Key benchmark indices eked out small gains on last trading session of the week as the rupee edged higher against the dollar. The barometer index, the S&P BSE Sensex, reclaimed the psychological 27,000 level, having alternately moved above and below that level in intraday trade. It had fallen below that mark yesterday, 11 September 2014. The Sensex garnered 65.17 points or 0.24% to settle at 27,061.04. The market breadth indicating the overall health of the market was positive. Bank stocks rose ahead of consumer price inflation data. Among pharma stocks, Cipla scaled record high. Sun Pharmaceuticals Industries trimmed losses in volatile trade after clarification on report that the company's manufacturing facility in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration. Macroeconomic data due after trading hours today, 12 September 2014, is likely to show easing of consumer price inflation in August 2014 and a muted growth in industrial production in July 2014. Meanwhile, a recent pick up in monsoon could ease concerns of food price inflation and boost sowing of Kharif crops.
Maruti Suzuki India rose after the company's chairman R C Bhargava was quoted as saying that the car maker is confident of double-digit growth in car sales this year. Shares of biscuits major Britannia Industries scaled record high. Oracle Financial Services Software jumped after the company's board declared a huge interim dividend.
Shares of Snowman Logistics settled with steep premium on its debut today, 12 September 2014. Most auto stocks rose on reports that the government is looking at the proposal for extending excise duty concessions to the automobile sector beyond December.
Among the side counters, Amara Raja Batteries, Ingersoll-Rand (India) and Wyeth scaled record high. Exide Industries, Indraprastha Gas and Lovable Lingerie hit 52-week high.
Key indices today, 12 September 2014, snapped three-day losing streak. The Sensex had declined 323.98 points or 1.18% in three trading sessions to settle at 26,995.87 on Thursday, 11 September 2014 from recent high of 27,319.85 on Monday, 8 September 2014.
The Prime Minister's Office today, 12 September 2014, said that all the infrastructure sectors broadly reported significant improvement in performance over the last four months, as compared to the previous year. The statement was issued after Prime Minister Narendra Modi completed a monthly review of the progress of eight major infrastructure sectors.
In overseas markets, European stocks reversed initial gains before European Central Bank President Mario Draghi meets euro-area finance ministers. Most Asian stocks edged higher after the latest data showed credit growth of Chinese financial institutions surged last month.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade on heavy dollar selling by custodian banks.
Brent crude oil futures edged higher in volatile trade on geopolitical worries.
The S&P BSE Sensex gained 65.17 points or 0.24% to settle at 27,061.04, its highest closing since 9 September 2014. The index jumped 101 points at the day's high of 27,096.87 in late trade. The index fell 29.96 points at the day's low of 26,965.91 in afternoon trade.
The CNX Nifty advanced 19.80 points or 0.24% to settle at 8,105.50, its highest closing since 9 September 2014. The index hit a high of 8,114.30 in intraday trade. The index hit a low of 8,071.60 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,741 shares gained and 1,312 shares fell. A total of 106 shares were unchanged.
The BSE Mid-Cap index rose 19.57 points or 0.2% to settle at 9,983.08, underperforming the Sensex. The BSE Small-Cap index rose 55.87 points or 0.5% to settle at 11,166.79, outperforming the Sensex.
Most auto stocks rose on reports the government is looking at the proposal for extending excise duty concessions to the automobile sector beyond December.
Mahindra & Mahindra (M&M) (up 0.85%), Hero MotoCorp (up 1.4%), Eicher Motors (up 3.43%) and Bajaj Auto (up 0.22%) gained. Ashok Leyland (down 1.19%) and TVS Motor Company (down 1.7%) declined.
Maruti Suzuki India rose after the company's chairman R C Bhargava was quoted as saying that the car maker is confident of double-digit growth in car sales this year. The stock was up 1.9%. Bhargava was also quoted as saying in a newspaper interview that Maruti plans to invest Rs 4000 crore over the next five years in developing at least five new products at its India research & development (R&D) centre.
Tata Motors was up 0.42%. As per reports, Tata Motors has joined hands with UK-based Microlise to launch advanced telematics and fleet management services in the Indian market. Under the partnership, which is for an initial period of five years, both sides intend to utilise their respective strengths to deliver services through Tata Fleetman platform, a vehicle management and tracking system, which the Mumbai-based auto major had launched in 2012. While Microlise will provide the technology and solutions, Tata Motors will integrate them in its commercial vehicles and utilise its reach for service delivery, according to reports.
As per reports, the government is likely to send a proposal to finance ministry regarding extension of excise duty concession till 31 March 2015. In a relief to the automobile and consumer durable sectors, the government in June 2014 had announced extension of the excise duty concession by six months to 31 December 2014. The concessions were earlier valid till 30 June 2014.
The government had cut excise duty on cars, SUVs and two-wheelers as well as consumer durables in the Interim Budget in February 2014 to help the industry tide over a demand slump.
