Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 139.24 points or 0.66%, up about 100 points from the day's low and off close to 5 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Twelve out of thirteen sectoral indices on BSE were in the green. The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 26 December 2013. Gains in Asian stocks also underpinned sentiment on the domestic bourses.
Most capital goods stocks rose. Most auto stocks gained. Telecom stocks rose across the board.
Asian stocks edged higher on Friday, 27 December 2013, as improved economic data sent US stocks surging overnight.
The market edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices regained strength after trimming initial gains in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than two weeks. Firmness continued on the bourses in mid-morning trade. Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 26 December 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 743.70 crore on Thursday, 26 December 2013, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was up 139.24 points or 0.66% to 21,213.83. The index jumped 143.23 points at the day's high of 21,217.82 in early afternoon trade, its highest level since 10 December 2013. The index gained 38.66 points at the day's low of 21,113.25 in early trade.
The CNX Nifty was up 38.55 points or 0.61% to 6,317.45. The index hit a high of 6,319.35 in intraday trade, its highest level since 11 December 2013. The index hit a low of 6,289.40 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,293 shares gained and 918 shares fell. A total of 129 shares were unchanged.
Among the 30-share Sensex pack, 24 stocks gained and rest of them declined. TCS (up 1.78%), Sesa Sterlite (up 1.48%) and Cipla (up 1.43%) gained.
Telecom stocks rose across the board. MTNL (up 0.98%), Tata Teleservices (Maharashtra) (up 0.41%), Reliance Communications (up 1.26%), Idea Cellular (up 1.78%) and Bharti Airtel (up 0.03%) gained.
Most capital goods stocks rose. ABB (up 0.81%), L&T (up 0.8%), Bharat Electronics (up 0.4%), Thermax (up 0.52%) and Siemens (up 0.2%) rose.
State-run power equipment major Bharat Heavy Electricals (Bhel) dropped 1.49%. The company after trading hours on Thursday, 26 December 2013, said it has bagged an order for the supply of Turbine Generator (TG) Package for 2x500 MW TPS at Neyveli. The order valued at Rs 1023 crore has been secured by Bhel from Neyveli Lignite Corporation (NLC) for NLC's upcoming 1,000 MW Neyveli New Thermal Power Project at Neyveli, Tamil Nadu. Bhel's scope of work under the contract includes manufacture, supply, erection, testing and commissioning of Steam Turbine Generators & Auxiliaries along with associated civil works.
Most auto stocks gained. Tata Motors (up 0.41%), M&M (up 0.16%) and Ashok Leyland (up 0.3%) gained. Maruti Suzuki India fell 1.32%.
Shares of most two-wheeler makers gained. Bajaj Auto (up 0.18%) and TVS Motor Company (up 3.43%) gained. Hero MotoCorp dropped 0.12%.
Hindustan Motors rose 2.14% after the company on Thursday, 26 December 2013, at its 71st annual general meeting announced business restructuring plans. Hindustan Motors (HM) said that it is putting in all efforts to strengthen the company through restructuring.
Speaking after the company's 71st annual general meeting, Mr. Uttam Bose, Managing Director and CEO, Hindustan Motors said, "HM remains fully committed to its revival plan. Slowdown in the economy, especially in the auto sector has affected HM too. In addition, we have had operational challenges in terms of cash flow problems for the company. Under these circumstances, it is becoming extremely challenging to manage daily operations".
Mr. Bose said that as decided earlier, HM needs to restructure its business by demerging its Uttarpara and Chennai plants as the product portfolio and customer segment of these two units are very different. The company is seeking potential strategic/financial investors for both the units. It is already in talks with some of them. However, the potential partners, too, have specific needs and are interested in either of the two units, not both, he said.
Mr. Bose further said that the company is facing challenges in executing its revival strategy. In view of the delay in the demerger scheme awaiting the High Court's sanction, the company is initiating divestment of the Chennai plant to meet the goal. In the interim period, the company plans to have a working arrangement for the Chennai plant. HM is in discussions with different entities involved and hopes for strong support from the West Bengal government which is equally interested in reviving Hindustan Motors. "We have a common objective in reviving the organisation and bringing it back to black", he asserted.
During the 18-month period under review, beginning April 2012 and ending September 2013, HM incurred a loss of Rs 71.20 crore as compared to a loss of Rs 29.96 crore in FY 2011-12. The company's accumulated losses have exceeded its net worth at the completion of the financial year ended 30 September 2013. The company will take necessary steps to comply with the legal requirements, the statement said.
