ($572 billion). The Bank of England on Thursday signaled it won't be raising interest rates anytime soon, saying in a statement that the recovery is on track but it "remains weak by historical standards and a degree of slack is expected to persist for some time."
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