Bank stocks rose ahead of consumer price inflation data. Among shares of private sector banks, Yes Bank (up 1.21%), IndusInd Bank (up 0.5%), Kotak Mahindra Bank (up 0.28%) and HDFC Bank (up 0.14%) gained. Axis Bank shed 0.36%.
ICICI Bank rose 0.17%. ICICI Bank, acting through its Dubai branch, priced an issuance of 5.5 year fixed rate notes of an aggregate principal amount of $500 million. The notes carry a coupon of 3.5% and were offered at an issue price of 99.653. The announcement was made after market hours on Thursday, 11 September 2014.
Among shares of PSU banks, Bank of Baroda (up 2.42%), Oriental Bank of Commerce (up 2.61%), Union Bank of India (up 1.97%), Punjab National Bank (up 1.95%) and Bank of India (up 1.66%) gained.
State Bank of India (SBI) rose 1.21%. In response to media reports captioned "Indian bank branches face closure amid UK crackdown", State Bank of India during market hours said that the Prudential Regulatory Authority's (PRA) final Supervisory Statement on international banks operating in the UK jurisdiction is not expected to have any material impact on SBI. SBI said that while SBI UK operations undertake retail banking activities above the prescribed de-minimis levels, PRA is expected to take a position with regard to each non-EEA (European Economic Area) branch only after evaluating the Home State Supervisory equivalence, resolvability etc. SBI UK operations will decide on their future banking model (branch or subsidiary) on receipt of the final evaluation from PRA, SBI said.
Cipla jumped 6.38% to Rs 612.55 after scaling a record high of Rs 616 in intraday trade.
Lupin rose 2.84%. Lupin at fag end of the day's trading session announced that the company and Salix Pharmaceuticals, Inc. have entered into a definitive distribution agreement, under which Salix has granted Lupin the exclusive right to market, distribute and sell certain Salix products in Canada. Lupin will promote the Salix products through its own sales force in Canada, the company said. Under the agreement terms, Salix will receive an upfront payment and distribution fees, and is eligible for additional pre-commercial and sales milestone payments. Salix will supply the products to Lupin under separate supply agreements, the company said.
Sun Pharmaceuticals Industries trimmed losses in volatile trade after clarification on report that the company's manufacturing facility in Halol, Gujarat is undergoing a surprise inspection by the US Food and Drug Administration. The stock was off 2.13% at Rs 805.25. The stock hit high of Rs 819.25 and low of Rs 789. Sun Pharma said that its manufacturing facilities in India undergo many routine regulatory inspections from various countries as part of normal course of business, from time to time. Conduct of each of these inspections per se has no material impact, the company said. The company also said without elaborating that there is no material impact of the inspection of the Halol, Gujarat plant by the US Food and Drug Administration.
Wyeth gained 4.68% to Rs 1,060 after scaling a record high of Rs 1,100 in intraday trade.
Larsen & Toubro (L&T) shed 1.1% to Rs 1,578.90. The stock was volatile. The stock hit high of Rs 1,607 and low of Rs 1,576.80. L&T during market hours said that the company through its joint venture firm, L&T-MHPS Boilers, has secured an order worth Rs 1885 crore from NTPC. The contract includes setting up of two units of 660 megawatt each supercritical steam generators for Tanda Thermal Power Plant Stage-II on an engineering, procurement and construction (EPC) basis. The project is scheduled to be completed in 46 and 52 months for the respective units, L&T said.
Steel major Steel Authority of India (Sail) rose 0.38%. Sail reportedly said on Thursday, 11 September 2014 that, it has sufficient iron ore stocks to sustain operations and there is no cause for worry even as Jharkhand has slapped closure notice on its four mines having 11 million tonne capacity.
Britannia Industries gained 3.49% to Rs 1,391, also its record high.
Oracle Financial Services Software rose 6.58% to Rs 3,935.35 after scaling a record high of Rs 4,080 in intraday trade. Oracle Financial Services Software during trading hours today, 12 September 2014, said that the company's board has declared an interim dividend of Rs 485 per equity share. Based on the closing market price, the stock offered a high dividend yield of 12.32%.
Indraprastha Gas jumped 5.20% to Rs 431.10 after hitting a 52-week high of Rs 443.80 in intraday trade.
Ingersoll-Rand (India) galloped 10.96% to Rs 770.25 after scaling a record high of Rs 777 in intraday trade. Ingersoll-Rand (India) during market hours today, 12 September 2014 said that the company will invest Rs 100 crore to upgrade its manufacturing facility in Naroda, near Ahmedabad in Gujarat. The facility will add new product lines with high level of innovation, Ingersoll-Rand (India) said in a statement.
Amara Raja Batteries jumped 8.88% to Rs 651.65 after scaling a record high of Rs 658.70 in intraday trade.
Exide Industries gained 6.19% to Rs 174.95 after hitting a 52-week high of Rs 175.45 in intraday trade.
Lovable Lingerie advanced 6.64% to Rs 425 after hitting a 52-week high of Rs 451 in intraday trade.
