Key benchmark indices pared gains in late trade as European stocks dropped as investors turned cautious ahead of the key US nonfarm payroll data due later in the global day. The barometer index, the S&P BSE Sensex, hit intraday low in late trade. The Sensex was provisionally up 74 points or 0.38%, off 155.43 points from the day's high and up 7.10 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Indian stocks held positive zone as trading in US index futures indicated a firm opening of US stocks on Friday, 5 July 2013.
Index heavyweight and cigarette major ITC pared gains in late trade. Shares of FMCG giant Hindustan Unilever (HUL) scaled a record high after Anglo-Dutch parent Unilever on Thursday, 4 July 2013, said it has raised its stake in HUL to 67.28% from 52.48% through a voluntary open offer for HUL shareholders. Reliance Industries held firm. NTPC was almost unchanged after a block deal of 10 lakh shares was struck on the counter on BSE. Telecom stocks were mostly lower. In pharma pack, Wockhardt tumbled in volatile trade.
The rupee weakened on Friday, 5 July 2013, following other Asian currencies, as dollar rallied on indications from central banks in Europe that ultra-low rates will continue in the region. The rupee was hovering at 60.42, weaker than Thursday's close of 60.13. The rupee had hit record low of 60.76 in intraday deals on 26 June 2013.
Prices of government bonds fell. The yield on the most traded 08.2% GS 2025 was hovering at 7.6694%, higher than Thursday's close at 7.625%. Bond yield and bond prices are inversely related.
Key benchmark indices edged higher in early trade on firm Asian stocks. The barometer index, S&P BSE Sensex, hit four-week high. Key benchmark indices pared gains in morning trade. Key benchmark indices hovered in positive zone in mid-morning trade. Key benchmark indices extended intraday gains in early afternoon trade. Key benchmark indices pared gains to hit intraday low in mid-afternoon trade. Key benchmark indices pared gains in late trade as European stocks dropped as investors turned cautious ahead of the key US nonfarm payroll data due later in the global day.
Foreign institutional investors (FIIs) bought shares worth a net Rs 164.56 crore on Thursday, 4 July 2013, as per provisional data from the stock exchanges.
As per provisional closing, the S&P BSE Sensex was up 74 points or 0.38% to 19,484.84. The index jumped 229.43 points at the day's high of 19,640.27 in early trade, its highest level since 7 June 2013. The index rose 66.90 points at the day's low of 19,477.74 in late trade.
The CNX Nifty was up 30.95 points or 0.53% to 5,867.90. The index hit a high of 5,900.45 in intraday trade, its highest level since 1 July 2013. The index hit a low of 5,858.45 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,222 shares gained and 1,156 shares fell. A total of 156 shares were unchanged.
The total turnover on BSE amounted to Rs 1621 crore, lower than Rs 1865 crore on Thursday, 4 July 2013.
Among the 30-share Sensex pack, 16 shares gained and six of them declined.
Index heavyweight and cigarette major ITC gained 0.8% to Rs 341.20, off day's high of Rs 345. The stock had jumped 3.7% on Thursday, 4 July 2013, on reports that the company has raised the price of its Gold Flake Regular Filter cigarettes from Rs 55 to Rs 58 for a pack of 10 cigarettes.
FMCG giant Hindustan Unilever (HUL) gained 1.44% to Rs 609.40 after scaling a record high of Rs 631.95 in intraday trade today, 5 July 2013. Unilever PLC on 4 July 2013 announced that, pursuant to the voluntary open offer to increase its stake in Hindustan Unilever (HUL), shareholders of HUL tendered 31.96 crore shares during the tender period for the open offer which commenced on 21 June 2013 and closed on 4 July 2013. The offer price of Rs 600 per share values the transaction at approximately at Rs 19181 crore. Based on the shares tendered, which represent 14.8% of HUL, Unilever would increase its stake from 52.48% to 67.28%.
Paul Polman, CEO, Unilever, said: "We are pleased to have received such a good response to our voluntary open offer and that - as a result - we will significantly increase our stake in Hindustan Unilever, an excellent Indian business with a proud heritage and the potential for attractive long-term growth."
On completion of the verification of shares tendered, the details of the final acceptance will be communicated by Unilever PLC on 11 July 2013. The payment for shares tendered and accepted will be completed on or before 18 July 2013, at which point Unilever PLC will acquire full beneficial ownership of the shares tendered and accepted in the open offer, Unilever said in a statement.
Reliance Industries (RIL) rose 1.97% to Rs 878.65. The stock hit a high of Rs 884.40 and low of Rs 865.35. The government on 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.
NTPC rose 0.03% to Rs 144 on volume of 10.99 lakh shares. A block deal of 10 lakh shares was struck on the counter at Rs 144 per share at 12:45 IST on BSE.
