Key benchmark indices edged higher in early trade on firm Asian stocks. The market breadth was strong. The barometer index, the 30-share S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than two weeks. The Sensex was up 100.66 points or 0.52%, off about 5 points from the day's high and up close to 35 points from the day's low. Index heavyweight and cigarette maker ITC edged higher in early trade. Another index heavyweight Reliance Industries (RIL) edged higher after the telecom department on Thursday, 7 March 2013, cleared a proposal to allow companies with Internet permits to also offer basic mobile telecom services by paying a one-time license-conversion fee.
L&T edged higher after company after trading hours on Thursday, 7 March 2013, said that the company as a licensee of CMI Energy, Belgium, has signed an agreement with CMI Energy, Belgium for extension of L&T's license territory to manufacture and supply small heat recovery steam generators (HRSGs) installed behind gas turbines below 80 megawatts (MW) to South East Asia and the Middle East. Rashtriya Chemicals and Fertilizers (RCF) jumped as the one-day Offer for Sale of the Government of India's about 12.5% stake in the company through the stock exchanges route began at 9:15 IST.
Mahindra & Mahindra (M&M) gained after company said before market hours today, 8 March 2013, that the tool down strike by employees of the company's Nashik plant which started on 5 March 2013 as well as the proposed strike from 11 March 2013 has been called off.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 7 March 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 630.47 crore on Thursday, 7 March 2013, as per provisional data from the stock exchanges.
At 9:30 IST, the S&P BSE Sensex was up 100.66 points or 0.52% to 19,514.20. The index jumped 106.67 points at the day's high of 19,520.21 in early trade its highest level since 21 February 2013. The index rose 64.07 points at the day's low of 19,477.61 in early trade.
The CNX Nifty was up 27.80 points or 0.47% to 5,891.10. The index hit a high of 5,894.10 in intraday trade, its highest level since 21 February 2013. The index hit a low of 5,883 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,024 shares rose and 343 shares fell. A total of 58 shares were unchanged.
Among the 30-share Sensex pack, 25 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) edged higher after the telecom department on Thursday, 7 March 2013, cleared a proposal to allow companies with Internet permits to also offer basic mobile telecom services by paying a one-time license-conversion fee. The stock was up 0.96% at Rs 843.65. RIL's telecom unit, Reliance Jio Infocomm, has frequencies to provide broadband Internet across India. Under the new rule, RIL will have to pay about Rs 1658 crore to also provide voice services.
The Finance Minister said in his speech while presenting the Union Budget 2013-14 on 28 February 2013 that the oil and gas exploration policy will be reviewed to move from profit sharing to revenue sharing contracts. The natural gas pricing policy will be reviewed and uncertainties regarding pricing will be removed. NELP blocks that were awarded but are stalled will be cleared. A policy to encourage exploration and production of shale gas will be announced.
Telecom stocks edged higher after the telecom department on Thursday, 7 March 2013, cleared a proposal to allow companies with Internet permits to also offer basic mobile telecom services by paying a one-time license-conversion fee. MTNL, Tata Teleservices (Maharashtra), Reliance Communications, Idea Cellular and Bharti Airtel rose by 0.13% to 1.96%.
Index heavyweight and cigarette major ITC advanced 0.98% to Rs 294.60. The government raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14 which was unveiled on Thursday, 28 February 2013.
L&T rose 0.52%. The company after trading hours on Thursday, 7 March 2013, said that the company as a licensee of CMI Energy, Belgium, has signed an agreement with CMI Energy, Belgium for extension of L&T's license territory to manufacture and supply small heat recovery steam generators (HRSGs) installed behind gas turbines below 80 megawatts (MW) to South East Asia and the Middle East. Under this agreement, L&T will have the exclusive rights to apply CMI technology in these markets for manufacturing and supplying single wide HRSGs installed behind gas turbines below 80 MW. L&T and CMI Energy will jointly develop/improve the existing CMI design to suit the client requirements in the extended territory. This will allow CMI and L&T to improve their competitiveness in the regions, L&T said.
HRSGs are used widely in combined cycle power plants and cogeneration applications in process industry. Over the past decade, the market for small HRSGs represents 24% share in terms of number of units sold worldwide, L&T said. This market is poised to grow by 3.5% per year over the next decade, L&T said. CMI Energy and L&T intend to be the key players in this market by attracting a minimum 10% market share, L&T said in a statement.
Mahindra & Mahindra (M&M) gained 1.45% after the company said before market hours today, 8 March 2013, that the tool down strike by employees of the company's Nashik plant which started on 5 March 2013 as well as the proposed strike from 11 March 2013 has been called off. Operation in all shifts is expected to be normal soon, M&M said in a statement. The management and union will continue their ongoing dialogue so as to reach a mutual agreement, M&M said. The management expects the production loss to be made good, M&M said.
