Key benchmark indices scaled intraday high in late trade as European markets reversed intraday losses. The S&P BSE Sensex was provisionally up 197.14 points or 1.02%, up 245.38 points from the day's low and off 5.48 points from the day's high. The market breadth, indicating the overall health of the market, was strong. The market sentiment was boosted by provisional data showing that foreign fund turned net buyers of Indian stocks on Friday, 28 June 2013.
Index heavyweight and cigarette major, ITC, rose. Reliance Industries (RIL) edged higher for second day in a row after the government on Thursday, 27 June 2013, decided to raise natural gas prices sharply to help fund investment in exploration and reverse declining domestic gas output. Capital goods stocks gained on renewed buying. Larsen and Toubro (L&T) advanced after the company said it has won new orders worth of Rs 3057 crore across various business segments in June 2013. Realty stocks edged higher. Among pharma stocks, Dr Reddy's Laboratories hit record high.
Key benchmark indices moved into positive after a lower start triggered by weak Asian stocks. Key benchmark indices pared gains after hitting three-week high in morning trade. A bout of volatility was witnessed as key benchmark indices recovered after paring intraday gains in morning trade. Key benchmark indices hit fresh intraday high in early afternoon trade. The Sensex trimmed gains after hitting fresh intraday high in afternoon trade. Key benchmark indices regained strength in mid-afternoon trade. Key benchmark indices scaled intraday high in late trade.
The market sentiment was boosted by provisional data showing that foreign fund turned net buyers of Indian stocks on Friday, 28 June 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1124.31 crore on Friday, 28 June 2013, as per provisional data from the stock exchanges.
As per provisional closing, the S&P BSE Sensex was up 197.14 points or 1.02% to 19,592.95. The index jumped 202.62 points at the day's high of 19,598.43 in late trade, its highest level since 7 June 2013. The index fell 48.24 points at the day's low of 19,347.57 in early trade.
The CNX Nifty was up 57.45 points or 0.98% to 5,899.65. The index hit a high of 5,904.35 in intraday trade, its highest level since 10 June 2013. The index hit a low of 5,822.20 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,639 shares gained and 796 shares fell. A total of 132 shares were unchanged.
The total turnover on BSE amounted to Rs 1680 crore, lower than Rs 1985.62 crore on Friday, 28 June 2013.
Among the 30-share Sensex pack, 25 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC rose 0.49% to Rs 326.
Reliance Industries (RIL) edged higher for second day in a row after the government on Thursday, 27 June 2013, decided to raise natural gas prices sharply to help fund investment in exploration and reverse declining domestic gas output. The stock rose 2.65%.
The government on Thursday, 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.
Capital goods stocks gained on renewed buying. ABB (up 2.3%), Bhel (up 3.27%), BEML (up 4.99%), Crompton Greaves (up 3.09%) gained.
Larsen and Toubro (L&T) gained 3.48% after the company said it has won new orders worth of Rs 3057 crore across various business segments in June 2013. The announcement was made during trading hours today, 1 July 2013.
Siemens rose 3.23% after the company said that its consortium with Siemens AG bagged an order worth Rs 248 crore from Delhi Metro Rail Corporation. The announcement was made during trading hours today, 1 July 2013.
A consortium comprising Siemens and Siemens AG has bagged an order worth Rs 248 crore from Delhi Metro Rail Corporation (DMRC) for the electrification of phase III of the Delhi Mass Rapid Transit System (MRTS). Out of the total order value, the value for Siemens is Rs 176 crore and for Siemens AG it is Rs 72 crore.
Siemens said it won the order through an international competitive bidding. This is the first major rail electrification contract awarded by DMRC to the Smart Grid division of Siemens Infrastructure and Cities Sector. The project will be delivered in various phases starting with the Central Secretariat-to-Mandi House phase.
Auto stocks rose across the board. Maruti Suzuki India surged 4.1%. The company reported 12.6% fall in total sales to 84,455 units in June 2013 over June 2012. The company's domestic sales fell 7.8% to 77,002 units in June 2013 over June 2012. Exports declined 43% to 7,453 units in June 2013 over June 2012. The announcement was made during market hours today, 1 July 2013.
M&M gained 1.82%. The company said during market hours today, 1 July 2013, its domestic tractor sales rose 19% to 26,723 units in June 2013 over June 2012. M&M's total tractor sales rose 17% to 27,749 units in June 2013 over June 2012. Exports declined 19.33% to 1,026 units in June 2013 over June 2012.
M&M's total automobile sales fell 7.81% to 38,092 units in June 2013 over June 2012. Sales of the company's passenger vehicle segment (which includes UVs and Verito) declined 12.93% to 17,232 units in June 2013 over June 2012. The company's domestic sales declined 7.04% to 36,207 units in June 2013 over June 2012. Exports fell 20% to 1,885 units in June 2013 over June 2012.
Tata Motors rose 2.72%.
Hero MotoCorp (HMC) rose 2.57%. The company before market hours today, 1 July 2013, said it has incorporated a wholly owned subsidiary in USA by the name of HMCL (NA), Inc. (HMCL (NA)) inter alia for the purpose of investing in Erik Buell Racing, Inc. (EBR). HMCL (NA) has agreed to invest $25 million in EBR for a total stake of 49.2% in the share capital of EBR. The first tranche of $15 million has been invested by HMCL (NA) on 28 June 2013. The second tranche of $10 million is proposed to be invested within the next 9 months.