Hindustan Motors' board of directors at a meeting held on Thursday, 26 December 2013, inter alia approved the withdrawal of the petition filed before the High Court at Calcutta for sanction of scheme of arrangement between the company and Hindustan Motor Finance Corporation and their respective shareholders due to various developments and changes which have taken place without the scheme having come into effect since its filing.
The board approved the entering into a working arrangement with Hindustan Motor Finance Corporation (HMFCL), subject to necessary approvals, if any, whereby HMFCL will be entitled to use and operate Chennai Car Plant of the company at Adigathur in Tamil Nadu and to use its infrastructural facilities thereat.
The board further approved divesting of the whole or substantially the whole or part of Chennai Car Plant of the company at Adigathur, Kadambathur in the District Tiruvallur in Tamil Nadu which is engaged in the business of manufacture and trading of passenger vehicles like Cedia, Pajero, Pajero sport, Montero and Outlander brands of passenger Cars and spare parts of the same in technical collaboration with Mitsubishi Motors Corporation, Japan and also engaged in contract manufacturing of vehicles for Isuzu Motors India as a going concern, subject to necessary approvals and consents of the shareholders, lenders, authorities and other concerned parties, in such manner and on such terms and conditions as may be mutually agreed between the company and any interested party.
The company's board also approved making reference to Board of Industrial and Financial Reconstruction under Section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985(SICA) as the company has, prima facie, become a sick industrial company within the meaning of Section 3(1)(o) of SICA as per the duly Audited Accounts of the company for eighteen month period ended 30 September 2013, adopted at the annual general meeting of the company held on Thursday, 26 December 2013.
Adani Power rose 0.76%, with the stock extending Thursday's gains triggered by the company's announcement that a meeting of the board of directors of the company will be held on Saturday, 28 December 2013, to consider and approve a proposal for the demerger of transmission line business of the company and other incidental matters.
In the foreign exchange market, the rupee edged higher against the dollar on global risk on sentiment. The partially convertible rupee was hovering at 62.0125, compared with its close of 62.16/17 on Thursday, 26 December 2013.
Asian stocks edged higher on Friday, 27 December 2013, as improved economic data sent US stocks surging overnight. Key benchmark indices in Indonesia, Japan, Taiwan, South Korea and Singapore were up 0.03% to 0.62%.
Chinese shares rose after money-market rates posted the biggest decline since February 2011. In mainland China, the Shanghai Composite Index was up 1.4%. In Hong Kong, the Hang Seng index was up 0.34%.
China data today, 27 December 2013, showed industrial companies' profits rose 9.7% from a year earlier in November, compared with a 15.1% jump in October.
Japan's inflation accelerated to the fastest pace since 2008 last month, bringing the rate closer to policy makers' target while threatening to erode household spending power unless employers boost wages. Prices excluding fresh food rose 1.2% from a year earlier, the statistics bureau said today in Tokyo.
Trading in US index futures indicated that the Dow could slide 7 points at the opening bell on Friday, 27 December 2013. US stocks extended all-time highs on Thursday as a drop in jobless claims fueled optimism in the economy. Fewer Americans than projected filed applications for unemployment benefits last week, indicating the US labor market is improving. Jobless claims declined by 42,000 to 338,000 in the week ended Dec. 21, a Labor Department report showed in Washington. US consumer confidence climbed last week to a four-month high as an improving job market and holiday discounts put Americans in the mood to shop.
US President Barack Obama on Thursday signed a compromise budget that reduces the risk of another government shutdown and a defense bill that cracks down on sexual assault in the military and smooths the path for transferring detainees from the US prison in Guantanamo Bay, Cuba. The two-year US budget agreement, negotiated by Congress earlier this month, and the National Defense Authorization Act for fiscal 2104 were among seven pieces of legislation signed by Obama, who is vacationing with his family in Hawaii. The US Senate passed the budget deal on December 18 to ease automatic spending cuts and reduce the risk of a government shutdown. It was negotiated by Democratic Senator Patty Murray of Washington state and Paul Ryan, Republican from Wisconsin, who is chairman of the House Budget Committee. The Senate approved the annual defense policy bill on December 20, one of its final actions before leaving for the Christmas break. The act authorizes a Pentagon base budget of $526.8 billion in the 2014 fiscal year. That amount will have to be reconciled early in the new year with the $498 billion agreed to in the budget deal.
The US Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually over the next year.
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