Key benchmark indices extended gains to hit fresh intraday high in afternoon trade as European stocks edged higher in early trade there. The barometer index, the S&P BSE Sensex, the 50-unit CNX Nifty, both, hit over one-week high. The Sensex was up 200.70 points or 1.06%, up close to 280 points from day's low and off about 15 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Except BSE Metal index, all the other sectoral indices on BSE were in the green.
Capital goods pivotals rose on renewed buying. Bank stocks gained after the Reserve Bank of India (RBI) governor D. Subbarao said at a banking conference in Mumbai that that "perhaps" there was a need to reduce the reserves that banks have to set aside via the cash reserve or the statutory liquidity ratios.
Key benchmark indices reversed direction after an initial slide triggered by weak industrial production data for June 2013 released by the government after trading hours on Monday, 12 August 2013. Key benchmark indices pared gains after striking fresh intraday high in morning trade. The Sensex moved past the psychological 19,000 mark. Key benchmark indices extended intraday gains and hit fresh intraday high in mid-morning trade. The Sensex and 50-unit CNX Nifty, both, hit one-week high. The market extended gains in early afternoon trade. The market hit fresh intraday high in afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 12 August 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 408.35 crore on Monday, 12 August 2013, as per provisional data from the stock exchanges.
The rupee recovered against the dollar in choppy trade. The partially convertible rupee was hovering at 61.22, stronger than its close of 61.2750/2850 on Monday, 12 August 2013. The rupee had record low of 61.80 in intraday deals on 6 August 2013.
At 13:20 IST, the S&P BSE Sensex was up 200.70 points or 1.06% to 19,147.68. The index jumped 214 points at the day's high of 19,160.98 in afternoon trade, its highest level since 5 August 2013. The index fell 82.17 points at the day's low of 18,864.81 in early trade.
The CNX Nifty was up 57.05 points or 1.02% to 5,669.45. The index hit a high of 5,677 in intraday trade, its highest level since 5 August 2013. The index hit a low of 5,578.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,247 shares gained and 754 shares fell. A total of 135 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks gained and rest of them declined. M&M (up 3.82%), NTPC (up 2.89%) and Wipro (up 2.63%), edged higher.
Capital goods pivotals gained on renewed buying. L&T rose 0.93%. The stock turned ex-dividend today, 13 August 2013, for dividend of Rs 12.33 per share for the year ended 31 March 2013 (FY 2013).
Bhel gained 1.5%.
Bank stocks gained after the Reserve Bank of India (RBI) governor D. Subbarao said at a banking conference in Mumbai that that "perhaps" there was a need to reduce the reserves that banks have to set aside via the cash reserve or the statutory liquidity ratios. The cash reserve ratio, or the amount of cash lenders must deposit with the Reserve Bank of India, stands at a record low of 4%. Meanwhile, the statutory liquidity ratio, which includes securities such as government bonds, stands at 23%. Subbarao's tenure as RBI governor ends on 4 September 2013.
ICICI Bank rose 1.26% to Rs 877.15. The stock reversed direction after hitting a 52-week low of Rs 851.30 in intraday trade today, 13 August 2013.
Kotak Mahindra Bank gained 0.66%, with the stock reversing intraday losses. The bank has raised the base rate by 25 basis points to 10% per annum with effect from 13 August 2013. All categories of loans (other than exceptions permitted by RBI) will henceforth be priced with reference to the revised base rate, the bank said. The bank has also raised its benchmark prime lending rate (BPLR) by 25 basis points with effect from 13 August 2013. The announcement was made after market hours on Monday, 12 August 2013.
HDFC Bank gained 2.1%.
Among PSU bank stocks, Canara Bank, Bank of India, Bank of Baroda and Punjab National Bank gained by 0.67% to 1.1%.
