Key benchmark indices further extended gains to hit fresh intraday high in early afternoon trade. The S&P BSE Sensex hit its highest level in over 5 weeks as US Federal Reserve Chairman Ben S. Bernanke's comments on Wednesday, 10 July 2013, that a highly accommodative monetary policy is needed for the US economy for the foreseeable future boosted Asian stocks. The 50-unit CNX Nifty hit its highest level in nearly 5-week high. The Sensex was up 425.24 points or 2.2%, up close to 250 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Auto stocks edged higher on renewed buying. IT stocks rose on renewed buying. From pharma pack, Sun Pharmaceutical Industries and Lupin hit record high.
The market surged in early trade on firm Asian stocks. The market extended initial gains to hit fresh intraday high in morning trade. The market extended gains to hit fresh intraday high in mid-morning trade. The Sensex hit over 5-week high. The Sensex further extended gains to hit fresh intraday high in early afternoon trade.
Bernanke said a speech in Cambridge, Massachusetts on Wednesday, 10 July 2013, that "highly accommodative" monetary policy will be needed for the "foreseeable future." Meanwhile, minutes of the Fed's June meeting showed that while "several members judged that a reduction in asset purchases would likely soon be warranted," many want to see further improvement in the labor market before reducing the central bank's $85 billion-a-month quantitative easing program.
The signal that the Fed will likely maintain an accommodative policy stance sent Asian stocks surging as Fed's bond-buying program and quantitative easing by other central banks worldwide has flooded global markets with liquidity and helped support an array of assets, including equities in recent years. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth. At a press conference following the June 18-19 meeting, Federal Reserve Chairman Ben Bernanke said the central bank could start reducing its $85 billion in monthly bond purchases later this year if the economy continues to improve in line with its forecasts.
At 12:20 IST, the S&P BSE Sensex was up 425.24 points or 2.2% to 19,719.36. The index jumped 427.69 points at the day's high of 19,721.81 in early afternoon trade, its highest level since 4 June 2013. The index gained 174.34 points at the day's low of 19,468.46 in opening trade.
The CNX Nifty was up 129.95 points or 2.23% to 5,946.65. The index hit a high of 5,947.95 in intraday trade, its highest level since 7 June 2013. The index hit a low of 5,887.95 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,250 shares rose and 602 shares fell. A total of 105 shares were unchanged.
From the 30-share Sensex pack, 28 stocks rose and only 2 of them fell.
Hindalco Industries jumped 6.16%, with the stock extending intraday gain.
Bharti Airtel rose 2.58%. Bharti Airtel said during market hours today, 11 July 2013, that it is shocked and disappointed to receive a demand notice of Rs 650 crore from the Department of Telecommunications (DoT) pertaining to the service of Subscriber Local Dialing (SLD) to its subscribers between 2002 and 2005. Bharti Airtel believes that the demand for penalty of Rs 650 crore is devoid of any merit and has no justification both on facts and in law. Bharti Airtel had in 2002 launched the SLD service and had fully satisfied the sector regulator on this service and its various aspects. The regulator had found this service to be customer friendly and in compliance of the licence conditions. The total revenue this SLD service generated for Bharti Airtel was a few lacs of rupees, a fact which is fully known to the DoT. Yet strangely, without as much as giving us a proper hearing, the DoT has after 8 years has issued a demand notice of Rs 650 crore in complete disregard of the natural process of justice.
The company said it is disappointed that the DoT which has the bounden duty to act rationally, has thought it fit to issue such a baseless penalty order, leaving the company with no choice, but to litigate. The company wishes the DoT was mindful of the damage such meritless demands have on investor sentiment and the frustration such actions cause to the companies engaged in vital infrastructure. The company has urged the DoT to set out a cogent policy on imposition of penalties so that the telecom companies can operate in a rational and transparent environment.
Reliance Communications (RCom) rose 1.75% after the company today, 11 July 2013, announced that it has completed securitisation of proceeds under the Rs 1200 crore ($ 200 million) intercity Fibre Agreement signed with Reliance Jio Infocomm, a telecom unit of Reliance Industries, in April 2013. The proceeds from securitisation have been utilised to repay high cost rupee debt, resulting in significant interest cost savings for RCom. The securitisation has been completed with Indian and foreign banks. Deliveries of inter city fibre links to Reliance Jio have already commenced, RCom said. The total deliveries of 1.2 lakh kms inter city fibre under the agreement are expected to be completed within the current financial year.
Sun Pharmaceutical Industries rose 1.73% at Rs 1,099.75. The stock struck a record high of Rs 1,108 in intraday today, 11 July 2013.
Lupin gained 1.22% at Rs 868.45. The stock hit a record high of Rs 875.05 in intraday today, 11 July 2013.
Auto stocks edged higher on renewed buying. Tata Motors rose 1.46%.
