A bout of volatility was witnessed as the key benchmark indices regained positive zone after slipping into the red in morning trade. The S&P BSE Sensex was up 54.85 points or 0.28%, up 76.18 points from the day's low and off 5.33 points from the day's high. Index heavyweight and cigarette major ITC reversed initial gains. Another index heavyweight Reliance Industries (RIL) extended initial gains. The market breadth, indicating the overall health of the market, was strong.
Bank stocks fell after online portal Cobrapost today, 6 May 2013, claimed that its sting operation showed that a total of 23 major Indian banks, both public and private, and insurance companies, are running a nation-wide money laundering racket. Metal stocks edged higher on renewed buying.
At 10:21 IST, the S&P BSE Sensex was up 54.85 points or 0.28% to 19,630.49. The index rose 60.18 points at the day's high of 19,635.82 in early trade. The index declined 21.33 points at the day's low of 19,554.31 in morning trade.
The CNX Nifty was up 10.95 points or 0.18% to 5,954.95. The index hit a low of 5,928.45 in intraday trade, its lowest level since 2 May 2013. The index hit a high of 5,957.55 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 930 shares advanced and 608 shares declined. A total of 89 shares were unchanged.
The total turnover on BSE amounted to Rs 405 crore by 10:20 IST compared to Rs 128 crore by 09:25 IST.
Among the 30-share Sensex pack, 23 stocks gained while rest of them declined.
Index heavyweight Reliance Industries (RIL) rose 1.2% to Rs 810.20. The scrip hit high of Rs 810.95 and a low of Rs 802.50 so far during the day.
Index heavyweight and cigarette major ITC shed 0.68% to Rs 328.50 on profit booking. The scrip hit high of Rs 332.40 and a low of Rs 327.85 so far during the day. The stock had hit record high of Rs 335.90 in intraday on 30 April 2013. 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.
Bank stocks fell after online portal Cobrapost today, 6 May 2013, claimed that its sting operation showed that a total of 23 major Indian banks, both public and private, and insurance companies, are running a nation-wide money laundering racket. Cobrapost said that in all, 23 banks and insurance companies have been exposed, namely, State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Dena Bank, Corporation Bank, Allahabad Bank, Central Bank of India, all public sector banks, and their insurance associates; Yes Bank, Dhanlaxmi Bank, Federal Bank, DCB Bank, HDFC Bank, ICICI Bank and Axis Bank, all private banks, and their insurance allies; besides the state-owned LIC of India, Reliance Life Insurance and Birla Sunlife, and Tata AIG, among private sector insurers.
Today's expose is the second by Cobrapost after the online portal had on 14 March 2013 alleged that HDFC Bank, ICICI Bank and Axis Bank were involved in money laundering.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell 0.84%.
HDFC Bank dropped 1.44% and ICICI Bank shed 1.19%.
Among other bank stocks, Kotak Mahindra Bank (down 1.37%), Yes Bank (down 1.56%), Axis Bank (down 1.23%), Canara Bank (down 1.15%), Union Bank of India (down 0.73%), Bank of India (down 0.57%), Bank of Baroda (down 1.05%) and Punjab National Bank (down 0.99%) declined.
Cobrapost said its undercover investigation conducted for more than half a year, and spanning many states including Uttar Pradesh, Rajasthan, Delhi, Haryana, Andhra Pradesh and Karnataka, shows that money laundering practices are part and parcel of banking and insurance business across the board. Even a walk-in customer can avail of such services that help him launder all his unaccounted cash, Cobrapost said. Money laundering services are being offered by banks and insurance companies openly as a standard product across the board, Cobrapost said.
Metal stocks were in demand on renewed buying. Jindal Steel & Power (up 1.22%), Sterlite Industries (India) (up 2.54%), JSW Steel (up 1.54%), Hindalco Industries (up 2.29%), Tata Steel (up 2.28%), Sail (up 1.1%) and Hindustan Zinc (up 1.61%) edged higher.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. HDFC and Lupin unveil Q4 results on Wednesday, 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on Thursday, 9 May 2013. NTPC announces Q4 results on Friday, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's 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. M&M and Tata Power unveil Q4 results on 30 May 2013.
Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for April 2013 today, 6 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to a 17-month low of 51.4 in March from 54.2 in February. Services make up over 60% of India's economy.
On the macro front, the Central Statistics Office (CSO) will issue data on industrial production for March 2013 on Friday, 10 May 2013. Industrial production rose 0.6% in February 2013.
The Budget session of the Parliament ends on Friday, 10 May 2013.
The RBI on Friday, 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 that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. 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.
Asian stocks rose on Monday as investors gave thumbs up to an upbeat US labor force report that sent Wall Street to an all-time closing high on Friday, 3 May 2013. Key benchmark indices in China, Hong Kong, Taiwan, South Korea, Indonesia and Singapore rose by 0.36% to 1.14%. Japanese financial markets are shut on Monday for a public holiday and will reopen on Tuesday.
US stocks on Friday, 3 May 2013, rose to record highs, with the Dow industrials soaring above 15,000 and the S&P 500 index above 1,600, as Wall Street celebrated an upbeat April jobs report. US nonfarm payrolls rose by 165,000 last month and the jobless rate fell to a four-year low of 7.5%, the Labor Department said on Friday, 3 May 2013.
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