Key benchmark indices pared gains after striking almost one-week high in morning trade. Positive Asian stocks supported gains in domestic bourses. The S&P BSE Sensex was up 93.64 points or 0.47%, up 85.85 points from the day's low and off 14.87 points from the days high. Index heavyweight Reliance Industries (RIL) extended gains for second day in a row after the company along with partners announced huge gas discovery in KG-D6 block after market hours on Friday, 24 May 2013. Another index heavyweight and cigarette major ITC also gained. The market breadth, indicating the overall health of the market, was strong.
Sun Pharmaceutical Industries, Power Grid Corporation of India and GAIL (India) gained ahead of their Q4 results today, 28 May 2013. Hindalco Industries fell ahead of Q4 results today, 28 May 2013. Coal India surged on robust consolidated Q4 earnings announced after market hours on Monday, 27 May 2013. State Bank of India (SBI) fell as the stock turned ex-dividend today, 28 May 2013.
Market edged higher in early trade on positive Asian stocks. Key benchmark indices pared gains after striking almost one-week high in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 406.03 crore on Monday, 27 May 2013, as per provisional data from the stock exchanges.
At 10:25 IST, the S&P BSE Sensex was up 93.64 points or 0.47% to 20,124.41. The index gained 108.51 points at the day's high of 20,139.28 in morning trade, its highest level since 22 May 2013. The index rose 7.79 points at the day's low of 20,038.56 in early trade.
The CNX Nifty was up 20.75 points or 0.34% to 6,103.90. The index hit a high of 6,111.35 in intraday trade, its highest level since 22 May 2013. The index hit a low of 6,078.65 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 833 shares rose and 520 shares fell. A total of 64 shares were unchanged.
The total turnover on BSE amounted to Rs 413 crore by 10:20 IST compared to Rs 108 crore by 09:25 IST.
Among the 30-share Sensex pack, 18 stocks gained and the rest of them declined.
Index heavyweight Reliance Industries (RIL) rose 0.77% to Rs 834.65, with the stock extending Monday's 5.12% rally. RIL after market hours on Friday, 24 May 2013 said that the company and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India.
RIL said that the discovery, named 'D-55', has been notified to the Government of India (GoI) and the Management Committee of the block. This discovery is expected to add to the hydrocarbon resources in the KG D6 block. Appraisal will now commence to better define the scale and quality of the field, RIL said in a statement.
RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
Index heavyweight and cigarette major ITC rose 0.34% to Rs 334.90. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
Coal India surged 3.73% after consolidated net profit rose 34.89% to Rs 5413.91 crore on 1.77% rise in total income to Rs 22111.07 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results after market hours on Monday, 27 May 2013.
Coal India's board of directors at its meeting held on 28 May 2013 has approved rationalisation of coal prices from 28 May 2013. Due to the rationalisation of coal prices, there will be an approximately additional revenue of Rs. 2119.36 crore for the balance period of financial year ending 31 March 2014. The yearly additional revenue would be around Rs. 2511.58 crore.
State Bank of India (SBI) fell 0.86%. The stock turned ex-dividend today, 28 May 2013, for dividend of Rs 41.50 per share for the financial year ended 31 March 2013 (FY 2013).
Sun Pharmaceutical Industries rose 0.47% to Rs 1,019.60 ahead of Q4 results today, 28 May 2013.
Power Grid Corporation of India (up 1.43%) and GAIL (India) (up 2.09%) gained ahead of Q4 results today, 28 May 2013. Hindalco Industries shed 0.77% ahead of Q4 results today, 28 May 2013.
Tata Chemicals fell 1.73% after the company reported a consolidated net loss of Rs 188.03 crore in Q4 March 2013 compared with a net profit of Rs 138.51 crore in Q4 March 2012. On a consolidated basis, net sales fell 1.1% to Rs 3361.77 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Monday, 27 May 2013.
As per the Q4 results calendar, Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results tomorrow, 29 May 2013. DLF, M&M and Tata Power unveil Q4 results on 30 May 2013.
The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near-month May 2013 series to June 2013 series. The May 2013 derivatives contracts expire on Thursday, 30 May 2013.
On a the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data on Friday, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.
Global credit rating agency Standard & Poor's (S&P) on 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. 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 at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. 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.
Asian markets were trading steady on Tuesday led by gains in Japanese stocks as market players awaited direction from US markets when it resume trade after holidays on Monday. Key benchmark indices in Indonesia, Singapore, China, Japan, South Korea and Hong Kong rose by 0.15% to 1.08%. Taiwan's Taiwan Weighted fell 0.11%.
Trading in US index futures indicated that the Dow could gain 44 points at the opening bell on Tuesday, 28 May 2013. The US markets were closed on Monday, 27 May 2013 for Memorial Day.
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