Sensex gains 3.25% in two sessions

Key benchmark indices surged on the first trading session of the week as firmness in European and Asian stocks boosted sentiment. The S&P BSE Sensex and the 50-unit CNX Nifty, both, scaled their highest level in nearly two weeks. The Sensex was up 451.32 points or 2.21%, up close to 280 points from the day's low and off about 20 points from the day's low. The market breadth, indicating the overall health of the market, was positive. All the 13 sectoral indices on BSE were in the green. In the foreign exchange market, the rupee strengthened against the dollar.

Indian stocks gained for the second day in a row today, 18 November 2013. From a recent low of 20194.40 on 13 November 2013, the Sensex has gained 656.34 points or 3.25% in two trading sessions. The index has fallen 313.78 points or 1.48% in November so far (till 18 November 2013). The Sensex has garnered 1424.03 points or 7.33% in calendar 2013 so far (till 18 November 2013). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,402.03 points or 19.49%. From a record high of 21,321.53 on 3 November 2013, the Sensex has fallen 470.79 points or 2.2%.

Coming back to today's trade, index heavyweight and cigarette major ITC surged. Another index heavyweight Reliance Industries also advanced. Shares of IT major Infosys hit 52-week high. Tata Steel extended Thursday's gains triggered by the company reporting turnaround in Q2 September 2013. Shares of Financial Technologies (India) and Multi Commodity Exchange of India (MCX) surged on high volumes.

Emerging-market stocks gained on Monday after China vowed to carry out the broadest expansion of economic freedoms since at least the 1990s.

Investors continued to find encouragement in Fed Chairman nominee, Janet Yellen's support for the Federal Reserve's stimulus efforts. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.

The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 14 November 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 970.03 crore on Thursday, 14 November 2013, as per provisional data from the stock exchanges. Stock markets had remained closed on Friday, 15 November 2013 on account of Moharram.

The S&P BSE Sensex was up 451.32 points or 2.21% to 20,850.74, its highest closing level since 6 November 2013. The index gained 469.34 points at the day's high of 20,868.76 in late trade. The index rose 171.17 points at the day's low of 20,570.59 in opening trade.

The CNX Nifty was up 132.85 points or 2.19% to 6,189, its highest closing level since 6 November 2013. The index hit a high of 6,196.80 and a low of 6,110.40 in intraday trade.

The BSE Mid-Cap index rose 1.18% and the BSE Small-Cap index gained 0.96%. Both the indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 2025 crore, higher than Rs 1850.06 crore on Thursday, 14 November 2013.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,403 shares gained and 1,057 shares fell. A total of 126 shares were unchanged.

Among the 30-share Sensex pack, 26 stocks gained while rest of them declined.

Index heavyweight and cigarette major ITC rose 3.61% to Rs 325.75.

Reliance Industries gained 2.65% to Rs 874.35.

IT stocks gained. Infosys rose 1.39% to Rs 3,400.30. The stock hit a 52-week high of Rs 3,410 in intraday trade today, 18 November 2013.

Tata Consultancy Services (TCS) rose 1.02%. The company announced on Saturday, 16 November 2013 the launch of its 10,000-seat campus, Garima Park, in Gandhinagar, Gujarat. The state-of-the-art software development facility was inaugurated by Narendra Modi, Hon'ble Chief Minister, Gujarat who was welcomed at the venue by Cyrus P Mistry, Chairman, Tata Group and N. Chandrasekaran, Chief Executive Officer & Managing Director. Also present on the occasion were senior officials of the state government, business, academic and community leaders as well as senior executives from TCS.

N Chandrasekaran, Chief Executive Officer and Managing Director, said, TCS has played a pioneering role to make Gujarat an attractive IT destination for global companies and also helped drive technology-led growth by investing in talented youth of the state and building long-term partnerships with state institutions. He added, We are delighted to launch our new world-class campus in Gandhinagar. This will help TCS further scale up its presence and drive the expansion of the IT industry in Gujarat.

Developed over 25.5 acres of land with a built-up area of 1.6 million square feet, TCS Garima Park is the latest addition to the company's unique global network of software development and delivery centers. It features highly secure software development and delivery centers of multiple sizes to meet the needs of global clients.

TCS Garima Park has been developed as a "green" campus and is a LEED (Leadership in Energy and Environmental Design) Gold rated IT campus. Built with locally sourced red stone, a trademark feature of local architecture, the campus also uses extensive technology to increase efficiency and reduce wastage. Solar panels, LED lighting, occupancy and light-sensitive sensors have been used to optimise power consumption, for instance.

TCS Garima Park provides a contemporary and holistic working space for employees. It has been designed to extensively use natural light and ventilation extensively throughout the structure. There are open, shared spaces for TCSers to use to collaborate and co-create like a 250-seat amphitheatre, a 250-seat multli-purpose hall. To help TCSers focus on wellness, TCS Garima Park also features a modern gymnasium, tennis, badminton and basketball courts as well as a jogging track for employees to use.

