Market gains for third day in a row on positive global cues

Key benchmark indices gained for third day in a row on firm European and Asian stocks. The barometer index, the BSE Sensex, provisionally settled above the psychological 20,000 mark after having alternately swung above and below that level earlier in the day. The S&P BSE Sensex was provisionally up 136.77 points or 0.68%, up 204.31 points from the day's low and off 42.28 points from the days high. Index heavyweight Reliance Industries (RIL) advanced 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 positive.

Auto stocks were in demand on renewed buying. Coal India gained on robust consolidated Q4 earnings announced after market hours on Monday, 27 May 2013. GAIL (India) rose after good Q4 results announced during trading hours today, 28 May 2013. Colgate-Palmolive (India) fell after declaring poor Q4 result during trading hours 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. Key benchmark indices reversed gains to slide to intraday low in negative zone in mid-morning trade. Key benchmark indices cut losses amid volatility in early afternoon trade. It regained strength in afternoon trade. Key benchmark indices extended gains to hit intraday high in mid-afternoon trade. Market pared gains in late trade.

The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 27 May 2013. 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.

As per provisional closing, the S&P BSE Sensex was up 136.77 points or 0.68% to 20,167.54. The index gained 179.05 points at the day's high of 20,209.82 in morning trade, its highest level since 22 May 2013. The index fell 67.54 points at the day's low of 19,963.23 in early trade.

The CNX Nifty was up 28.10 points or 0.46% to 6,111.25. The index hit a high of 6,127.65 in intraday trade, its highest level since 22 May 2013. The index hit a low of 6,055.40 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,275 shares rose and 1,142 shares fell. A total of 164 shares were unchanged.

The total turnover on BSE amounted to Rs 1818 crore, lower than Rs 1888 crore on Monday, 27 May 2013.

Among the 30-share Sensex pack, 19 stocks gained and the rest of them declined.

Index heavyweight Reliance Industries (RIL) gained 1.56% to Rs 841.15, 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%.

GAIL (India) rose 0.14% after net profit surged 27.89% to Rs 618.18 crore on 18.75% growth in total income from operations to Rs 12470.70 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results during trading hours today, 28 May 2013.

GAIL (India)'s net profit rose 10.08% to Rs 4022.20 crore on 17.51% growth in total income from operations to Rs 47522.69 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

On consolidated basis, GAIL (India)'s net profit declined 1.57% to Rs 4373.60 crore on 15.53% growth in total income from operations to Rs 51094.43 crore in FY 2013 over FY 2012.

GAIL (India)'s under recoveries from the discounted sale of LPG declined 57.99% to Rs 587.18 crore in Q4 March 2013 over Q4 March 2012. The company's under recoveries on LPG declined 15.56% to Rs 2687.18 crore in FY 2013 over FY 2012.

GAIL (India)'s board of directors at a meeting held today, 28 May 2013, recommended final dividend of Rs 5.60 per share for FY 2013.

Coal India gained 2.93% 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.

Bharat Heavy Electricals (Bhel) jumped 3.53%. Bhel reported 4.2% fall in net profit to Rs 3237.54 crore on 2.2% decline in net sales to Rs 18850.16 crore in Q4 March 2013 over Q4 March 2012. The company reported Q4 results during market hours on 23 May 2013.

Index heavyweight and cigarette major ITC rose 2.08% to Rs 340.70. 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.

Auto stocks were in demand on renewed buying. India's largest car maker by sales, Maruti Suzuki India gained 0.3%.

Tata Motors rose 0.25%. The company said on 18 May 2013 that TML Holdings, a wholly owned subsidiary of the company, issued and allotted S$350 million in principal amount of 4.25% senior notes due 2018. The net proceeds from the issue will be used for the redemption of preference shares issued to Tata Motors and for general corporate purposes. Australia and New Zealand Banking Group, Citigroup Global Markets Singapore, Deutsche Bank AG, Singapore Branch and Standard Chartered Bank acted as joint lead managers and joint bookrunners for the issue.

This announcement does not constitute nor form a part of any offer or solicitation to purchase or subscribe for securities in Singapore, the United States, India or elsewhere, company said.

India's largest utility vehicle maker by sales, M&M advanced 2.17%.

Two wheeler makers gained. Bajaj Auto rose 0.96%. The company's net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced on 16 May 2013.

Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said.

India's largest motorcycle maker by sales, Hero MotoCorp surged 6.31%. The company after market hours on Thursday, 23 May 2013 said that it has fixed 30 May 2013 as record date for ascertaining the names of the equity shareholders of Hero Investments (HIPL) in proportion of their holdings in HIPL for considering their entitlement for the purpose of issuance and allotment of equity shares in HMCL in the ratio of 1:1 i.e. one equity share for every one existing equity share held in HMCL by HIPL.

Colgate-Palmolive (India) fell 0.93% after net profit fell 5.79% to Rs 123.20 crore on 18% increase in net sales to Rs 811.60 crore in Q4 March 2013 over Q4 March 2012. The result was announced during trading hours today, 28 May 2013.

Colgate-Palmolive (India)'s net profit rose 11.25% to Rs 496.70 crore on 18% increase in net sales to Rs 3084.10 crore in the year ended March 2013 over the year ended March 2012.

During the quarter, the company achieved a volume growth of 12% and enhanced its leadership position in the toothpaste category to 55.4% volume market share (January-April 2013), an increase of 130 basis points over the same period of the previous year, Colgate-Palmolive (India) said in a statement.

The company said in a statement that in a inflationary environment, its continuing efforts and focused programs to enhance efficiencies and reduce costs continue to yield strong, positive results helping to maintain margin and fund investments in building and strengthening brand equity and the business.

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.

European stocks rose Tuesday, following on from a positive session in Asia, where a weaker yen underpinned exporters in Japan. Key benchmark indices in France, Germany and UK rose by 1.08% to 1.58%.

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 0.32% to 1.79%. Taiwan's Taiwan Weighted fell 0.21%.

Trading in US index futures indicated that the Dow could gain 96 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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