United Bank of India rose 1.22%, with the stock reversing intraday losses. The bank's net profit declined 74.27% to Rs 44.73 crore on 14.79% growth in total income to Rs 2868.81 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Monday, 12 August 2013. United Bank of India's ratio of gross non-performing assets (NPA) to gross advances increased to 5.59% as on 30 June 2013, from 4.25% as on 31 March 2013 and 3.47% as on 30 June 2012. The ratio of net NPA to net advances increased to 3.86% as on 30 June 2013, from 2.87% as on 31 March 2013 and 1.77% as on 30 June 2012.
United Bank of India's capital adequacy ratio (CAR) as per Basel II norms stood at 11.74% as on 30 June 2013, as against 11.66% as on 31 March 2013 and 12.5% as on 30 June 2012. CAR as per Basel III norms stood at 10.82% as on 30 June 2013.
The bank's provisions and contingencies surged 73.31% to Rs 506.08 crore in Q1 June 2013 over Q1 June 2012.
State Bank of India (SBI) lost 0.25%, with the stock extending Monday's 3.41% losses triggered by weak Q1 results. SBI's net profit declined 13.6% to Rs 3241.08 crore on 11.65% growth in total income to Rs 36192.62 crore in Q1 June 2013 over Q1 June 2012. SBI announced the first quarter numbers during trading hours on Monday, 12 August 2013.
The Reserve Bank of India (RBI) on 8 August 2013, announced fresh steps to drain cash from the banking system, as it stepped up efforts to stop the rupee's decline against the dollar. The RBI on 8 August 2013, said it would sell Rs 22000-crore of short-term cash management bills every week on Monday. The sale is in addition to Rs 12000-crore of Treasury bills and Rs 15000-crore of sovereign bonds the government sells every week to fund its fiscal gap.
Industrial production registered a contraction of 2.2% in June 2013, data released by the government after trading hours on Monday, 12 August 2013, showed. Mining production registered a decline of 4.1% and manufacturing production fell 2.2%. Electricity generation remain stagnant in June 2013. As per use-based classification, production of basic goods declined 1.9% in June 2013. Capital goods production fell 6.6%. Production of intermediate goods rose 1.1%. Consumer goods production declined 2.3%. Production of consumer durables declined 10.5%. Production of consumer non-durables rose 5%.
On a cumulative basis, industrial production registered a contraction of 1.1% during April-June 2013.
Inflation based on the consumer price index (CPI) eased in July 2013, data released by the government after trading hours on Monday, 12 August 2013, showed. The combined consumer price index (CPI) for urban and rural India eased to 9.64% in July 2013, from 9.87% in June 2013. The data showed that inflation under the category 'food and beverages' stood at 11.24% in July 2013.
European stocks gained for a fourth straight day on Tuesday, 13 August 2013, with investors awaiting the latest report on German business confidence, the ZEW survey, and US retail sales later in the day. Key benchmark indices in France, Germany and UK were up 0.33% to 0.69%.
Asian markets were trading higher on Tuesday, 13 August 2013, led by sharp upmove in Japanese shares which rose after yen eased following a report on Tuesday that said the Prime Minister Shinzo Abe is considering a corporate tax cut as a way to offset the impact of a planned two-stage increase in the sales tax. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, South Korea, Japan and Taiwan were up by 0.23% to 2.57%.
Japan's core machinery orders, seen as a leading indicator of capital spending, fell 2.7% in June, the Cabinet Office said Tuesday. Core machinery orders, which exclude volatile purchases for power-generation equipment and ships, can nonetheless vary wildly from month to month: They rose 10.5% in May, fell 8.8% in April, and rose 14.2% in March. A quarterly forecast included with the June results showed expectations the orders would fall 5.7% in the July-September period compared to the previous quarter.
Trading in US index futures indicated that the Dow could gain 36 points at the opening bell on Tuesday, 13 August 2013. US stocks closed a low-volume, light-news session with slight losses on Monday, though the technology-dominated Nasdaq Composite managed a gain.
Data on US retail sales for July 2013 is due for release later in the global day today, 13 August 2013.
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