The Garima Park campus also features a learning center as well as iClass rooms (connected with other TCS learning hubs across the world), hi-end virtual presence conference rooms, meeting rooms and cafeterias. The campus is an approved Special Economic Zone and will serve global customers across industry segments.

Among other IT stocks, Wipro (up 1.42%) and HCL Technologies (up 0.97%), rose.

Shares of Financial Technologies (India) were locked at 20% upper circuit and Multi Commodity Exchange of India (MCX) surged 17.46% of high volumes. As per reports, the Forward Markets Commission (FMC) has allowed the three former directors of MCX and Financial Technologies (India)) to cross-examine Grant Thornton, which conducted the forensic audit on the trouble-ridden unit National Spot Exchange (NSEL).

The commodity market regulator will finalise its order regarding 'fit and proper' status of two former directors after these entities cross-examine a forensic audit report. The cross-examination is scheduled on 25 November 2013.

Mastek lost 7.62% after the company said that a major North American customer is reprioritizing its multi-vendor transformation program. The announcement was made on Saturday, 16 November 2013.

Mastek said that while the company is yet to receive an official intimation from the client, the replanning by the customer is likely to result in the work being put on hold and as a result impact the revenue of the North American business. The company is engaged in discussions with the customer to better understand their plans and the impact of the pending changes on the company's plans - a clear picture is expected to emerge in next six to eight weeks, The company said it continues to have a strong relationship with the customer and company's solution continues to have customer's confidence. Mastek continues to see good momentum in its insurance business in North America and is expecting key wins in the next few months.

Tata Steel surged 2.86%, with the stock extending Thursday's 4.58% gains triggered by the company reporting turnaround in Q2 September 2013.

The company after market hours on 13 November 2013 reported turnaround Q2 September 2013 results. The stock had surged 4.58% to settle at Rs 375.30 on Thursday, 14 November 2013. The stock market was closed on Friday, 15 November 2013 on account of Muharram.

Tata Steel reported a consolidated net profit of Rs 916.77 crore in Q2 September 2013 as against net loss of Rs 363.93 crore in Q2 September 2012. Revenue rose 7.35% to Rs 36645 crore in Q2 September 2013 over Q2 September 2012. EBITDA (earnings before interest, taxation, depreciation and amortization) jumped 54.26% to Rs 3784 crore in Q2 September 2013 over Q2 September 2012.

Tata Steel attributed the turnaround in Q2 September 2013 to steady ramp-up of the Indian operations and improved performance at the European and South East Asian operations.

Bhushan Steel shed 0.58% after the company's net profit declined 70.19% to Rs 60.06 crore on 10.99% fall in total income to Rs 2276.60 crore in Q2 September 2013 over Q2 September 2012. The company announced result after market hours on Thursday, 14 November 2013.

Bhushan Steel also said after market hours on Thursday, 14 November 2013 that the board of directors of the company at its meeting held on 14 November 2013 has considered and approved to raise further equity shares for sum not exceeding Rs 1000 crore by way of right issue.

Realty stocks gained on renewed buying. DLF (up 2.23%), HDIL (up 6.23%), D B Realty (up 1.61%) and Unitech (up 2.1%), gained.

Reliance Infrastructure rose 3.4% after the company today, 18 November 2013, announced the commissioning of its 5th 400 kV double circuit transmission line in Maharashtra through its arm Reliance Power Transmission. The announcement was made during trading hours today, 18 November 2013.

Reliance Infrastructure (RInfra) said that the 311 kilometres (KM) Pune-Parli line is part of the Western Region System Strengthening Scheme (WRSSS) II project and will connect key industrial centres of Maharashtra like Pune, Aurangabad and Beed.

Speaking on the development, RInfra CEO Mr Lalit Jalan said, "We are proud to announce the commissioning of the Pune-Parli transmission line. Despite the right of way (ROW) and other local challenges, our dedicated team could completed this critical line in time, which is instrumental for inter-connection of Western and Southern grid".

Mr Jalan added, "This is India's first ever 100% privately owned inter-state transmission project of the National Grid and we at RInfra are proud to be implementing it. On completion, the project would enable evacuation of surplus power of about 4,000 MW from the Eastern part of the country to the Western region".

The 1,500 KM long WRSSS project to be executed at a cost of about Rs 1700 crore was awarded to RInfra through tariff based International competitive bidding process. The project has been executed under build, own and operate pattern.

With this, RInfra has commissioned five out of the six transmission lines to be built in Maharashtra. The sixth and the last line in the project in Maharashtra, between Pune and Aurangabad are expected to be commissioned soon. RInfra, at present, is executing five transmission projects across the country with total outlay of over Rs 6600 crore.