Rashtriya Chemicals and Fertilizers jumped 3.99% to Rs 45.60. The Government of India is selling 6.89 crore equity shares of state-run Rashtriya Chemicals and Fertilizers (RCF), constituting about 12.5% of the total equity share capital of RCF, through Offer for Sale (OFS) via the stock exchanges mechanism today, 8 March 2013. The OFS began at 9:15 IST and ends at 15:30 IST. The floor price for the OFS has been set at Rs 45 per share.
Data on advance tax payment for the final installment of the current fiscal year which is 15 March 2013, could provide cues on the likely Q4 March 2013 corporate earnings.
Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 13 June 2013, while the deadline for state-run firms is 13 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014.
The Central Statistics Office (CSO) will unveil data on industrial production for January 2013 and also data on the combined consumer price index for rural and urban India for February 2013 on 12 March 2013. The CSO will unveil data on inflation based on the wholesale price index for February 2013 on 14 March 2013.
The Budget Session of the Parliament which began on 21 February 2013 will conclude on 10 May 2013. In order to enable the Standing Committees to consider the Demands for Grants of Ministries/Departments and prepare their Reports, the two Houses will adjourn for recess on 22 March 2013 to meet again on 22 April 2013.
The government has lined up a number of key bills for consideration and passing during the ongoing Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008.
The Reserve Bank of India (RBI) undertakes mid-quarter review of Monetary Policy 2012-13 on 19 March 2013. The central bank on 29 January 2013 signaled after a monetary policy review that there is less room for aggressive policy rate cuts amid any negative surprise emanating from inflation and the twin deficits viz. the current account deficit and the fiscal deficit.
Asian stocks edged higher on Friday, 8 March 2013, as Japan's economy returned to growth and jobless claims in the US dropped, adding to signs the global economy is recovering. Key benchmark indices in Indonesia, Hong Kong Japan and Taiwan rose by 0.74% to 2.1%. Key benchmark indices in, Singapore, China and South Korea fell by 0.1% to 0.2%.
Trade data out from China on Friday, 8 March 2013, showed that the country recorded a surprise $15.3 billion trade surplus in February 2013, confounding expectations the economy would swing to a trade deficit due to seasonal weakness from the weeklong Chinese Lunar New Year holiday last month. February's exports were 21.8% higher than a year earlier, when the Lunar New Year fell in January, while imports were 15.2% lower than the year-earlier month.
Japan's economy pulled out of its 2012 downturn faster than previously estimated, according to revised GDP data released on Friday, 8 March 2013, providing a tailwind to the government's pro-growth policies. The government said GDP rose at a price-adjusted 0.2% in annualized terms in the fourth quarter, up from the previous reading of a 0.4% contraction. That follows annualized declines in the April-June and July-September periods. The revision was due largely to a smaller drop in corporate capital expenditures than initially reported, as well as to a small increase in private consumption.
Other data released on Friday, 8 March 2013, showed the third straight month of shortfall in Japan's current account as the country's trade balance deteriorated. The current account deficit came to 364.8 billion yen in January 2013 before seasonal adjustments, the government said, after a 264.1 billion yen deficit in December 2012. The current account is the broadest measure of what Japan earns from trade and cross-border investment.
US stocks edged higher on Thursday, 7 March 2013, after a six-week low for jobless claims added to optimism over the US employment picture ahead of the key February nonfarm payrolls due out later on Friday, 8 March 2013.
The influential US non-farm payroll data for February 2013 is due later in the global day today, 8 March 2013.
The Federal Open Market Committee (FOMC) holds a two-day meeting on the interest rates in the United States on 19 and 20 March 2013.
In Europe, the European Central Bank (ECB) kept interest rates steady on Thursday, 7 March 2013. At its monthly policy meeting, the ECB held its main refinancing rate at a record-low 0.75%. ECB cut its forecasts for the euro zone economy for this year and next but kept its forecasts for inflation broadly unchanged. In a new outlook given after its monthly policy meeting, the ECB foresaw gross domestic product (GDP) declining by between 0.9% and 0.1% in 2013, lowering the top end of the forecast which had held out some hope of growth this year. It also cut its forecast for growth next year to 0% and 2% from between 0.2% and 2.2% in its previous forecast.
The Bank of England decided to keep its benchmark interest rate unchanged on Thursday, 7 March 2013, amid doubts about the strength of Britain's economic recovery. The central bank left its interest rate at 0.5%, a record low, and also held its program of economic stimulus unchanged at 375 billion, or about $560 billion.
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