Shares of Snowman Logistics settled at Rs 78.75, a premium of 67.55% over the initial public offer price of Rs 47. The stock debuted at Rs 75, a premium of 59.57% to the initial public offer (IPO) price. The stock hit a high of Rs 78.75 and low of Rs 75. On BSE, 9.58 lakh shares were traded on the counter.
Jaiprakash Associates lost 2.6% to Rs 35.60, with the stock sliding on profit booking after recent rally. A foreign brokerage has reportedly downgraded the stock to "neutral" from "buy" and removed the stock from its Asia Pacific buy list, citing uncertainty after one of its promoters sold 1.45% stake recently. Uncertainty on Supreme Court ruling on coal allocations has also been cited as a key reason for downgrade, according to reports.
NCC lost 3.26% to Rs 66.85 after Mauritius-based investment holding firm Warhol sold a total of about 79.86 lakh shares of the company in bulk deals on BSE and NSE at an average price of Rs 69.07 per share on Thursday, 11 September 2014.
C Mahendra Exports was locked at 5% upper circuit at Rs 30.80 on bargain hunting after the stock slumped 85.89% in the preceding 29 sessions to Rs 29.35 on 11 September 2014, from a recent high of Rs 208 on 30 July 2014.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 11 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 433.55 crore on that day.
Brent crude oil futures edged higher in volatile trade on geopolitical worries. Brent for October settlement was up 14 cents at $98.22 a barrel. The contract rose 4 cents to settle at $98.08 a barrel yesterday, 11 September 2014, bouncing back from a 2-year low after Russia warned the US that air strikes in Syria against Islamist militants would be an act of aggression without a UN security mandate. The more active contract Brent for November settlement was up 17 cents at $99.03 a barrel.
US President Barack Obama yesterday, 11 September 2014, said that the US will join the European Union in stiffening sanctions on Russia over Ukraine. The European Union today, 12 September 2014, put into effect a new round of sanctions against Russia over its role in Ukraine, including restrictions on financing for some Russian state-owned companies and asset freezes on leading Russian politicians.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade on heavy dollar selling by custodian banks. The partially convertible rupee was hovering at 60.69, compared with its close of 60.93 during the previous trading session.
Data due after trading hours today, 12 September 2014, is likely to show easing of consumer price inflation in August 2014 and a muted growth in industrial production in July 2014. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen decelerating to 7.8% in August 2014, from 7.96% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the CPI data for August 2014 at 17:30 IST today, 12 September 2014. The Reserve Bank of India (RBI) is targeting CPI inflation at 8% by January 2015 and 6% by January 2016.
Meanwhile, the growth in industrial production is seen decelerating to 1.9% in July 2014, from 3.4% in June 2014, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production growth had eased to 3.4% in June 2014, from 5% increase recorded in May 2014. The government will release the industrial production data for July 2014 at 17:30 IST today, 12 September 2014.
The annual rate of inflation based on the monthly Wholesale Price Index (WPI) is seen decelerating to 4.43% in August 2014, from 5.19% in July 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the WPI data for August 2014 at 12 noon on Monday, 15 September 2014.
Meanwhile, a recent pick up in monsoon could ease concerns of food price inflation and boost sowing of Kharif crops. As per reports, the all-India rainfall deficit for the June-September monsoon season has narrowed to 11%, from 15% until the previous week.
European stocks reversed initial gains today, 12 September 2014, before European Central Bank President Mario Draghi meets euro-area finance ministers and the US releases data on retail sales and consumer confidence. Key benchmark indices in Germany and France were off 0.05% to 0.2%. In UK, the FTSE 100 was up 0.24%.
Draghi will meet with euro-area finance ministers in Milan today, 12 September 2014, to discuss economic recovery and progress on the region's banking union. Draghi reportedly said yesterday, 11 September 2014, that investment in the euro area's economy will only return to pre-crisis levels if governments work with the ECB to achieve reforms and stimulate growth.
Most Asian stocks edged higher today, 12 September 2014, after the latest data showed credit growth of Chinese financial institutions surged last month. Key benchmark indices in Japan, Indonesia, South Korea and China were up 0.21% to 0.88%. Key benchmark indices in Singapore, Taiwan and Hong Kong were off 0.05% to 1.07%.
Chinese banks stepped up lending in August after a big fall a month earlier, data from the central bank showed today, 12 September 2014. Chinese financial institutions issued 702.5 billion yuan ($114.6 billion) in new yuan loans in August, up sharply from 385.2 billion yuan in July. Total social financing--a broader measurement of credit in the economy--was 957.4 billion yuan in August, up from 273.1 billion yuan in July.
The Bank of Korea held its policy interest rate at 2.25% today, 12 September 2014, as widely expected after it cut the benchmark by a quarter-point at its previous meeting.
Trading in US index futures indicated a flat opening of US stocks on today, 12 September 2014. US stocks eked out small gains on Thursday, 11 September 2014, as an unexpected increase in weekly jobless claims and falling commodities prices encouraged investors to remain cautious. The number of people who applied for jobless benefits last week unexpectedly rose, reaching the highest level since late June.
Investors will look to next week's Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. At the end of a two-day meeting on 16-17 September 2014, the FOMC is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
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