Key benchmark indices continued to hover in positive terrain in mid-morning trade as firmness in Asian stocks boosted sentiment. The barometer index, the S&P BSE Sensex, was up 60.59 points or 0.3%, up close to 30 points from the day's low and off about 50 points from the day's high. Index heavyweight and cigarette major ITC edged higher in choppy trade. Another index heavyweight Reliance Industries (RIL) edged lower in volatile trade. The market breadth, indicating the overall health of the market, was positive. Realty stocks fell for the third straight day. JSW Steel edged higher despite fall in production in April 2013.
The market edged higher in early trade on firm Asian stocks. It hovered in positive terrain in morning trade. It continued to hover in positive terrain in mid-morning trade.
The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 21 May 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 679.44 crore on Tuesday, 21 May 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 60.59 points or 0.3% to 20,172.20. The index gained 108.74 points at the day's high of 20,220.35 in early trade. The index rose 27.47 points at the day's low of 20,139.08 in morning trade.
The CNX Nifty was up 11.85 points or 0.19% to 6,125.95. The index hit a high of 6,147.60 in intraday trade. The index hit a low of 6,118.80 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 942 shares advanced and 814 shares declined. A total of 115 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks rose and the rest of them fell. Coal India, Sun Pharmaceutical Industries and Dr Reddy's Laboratories rose by 2.13% to 2.35%.
Index heavyweight Reliance Industries (RIL) fell 0.35% to Rs 824.45. The stock hit high of Rs 834.20 and low of Rs 823.05 so far during the day.
Index heavyweight and cigarette major ITC rose 0.41% to Rs 332.90. The stock hit high of Rs 333 and low of Rs 329.65 so far during the day. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
JSW Steel rose 0.14%. The company said during market hours today, 22 May 2013 that the crude steel production fell 11% to 6.37 lakh tonnes in April 2013 over April 2012. The production of flat rolled products fell 13% to 4.55 lakh tonnes in April 2013 over April 2012. The production of long rolled products fell 17% to 1.28 lakh tonnes in April 2013 over April 2012.
Realty stocks fell for the third straight day. Sobha Developers, Godrej Properties and Unitech shed by 0.33% to 1.86%.
DLF fell 2.43% to Rs 234.80. The company said on 20 May 2013 that the Equity Issuance Committee of the board of directors of the company has, by a resolution dated 20 May 2013, allotted 8.1 crore shares to successful applicants at an issue price of Rs 230 per share, aggregating to Rs 1863.42 crore, under the institutional placement programme.
As per the Q4 results calendar, Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results tomorrow, 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, DLF, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Global credit rating agency Standard & Poor's (S&P) on 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. The RBI on 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 at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. 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 Wednesday after the Bank of Japan maintained its plan to expand the monetary base. Key benchmark indices in Indonesia, Japan, Singapore, Taiwan and South Korea rose by 0.12% to 1.78%. Key benchmark indices in China and Hong Kong fell by 0.02% to 0.25%.
The Bank of Japan affirmed a plan to double the monetary base over two years after a jump in bond yields highlighted risks associated with Prime Minister Shinzo Abe's campaign to revive the economy. The central bank will expand the supply of money in the economy by 60 to 70 trillion yen ($683 billion) a year, as pledged in April, the BOJ said in Tokyo today after the conclusion of two-day policy meeting.
Japan's exports missed estimates in April and the trade deficit swelled, highlighting weakness in global demand that may weigh on efforts to revive the world's third-biggest economy. Overseas shipments rose 3.8% from a year earlier, the Finance Ministry said in Tokyo today.
Australia's consumer confidence slumped by the most in 17 months as a government announcement last week that the budget would remain in deficit overshadowed record low interest rates.
Trading in US index futures indicated that the Dow could gain 12 points at the opening bell on Wednesday, 22 May 2013. US stocks rose on Tuesday, with the Dow Jones Industrial Average and the S&P 500 closing at new all-time highs as Federal Reserve officials' comments eased some concerns that the central bank could start reducing its stimulus program.
New York Federal Reserve President William Dudley said he cannot be sure whether policymakers will next reduce or increase the amount of purchases, due to the "uncertain" economic outlook. Earlier, James Bullard, president of the Federal Reserve Bank of St. Louis, had urged the European Central Bank to consider employing a U.S.-style quantitative easing program to counter slowing inflation and recession in the euro zone.
Markets will be looking for more clues on the Federal Reserve's next move when Chairman Ben Bernanke testifies before Congress later on Wednesday. His remarks will be followed by the release of minutes of the last Fed meeting, which is widely expected to give further details of how it will eventually manage the exit from ultra-easy policy.
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