Capital goods stocks pivotals gained on renewed buying. L&T (up 3.9%) and Bhel (up 3.06%), gained.

Bank stocks rose across the board. Among private bank stocks, HDFC Bank (up 4.15%), Kotak Mahindra Bank (up 2.45%), Axis Bank (up 3.7%), Yes Bank (up 3.6%), and ICICI Bank (up 2.29%) gained.

Among PSU bank stocks, State Bank of India (SBI) (up 2.6%), Punjab National Bank (up 1.86%), Bank of Baroda (up 2.77%), Bank of India (up 7.99%), Canara Bank (up 4.01%) and Union Bank of India (up 6.07%) edged higher.

NTPC rose 1.87%. The company during trading hours today, 18 November 2013 said that its Farakka Super Thermal Power Station in West Bengal had started the movement of imported coal by barges through inland waterway. The first set of 3 barges carrying about 1,500 tonnes each of imported coal has berthed near Farakka station on 13 November 2013. NTPC said it will transport 3 MMTPA of coal through inland waterway to Farakka station for 7 years.

NMDC dropped 0.34%. The company said on Saturday, 16 November 2013 it achieved production and despatches of iron ore of 148.06 lakh tonne and 160.66 lakh tonne respectively (provisional) upto October 2013. It rolled over the October 2013 prices of iron ore (lumps - 4300 Rs/WMT, fines - 2610 Rs/WMT) to the month of November, 2013.

Jaiprakash Associates jumped 6.28%. The company after market hours on Thursday, 14 November 2013 reported a 47.1% drop in net profit to Rs 67.67 crore on 5.6% growth in net sales to Rs 3149.40 crore in Q2 September 2013 over Q2 September 2012.

Jaypee Cement Corporation, wholly owned subsidiary of the company, having a total capacity of 12.8 MTPA (including 3 MTPA under implementation), has entered into an agreement on 11 September 2013 with UltraTech Cement for sale of 4.8 MTPA cement plants in Gujarat. Accordingly, demerger of Gujarat cement plants is under process.

GlaxoSmithKline Pharmaceuticals (GSK) shed 0.01%. The company after market hours on Thursday, 14 November 2013 announced a new Rs 864 crore [85 million pound] factory creating 250 jobs in India as part of its continued commitment to ensuring access to medicines for people in the country.

During a visit to India on Thursday, 14 November 2013 to take part in a conference of international business leaders, GSK Chief Executive Officer Sir Andrew Witty said the location of the new factory is yet to be finalised, but that the lead site is in Bangalore.

GSK will partner with local design and construction companies to build a state of the art manufacturing facility which is expected to benefit from leading edge technologies including continuous manufacturing and automated systems.

The announcement is GSK's latest commitment to its manufacturing network in India where the company has invested Rs 1017 crore [100 million pound] over the last decade. GSK is proactively building capacity in the country as it delivers its portfolio of products in areas such as gastroenterology and anti-inflammatory medicines. When complete the new factory will make pharmaceutical products for the Indian market at a rate of up eight billion tablets and one billion capsules a year. The facility, expected to be operational by 2017, will also include a warehouse, site infrastructure and utilities to support the manufacturing and packing of the medicines.

Around 8500 people work in India for GSK. The company is a leader in dermatology and vaccines, with vaccines such as Rotarix against severe diarrhoea, and Synflorix used to protect children against streptococcus pneumonia. In addition, GSK's consumer business continues to be a market leader with six billion cups of its best known product Horlicks consumed by over 30 million households every year.

Sir Andrew said: GSK is a long-standing investor in India and we fully support the Government in their efforts to increase access to affordable medicines and to improve healthcare. This new facility will substantially increase the capacity of our manufacturing base and enable us to bring more medicines to the people of India.

Bosch dropped 0.62%. The company on Friday, 15 November 2013 said that workmen of the company's Bangalore plant have resorted to a 'Tool Down' strike with effect from second shift of 14 November 2013, without giving any prior notice to management. In view of the Union's illegal and unjustified strike, the management of the company has decided to shut down plant operations for workmen at Bangalore plant with effect from night shift of 14 November 2013 till further notice. Efforts are in hand to resolve the matter and restore normalcy at the earliest, the company said.

Amara Raja Batteries fell 0.49%. The company's net profit rose 34.92% to Rs 94.58 crore on 12.36% growth in net sales excluding other income to Rs 804.72 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Thursday, 14 November 2013. The stock market was closed on Friday, 15 November 2013 on account of Muharram.

Amara Raja Batteries said that the company's effort to enhance the capacities of Two-wheeler battery in the existing plant has witnessed some delay and is likely to go on stream by end January 2014. The enhanced capacities will support the company to commence business with other major Two-wheeler OEMs and to grow the aftermarket business in a big manner, it said. The green field project for enhancement of Four-wheeler capacity is progressing as per schedule and is likely to commence production by Q2 of next financial year, the company said in a statement.

