Key benchmark indices extended intraday gains to strike one-week high in mid-afternoon trade as the battered Indian rupee recovered against the dollar after the latest data showed that India's current account deficit (CAD) moderated sharply to 3.6% of GDP in Q4 of March 2013 from a historically high level of 6.7% of GDP in Q3 December 2012. The S&P BSE Sensex was up 327.39 points or 1.76%, up 191.23 points from the day's low and off 18.94 points from the day's high. The market breadth, indicating the overall health of the market, was almost even.
FMCG stocks gained on renewed buying. Capital goods pivotals were mixed. Pharma stocks extended intraday gains, with shares of Sun Pharmaceutical Industries jumping over 5%. Reliance Industries (RIL), ONGC and Oil India edged higher on reports that a meeting of Cabinet Committee on Economic Affairs (CCEA) will be held today, 27 June 2013, to consider a proposal for a steep hike in natural gas prices. Hanung Toys & Textiles tumbled after poor results.
Key benchmark indices surged in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices regained strength after paring initial gains. Key benchmark indices held firm in mid-morning trade. Key benchmark indices pared gains to register intraday low in early afternoon trade. The Sensex regained strength in afternoon trade. The market extended intraday gain to strike one-week high in mid-afternoon trade.
The market may remain volatile during the remaining one hour or so of trade as traders roll over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expire today, 27 June 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 547.79 crore on Wednesday, 26 June 2013, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 327.39 points or 1.76% to 18,879.51. The index jumped 346.33 points at the day's high of 18,898.45 in mid-afternoon trade, its highest level since 20 June 2013. The index rose 136.16 points at the day's low of 18,688.28 in early afternoon trade.
The CNX Nifty was up 98.65 points or 1.77% to 5,687.35. The index hit a high of 5,692.95 in intraday trade, its highest level since 20 June 2013. The index hit a low of 5,630.95 in intraday trade.
The market breadth, indicating the overall health of the market, was almost even. On BSE, 1,103 shares rose and 1,102 shares declined. A total of 142 shares were unchanged.
The total turnover on BSE amounted to Rs 1089 crore by 14:20 IST.
Among the 30-share Sensex pack, 19 stocks gained and the rest of them declined.
Reliance Industries (RIL), ONGC and Oil India edged higher on reports that a meeting of Cabinet Committee on Economic Affairs (CCEA) will be held today, 27 June 2013, to consider a proposal for a steep hike in natural gas prices.
Reliance Industries (RIL) gained 3.94% at Rs 834.15. The stock hit a high of Rs 835.55 and low of Rs 814.35 so far during the day.
Oil India (up 1.92%) and ONGC (up 4.37%) edged higher.
The CCEA last week deferred a decision on a proposal to hike natural gas prices as Oil Minister M Veerappa Moily was away on an official tour. The oil ministry has proposed an increase in gas prices to $6.775 million British thermal unit (mbtu) from current $4.2 mbtu. The Oil Ministry has proposed raising gas price for state-run firms immediately and that for Reliance Industries (RIL) from April 2014 when it is contractually due.
FMCG stocks gained on renewed buying. Britannia Industries (up 1.62%), Nestle India (up 0.87%), Colgate-Palmolive (India) (up 2.4%), Marico (up 1.89%) and Godrej Consumer Products (up 1.62%), gained.
Index heavyweight and cigarette major ITC was unchanged at Rs 323. The stock hit a high of Rs 326.95 and low of Rs 317.55 so far during the day.
Hindustan Unilever was unchanged at Rs 588.50. Anglo-Dutch consumer goods major Unilever's open offer to raise its stake in Indian unit, which opened on 21 June 2013, closes on 4 July 2013. Unilever will buyback shares from minority shareholders at Rs 600 per share to hike its stake in Hindustan Unilever from 52.48% to up to 75%.
Tata Global Beverages shed 2.4%. The stock turned ex-dividend today, 27 June 2013, for dividend of Rs 2.15 per share for the year ended 31 March 2013.
Capital goods pivotals were mixed. L&T shed 0.53%.
India's largest power equipment maker by capacity Bhel rose 1.19% to Rs 165.60. The stock had hit 52-week low of Rs 162.40 in intraday trade on 25 June 2013.
Neyveli Lignite Corporation (NLC) shed 0.27%. The company during market hours today, 27 June 2013, said it has received an intimation letter from the recognized unions and few other registered unions communicating their intention to go on an indefinite strike till the disinvestment proposal of NLC shares is withdrawn by Government of India.
The Government of India (GoI) holds 93.56% stake in NLC (as per the shareholding pattern as on 31 March 2013). Market regulator Securities & Exchange Board of India (Sebi) has set a deadline of 8 August 2013 for all listed central public sector units to have a minimum 10% public shareholding.