Mahindra & Mahindra (M&M) gained 1.34% after the company said that a scheduled production cut this month is unlikely to have an adverse impact on availability of vehicles in the market due to adequate inventory. M&M has announced that it would be observing 'No Production Days' at its automotive plants for a period ranging from 1 to 8 days during the remaining period of July 2013 with a view to align production with sales requirements. M&M also said that its wholly owned subsidiary viz. Mahindra Vehicle Manufacturers would also be observing 'No Production Days' for about 8 days during the remaining period of July 2013 at its plant situated at Chakan in Maharashtra.
Shares of car major Maruti Suzuki India gained 1.34%. The company on 8 July 2013, said its production fell 25.36% to 61,668 vehicles in June 2013 over June 2012. Earlier, the company had reported 12.6% fall in total sales to 84,455 units in June 2013 over June 2012. The company's domestic sales fell 7.8% to 77,002 units in June 2013 over June 2012. Exports declined 43% to 7,453 units in June 2013 over June 2012. The company announced the monthly sales data on 1 July 2013.
Two wheeler stocks also gained. Bajaj Auto rose 1.42%. Hero MotoCorp gained 2.44%.
IT stocks rose on renewed buying. HCL Technologies (up 0.65%), and TCS (up 2.2%), edged higher. But, Wipro fell 0.14%, with the stock reversing intraday gain.
IT major Infosys rose 1.12% ahead of its Q1 June 2013 results tomorrow, 12 July 2013. The company's Q1 results will reflect the impact of salary hike, rupee depreciation and cross-currency movements. Investors will closely watch the management commentary on demand environment. At the time of announcement of Q4 March 2013 results in April this year, Infosys had forecast 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014). Infosys has suspended the practice of giving EPS guidance or outlook on margins citing uncertainty in various factors.
Meanwhile, the company on Tuesday, 9 July 2013, said head of global sales Basab Pradhan has left the company. The company gave no reason for Pradhan's departure.
Mangalore Chemicals & Fertilizers was locked at an upper circuit limit of 10% at Rs 67.85 after Zuari Fertilisers and Chemicals bought 3.5% stake in the company through a bulk deal on Wednesday, 10 July 2013, on NSE. Zuari Fertilisers and Chemicals bought 41.42 lakh shares, or 3.5% stake, in Mangalore Chemicals & Fertilizers (MCFL) at Rs 61.01 through a bulk deal on Wednesday, 10 July 2013, on NSE.
Earlier on 2 April 2013, Zuari Fertilisers and Chemicals had acquired 1.15 crore shares, 9.73% stake in MCFL. After two bulk deals, Zuari Fertilisers now holds 1.56 crore shares, or 13.22% stake in MCFL.
The move by Zuari Fertilisers to hike stake in MCFL comes a week after Deepak Fertilisers & Petrochemicals Corporation (DFPCL) acquired 2.89 crore shares, or 24.46% stake, in MCFL on 3 July 2013.
DFPCL acquired a 24.46% stake in MCFL for Rs 179 crore, becoming MCFL's largest shareholder. DFPCL, through its wholly-owned subsidiary SCM Soilfert, acquired shares in MCFL at an average price of Rs 61.75 per share through multiple block deals executed on the BSE on 3 July 2013.
After buying stake, DFPCL announced that given its considerable strengths in the fertiliser business, the investment is very strategic and a good fit with the company's business. DFPCL said it looks forward to working closely with MCFL to enhance long-term value for the shareholders of both companies.
As on 31 March 2013, Vijay Mallya's UB Group held 22% in MCFL.
Asian stocks rose on Thursday, 11 July 2013, after US Federal Reserve Chairman Ben S. Bernanke said on Wednesday, 10 July 2013, that the world's biggest economy will continue to need stimulus. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan rose by 0.39 % to 3.44%.
The Bank of Japan (BOJ) refrained from adding to unprecedented monetary stimulus and raised its assessment of the economy, referring to a recovery for the first time since before a record 2011 earthquake. Governor Haruhiko Kuroda's board stuck with an April pledge to expand the monetary base by 60 to 70 trillion yen ($709 billion) per year, a statement released in Tokyo today showed. The bank maintained its April forecast that prices, excluding the effect of a planned sales tax increase, will rise 1.9% in the year starting April 2015. It trimmed some other forecasts for inflation and economic growth. The BOJ now sees inflation of 0.6% in the current fiscal year and 1.3% in the following 12 months. The central bank is chasing a target of 2 percent inflation, focusing on a gauge that excludes fresh food.
South Korea's central bank on Thursday left its policy interest rate unchanged at 2.5% amid low inflation, uncertainty over the Federal Reserve's bond purchases and China's economic slowdown.
Trading in US index futures indicated that the Dow could surge 142 points at the opening bell on Thursday, 11 July 2013. US stocks ended little changed on Wednesday as investors analyzed minutes from the Fed's last meeting for signs on when the central bank might slow the pace of stimulus efforts.
Meanwhile, Brazil's central bank late Wednesday, 10 July 2013, raised the country's benchmark interest rate to 8.5% from 8%, marking the third consecutive rate increase of a half-percentage point each.
Powered by Capital Market - Live News
