Key benchmark indices extended gains to hit fresh intraday high in early afternoon trade after the latest data showed that inflation based on the wholesale price index eased further in May 2013. The S&P BSE Sensex was up 249.33 points or 1.32%, off close to 30 points from the day's high and up about 125 points from the day's low. The market breadth, indicating the overall health of the market, was strong. All the 13 sectoral indices on BSE were in the green. Gains in Asian stocks supported gains on the domestic bourses.
Shares of index heavyweight Reliance Industries (RIL) gained after partner Niko Resources provided clarity on the companies' recent gas and condensate discovery at key KG-D6 block in India. MMTC remained locked at 10% lower circuit at Rs 171.35 on BSE, with the stock extending Thursday's 10% fall, as the government concluded divestment of 9.33% stake at a huge discount to the stock's ruling market price. Shares of education & tutorial providers gained.
The market edged higher in early trade. The barometer index, the S&P BSE Sensex, regained the psychological 19,000 level. The market extended initial gains to hit fresh intraday high in morning trade. The market was range bound in mid-morning trade. The Sensex extended gains to hit fresh intraday high in early afternoon trade after the latest data showed that inflation based on the wholesale price index eased further in May 2013.
At 12:20 IST, the S&P BSE Sensex was up 249.33 points or 1.32% to 19,076.49. The index jumped 277.76 points at the day's high of 19,104.92 in early afternoon trade, its highest level since 12 June 2013. The index gained 124.93 points at the day's low of 18,952.09 in early trade.
The CNX Nifty was up 81.75 points or 1.43% to 5,780.85. The index hit a high of 5,786.85 in intraday trade, its highest level since 12 June 2013. The index hit a low of 5,739.40 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,267 shares rose and 672 shares fell. A total of 95 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks rose and the rest of them fell. Tata Motors (up 3.98%), Maruti Suzuki India (up 3.64%) and Tata Steel (up 3.17%), edged higher.
Shares of index heavyweight Reliance Industries (RIL) gained 1.82% after its KG-D6 block partner Niko Resources said its proved reserves increased by 160%, and that a recent gas discovery in the D6 block off India's east coast could add significantly to future reserves. RIL is the operator of the block with a 60% stake. BP Plc holds 30% and Niko the rest.
MMTC remained locked at 10% lower circuit at Rs 171.35 on BSE, with the stock extending Thursday's 10% fall, as the government concluded divestment of 9.33% stake at a huge discount to the stock's ruling market price. The offer for sale (OFS) for divestment of Government of India's 9.33% shareholding in MMTC was oversubscribed by 1.55 times. The OFS carried out on Thursday, 13 June 2013 through a separate window provided by the stock exchanges for this purpose. Based on the total valid bids received, at an indicative price of Rs 60.86 as against the floor price of Rs 60 for the face value of Re one per share, the Government expects to realize proceeds of Rs 567.90 crore.
The OFS received participation from financial institutions, retail investors and some FIIs. The investor category-wise participation was 65% from insurance companies, 21% from banks and 14% from retail investors.
The divestment was done to make the company compliant to the public shareholding requirements under the Securities Contract Regulations (Rules) (SCRR). Sebi has mandated minimum public shareholding of 10% for state-run firms by August 2013.
Titan Industries jumped 5.1%, with the stock extending Thursday's 4.29% gains on bargain hunting after a recent steep slide triggered by the company's announcement that the Reserve Bank of India (RBI) has clarified that all imports of gold for domestic consumption, either through banks, nominated agencies or directly can be made only with 100% cash margin. The RBI has also clarified that credit of any kind from suppliers or bullion banks for import of gold for domestic use is prohibited, Titan said during trading hours on Tuesday, 11 June 2013. This will affect import of gold through all non consignment routes like gold on lease/loan, Titan Industries said. Titan imports gold for its retail gold jewellery business.
Titan said it had sought some clarifications on gold imports after the Reserve Bank of India issued a notification on 4 June 2013 on changes to the current terms governing import of gold in India.
Housing Development Finance Corporation rose 2.44% after 0.14% equity changed hands in two bulk deals on BSE today, 14 June 2013.
Shares of education & tutorial providers gained. Educomp Solutions, Core Education Technologies, Everonn Education, Aptech, NIIT, Edserv Softsystems and Career Point gained 1.19% to 7.88%. MT Educare was flat.
Tata Coffee advanced 4.68% to Rs 1077.60, with the stock recovering on bargain hunting after a recent steep slide. Shares of Tata Coffee had declined 29.5% in five trading days to Rs 1,029.45 on 13 June 2013 from a recent high of Rs 1,460.20 on 6 June 2013.
Many bulk deals were executed on Tata Coffee counter on BSE and NSE on Thursday, 13 June 2013. On BSE, Kotak Mahindra Prime sold 3 lakh shares at Rs 880.25 per share. Reliance Mutual Fund bought 1 lakh shares at Rs 880.25. Sharad Kantilal Shah sold 1.08 lakh shares.
On NSE, Kotak Mahindra Prime sold 5.05 lakh shares at Rs 881.17 per share. Reliance Regular Saving Fund under equity option scheme bought 2 lakh shares at Rs 880.50 per share.
Lanco Infratech (up 7.36%), GVK Power & Infrastructure (up 7.05%) and Triveni Turbine (up 6.1%) were the other major gainers from the BSE Mid-Cap index.
On macro front, the Central Statistics Office (CSO) today, 14 June 2013, said inflation based on the wholesale price index (WPI) eased further to 4.7% in May 2013 from 4.89% in April 2013. Build up inflation rate in the financial year so far was 0.88% compared to a build up rate of 1.80% in the corresponding period of the previous year. WPI inflation for March 2013 was revised downwards to 5.65% from 5.96% reported earlier.
Asian stocks rebounded on Friday as US economic data surpassed expectations and on bets the Federal Reserve will signal plans to keep record-low interest rates. Key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea and Singapore rose by 0.35% to 3%. Taiwan's Taiwan Weighted fell 0.18%.
Trading in US index futures indicated a flat opening of US stocks on Friday, 14 June 2013. US stocks rallied on Thursday bolstered by upbeat economic data. The latest data showed retail sales climbed the most in three months and the number of claims for jobless benefits dropped by 12,000 last week.
The Federal Open Market Committee holds a two-day policy meeting on interest rates in the United States on 18 and 19 June 2013.
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