Commenting on the company's Q2 performance, Mr. Jayadev Galla, Vice Chairman and Managing Director, Amara Raja Batteries said, "I am happy to note that our sustained good performance continues to be in line with our annual plan and expectations, despite slowing economy, volatile rupee and sluggish demand in the automotive and UPS OEM sectors. The ongoing agitation for a united state of Andhra Pradesh in the Chittoor district has, so far, not had any major impact on the operations of the Company, largely supported by the credibility enjoyed by the organization".

Amara Raja Batteries said it is confident of continuing its growth in industrial battery business enabled by the ongoing capacity expansions and preferred vendor status built over the years both in the Telecom and UPS sectors. The Medium VRLA battery capacity expansion project will be completed in January 2014 with about 4 months delay due to conscious change in specifications and delay in supply of certain key equipment. Also the Large VRLA expanded capacity will support the business from February 2014, the company said in a statement.

Natco Pharma rose 0.83% after consolidated net profit rose 28.57% to Rs 27 crore on 1.57% decline in revenue to Rs 188 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Thursday, 14 November 2013. The stock market was closed on Friday, 15 November 2013 on account of Muharram.

Natco Pharma's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) margins have expanded to 31% of the revenue in Q2 September 2013, from 26% of revenue in Q2 September 2012.

AVT Natural Products surged 10.87% after the company said it has launched an exclusive range of condition-specific Health Supplements under the brand name Optim Health, in select cities. The announcement was made on Friday, 15 November 2013. The stock market was closed on that day on account of Muharram.

AVT Natural Products said that the range, targeted at consumers residing in the top cities seeking good health & living, will be distributed through leading Chemists and Modern Trade stores. The launch is initially limited to Bangalore, Hyderabad, Mumbai and Pune and will be scaled up in phases. Focused marketing activities will support the launch, the company added.

Suzlon Energy rose by maximum permissible 10% upper circuit after the company said it will unveil its new offshore turbine, the REpower 6.2M152. The announcement was made during trading hours today, 18 November 2013.

Suzlon Energy said that the new turbine features a rotor diameter of 152 metres, with the rotors sweeping an area larger than three football pitches. The nacelle alone is as big as two detached houses and will be constructed offshore at a height of between 95 and 110 metres.

Andreas Nauen, CEO, REpower Systems SE said, "We are the only manufacturer to have already installed more than 100 offshore turbines in the multi-megawatt class. With an eye on the outstanding availability and energy yield of the REpower 6.2M126, we have enhanced this robust, proven concept: the bigger rotor and correspondingly larger drive train of REpower 6.2M152 combined with tried-and-tested, first class technology enables our customers to generate energy even more cost-efficiency on the high seas".

In the foreign exchange market, the rupee strengthened against the dollar on positive global cues, after dovish comments last week from Fed Chairman-nominee Janet Yellen assure markets there will be no imminent decision to scale back the Fed's massive bond-buying programme. The partially convertible rupee was hovering at 62.46, stronger compared to its close of 63.11/12 on Thursday, 14 November 2013. Financial markets were closed on Friday, 15 November 2013 on account of Moharram.

Meanwhile, the second and final phase of voting in Chhattisgarh will be held tomorrow, 19 November 2013. Polling in the first phase for the 90-member state assembly had seen voter turnout of 67% on 11 November 2013.

European stock markets edged higher on Monday, extending a six-week winning streak. Key benchmark indices in UK, France and Germany rose 0.35% to 0.55%.

Asian stocks rose for a third day on Monday with Chinese stocks among the top gainers after Beijing late Friday vowed to carry out the broadest expansion of economic freedoms since at least the 1990s. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Indonesia and South Korea rose by 0.05% to 2.73%. Japan's Nikkei 225 index fell marginally by 0.01%.

China late evening Friday unveiled its most sweeping reform agenda in more than 30 years. The agenda aims to transition China to a more free-market consumer economy with fewer social controls. On the economic front, the plans include reducing the power of giant state-owned companies, removing a swathe of price controls, phasing out caps on interest rates and moving towards yuan convertibility. More broadly, the plans also outline loosening the one-child policy, abolishing the controversial re-education labor camps and introducing steps toward an independent judiciary.

Trading in US index futures indicated that the Dow could rise 33 points at the opening bell on Monday, 18 November 2013. US stocks stepped higher on Friday, lifting the S&P 500 and Dow industrials to record closes, as investors continued to find encouragement in Janet Yellen's support for the Federal Reserve's stimulus efforts.

At a confirmation hearing on Thursday, Yellen, the nominee to lead the Fed, defended the central bank's aggressive bond-buying program, known as quantitative easing or QE, and tried to ease concerns that bubbles were forming in the equity markets.

Powered by Capital Market - Live News