Key benchmark indices pared gains after hitting their highest level in nearly six weeks in afternoon trade. The barometer index, the S&P BSE Sensex, was up 131.03 points or 0.68%, off 79.11 points from the day's high and up 118.28 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Index heavyweight Reliance Industries (RIL) extended intraday gains. Another index heavyweight and cigarette major ITC retained positive zone.
Aviation stocks were in demand. Jet Airways (India) surged over 10% after United Arab Emirates-based Etihad Airways on Wednesday, 24 April 2013, agreed to pick up a 24% strategic stake in the Indian carrier at a huge premium to the ruling market price. Pharma shares gained on renewed buying, with Dr Reddy's Laboratories and Sun Pharmaceutical Industries hitting record high.
The market edged higher in early trade on higher Asian stocks. The market held firm in morning trade. The market extended gains to hit fresh intraday high in mid-morning trade. The market further extended gains to hit fresh intraday high in early afternoon trade. Key benchmark indices pared gains after hitting their highest level in nearly six weeks in afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 23 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 226.21 crore on Tuesday, 23 April 2013, as per provisional data from the stock exchanges.
The market may remain volatile today, 25 April 2013, as traders roll over positions in the futures & options (F&O) segment from the near month April 2013 series to May 2013 series. The April 2013 F&O contracts expire today, 25 April 2013.
At 13:20 IST, the S&P BSE Sensex was up 131.03 points or 0.68% to 19,310.39. The index jumped 210.14 points at the day's high of 19,389.50 in afternoon trade, its highest level since 15 March 2013. The index rose 12.75 points at the day's low of 19,192.11 in opening trade.
The CNX Nifty was up 51.10 points or 0.88% to 5,888. The index hit a high of 5,909.75 in intraday trade, its highest level since 15 March 2013. The index hit a low of 5,853.30 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,221 shares advanced and 1,032 shares declined. A total of 137 shares were unchanged.
The total turnover on BSE amounted to Rs 1310 crore by 13:20 IST.
Among the 30-share Sensex pack, 24 stocks gained while rest of them fell.
Index heavyweight Reliance Industries (RIL) rose 2.63% to Rs 824.65. The scrip hit high of Rs 826.85 and a low of Rs 806 so far during the day. The company's telecom arm -- Reliance Jio Infocomm -- and Bharti Airtel on Tuesday, 23 April 2013, signed an agreement for international data connectivity under which Bharti will provide Reliance Jio data capacity on its i2i submarine cable. i2i connects India to Singapore and is wholly owned by Bharti. Reliance Jio will utilize a dedicated fiber pair on i2i. The high speed link will enable Reliance Jio to extend its network and service reach to customers across Asia Pacific region.
Earlier, at the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Index heavyweight and cigarette major ITC rose 0.38% to Rs 318.60. The stock hit record high of Rs 320 in intraday trade today, 25 April 2013. The stock hit low of Rs 313.15 in intraday trade today, 25 April 2013. West Bengal chief minister Mamata Banerjee on Wednesday, 24 April 2013, announced a 10% tax hike in the value-added tax (VAT) on cigarettes to 25% from 15% to raise money for a relief fund for those depositors who have lost money in the Saradha chit fund scam.
Earlier, 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, which was unveiled on 28 February 2013.
Pharma shares gained on renewed buying. Cipla (up 1.17%), Glenmark Pharma (up 0.79%), Lupin (up 0.4%) and Wockhardt (up 3.23%) rose. Ranbaxy Laboratories shed 0.84%.
Dr Reddy's Laboratories gained 4.31% to Rs 1,985. The stock hit record high of Rs 1,986.05 in intraday trade today, 25 April 2013.
Sun Pharmaceutical Industries gained 0.52% to Rs 955.30. The stock scaled a record high of Rs 963.75 in intraday trade today, 25 April 2013.
Aviation stocks were in demand. SpiceJet (up 11.84%) and Kingfisher Airlines (up 1.79%) gained.
