Key benchmark indices edged higher for the second day in a row on positive cues from Asian and European markets. The barometer index, the S&P BSE Sensex, hit its highest level in more than 13 weeks. The CNX Nifty hit over 13-week high above the psychological 6,000 level. The Sensex was provisionally up 207.95 points or 1.06%, up 184.26 points from the day's low and off 36.29 points from the day's high. Index heavyweight and cigarette major ITC scaled record high. Another index heavyweight Reliance Industries (RIL) also edged higher. The market breadth, indicating the overall health of the market, was positive. All the 13 sectoral indices on BSE were in the green.
Bank stocks edged higher. FMCG stocks also rose. Shares of liquor major United Spirits scaled record high. GlaxoSmithKline Pharmaceuticals pared gains after the company reported Q1 March 2013 result during market hours.
Key benchmark indices edged higher in early trade on positive Asian stocks. Key benchmark indices extended gains to strike fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, hit its highest level in over 13 weeks. Key benchmark indices held firm in mid-morning trade. Key benchmark indices held firm in early afternoon trade. The market trimmed gains after hitting fresh intraday high in afternoon trade. Key benchmark indices scaled fresh intraday high in mid-afternoon trade. The market extended gains in late trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 6 May 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 897.47 crore on Monday, 6 May 2013, as per provisional data from the stock exchanges.
As per provisional closing, the S&P BSE Sensex was up 207.95 points or 1.06% to 19,881.59. The index jumped 244.24 points at the day's high of 19,917.88 in late trade, its highest level since 1 February 2013. The index rose 23.69 points at the day's low of 19,697.33 in opening trade.
The CNX Nifty was up 69.85 points or 1.17% to 6,040.90. The index hit a high of 6,050.50 in intraday trade, its highest level since 1 February 2013. The index hit a low of 5,982.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,405 shares advanced and 1,084 shares declined. A total of 134 shares were unchanged.
The total turnover on BSE amounted to Rs 1916 crore, higher than Rs 1817 crore on Monday, 6 May 2013.
Among the 30-share Sensex pack, 23 stocks gained while rest of them declined.
Index heavyweight Reliance Industries (RIL) rose 0.85% to Rs 828.45. The scrip hit high of Rs 835.65 and a low of Rs 819.40.
Index heavyweight and cigarette major ITC rose 2.97% to Rs 336, which is also its record high. 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.
FMCG stocks edged higher on renewed buying. FMCG major Hindustan Unilever (HUL) rose 1.01% to Rs 579.10. The stock had hit record high of Rs 597 in intraday trade on 30 April 2013. The company's foreign parent Unilever PLC on 30 April 2013 announced open offer to acquire additional 48.70 crore shares, or 22.52% stake in Hindustan Unilever at Rs 600 per share. As on 31 March 2013, foreign promoters held 52.48% stake in HUL. After the open offer, holding of foreign promoters will rise to 75%.
HUL's net profit before exceptional items rose 18% to Rs 781 crore on 12.13% growth in total income from operations to Rs 6465.81 crore in Q4 March 2013 over Q4 March 2012. The company announced the Q4 results during market hours on 29 April 2013.
Emami gained 2.44%. The company's consolidated net profit rose 29.9% to Rs 93.99 crore on 13.2% rise in net sales to Rs 450.95 crore in Q4 March 2013 over Q4 March 2012. Emami's consolidated net profit rose 21.6% to Rs 314.74 crore on 16.9% rise in net sales to Rs 1699.10 crore in the year ended March 2013 over the year ended March 2012. The result was announced after market hours on Monday, 6 May 2013.
Meanwhile, Emami's board of directors at its meeting held on Monday, 6 May 2013, recommended issue of bonus shares in ratio of 1:2 i.e., one equity share for every two existing equity share held. The company's board of directors also recommended a dividend of Rs 8 per share for the year ended March 2013.
Marico (up 0.18%), Dabur India (up 2.6%), Godrej Consumer Products (up 1.21%) and Tata Global Beverages (up 1.02%) gained.
United Spirits rose 2.42% to Rs 2,343.25 after striking a record high of Rs 2,383.95 in intraday trade today, 7 May 2013.
Bank stocks were in demand. HDFC Bank gained 1.68%. ICICI Bank rose 1.54%. Axis Bank rose 2.78%.