Telecom stocks were mostly lower. Bharti Airtel lost 2.14% to Rs 294.80 and was the top loser from the Sensex pack. The company during market hours on Thursday, 4 July 2013, announced that it has subscribed to an additional 2% equity share capital in all the four India Broadband Wireless Access (BWA) entities of Qualcomm AP. With this, all four entities are now subsidiaries of Bharti Airtel. On 24 May 2012, Bharti Airtel and Qualcomm had announced an agreement under which Bharti had acquired 49% interest in Qualcomm AP's India entities that hold BWA licenses in Delhi, Mumbai, Haryana and Kerala.
Reliance Communications (RCom) rose 1.04% to Rs 135.50. The stock had hit 52-week high of Rs 137.30 in intraday trade on Thursday, 4 July 2013. RCom during market hours on 1 July 2013 announced that it has completed full repayment of two Syndicated ECB loan facilities of $500 million each, aggregating $1 billion, during the quarter ended 30 June 2013. These loans were availed in the year 2007 from a group of international banks.
In addition, RCom has made scheduled repayments of another $207 million (Rs 1200 crore) in respect of other foreign currency loans, on the respective due dates during the quarter ended 30 June 2013. The repayments have been from RCom's rupee resources.
RCom's foreign currency debt is steadily declining every year, and the interest outgo on such debt is fully covered by dollar denominated earnings from the Reliance Globalcom business.
Idea Cellular (down 3.03%), and Tata Teleservices (Maharashtra) (down 0.28%) declined. MTNL rose 2.02%.
Wockhardt tumbled 9.39% to Rs 900 in volatile trade. The stock hit a high of Rs 1,011 and a low of Rs 895.10.
SJVN rose 3.35% after the company announced the acquisition of Buxar Bijlee Company. The announcement was made during trading hours today, 5 July 2013. SJVN has acquired Buxar Bijlee Company by acquisition of 100% of its equity shares in terms of the memorandum of understanding (MoU) signed with Bihar Government on 17 January 2013 for setting up a green field 1,320 megawatts (MM) supercritical technology thermal power project at Buxar district of Bihar.
SJVN also informed that the Ministry of Coal in a communication dated 3 July 2013 has allocated 486 MT of coal reserves in the 2102 MT Deocha-Pachami Coal Block located in West Bengal to SJVN for the purpose of Buxar thermal project.
Neyveli Lignite Corporation shed 2.29%. The company during market hours today said its lignite production stood at 66.36 lakh tonne in Q1 June 2013 as against the target of 65.60 lakh tonne, which resulted in growth of 6.4% over the corresponding period previous year. The overburden removal resulted a growth of 24.46% by removing 451.16 lakh cubic metres as against the target of 412.75 lakh cubic metres.
During the month of June, the production targets were achieved in all areas of production. The overburden production was 150.13 lakh cubic metres as against the target of 136.95 lakh million cubic metres resulting in 13.09% growth over corresponding period. The power generation also showed a growth of 6.12% by generating 1,726.13 million units as against 1,605 million units.
European stocks were mostly lower on Friday, 5 July 2013, as investors turned cautious ahead of the key US nonfarm payroll data due later in the global day. Key benchmark indices in France and Germany were down 0.03% to 0.23%. However, UK's FTSE 100 was up 0.52%.
The European Central Bank (ECB), as expected, kept its main lending rate at a record low 0.5% on Thursday, the same level it's been at since it was cut from 0.75% back in May. ECB president Mario Draghi said rates wouldn't rise for "an extended period."
The Bank of England (BOE) decided to keep its key lending rate at a record low 0.5% and to leave the size of its bond-buying program unchanged at 375 billion pounds ($572 billion). The Bank of England on Thursday signaled it won't be raising interest rates anytime soon, saying in a statement that the recovery is on track but it "remains weak by historical standards and a degree of slack is expected to persist for some time."
Asian markets edged higher on Friday, 5 July 2013, after the two most important central banks in Europe on Thursday, 4 July 2013, said after monetary policy review that they are in no hurry to wind down stimulus. Key benchmark indices in China, Hong Kong, Indonesia, Singapore and Japan were up 0.05% to 2.08%. South Korea's KOSPI Composite fell 0.32%.
Trading in US index futures indicated that the Dow could gain 139 points at the opening bell on Friday, 5 July 2013. The US government will unveil the influential nonfarm payrolls data for June 2013 today, 5 July 2013, which the Federal Reserve is monitoring as it decides when it will slow the pace of its bond purchases. Fed Chairman Ben Bernanke said last month that bond purchases, currently at $85 billion a month, may be tapered down this year if the economy improves in line with the central bank's projections. The Fed is looking for the unemployment rate to fall toward 6.5% by next year.
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