Idea Cellular gains on successful closure of QIP

A bout of volatility was witnessed in early trade as key benchmark indices regained positive terrain after slipping into the red for a brief period after opening with decent gains. Market sentiment was boosted by macroeconomic data announced late on Thursday 12 June 2014 showed industrial production rose 3.4% in April 2014 and the annual inflation rate based on combined consumer price index (CPI) for urban and rural India eased to 8.28% (provisional) in May 2014. The barometer index, the S&P BSE Sensex, was up 25.14 points or 0.1%, up close to 30 points from the day's low and off about 90 points from the day's high. The market breadth indicating the overall health of the market was strong.

Idea Cellular rose after the company announced successful closure of its qualified institutional placement and has issued and allotted 22.39 crore shares to qualified institutional buyers at an issue price of Rs 134 per share aggregating to Rs 3000 crore. Tata Motors declined after the company said global wholesales including Jaguar Land Rover declined 5.14% to 77,575 units in May 2014 over May 2013.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 652.35 crore on Thursday, 12 June 2014, as per provisional data from the stock exchanges.

Asian stocks fell on Friday as escalating civil war in Iraq hit risk appetite.

At 9:30 IST, the S&P BSE Sensex was up 25.14 points or 0.1% to 25,601.35. The index rose 112.10 points at the day's high of 25,688.31 in early trade. The index fell 6.17 points at the day's low of 25,570.04 in early trade.

The CNX Nifty was up 6.70 points or 0.09% to 7,656.60. The index hit a high of 7,678.50 in intraday trade. The index hit a low of 7,643.40 in intraday trade.

The BSE Mid-Cap index was up 40.16 points or 0.44% to 9,206.47. The BSE Small-Cap index was up 33.51 points or 0.34% to 10,018.99. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong. On BSE, 829 shares rose and 298 shares fell. A total of 24 shares were unchanged.

Bharat Heavy Electricals (Bhel) (up 3.26%), L&T (up 0.88%) and Coal India (up 0.82%) edged higher from the Sensex pack.

Idea Cellular rose 0.64% to Rs 142.10 after the company announced after market hours on Thursday, 12 June 2014, successful closure of its qualified institutional placement and has issued and allotted 22.39 crore shares to qualified institutional buyers at an issue price of Rs 134 per share aggregating to Rs 3000 crore. The issue witnessed strong interest from both foreign and Indian investors.

The company is proposing to undertake a private placement of 5.18 crore shares at Rs 144.68 per share aggregating Rs 750 crore to a subsidiary of Axiata Group Berhad of Malayasia, an existing key shareholder of the company.

Tata Motors declined 0.81% to Rs 446 after the company said after market hours on Thursday, 12 June 2014 that its global wholesales including Jaguar Land Rover declined 5.14% to 77,575 units in May 2014 over May 2013. Global wholesales of all commercial vehicles - Tata, Tata Daewoo and the Tata Hispano Carrocera range -- were 29,161 units. Global wholesales of all passenger vehicles in May 2014 were 48,414 units. Global wholesales of Tata passenger vehicles in May 2014 were 9,416 units. Global wholesales for Jaguar Land Rover were 38,998 vehicles. Jaguar wholesales for the month were 6,848 vehicles, while Land Rover wholesales for the month were 32,150 vehicles.

On the macro front, industrial production rose 3.4% in April 2014, compared with a contraction of 0.5% in March 2014, data released by the government after trading hours on Thursday, 12 June 2014, showed. Fourteen out of the twenty two industry groups from the manufacturing sector registered positive growth during the month of April 2014 as compared to the corresponding month of the previous year. Industrial production contracted 0.1% during April-May 2014 over the corresponding period of the previous year.

The annual inflation rate based on combined consumer price index (CPI) for urban and rural India eased to 8.28% (provisional) in May 2014, from 8.59% (final) in April 2014, data released by the government after trading hours on Thursday, 12 June 2014, showed. Within the consumer price index, food prices inflation eased to 9.56% in May 2014, from 9.83% in April 2014. The rate of inflation based on the core CPI, which excludes food and energy prices was 7.72% in May 2014, unchanged from the level in April 2014.

Asian stocks fell on Friday as escalating civil war in Iraq hit risk appetite. Key benchmark indices in Indonesia, Japan, Taiwan, South Korea and Singapore were off 0.04% to 1.28%. Key benchmark indices in China and Hong Kong rose 0.65% to 0.9%.

The Bank of Japan maintained record stimulus as Governor Haruhiko Kuroda strives to boost inflation that remains short of a 2% target. The central bank will continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($688 billion) per year, it said in a statement today in Tokyo, in line with estimates.

US stocks fell on Thursday as concerns escalated about Iraq and after disappointing economic data on retail sales and jobless claims.

In macroeconomic news, retail sales rose 0.3% in May, half the growth rate than forecasts. Americans' new claims for unemployment benefits unexpectedly rose last week.

Sunni Islamist militants have extended their advance south towards Baghdad prompting President Barack Obama to warn of possible US military intervention, while Iraqi Kurdish forces took control of the oil hub of Kirkuk amid the chaos.

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