Among PSU banks, Canara Bank (up 1.83%), Union Bank of India (up 0.77%), Bank of India (up 0.65%), Bank of Baroda (up 1.25%) and Punjab National Bank (up 1.4%) gained.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), rose 1.34%.
The government has directed Chairman cum Managing Directors of public sector banks and LIC to initiate immediate action against those employees exposed by Cobrapost, Red Spider 2 Expose. Online portal Cobrapost on Monday, 6 May 2013, claimed that its sting operation showed that a total of 23 major Indian banks, both public and private, and insurance companies are running a nation-wide money laundering racket. Financial Services Secretary Rajiv Takru, said in a directive issued to PSU banks and LIC, "Any officer/employee of your bank/institution who clearly appears to be advising potential customers along lines that would be an infringement of the legal process/could facilitate money laundering/could defeat the KYC norms or the norms of due diligence prescribed by RBI and the law from time to time, may be placed under suspension with immediate effect pending inquiry. The bank may initiate a detailed scrutiny of such officer's work and institute a special audit, if necessary, for this purpose. The inquiry must be initiated and completed expeditiously". The letter added, "Any officer/employee of your bank/institution who clearly appears to be advising potential customers along lines that would be an infringement of the legal process/could facilitate money laundering/could defeat the KYC norms or the norms of due diligence prescribed by RBI and the law from time to time, may be placed under suspension with immediate effect pending inquiry. The bank may initiate a detailed scrutiny of such officer's work and institute a special audit, if necessary, for this purpose. The inquiry must be initiated and completed expeditiously".
Cobrapost said its undercover investigation conducted for more than half a year, and spanning many states including Uttar Pradesh, Rajasthan, Delhi, Haryana, Andhra Pradesh and Karnataka, shows that money laundering practices are part and parcel of banking and insurance business across the board. Money laundering services are being offered by banks and insurance companies openly as a standard product across the board, Cobrapost said. The second round of secret videos have revealed violation of several provisions of the Income Tax Act, FEMA, RBI regulations, KYC norms, the Banking Act and Prevention of Money Laundering Act (PMLA), said Cobrapost in a press release.
The expose was the second by Cobrapost after the online portal had on 13 March 2013 alleged that HDFC Bank, ICICI Bank and Axis Bank were involved in money laundering.
Shares of Kotak Mahindra Bank rose 2.17% to Rs 727.60. Shares of Karnataka Bank fell 1.57% to Rs 154. Both the banks today, 7 May 2013, separately denied speculation of merger of the two private sector banks. Shares of Karnataka Bank had jumped 7.3% on Monday, 6 May 2013, on rumours that Kotak Mahindra Bank is in takeover talks with the bank.
Shriram Tarnsport Finance shed 0.07%. The company during market hours today, 7 May 2013 reported 16.63% rise in consolidated net profit to Rs 383.46 crore on 21.08% rise in total income to Rs 1908.05 crore in Q4 March 2013 over Q4 March 2012.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. HDFC and Lupin unveil Q4 results tomorrow, 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on Thursday, 9 May 2013. NTPC announces Q4 results on Friday, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. ITC unveils Q4 results on 17 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Indian services sector growth eased sharply during April as new orders came in at a much slower pace, a business survey showed on Monday, 6 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 50.7 in April 2013 from 51.4 in March 2013. Services make up over 60% of India's economy.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 on Friday, 10 May 2013. Industrial production rose 0.6% in February 2013.
The Budget session of the Parliament ends on Friday, 10 May 2013.
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
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 stocks advanced on Tuesday, with London markets returning to action after a holiday and several companies reacting to earnings news. Key benchmark indices in France, Germany and UK rose by 0.28% to 0.65%. Stock markets in UK were closed for a holiday on Monday, 6 May 2013.
Asian stocks climbed for a second day today, 7 May 2013, dominated by Japanese shares, on optimism central banks will continue to revive growth. Key benchmark indices in Hong Kong, Singapore, Japan, China and Indonesia were up by 0.03% to 3.55%. Key benchmark indices in South Korea and Taiwan were down by 0.07% to 0.36%.
China is due to release a slew of economic data this week. The trade data for April 2013 will be out tomorrow, 8 May 2013. On Thursday, 9 May 2013, attention will shift to China's consumer and producer inflation figures for April 2013.
Trading in US index futures indicated that the Dow could gain 19 points at the opening bell on Tuesday, 7 May 2013. US stocks mostly advanced on Monday, with S&P 500 index extending its record run above 1,600 after the April jobs report exceeded expectations.
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