Key benchmark indices held firm in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 261.52 points or 1.34%, up close to close to 315 points from the day's low and off about 25 points from the day's high. Index heavyweight and cigarette major ITC extended intraday gains. Another index heavyweight Reliance Industries (RIL) also extended intraday gains. The market breadth, indicating the overall health of the market, was positive. Pharma stocks rose on renewed buying. Kotak Mahindra Bank rose on strong Q4 results.
The market moved into the positive terrain after opening lower. The Sensex extended initial gains to hit fresh intraday high in morning trade. The market strengthened further to hit fresh intraday high in mid-morning trade. The uptrend on the bourses continued as key benchmark indices hit fresh intraday high in early afternoon trade. Key benchmark indices hit fresh intraday high in afternoon trade. The Sensex hit its highest level in more than 12 weeks. The 50-unit CNX Nifty hit its highest level in more than 12 weeks above the psychological 6,000 mark. The market held firm in mid-afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 30 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 876.93 crore on Tuesday, 30 April 2013, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 261.52 points or 1.34% to 19,765.70. The index jumped 287.71 points at the day's high of 19,791.89 in afternoon trade, its highest level since 4 February 2013. The index fell 52.92 points at the day's low of 19,451.26 in early trade.
The CNX Nifty was up 80.20 points or 1.35% to 6,010.40. The index hit a high of 6,019.45 in intraday trade, its highest level since 4 February 2013. The index hit a low of 5,910.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,217 shares advanced and 976 shares declined. A total of 121 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) rose 2.02% to Rs 804.10. The scrip hit high of Rs 805 and a low of Rs 783.25 so far during the day. The company said on Tuesday, 30 April 2013, that its telecom unit Reliance Jio Infocomm (India) has joined a consortium of telecom companies building an 8,000 kilometre submarine cable system to link Malaysia and Singapore with the Middle East. The Bay of Bengal Gateway (BBG) cable system, which will have connections to India and Sri Lanka, is expected to carry commercial traffic by end of 2014, RIL said.
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 next 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 1.51% to Rs 333.85. The scrip hit high of Rs 334.85 and a low of Rs 325.10 so far during the day. The stock had hit record high of Rs 335.90 in intraday on Tuesday, 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.
Infosys gained 2.23%. The company said during market hours today, 2 May 2013, that Golomt Bank, Mongolia's largest private banking and financial services provider, has selected Infosys Finacle to power its technology transformation.
Kotak Mahindra Bank rose 1.2% on strong Q4 results. The bank's net profit rose 46.9% to Rs 436.21 crore on 28.67% rise in total income to Rs 2572.23 crore in Q4 March 2013 over Q4 March 2012. The bank announced its Q4 results during market hours today, 2 May 2013.
Most pharma stocks rose on renewed buying. Cipla, Lupin, Ranbaxy Laboratories and Sun Pharmaceutical Industries rose by 0.05% to 2.18%.
Dr Reddy's Laboratories fell 0.67% to Rs 2010.25 on profit booking. The stock reversed direction after hitting record high of Rs 2035.05 in intraday trade today, 2 May 2013.
India's factories lost momentum in April as output grew at its weakest pace in over four years, but a jump in export orders augured well for the coming months, a survey showed on Thursday. The HSBC Manufacturing Purchasing Managers' Index (PMI), fell for the second straight month in April, dipping to 51.0 from 52.0 in March. The reading for April was the lowest since November 2011.
The focus of the market is on Q4 results. ACC and Ambuja Cements announce Q1 March 2013 results tomorrow, 3 May 2013. Grasim and Jaiprakash Associates unveil Q4 results on Saturday, 4 May 2013. HDFC and Lupin unveil Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on 9 May 2013. NTPC announces Q4 results on 10 May 2013. 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. M&M announces Q4 results on 30 May 2013.
The Finance Bill for the 2013-14 fiscal year was passed by Lok Sabha on Tuesday, 30 April 2013, with some amendments and without debate after Opposition walkout. The bill now go to Rajya Sabha and then to the President for his assent. Among a key amendment, Finance Minister P Chidambaram cut the withholding tax on interest payments to foreigners on government and corporate debt to 5% from up to 20% for a two-year period from 1 June 2013 to 31 May 2015. The finance minister also clarified that a tax residency certificate issued by a foreign government would be an accepted proof of residency for tax purposes. The government, in its budget proposals, had created confusion with a proposal stating that a tax residency certificate "shall be necessary but not a sufficient condition" to take advantage of double taxation avoidance agreements.
Slowing wholesale price inflation has raised expectations that the Reserve Bank of India (RBI) will cut its key policy rate viz. the repo rate to boost economic growth. The (RBI) will announce the Monetary Policy Statement 2013-14 tomorrow, 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 to 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. In Europe, the European Central Bank's (ECB) Governing Council meets in Bratislava on Thursday, 2 May 2013, to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% as economic conditions continue to deteriorate across the euro zone and as inflation remains well below the bank's target.
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.
European stock markets drifted lower on Thursday, as investors await a European Central Bank meeting, with expectations for an interest rate cut. Key benchmark indices in France and UK were down by 0.14% to 0.15%. However, Germany's DAX was up 0.07%.
The European Central Bank's (ECB) Governing Council meets in Bratislava later in the global day today, 2 May 2013, to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% as economic conditions continue to deteriorate across the euro zone and as inflation remains well below the bank's target.
Asian shares edged lower on Thursday, weighed by a fall in US equities overnight and caution before the European Central Bank's interest rate decision later in the session. Key benchmark indices in China, Hong Kong, Indonesia, Japan and South Korea fell by 0.17% to 1.25%. Key benchmark indices in Singapore and Taiwan rose by 0.43% to 1.04%.
China's factory-sector growth eased in April as new export orders fell for the first time this year, a private survey showed on Thursday, suggesting the euro zone recession and sluggish US demand may be reining in China's economic recovery. The final HSBC Purchasing Managers' Index (PMI) dropped to 50.4 in April from March's 51.6 and was largely in line with a flash reading last week of 50.5. China's official PMI on Wednesday painted a similar picture, falling to 50.6 in April from an 11-month high of 50.9 in March as new export orders fell.
Trading in US index futures indicated that the Dow could gain 37 points at the opening bell on Thursday, 2 May 2013. US stocks dropped on Wednesday after the latest economic data in the United States and China cast doubts about the strength of the global economy. The ADP National Employment Report on Wednesday said the US private sector added 119,000 jobs in April, far fewer than forecast, raising apprehension over the key government nonfarm payrolls data for April due on Friday, 3 May 2013. Also on Wednesday, the US Institute for Supply Management said its index of national factory activity fell to 50.7 from 51.3 in March and its employment index fell to 50.2 from 54.2.
The Federal Reserve gave few indications of any new response to worsening economic data in a statement released after its two-day meeting that ended on Wednesday. The US central bank cited risks to growth from recent budget tightening in Washington and reiterated that unemployment is still too high for policymakers' comfort.
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