Jet Airways (India) surged 10.12%. Jet Airways (India) and United Arab Emirates (UAE) based Etihad Airways on Wednesday, 24 April 2013, announced that Etihad Airways has agreed to subscribe to 2.72 crore new shares of Jet Airways at a price of Rs 754.74 per share. The value of this equity investment is $379 million and will result in Etihad Airways holding 24% of the enlarged share capital of Jet Airways. Etihad Airways' wider overall commitment to Jet Airways includes the injection of $220 million to create and strengthen a wide-ranging partnership between the two carriers. As part of this, Etihad Airways paid $70 million to purchase Jet Airways' three pairs of Heathrow slots through the sale and lease back agreement announced on 27 February 2013. Jet Airways continues to operate flights to London utilising these slots.
An amount of $150 million will be invested by Etihad Airways by way of a majority equity investment in Jet Airways' frequent flyer program "Jet Privilege", subject to appropriate regulatory and corporate approvals and final commercial agreements which are expected to be completed within the next six months.
Under the strategic partnership, which will be subject to full regulatory and shareholder approval, the airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi, providing an ever wider choice to the travelling public. They will combine their network of 140 destinations, with Jet Airways establishing a Gulf gateway in Abu Dhabi and expanding its reach through Etihad Airways' growing global network.
Passengers from 23 cities in India will benefit from direct connections to international destinations. New flights from Jet Airways' home hubs and metro airports will further strengthen its current operations from these airports. Jet Airways' vision continues to be to develop Delhi and Mumbai airports as its primary home hubs and connecting them to Asian, European and other regions.
A key component of the wide-ranging partnership is expanded codesharing on flights with passengers benefiting from reciprocal 'earn-and-burn' rights on the airlines' frequent flyer programs. The proposed codeshare expansion will significantly enable Etihad Airways to tap into India's rapidly growing travel market, providing additional passenger traffic to Etihad Airways' Middle Eastern, North American and European destinations, and give Jet Airways passengers from various cities access to an expanded network.
The focus of the market is on Q4 results. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results tomorrow, 26 April 2013. IDFC announces Q4 results on 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. Grasim announces Q4 March 2013 results on 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Dr. Reddys 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.
The Prime Minister's Economic Advisory Council (PMEAC) in a report released on Tuesday, 23 April 2013, projected 6.4% growth in India's GDP for the current fiscal year 2013/14, higher than an estimated 5% growth for the fiscal year 2012/13. In 2013-14, the headline WPI inflation is expected to be around 6%, compared with provisional figure at 5.96% at the end of 2012-13, the PMEAC said. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
The Reserve Bank of India (RBI) will announce the Monetary Policy Statement 2013-14 on 3 May 2013. The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013. Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
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.
The government has lined up a number of key bills for consideration and passing during the ongoing Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. The Budget Session of the Parliament ends on 10 May 2013.
European stock markets were mostly higher on Thursday, with investors increasingly hoping for a rate cut at the European Central Bank's policy-setting meeting next week after a disappointing string of data. Key benchmark indices in UK and Germany were up by 0.25% to 0.5%. France's CAC 40 index fell 0.27%.
Most Asian stocks edged higher on Thursday as investors weighed earnings reports and energy shares led gains. Key benchmark indices in Singapore, Hong Kong, Japan and South Korea rose by 0.27% to 0.93%. Key benchmark indices in China, Indonesia and Taiwan fell by 0.02% to 0.86%.
Trading in US index futures indicated that the Dow could gain 26 points at the opening bell on Thursday, 25 April 2013. The S&P 500 and Nasdaq ended flat on Wednesday with Boeing's five-year high among the day's highlights, but weakness in Procter & Gamble and AT&T kept the Dow Jones Industrial Average in negative territory. Economic data showed orders for US durable goods fell in March by the most in seven months as demand slumped for commercial aircraft and business investment cooled.
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