Key benchmark indices extended gains to strike fresh intraday high in early afternoon trade. The S&P BSE Sensex was up 211.51 points or 1.1%, up 144.26 points from the day's low and off 15.94 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Gains in Asian stocks underpinned sentiment.
Larsen & Toubro rose after the company fixed 13 July 2013 as the record date for 1:2 bonus issue. FMCG gained on renewed buying. IT stocks rose on recent weakness of rupee against the dollar. Index heavyweight and cigarette major ITC hovered in positive zone.
Key benchmark indices cut initial gains triggered by higher Asian stocks. Volatility ruled the roost in morning trade as the key benchmark indices regained strength after hitting intraday low. Key benchmark indices held firm in mid-morning trade. The Sensex extended gains to strike fresh intraday high in early afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 705.06 crore on Wednesday, 3 July 2013, as per provisional data from the stock exchanges.
At 12:18 IST, the S&P BSE Sensex was up 211.51 points or 1.1% to 19,389.27. The index gained 227.45 points at the day's high of 19,405.21 in early afternoon trade, its highest level since 2 July 2013. The index rose 67.25 points at the day's low of 19,245.01 in morning trade.
The CNX Nifty was up 65.15 points or 1.13% to 5,836.05. The index hit a high of 5,842.20 in intraday trade, its highest level since 2 July 2013. The index hit a low of 5,787.70 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,094 shares gained and 789 shares fell. A total of 114 shares were unchanged.
The total turnover on BSE amounted to Rs 816 crore by 12:20 IST compared to Rs 563 crore by 11:20 IST.
Among the 30-share Sensex pack, 21 stocks gained and rest of them declined.
Larsen & Toubro rose 2.68% after the company fixed 13 July 2013 as the record date for 1:2 bonus issue. To commemorate the occasion of the platinum jubilee of the company, L&T's board of directors at its meeting held on 22 May 2013 had recommended issuing bonus shares in the ratio of 1:2 (i.e. one bonus equity share each for every two held).
FMCG stocks gained on renewed buying. Britannia Industries (up 0.27%), Colgate-Palmolive (India) (up 2.26%), Dabur India (up 1.95%), Godrej Consumer Products (up 0.24%), Marico (up 1.2%), Nestle India (up 0.28%) and Tata Global Beverages (up 1.48%) gained.
Index heavyweight and cigarette major ITC advanced 2.45% to Rs 334.30.
Hindustan Unilever rose 0.45% to Rs 590.05. Anglo-Dutch consumer goods major Unilever's open offer to raise its stake in Indian unit, which opened on 21 June 2013, closes today, 4 July 2013. Unilever will buyback shares from minority shareholders at Rs 600 per share to hike its stake in Hindustan Unilever from 52.48% to up to 75%.
Bata India rose 1.7% to Rs 858.70 after foreign brokerage initiated coverage on the stock with a buy rating and a target price of Rs 990.
IT stocks rose on recent weakness of rupee against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. The partially convertible rupee was hovering at 60.06, higher than its previous close of 60.215/225 per dollar. The rupee had slumped to all-time low of 60.76 in intraday deals on 26 June 2013. TCS (up 2.35%), Infosys (up 1.62%), Wipro (up 1.41%) and HCL Technologies (up 3.6%) edged higher.
Future Ventures India was trading at Rs 6.77 after the stock re-listed today, 4 July 2013, after a change in business to retail and consumer packaged goods from being a non-banking finance company and an investment arm. Prior to today's relsting, shares of FVIL had settled at Rs 9.25 on 20 June 2013.
On 24 June 2013, shareholders of FVIL were issued one share of Future Lifestyle Fashions for every 31 they held.
Meanwhile, the government finally cleared an ambitious Rs 1.25 lakh crore food security plan, promising subsidized food to two out of every three Indians. The move is expected to help the Congress party gain significant political support in the run-up to the 2014 general election, although it may stretch the government's fiscal deficit.
Asian stocks were mostly higher on Thursday, 4 July 2013, after positive US jobs data spurred gains on Wall Street overnight. Key benchmark indices in Hong Kong, Indonesia, South Korea, China and Singapore were up 0.79% to 1.59%. Key benchmark indices in Japan and Taiwan were down 0.22% to 0.26%.
The US stock market remains closed today, 4 July 2013, for Independence Day holiday. US stocks edged higher on Wednesday as positive jobs data countered international concerns in the abbreviated trading session.
The European Central Bank (ECB) is widely expected to keep its main refinancing rate unchanged at 0.5% after a monetary policy review today, 4 July 2013, with the spotlight set to fall on ECB President Mario Draghi's press conference following the meeting. The Bank of England is also expected to leave its lending rate unchanged at a record low 0.5% after a monetary policy review today, 4 July 2013.
Investors are concerned about a potential collapse of Portugal's government after the exit of two cabinet members this week. The country's government previously had agreed on an austerity plan under an international bailout.
Investors are also concerned about unrest in Egypt after Egypt's military pressured President Mohammed Morsi to step down, and later led his ouster from office.
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