Key benchmark surged on the last trading session of the week as the latest data showing further easing of inflation in May 2013 triggered expectations that the central bank may cut its key policy rate at mid-quarter monetary policy review on Monday, 17 June 2013. The S&P BSE Sensex regained the psychological 19,000 level. The Sensex was provisionally up 352.62 points or 1.87%, up about 225 points from the day's low and off close to 30 points from the day's high. The market breadth, indicating the overall health of the market, was strong. All the 13 sectoral indices on BSE were in the green. Also aiding sentiment, European and Asian stocks rose on speculation that the US Federal Reserve is unlikely to make any changes to its quantitative easing program at its policy-setting meeting next week.
Indian stocks today, 14 June 2013, snapped three-day losing streak.
Metal stocks gained on renewed buying. Hindalco Industries jumped over 8%. Reliance Industries (RIL) edged higher after partner Niko Resources provided clarity on the companies' recent gas and condensate discovery at key KG-D6 block in India. Interest rate sensitive banking, auto and realty stocks rose as the latest data showing further easing of inflation in May 2013 triggered expectations that the central bank may cut its key policy rate at mid-quarter monetary policy review on Monday, 17 June 2013. Tata Motors gained after the company's British luxury car unit Jaguar Land Rover (JLR) reported good sales in May 2013.
As per provisional figures, the S&P BSE Sensex was up 352.62 points or 1.87% to 19,179.78. The index jumped 385.94 points at the day's high of 19,213.10 in late trade, its highest level since 11 June 2013. The index gained 124.93 points at the day's low of 18,952.09 in early trade.
The CNX Nifty was up 106.20 points or 1.86% to 5,805.30, as per provisional figures. The index hit a high of 5,819.40 in intraday trade, its highest level since 11 June 2013. The index hit a low of 5,739.40 in intraday trade.
The total turnover on BSE amounted to Rs 2500 crore, higher than Rs 1841.29 crore on Thursday, 13 June 2013.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,418 shares rose and 890 shares fell. A total of 142 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks rose and the rest of them fell. Tata Power Company (up 3.78%), L&T (up 3.45%) and ICICI Bank (up 3.06%), edged higher.
Apollo Hospitals jumped 7.37% to Rs 994 after the group said it will spend Rs 2200 crore on expanding facilities and will add 2,700 beds in the next three years. Apollo will be spending part of this on expanding the facility in Mumbai and opening Apollo Clinics there. Of the planned outlay, Apollo will spend about Rs 800-Rs 1000 crore in the next 12 months, Sangita Reddy, Executive Director of the group, said in newspaper interview.
Realty stocks rose as the latest data showing further easing of inflation in May 2013 triggered expectations that the central bank may cut its key policy rate at mid-quarter monetary policy review on Monday, 17 June 2013. Unitech (up 3.81%), HDIL (up 1.77%), DLF (up 1.61%) and D B Realty (up 0.29%), edged higher.
Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance.
Auto stocks rose as the latest data showing further easing of inflation in May 2013 triggered expectations that the central bank may cut its key policy rate at mid-quarter monetary policy review on Monday, 17 June 2013. Lower interest rates may help revive demand for vehicles. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing. Maruti Suzuki India (up 4.5%), Bajaj Auto (up 3.32%) and M&M (up 2.61%), edged higher. But, Hero MotoCorp fell 0.85%.
Tata Motors jumped 4.98% after the company's British luxury car unit Jaguar Land Rover (JLR) reported 12% rise in sales to 32,477 units in May 2013 over May 2012. Jaguar sales rose 36% to 6,174 vehicles while Land Rover sales increased 8% to 26,303 vehicles in May 2013 over May 2012. During the first five months of the year, Jaguar Land Rover sold 176,451 vehicles, up 15%.
Shares of index heavyweight Reliance Industries (RIL) gained 3.21% to Rs 814.50 after its KG-D6 block partner Niko Resources said its proved reserves increased by 160%, and that a recent gas discovery in the D6 block off India's east coast could add significantly to future reserves. RIL is the operator of the block with a 60% stake. BP Plc holds 30% and Niko the rest.
Metal stocks gained on renewed buying. Hindalco Industries jumped 8.26%, with the stock extending intraday gains.
Tata Steel rose 2.95% to Rs 274, with the stock recovering on bargain hunting after 6-day 11.03% slide. Shares of Tata Steel had declined 11.03% in six trading sessions to settle at Rs 266.15 on Thursday, 13 June 2013, from a recent high of Rs 299.15 on 5 June 2013.
Jindal Steel & Power (up 2.94%), Sterlite Industries (up 1.96%) and Sail (up 1.4%), edged higher.
On macro front, the Central Statistics Office (CSO) today, 14 June 2013, said inflation based on the wholesale price index (WPI) eased further to 4.7% in May 2013 from 4.89% in April 2013. Build up inflation rate in the financial year so far was 0.88% compared to a build up rate of 1.80% in the corresponding period of the previous year. WPI inflation for March 2013 was revised downwards to 5.65% from 5.96% reported earlier. Core inflation or non-food manufacturing inflation eased further to 41-month low of 2.35% in May 2013, the latest data showed.
European shares rose on Friday after concerns eased overnight that the US Federal Reserve will soon taper its bond purchases. Key benchmark indices in UK, France and Germany were up by 0.08% to 0.48%.
Asian stocks rebounded on Friday as US economic data surpassed expectations and on bets the Federal Reserve will signal plans to keep record-low interest rates. Key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea and Singapore rose by 0.35% to 3.32%. Taiwan's Taiwan Weighted fell 0.18%.
Trading in US index futures indicated a flat opening of US stocks on Friday, 14 June 2013. US stocks rallied on Thursday bolstered by upbeat economic data. The latest data showed retail sales climbed the most in three months and the number of claims for jobless benefits dropped by 12,000 last week.
The Federal Open Market Committee holds a two-day policy meeting on interest rates in the United States on 18 and 19 June 2013.
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