Bajaj Auto rose 0.39%. The company on 25 June 2013 said workmen at its Chakan plant in Pune have stopped coming to work. Bajaj Auto said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift of 28 June 2013. The reason for the strike was that management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share, Bajaj Auto added. The workmen have, however, stopped coming to the Chakan plant from 25 June 2013, itself, without assigning any reason for this stoppage, the company said in a filing.
Dr Reddy's Laboratories gained 2.65% to Rs 2,274 after striking a record high of Rs 2,285 in intraday trade today, 1 July 2013.
Realty stocks rallied. Indiabulls Real Estate (up 9.59%), Oberoi Realty (up 9.59%), HDIL (up 11.26%), Unitech (up 10.17%), D B Realty (up 4.93%) and DLF (up 4.26%), edged higher.
Godrej Properties rose 0.59%. The company before market hours today, 1 July 2013, said that it has given exit to HDFC PMS by purchasing its 49% stake in the equity share capital of its subsidiary Godrej Estate Developers (GEDPL) by exercising the company's buy out option under the agreement. The exit was as per terms of the agreement with HDFC Asset Management Company (acting in its capacity as portfolio manager of its product called HDFC Asset Management Company Portfolio Management Services Real Estate Portfolio -1) (HDFC PMS) for the project Godrej Eternia at Chandigarh.
Godrej Properties also gave exit to HDFC PMS by purchasing the latter's 49.9% stake in the equity share capital of its subsidiary Godrej Sea View Properties (GSVPPL) by exercising the company's buy out option under the agreement. The exit was as per terms of the agreement with HDFC Asset Management Company (acting in its capacity as portfolio manager of its product called HDFC Asset Management Company Portfolio Management Services real estate portfolio -1) for the project Godrej Palm Grove at Chennai.
Godrej Properties further informed that following the transactions, GEDPL and GSVPPL have become the wholly owned subsidiaries of the company with effect from 28 June 2013 and 1 July 2013, respectively.
Indian factory activity remained weak in June as output contracted for the second month running and order books shrank for the first time in over four years, a survey showed on Monday. The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, edged up to 50.3 in June from 50.1 in May. While export orders came in at a faster pace last month, domestic demand took a hit from the faltering economy. The latest PMI showed inflationary pressures, which eased in the previous few months, have started to pick up again with input and output costs both rising in June.
European stock markets edged higher on Monday, 1 July 2013, as euro-area factory output contracted in June less than initially estimated. Key benchmark indices in France, Germany and UK rose by 0.17% to 0.77%.
The euro-zone manufacturing purchasing managers index rose to a 16-month high in June, final data showed Monday according to Markit. PMIs rose in all nations except Germany, where the final number was revised down to 48.6 from a preliminary 48.7. The overall euro-zone number was 48.8 in June, up from 48.7 reported previously. In France, the PMI rose to 48.4 from a prior 48.3.
The pace of the UK's manufacturing sector expansion accelerated in June in a further sign that the economic recovery is gaining momentum as Mark Carney begins his new role as governor of the Bank of England. The monthly manufacturing PMI, which is compiled by Markit and the Chartered Institute of Purchasing & Supply rose to 52.5 in June, the highest level since May 2011 and up from 51.5 in May. The May index was revised from an originally reported 51.3.
Asian stocks dropped on Monday, 1 July 2013, as a further slowdown in manufacturing activity in China, South Korea and Taiwan raised concerns about the health of those economies. Key benchmark indices in Indonesia, Taiwan, Singapore and South Korea were down 0.3% to 0.86%. China's Shanghai Composite rose 0.81%. The Hong Kong markets were closed to mark the anniversary of the territory's handover from the UK to China.
Two separate surveys in China showed a further loss of momentum in factory activity. An officially sponsored reading of the manufacturing Purchasing Managers' Index for June dropped to 50.1 from 50.8 in May. Another survey by HSBC showed the monthly PMI falling to 48.2 in June from 49.2 in May. A reading below 50 shows a deterioration in activity, while one above signals an improvement.
Meanwhile, separate HSBC surveys in South Korea and Taiwan also indicated weakened conditions for local manufacturers, with both affected by the slowdown in China. In South Korea, the June PMI dropped to 49.4, down from 51.1 in May, while in Taiwan, the June PMI came in at 49.5, up sharply from 47.1 in May but still below the 50-point threshold.
In Japan, the Nikkei 225 index rose 1.28%. The Bank of Japan's quarterly tankan survey showed an improvement in sentiment at both large manufacturers and non-manufacturers, with the former showing positive sentiment for the first time since mid 2011.
Trading in US index futures indicated that the Dow could jump 84 points at the opening bell on Monday, 1 July 2013. US stocks ended mostly weaker on Friday, 28 June 2013, but posted their strongest first half of any year since 1998 after reaching record highs in May supported by the Federal Reserve's massive monetary stimulus.
In recent weeks, investors have been preoccupied with when the Federal Reserve may start pulling back monetary stimulus as the economy improves further. Federal Reserve Gov. Jeremy Stein on Friday suggested that the central bank's first tapering move could come in September, although he only used the month as a hypothetical start date in a speech to the Council on Foreign Relations. Jeffrey Lacker, president of the Richmond Fed, said there's likely to be more market volatility over the outlook for monetary policy in coming months, but these moves shouldn't interfere with a modest economic recovery. John Williams, president of the San Francisco Fed Bank, said it's better to "wait a bit" before tapering asset purchases. Their comments follow relatively soothing Fed speeches on Thursday, 27 June 2013, in which three officials chastised markets for overreacting to the central bank's statement. Federal Reserve Chairman Ben Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.
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