Pharma stocks extended intraday gains. Pharma companies are likely to benefit from the depreciation of rupee against the dollar as pharma firms derive substantial revenue from exports. Dr Reddy's Laboratories (up 3.18%) and Cipla (up 1.97%) gained.
Sun Pharmaceutical Industries surged 5.58% to Rs 992.10, with the stock extending intraday gain. It was the top gainer from the Sensex pack.
Ranbaxy Laboratories rose 1.49% to Rs 316.95. The Supreme Court of India on 25 June 2013, dismissed a public interest lawsuit against the company for allegedly manufacturing and selling substandard medicines due to lack of evidence against the company.
Hanung Toys & Textiles tumbled 19.44% after the company reported net loss of Rs 33.06 crore in Q4 March 2013, as against net profit of Rs 43.66 crore in Q4 March 2012. Hanung Toys & Textiles' net sales rose 13.78% to Rs 528.42 crore in Q4 March 2013 over Q4 March 2012.
Hanung Toys & Textiles' net profit declined 42.55% to Rs 66.04 crore on 27.69% growth in net sales to Rs 1782.70 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced after market hours on Wednesday, 26 June 2013.
The Reserve Bank of India (RBI) today, 27 June 2013, said that as per the preliminary data, India's current account deficit (CAD) moderated sharply to 3.6% of GDP in Q4 of March 2013 from a historically high level of 6.7% of GDP in Q3 December 2012 as trade deficit narrowed. The RBI said that non-oil non-gold component of imports showed a decline in Q4 March 2013, reflecting slowdown in domestic economic activity. Net invisibles recorded a decline of 7.7% in Q4 March 2013 as compared to a growth of 27.5% n Q4 March 2012 on account of decline in net services, transfers and income receipts.
The CAD edged up to 4.8% of GDP in the year ended 31 March 2013 (FY 2013), from 4.2% of GDP in the year ended 31 March 2012 (FY 2012). Burgeoning trade deficit along with significant decline in invisible earnings caused widening of CAD in FY 2013, RBI said.
The rupee edged higher, backing off from a record low of 60.76 hit on Wednesday, 26 June 2013, as the country's current account deficit narrowed in the January-March quarter, easing some concerns about the funding of the deficit. The rupee was hovering at 60.31 against the dollar, higher than Wednesday's close of 60.7150/7250. The RBI released the Balance of Payment (BoP) data a day ahead of its release scheduled on Friday, 28 June 2013, after the rupee hit record low below 60 versus the dollar on Wednesday, 26 June 2013.
Most European stocks edged higher on Thursday, 27 June 2013, on hopes that a downward revision to US first-quarter gross domestic product growth might delay the Federal Reserve's plans to reduce asset purchases. Key benchmark indices in Germany and UK rose by 0.06% to 0.35%. France's CAC 40 shed 0.16%.
European finance ministers reached an agreement early Thursday on rules for winding down insolvent banks, inking a deal in which banks' shareholders, creditors and big depositors would take the first hit in the event of a bank crisis. The deal still needs legislative approval from the European Parliament.
Asian stocks advanced on Thursday, 27 June 2013, on hopes that a downward revision to US first-quarter gross domestic product growth might delay the Federal Reserve's plans to reduce asset purchases. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Singapore and Japan were up 0.5% to 2.96%. China's Shanghai Composite shed 0.08%.
Profit at major Chinese industrial firms in May rose 15.5% from the year-earlier period, the National Bureau of Statistics said on Thursday. Profit at the firms from the newly adjusted measure of "core operating activities" rose 8.8% from a year earlier, 2.8 percentage points slower than in April, the data said. In the January-May period, overall industrial profit was up 12.3% from the same period in 2012, though up 11.4% in terms of core activities, the bureau said.
South Korean stocks jumped after data released on Thursday, 27 June 2013, showed that the nation's current-account surplus rose to a record high in May on the back of robust exports, even against the backdrop of a global slowdown. The Seoul Composite was up 2.87%.
Trading in US index futures indicated that the Dow could gain 23 points at the opening bell on Thursday, 27 June 2013. US stocks jumped on Wednesday, 26 June 2013, pulling benchmark indexes into positive terrain for the week, as a downward revision in economic growth calmed concern about US monetary policy. Gross domestic product expanded 1.8% from January through March, down from an earlier estimate of 2.4%, the Commerce Department reported.
Federal Reserve Chairman Ben Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.
Data on consumer spending in May and a separate report on weekly initial claims for unemployment benefits are due later in the global day today, 27 June 2013. Also set for Thursday are speeches by three Federal Reserve officials and a report on pending home sales for May from the National Association of Realtors.
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